Workmen Compensation

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10 Things business owners must do to comply with Workmen’s Compensation Act, 1923 &Factories Act, 1948

The Workmen’s Compensation Act 1923 and Factories Act, 1948 protects the interest of the workers and also provides financial liability protection to employers. The Acts intends to improve working conditions and regulates 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. Complying with the Acts is critical for an employer to ensure that they can get complete policy coverage and can adequately cover the compensation amount.

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

  1. First, 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.
  1. Draft statements to announce general policy of health and safety in work place and steps for their implementation.
  2. Appoint safety officers in factory.
  3. Draw up on-site emergency plan and detailed disaster control measures for his factory.
  4. Create awareness among workers and neighbouring people about the safety measures to be taken in case of an accident.
  5. Set up a Safety Committee with equal representation of workers and management.This is done to give equal responsibility to workers and management so as to maintain proper safety and health at work. They need to periodically review the measures taken in that direction.
  6. Take immediate remedial action in case of any imminent danger and submit an action report to the nearest inspector.
  7. Undertake safety and occupational health surveys and bring adequate changes as per the result.
  8. Appoint qualified and experienced people to handle hazardous substances.
  9. Pay compensation to the worker in case of any injury (given under workmen’s compensation act) suffered by the workmen.

Why it is important to Comply With 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 help them mitigate the risk through a well-structured insurance policy.

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