The Employee’s Compensation (Amendment) Act,2017

The Employee’s Compensation (Amendment) Bill,2016 was introduced in Lok Sabha on August 5, 2016 by the Minister for Labour and Employment, Mr. Bandaru Dattatreya.

The Bill was passed by Lok Sabha on the 9 th August, 2016, and transmitted to Rajya Sabha for its concurrence. Rajya Sabha passed the Bill with two minor amendments at its sitting held on the 22nd March, 2017 and returned it to Lok Sabha on 23rd March, 2017.

Amendments 1. That at page 1, line 1, for the word "Sixty seventh", the word "Sixty-eighth" be substituted. 

                                                CLAUSE 1 

Amendments 2. That at page 1, line 3, for the figure "2016", the figure "2017" be substituted.

On April 5, 2017 Lok Sabha approved the amendments made by the Rajya Sabha

• The Bill amends the Employee’s Compensation Act, 1923. The Act provides payment of compensation to employees and their dependants in the case of injury by industrial accidents, including occupational diseases.

• Duty to inform employee of right to compensation:

• The Bill introduces a provision which requires an employer to inform the employee of his right to compensation under the Act. Such information must be given in writing (in English, Hindi or the relevant official language) at the time of employing him.

• Penalty for failure to inform: The Bill penalises an employer if he fails to inform his employee of his right to compensation. Such penalty may be between 50,000 to one lakh rupees.

• Appeals from the Commissioner’s order: The Act permits appeals against the Commissioner’s orders related to compensation, distribution of compensation, award of penalty or interest, etc. However, this is only if the amount in dispute is at least 300 rupees. The Bill raises this amount to 10, 000 rupees. It permits the central government to further raise this amount. 

The following Act of Parliament received the assent of the President on the 12th April, 2017, and is hereby published for general information:—

THE EMPLOYEE’S COMPENSATION (AMENDMENT) ACT, 2017

NO. 11 OF 2017 [12th April, 2017]

An Act further to amend the Employee’s Compensation Act, 1923.
BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:—

1. Short title and commencement.– (1) This Act may be called the Employee’s Compensation (Amendment) Act, 2017.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. Insertion of new Section 17A.- In the Employee’s Compensation Act, 1923 (hereinafter referred to as the principal Act), after Section 17, the following section shall be inserted, namely:—

“17A. Duty of employer to inform employee of his rights.– Every employer shall immediately at the time of employment of an employee, inform the employee of his rights to compensation under this Act, in writing as well as through electronic means, in English or Hindi or in the official language of the area of employment, as may be understood by the employee.”.

3. Amendment of Section 18A.– In the principal Act, in Section 18A, in sub-section (1),—

(i) in clause (d), for the word and figures “Section 16,”, the words and figures “Section 16, or” shall be substituted;
(ii) after clause (d), the following clause shall be inserted, namely:—

“(e) fails to inform the employee of his rights to compensation as required under Section 17A,”;

(iii) in the long line, for the words “which may extend to five thousand rupees”, the words “which shall not be less than fifty thousand rupees but which may extend to one lakh rupees” shall be substituted.

4. Amendment of Section 30.– In the principal Act, in Section 30, in sub-section (1), in the first proviso, for the words “three hundred rupees”, the words “ten thousand rupees or such higher amount as the Central Government may, by notification in the Official Gazette, specify” shall be substituted.

5. Omission of Section 30A. — Section 30A of the principal Act shall be omitted.

Ministry of Law and Justice