The Workmen’s Compensation Act 1923 and Factories Act, 1948 protect the interest of the workers and also provides financial liability protection to employers. The Acts intends to improve working conditions and regulate the health and safety of young persons, women, and children employed in the factories. Workmen’s Compensation policy also pays for legal costs and the costs awarded by the worker courts. Hence, it provides financial relief to organizations. Thus, the business owners’ must Comply with workmen compensation act, to ensure that they can get complete policy coverage and can adequately cover the compensation amount.
The Workmen’s Compensation Act 1923 is a social security legislation that provides for the payment of compensation by employers to workers who are injured or disabled during the course of their employment. The act applies to employees earning less than a specified amount per month and covers both physical and mental disabilities.
Under the act, employers are required to provide compensation for medical expenses, lost wages, and permanent or partial disability. The amount of compensation varies depending on the nature and severity of the injury, with higher compensation provided for more serious injuries. The act applies to employees earning less than a specified amount per month and covers both physical and mental disabilities.
The act also provides for the establishment of the Workmen’s Compensation Commissioner to oversee the implementation of the act and resolve disputes between employers and workers.
10 important points to ensure compliance with the Workman Compensation Act, 1923 and the Factories Act, 1948
There are a few things that an employer should keep in mind such as
- First, a major compliance step towards the policy is to maintain a safe and healthy working condition, and for that, they must take the following steps:
- Maintain plant and systems of work properly. It should also ensure proper use of systems, handling, storage and transport of articles and substances
- Give out relevant information, instruction, training and supervision
- Furnish accurate and up-to-date medical records of factory workers
- Spend on welfare facilities like lunch rooms, canteen, crèche, washing facilities, first-aid appliances etc. for all workers, and to appoint a welfare officer.
- Draft statements to announce a general policy of health and safety in the workplace and steps for their implementation.
- Appoint safety officers in the factory.
- Draw up an on-site emergency plan and detailed disaster control measures for his factory.
- Create awareness among workers and neighbouring people about the safety measures to be taken in case of an accident.
- Set up a Safety Committee with equal representation of workers and management. This is done to give equal responsibility to workers and management to maintain proper safety and health at work. They need to periodically review the measures taken in that direction.
- Take immediate remedial action in case of any imminent danger and submit an action report to the nearest inspector.
- Undertake safety and occupational health surveys and bring adequate changes as per the result.
- Appoint qualified and experienced people to handle hazardous substances.
- Pay compensation to the worker in case of any injury (given under the workmen’s compensation act) suffered by the workmen.
Why is it important to Comply With the Above Acts?
Non-compliance with the above-mentioned acts can result in legal action by the worker courts and make it financially burdensome to cope with unexpected mishaps at the workplace. Knowing the compliance requirements of workmen compensation acts is important for an employer. Being aware of the above points helps them mitigate the risk through a well-structured insurance policy.
Overall, the Workmen’s Compensation Act 1923 provides important protections for workers in India and ensures that they receive fair compensation for injuries and disabilities suffered on the job.
About The Author
Rahul Kumar
MBA Finance
With a wealth of experience in the insurance industry, Rahul is a seasoned writer specializing in articles related to workmen compensation policies (WC policies) for SecureNow. With 12 years of experience in the field, he has acquired in-depth knowledge and expertise in workmen compensation insurance, understanding its complexities and nuances. Their insightful articles provide valuable insights into the importance of WC policies for businesses and employees alike, offering practical advice and guidance on navigating the intricacies of insurance coverage. Trust him to deliver informative and engaging content, backed by years of experience and a passion for educating readers about insurance-related topics.
