Section 150: Liability of the employer to pay compensation.

Understanding Employer Liability for Worker Compensation

1. General Rule: Employer's Duty to Pay Compensation

If a worker gets hurt while doing their job, the employer must pay them compensation according to the rules in this section.

2. Exceptions: When Employers Don't Have to Pay Compensation

An employer does not have to pay compensation if:

• The worker's injury does not make them unable to work for more than three days.
• The injury was caused by the worker being drunk or on drugs.
• The worker disobeyed clear safety orders or rules.
• The worker ignored or removed safety equipment on purpose.

3. Occupational Diseases: Special Cases

If a worker gets a specific disease related to their job:

• For jobs listed in Part-A of the Third Schedule: If the worker gets a disease listed as common for that job, it's treated like an injury from an accident.
• For jobs listed in Part-B of the Third Schedule: If the worker has been in the job for at least six months and gets a listed disease, it's also treated like an injury from an accident.

Unless the employer can prove otherwise, these diseases are assumed to have been caused by the job.

A worker's service is considered continuous if they move to a similar job with another employer without a break.

4. Government Updates

The government can add new jobs and diseases to the list by official announcement. These additions will be treated as if they were always part of the law.

5. Other Diseases

No compensation is given for diseases unless they are directly caused by a work-related accident.

6. Legal Action and Compensation

A worker cannot claim compensation if they are already suing the employer for damages in civil court for the same injury.

7. Lawsuits and Compensation Claims

A worker cannot file a lawsuit for damages if:

• They have already applied for compensation through the Labour Court.
• They have an agreement with the employer for compensation according to these rules.

8. Definition of “Worker”

A “worker” includes anyone employed directly by the employer or through a contractor, including:

• Railway workers (not in administrative or specific posts).
• Workers in posts listed in the Fourth Schedule.

This applies whether the employment agreement is written or verbal, explicit or implied.

If the worker dies, their dependents can claim compensation.

The activities of local authorities or government departments are considered part of their business for these rules.

Section 151: Amount of compensation

Main Points

1. General Rule: The amount of money (compensation) a person gets depends on the kind of injury they have and how it affects them. There are different rules for different situations.
2. Situations Covered:
   • Death: If a person dies because of an injury from their job, their family gets a certain amount of money. This amount is listed in a table called the “Fifth Schedule.” This money is extra on top of any other money they might get if they lost their job for other reasons (like being fired or quitting).
   • Permanent Total Disablement: If a person is so badly hurt that they can never work again, they get a different amount of money. This amount is also listed in the “Fifth Schedule.”
   • Permanent Partial Disablement: If a person is permanently hurt but can still work in some capacity, the amount of money they get depends on how badly they are hurt:
     • If the injury is listed in a specific table called the “First Schedule,” they get a certain percentage of the money they would get if they couldn't work at all.
     • If the injury is not listed in the “First Schedule,” they get a percentage of the money based on how much their ability to work has been reduced.
   • Temporary Disablement: If a person is temporarily hurt and cannot work for a while, they get monthly payments. These payments start after four days of being unable to work. The payments continue until they can work again or until a certain period mentioned in the “Fifth Schedule” ends, whichever comes first.
3. Multiple Injuries: If a person has more than one injury from the same accident, the total money they get is calculated by adding up the compensation for each injury. However, the total cannot be more than what they would get if they were permanently and totally unable to work.
4. Stopping Payments: If a person gets better before the next monthly payment is due, they only get part of the payment for the time they were still disabled that month.

Section 152: Method of Calculating Wages

1. How to Calculate Monthly Wages:
   • (a) If the worker has worked for the employer for at least 12 months before the accident:
     • Add up all the wages the worker earned from the employer in the past 12 months.
     • Divide this total by 12 to get the average monthly wage.
   • (b) If the worker has worked for the employer for less than 1 month before the accident:
     • Find the average monthly wage of another worker doing the same job for the same employer in the past 12 months.
     • If no such worker exists, find the average monthly wage of a worker doing a similar job in the same area.
   • (c) For other situations:
     • Calculate the total wages earned from the employer right before the accident.
     • Multiply this total by 30.
     • Divide the result by the number of days worked right before the accident.
   • Explanation:
     • A period of work is considered “continuous” if it is not interrupted by more than 14 days of absence from work.

Section 153: Review of Compensation

1. Review of Monthly Compensation:
   • Compensation (money paid to the worker) can be reviewed by the Labour Court if:
     • (a) An application is submitted with a medical certificate:
       • Either the employer or the worker can apply if they have a certificate from a registered doctor stating that the worker’s condition has changed.
     • (b) An application is submitted on the grounds of fraud or mistake:
       • Either the employer or the worker can apply if they believe the compensation amount was set based on fraud, undue influence, or other improper means, or if it is clearly wrong based on the records.
2. Possible Outcomes of the Review:
   • The compensation amount can be:
     • Continued as it is
     • Increased
     • Decreased
     • Stopped
   • If the accident results in permanent disablement (the worker cannot work permanently), the monthly compensation can be converted into a lump sum (a single large payment).
     • Any amount already paid as monthly compensation will be deducted from this lump sum.

Section 154: Payment of monthly compensation by lump-sum

1. Agreement on Lump-Sum Payment:

• The employer and the worker can agree to replace monthly compensation payments with a one-time lump-sum payment.
• This means instead of getting paid every month, the worker can receive a big payment at once if both parties agree.

2. No Agreement, but Payment for Six Months:

• If there is no agreement and the worker has been getting monthly compensation for at least six months, either the worker or the employer can ask the Labour Court to decide on a lump-sum payment.
• The Labour Court will determine the amount of this lump-sum payment.

Section 155: Distribution of compensation

1. Depositing Compensation for Deceased or Legally Disabled Workers:

• If a worker dies from an injury, the compensation must be deposited with the Labour Court, not paid directly to the worker’s family.
• If a worker is legally disabled (e.g., minor or mentally incapacitated), any lump-sum compensation must also be deposited with the Labour Court.

2. Direct Payment to Nominated Heir:

• If the employer directly pays compensation to the worker's heir (a family member chosen by the worker before death), this is only valid if the worker had nominated this heir following the rules. Otherwise, it’s not considered proper compensation.

3. Advance Payment in Case of Death:

• If a worker dies, the employer can make an advance compensation payment to any of the worker’s dependents.
• The Labour Court will subtract this advance from the total compensation and return it to the employer.
• Money spent on the worker's burial, treatment, or transportation of the body won't be deducted from the advance or the final compensation.

4. Depositing Other Compensation:

• Any other compensation should also be deposited with the Labour Court for the person entitled to it.

5. Receipt from Labour Court:

• A receipt from the Labour Court for the deposited compensation is proof that the compensation has been paid.

6. Notifying Dependents:

• After depositing compensation for a deceased worker, the Labour Court may notify the dependents to come forward for the distribution process.
• The notice can be published or served in any way the Court finds suitable.

7. No Dependents Found:

• If no dependents are found after two years of depositing the compensation, the Labour Court will transfer the money to a government-specified workers' welfare fund.

8. Detailed Statement for Employer:

• The Labour Court will provide a detailed statement to the employer about how the compensation was distributed if the employer requests it.

9. Distribution Among Dependents:

• The Labour Court will decide how to divide the compensation among the dependents or may give it all to one dependent as it sees fit.

10. Payment to Entitled Persons:

• The Labour Court will pay the compensation to the entitled person directly if they have no legal disabilities.

11. Investment for Legally Disabled Persons:

• If the entitled person is legally disabled, the compensation may be invested or used in a way that benefits them during their disability as directed by the Labour Court.

12. Payment to Dependents or Others:

• If a half-monthly compensation is due to someone legally disabled, the Labour Court may order it to be paid to a dependent or someone else who will look after the disabled person's welfare.

13. Variation of Orders:

• The Labour Court can change its orders about distributing compensation if it finds reasons like parental negligence or change in dependents’ circumstances.
• Before changing any order that affects someone negatively, the Court must give them a chance to explain their situation.

14. Recovery of Compensation Paid by Fraud:

• If the Labour Court finds that compensation was obtained by fraud or improper means, it can recover that money from the person who received it wrongly, following the rules in section 329.

Section 156: Prohibition to Assign, Attach or Charge Compensation

• This section says that the compensation (money) given to a worker who gets injured or dies at work cannot be taken away or given to someone else. This means that the worker or their family members are the only ones who can receive the compensation.

Section 157: Notice and Claim

• Notice Requirement: If a worker wants to claim compensation for an accident, they must:
  • Give notice (inform) about the accident as soon as possible after it happens.
  • Submit their claim within 2 years of the accident. If the worker died because of the accident, the claim must be submitted within 2 years of the death.
• For Disease-related Accidents: If the accident is due to a disease:
  • The accident is considered to have happened on the first day the worker couldn't work because of the disease.
• Exceptions to Notice Requirement: Not giving notice will not prevent a claim if:
  • The accident resulted in death at the employer's house or worksite, and the worker died there or nearby.
  • The employer or someone responsible for managing the business knew about the accident around the time it happened.
• Late Claims: The Labour Court can still consider a claim even if notice wasn't given or the claim wasn't submitted on time, if there is a good reason for the delay.
• Content of Notice: The notice must include:
  • The injured person’s name and address.
  • The cause of the injury.
  • The date of the accident.
  • It should be written in simple language and given to the employer or a responsible person in the business.
• How to Serve Notice: The notice can be given by:
  • Delivering it to the residence, office, or business place of the employer or responsible person.
  • Sending it by registered post.
  • Entering it in a notice-book if one is maintained.

158. Power to Require Employer’s Statement on Fatal Accident

• Request for Statement: If the Labour Court learns that a worker died due to an accident at work, it will:
  • Send a registered letter to the employer, asking for a detailed statement within 30 days. The statement should explain the circumstances of the death and whether the employer thinks they owe compensation.
• Employer’s Liability:
  • If the employer agrees they owe compensation, they must deposit it within 30 days.
  • If the employer believes they don’t owe compensation, they must explain why in their statement.
• Dispute: If the employer denies liability, the Labour Court will:
  • Inform the worker's dependents (family) that they can file a compensation claim.
  • Provide them with necessary information.

159. Report of Fatal Accident

• Reporting Requirement: If any law requires a report of a worker's death due to an accident at the employer's site:
  • The employer or someone on their behalf must send a report to the Labour Court within 7 days of the death.
  • The report should include the cause and circumstances of the death.

Section 160: Medical Examination Requirements

1. Reporting an Accident:
   • If a worker tells their employer about an accident, the employer must have the worker examined by a doctor within three days. The employer pays for this examination. The worker must go to the examination unless the injury is too serious to move, in which case the doctor will come to the worker's location.
2. Continued Compensation:
   • If a worker is receiving regular payments because of an injury, they may need to be examined by a doctor from time to time to continue receiving these payments.
3. Worker's Own Examination:
   • If the employer does not arrange a doctor's examination, the worker can see a doctor on their own. The employer must pay for this examination.
4. Examination Rules:
   • Workers can only be ordered to go for a medical examination according to specific rules and on certain days set by these rules.
5. Refusal to be Examined:
   • If a worker refuses to go for a medical examination when told by the employer or the Labour Court, or obstructs the examination, their compensation will stop until they comply. The only exception is if the worker has a valid reason for refusing.
6. Leaving the Area:
   • If a worker leaves the area without getting the required examination, their compensation will stop until they return and get examined.
7. Death Before Examination:
   • If a worker dies before getting the required examination, the Labour Court can decide to pay compensation to the worker's dependents.
8. Suspension of Compensation:
   • No compensation will be paid for the time when a worker’s right to compensation is suspended. If this suspension period overlaps with the waiting period for compensation, the waiting period is extended by the suspension time.
9. Refusal of Treatment:
   • If a worker refuses free medical treatment offered by the employer or does not follow the doctor's instructions, and this makes their injury worse, the compensation will be based on the expected condition if they had followed the treatment correctly.
10. Disagreement with Examination Report:
    • If either the employer or worker disagrees with the doctor's report, they can request a re-examination by a higher-ranked medical specialist. The cost of this re-examination will be covered by the party requesting it.
11. Insurance Scheme:
    • Employers with at least 10 workers can create a group accident insurance scheme. The benefits from this insurance must be used for treating the workers.

Section 161: Compensation in the Case of a Contract

1. Subcontracted Work:
   • If an employer hires another person (contractor) to do work that is part of the employer's usual business, the employer must pay compensation to any worker employed by the contractor as if they were directly employed by the employer.
2. Payment of Compensation:
   • The main employer is responsible for paying all compensation.
3. Contractor's Responsibility:
   • If the main employer believes the accident happened due to the contractor's rule violations, the employer can ask the Labour Court to decide how much the contractor should repay. The main employer must first pay the full compensation or deposit it with the Labour Court. The Labour Court will decide within 45 days.

Section 162: Insolvency of the employer

Understanding Employer Insolvency and Worker Protection

This section talks about what happens if an employer goes bankrupt (becomes insolvent) and can't pay their workers.

1. Employer's Insurance and Insolvency

• Insurance Contract: Employers often have insurance to cover their responsibilities to their workers.
• Insolvency or Arrangement: If the employer goes bankrupt or makes a deal with creditors, or if the employer is a company that starts closing down (winding up):
  • Transfer of Rights: The rights that the employer had against the insurance company are now transferred to the workers.
  • Insurer's Role: The insurance company will act as if they were the employer. They will have the same rights and responsibilities, but won't have to pay more than the employer would have.

2. Shortfall in Insurance Payment

• Insurer's Liability: If the insurance company pays less than what the employer owes:
  • Worker's Rights: The worker can claim the difference in the insolvency or liquidation process.

3. Void or Voidable Contracts

• Non-compliance by Employer: If the employer didn't follow the terms of the insurance contract (except for not paying the premium):
  • Insurance Still Valid: The insurance will still be treated as valid.
  • Insurer's Claim: The insurance company can claim back from the employer's estate the amount they paid to the worker.
  • Worker's Responsibility: This doesn't apply if the worker fails to notify the insurer about the accident and resulting injury as soon as they know about the insolvency or liquidation.

4. Priority of Debts

• Order of Payments: If the employer’s liability arose before they were declared insolvent or before the winding up of the company started:
  • Priority in Payment: The worker’s compensation is treated as a priority debt, meaning it gets paid before other debts.

5. Monthly Payments

• Lump Sum Conversion: If the compensation is a monthly payment:
  • Lump Sum Calculation: The amount due is converted into a lump sum. A certificate from the Labour Court will determine this lump sum.

6. Insurer's Claim

• Insurer's Rights: The insurer can claim the amount they paid to the worker from the employer’s estate. However, this doesn't apply if the employer had an insurance contract as described earlier.

7. Voluntary Winding Up

• Exceptions: This section does not apply if the company is being wound up voluntarily (closed down intentionally) for the purpose of reorganizing or merging with another company.