The Employees Compensation (Amendment) Bill, 2016: All You Need to Know


The Employees Compensation (Amendment) Bill, 2016, which has amended the Employee’s Compensation Act, 1923, has been passed by the Parliament.

The approved compensation bill ensures compensation to a maximum of Rs 1 lakh to employees in case of injury due to industrial accident and also imposes heavy penalty on employers in case of any violation.

A brief on Employees Compensation Act, 1923

  1. The Employees Compensation Act, 1923 provides employees and their dependants with compensation in case of industrial accidents, which also includes occupational diseases.
  2. Under the act, any dispute related to compensation of employees will be heard by a Commissioner, who has powers of a civil court.
  3. The act also says that appeals from the order of Commissioner, relating to a substantial question of law, will be presented before the High Court when the amount involved in dispute is Rs. 300 or above.

Employees Compensation (Amendment) Bill, 2016: Salient Features/Points

  1. Under the Employees Compensation (Amendment) Bill, 2016, it is compulsory for employers to notify the employee about his/her right to compensation under the amended Act.
  2. The act also makes it mandatory for employers to give in writing the right to compensation information to their employees at the time of starting of the employment. Employer will be heavily penalized if fails to provide the mandatory compensation information to employee.
  3. The penalty charged on employers may range between Rs. 50,000 to Rs. 1 lakh. It also increases amount in dispute related to interest, distribution of compensation, compensation, award of penalty etc. to Rs. 10, 000.
  4. The Employees Compensation (Amendment) Bill, 2016 also permits the central government for raising the penalty charged to employers.
  5. The amended bill has removed the provision of withholding payments that have a pending appeal if an employer has placed an appeal against the order of a Commissioner.


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