Workmen Compensation

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The primary purpose of Workmen’s Compensation Act, 1923, is to provide financial relief to employees’ families. In case of their death or injury at the workplace. The act also provides cover for employees that get an professional disease while in employment.

Enforcing the Workmen Compensation Act, 1923 ensures that employers compensate employees for work-related injuries, disablement, or death. Employers need to have insurance for work-related accidents. They also need to determine the amount of compensation to provide.

This decision is based on various factors such as the severity of the injury, the worker’s wages, and their age. The Act helps workers by giving them money and medical help if they get hurt or sick because of their job.

Reasons For enactment of the Workmen’s Compensation Act

The Act safeguards the interest of employers and employees. Moreover, legislators established the law due to the prevalence of young individuals working in factories, manufacturing, and other simple occupations in the country.

  • The Act promotes the welfare of labourers.
  • Providing a safe and healthy work environment is the responsibility of the employers of this workforce.
  • Workers suffering injury or death because of professional hazards are liable to get compensation. Dependents or the worker him/herself is not in a position to fight the employer for compensation
  • The employer and worker may not reach a reasonable amount when compensation in such cases.

Thus, the Act provided a resolution for compensation in cases of accidents in the workplace.

Case on Purpose of Workmen’s Compensation

After successfully establishing its name in Singapore, R.J. Mills is planning to set up a factory in India. Reports of R.J. Mills looking for a site for setting up its mills have been doing the rounds for quite some time. Finally, the company selected Mumbai as its next mill site.

R.J. Mills plans to use its strong supply chain, built over 20 years, to enter the fast-growing Indian market. However, the company is wary of rising incidents of labour unrest in India. The increasing discontent among workers over issues like wages, working conditions, etc worry the management.

As it will be the first factory of R.J. Mills in India, the company doesn’t want to take any risk. Therefore, it is mulling over every measure to curtail the workers’ unrest. The company has hired a third-party agency for research on the rising level of worker dis-csatisfaction.

The initial report results have shown that the working conditions are one of the prime reasons for unrest. The agency has not received the final report yet.

Steps taken by the Employer

The company has allocated money to ensure employee safety and deal with workplace safety problems. Also, the company has decided to impart training to its employees on safe working practices.

R.J. Mills will also purchase workers’ compensation insurance to cover accidents governed by the Workmen’s Compensation Act. The policy will protect the employer from legal responsibility that may occur if a worker dies or becomes disabled.

While safety measures can protect workers, you cannot entirely eliminate the possibility of workplace accidents. If an employee dies or has an accident while working, the policy will compensate the worker or their family. Therefore, this insurance policy covers R.J. Mills for legal liabilities.”

In summary, The Workmen Compensation Act, 1923 serves as a savior for both employers and employees. “It gives employers a legal structure to compensate employees for work-related injuries. This ensures that employees get financial support and medical help when they face tough situations.”