To,

All our Valued Associates,

Ref:- Various Amendments in Workmen’s Compensation Act 1923 vide notification

S.O. 101(E). dated 18th January 2010.

Dear All,

This is for your ready reference regarding the amendments in Workmen’s Compensation
Act 1923. The new amended act has received the assent of the President on date
18/01/2010. The salient features of the new amended act are as under:-

1.The Workmen’s Compensation Act 1923, now, after the amendment has become the
Employee’s Compensation Act 1923.

2.The new amended Employee’s Compensation Act 1923 has come into force w.e.f
18/01/2010.

3.In the long title of the principal Act, in the preamble of the principal act and throughout
the principal act for the words ‘workman’ and ‘workmen’ words ‘employee’ and
employee’s has been substituted.

4.In sub-section (1) of section 2 after clause (d) a new clause (dd) has been inserted in
which definition of ‘employee’ has been given and the clause (n) has been omitted.

5.In sub-section (1) of section (4) in clause (a) and (b) the amount of compensation has
been enhanced which is as under respectively:-
Clause (a) - One Lakh and Twenty Thousand Rupees in place of the amount ‘eighty
thousand rupees’.
Clause (b) - One Lakh and Fourty Thousand rupees in place of the amount “ninty
thousand rupees”.
And after clause (b) the explanation II has been omitted. Powers to the Central
Government has also been given to enhance the amount of compensation by notification
in the official gazette from time to time.

6.In section (4), a new sub-section (1B) has been inserted in which it is mentioned that
Central Government by notification in Official Gazette for the purpose of sub-section (1)
may specify the monthly wages in relation to an employee as it may consider necessary .

Thus as per this amendment, the Central Government by its notification dated
31/05/2010 in the official gazette vide S.O. 1258(E) specified the amount of ‘eight
thousand rupees’ as monthly wage for the purpose of sub-section (1) w.e.f. 31/05/2010.

7.A new provision for the reimbursement of the actual medical expenses to the employee
incurred by him for treatment of injuries sustained by him during the course of
employment has also been made through the insertion of new sub-section (2A) after sub-
section (2) of section (4).

8.In sub-section (4) of section (4) the amount of the funeral expenses enhanced to a sum
of five thousand rupees in place of two thousand and five hundred rupees.
A proviso has also been added after this sub-section through which powers to inhence
this amount has also been given to the Central Government by notification in the official
gazette from time to time.

9. Sub section (1) of section 20 has also been amended. In place of the words ‘ appoint
any person’ words “ Who is or has been member of a state judicial service for a
period of not less than five years or is or has been for not less than five years an
advocate or a pleader or is or has been a Gazetted Officer for not less than
five years having educational qualifications and experience in personnel
management, human resource development and industrial relations” have been
inserted.
10.A new section 25A has been inserted in which a time limit of three months for the
disposal of the matter relating to the compensation has been provisioned.

11.Schedule II has also been amended and the employees other than clerical capacity &
work are been covered.

This is for your perusal and for necessary compliance.

Regards

( S . R . Rai )
Management Consultant