Employer’s Liability for Compensation under the Employees’ Compensation Act, 1923

TANMOY MUKHERJI INSTITUTE OF JURIDICAL SCIENCE

Dr. Tanmoy Mukherji

Advocate

Employer’s Liability for Compensation under the Employees’ Compensation Act, 1923-

Tanmoy Mukherji

Advocate

The Employees’ Compensation Act, 1923 is a piece of social welfare legislation enacted to secure speedy and cheap compensation to employees or their dependants in cases of employment-related injuries, disablement or death. The Act places a statutory and strict liability upon the employer, independent of negligence or fault.

→The liability of the employer mainly arises under Section 3 of the Act.

1. Liability for Personal Injury Caused by Accident (Section 3)-

Essential Conditions-

For employer’s liability to arise, the following conditions must be satisfied:

2. “In the Course of Employment” – Notional Extension Doctrine-

Employment is not confined to strict working hours or premises.

3. Occupational Diseases (Section 3(2) & Schedule III)

Employer is liable if an employee contracts an occupational disease peculiar to the employment mentioned in Schedule III.

4. No-Fault Liability of Employer-

The employer’s liability is absolute once injury is proved; negligence need not be established.

5. Liability in Case of Death and Disablement (Section 4)-

6. Liability in Case of Contract Labour (Section 12)

Where a contractor employs workers:

→Principal employer is liable to pay compensation

→He may recover it from the contractor

7. Defences Available to Employer (Proviso to Section 3)

8. Employer’s Liability to Pay Compensation Promptly (Section 4A)

Compensation must be paid as soon as it falls due

Delay attracts:

→Interest @ 12% per annum

→Penalty up to 50%

9. Liability Towards Dependants (Section 2(1)(d))-

In case of death, compensation is payable to dependants such as:

The employer’s liability under the Employees’ Compensation Act, 1923 is strict, statutory and welfare-oriented. Through judicial interpretation, courts have consistently expanded the scope of liability to protect employees and their dependants, ensuring social justice and economic security.