Employees Compensation Act 1923

The Act provides payment of Compensation to certain classes of workmen by the Employers for injury which may be suffered by the workmen as a result of an accident during the course of employment and out of employment Employees other than not covered under ESI Act are coming under the Employees Compensation Act.
There has been increasing use of machineries in Industries due to which there is consequent danger to workmen with injuries whiled operating the machines. Hence the workmen are protected from accidents arising due to operation of the machineries.
This act was enacted with a view to guarantee the payment of compensation to workmen incapacitated by any injury from accident arising out of and in the course of employment resulting in total or partial disablement or occupational diseases or death.
The Act provides method of calculation of amount of Compensation based on age, salary drawn, percentage of loss of earning capacity of injured workmen. The Compensation amount should be deposited with Commissioner for Workmen Compensation who investigates the extend of injury, disablement, death etc. and settle the workmen compensation amount to workmen.
The employer should report Fatal Accident and Serious bodily injuries and submit Annual Statement in Schedule to the Authorities .
There is penal provision in case of default by employer is making payment of Compensation and hear interest for delay in paying Compensation.