SOCIAL SECURITY UNDER

EMPLOYEES COMPENSA-
TION ACT, 1923

SUBMITTED TO: SUBMITTED BY:

DR. VIRENDRA NEGI SAGAR DOON
49/14
9TH SEMESTER
B.A. LL.B. (HONS.)
SECTION-A
ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my professor Dr.Vi-

rendra Negi who gave me the golden opportunity to do this Wonderful project
on the topic “Social security under employees compensation Act, 1923 ”,
which also helped me in doing a lot of Research and I came to know about so
many new things I am really thankful to them. Secondly I would also like to
thank my parents and friends who helped me a lot in finalizing this project
within the limited time frame.
- SAGAR DOON

INTRODUCTION
The Employee Compensation Act is the first piece of legislation towards social security. It
deals with compensation for employees who are injured in the course of duty. The scheme
of the Employee Compensation Act is not to compensate the employee in lieu of wages.
The general principle is that an employee who suffers an injury in the course of his em-
ployment, which results in a disablement, should be entitled to compensation and in the
case of a fatal injury his dependants should be compensated. Under the Employee Com-
pensation Act it is the employer who is responsible to pay compensation (as opposed to the
employees State insurance. Establishments to which the Employees’ State Insurance Act
applies to the liability to pay compensation are on the ESI Corporation).

The Employee Compensation Act, 1923 provides for payment of compensation to em-
ployee and their dependants in case of injury and accident (including certain occupational
disease) arising out of and in the course of employment and resulting in disablement or
death. The amount of compensation to be paid depends on the nature of the injury and the
average monthly wages and age of employee. The minimum and maximum rates of com-
pensation payable for death (in such cases it is paid to the dependents of employee) and for
disability have been fixed and is subject to revision from time to time.

The meaning of compensation in this Act is limited to compensation granted under the Act
for employment injuries sustained during the course of work. It is also limited to specifi-
cally monetary compensation other than a salary, travel allowance, and any other form of
remuneration that could be paid under normal circumstances of employment.

The growing complexity of industry in this country with the increasing use of the machin-
ery and consequent danger to employee, along with the comparative poverty to employee
themselves renders it advisable that they should be protected, as far as possible from hard-
ship arising out of accidents.

An additional advantage of a legislations that by increasing the importance for employers

of adequate safety devises, it reduces the number of accidents to employees in a manner
that cannot be achieved by official inspection. Further, the encouragement given to em-
ployers to provide adequate medical treatment for their employees should mitigate the ef-
fects of such accidents as does occur. The benefits so conferred added to the increased
sense of security, which he will enjoy, should render industrial life more attractive and thus
increase the available supply of labour. At the same time a corresponding increase in the
efficiency of the average employees may be expected.”

At the time the framing of the bill two criteria were followed in determining whom the Act
would apply to:
1. Those industries which were more or less organised
2. Employee whose occupations were hazardous.

Nowadays the government (State of Central) may extend the application of this Act to other
establishments of an industry that may not be organised.

It is obligatory for the employers to pay compensation to their employees for injury caused
to a employee by accident, arising out of and in the course of employment, resulting in
death or in total/partial disablement under the Employee Compensation Act. Compensation
is also payable for some occupational diseases contracted by employees during the course
of their employment.

In the year 2010 the Workman Compensation Act had been amended to make it gender
neutral and will now be called “the Employees’ Compensation Act, 1923”.

OBJECT

1. Provide employees and/or their dependents some relief or to consider compensation pay-
able by an employer to his employee in case of accidents arising out of and in the course
 of employment and causing either death or disablement of employee as a measure of
relief and social security.
2. Provide for payment by certain classes of employers to their employees compensation
for injury by accident.
3. To enable an employee to get compensation irrespective of his negligence.
4. It lays down the various amounts payable in case of an accident, depending upon the
type and extent of injury. The employer now knows the amount of compensation he has
to pay and is saved of many uncertainties to which he was subject before the Act came
into force.

FEATURES

 Act provides for cheaper and quicker mode of disposal of disputes through special
proceedings than possible under Civil Laws.
 Act provides compensation to employees for injury caused by accident and occu-
pational disease arising out of and in the course of employment.
 The Act is applicable to apprentices also.
 Procedure for settlement of claim is through Commissioners.

APPLICABILITY

The Act extends to the whole of India and applies to certain categories of railway servants
and employees employed in any capacity specified in Schedule II of the Act which includes
Factories, Mines, and Plantations, Mechanically Propelled Vehicle, Construction Work
and certain other hazardous occupations.
Every employee including those employed through a contractor who is engaged for the
purposes of employer’s business and who suffers an injury in any accident rising out of
and in the course of his employment, shall be entitled for compensation under this Act.

The Act does not, however, apply to –

(i) Persons whose employment is of a casual nature and who are employed for purposes
other than the employers’ trade or business;
(ii) Persons serving in Armed Forces and
(iii) Employees covered by the Employees’ State Insurance Act.

Under Section 3(3) of the Act, the State Governments are empowered to extend the scope
of the Act to any class of persons whose occupations are considered hazardous after giving
three months notice in the Official Gazette.

MAIN PROVISIONS AND SCOPE

1. The Act extends to the whole of India and applies to employees employed in any
capacity specified in Schedule II of the Act which includes Factories, Mines, Plan-
tations, Mechanically Propelled Vehicles, Construction Work and certain other
hazardous occupations and specified categories of Railway Servants. There is no
 wage limit for coverage of employees under the Act. It does not, however, apply to
(i) persons serving in Armed Forces and (ii) employees covered by the Employees’
State Insurance Act, 1948.

2. The State Governments administer the provisions of this Act through the Commis-
sioners appointed for specified areas. The Commissioners thus appointed are em-
powered for (i) settlement of disputed claims, (ii) disposal of cases of injuries in-
volving death, and (iii) revision of periodical payments. They are also empowered
to impose penalty on employers who fail to pay compensation due to the injured
employees within one month.

3. Sub-section (3) of Section 2 of the Act, empowers the State Governments to extend
the scope of the Act to any class of persons whose occupations are considered haz-
ardous after giving three months’ notice, to be published in the Official Gazette.
Similarly, under Section 3(3) of the Act, the State Governments are also empow-
ered to add any other disease to the list mentioned in Parts A and B of Schedule-II,
and the Central Government, in case of employments specified in Part C of Sched-
ule III of the Act. Besides, the State Governments also make rules for ensuring that
the provisions of the Act are complied with.

4. The amount of compensation payable to an employee depends on the nature of in-

jury caused by accident, the monthly wages of the employee, and the age of the
employee concerned. In case of death the minimum amount of compensation fixed
is Rs.1,20,000 whereas it is Rs.1,40,000 in case of permanent total disablement.
The maximum amount of compensation payable is Rs.4.56 lakh in the case of death
and Rs.5.48 lakh in the case of permanent total disablement. Under the maximum
compensation limit, the monthly wage limit of Rs. 4,000 has been increased to Rs.
8,000. These enhanced rates of compensation have come into force w.e.f.
31.05.2010.
5. Compensation is payable under Sub-section (i) of Section 3 of the Act by the em-
ployers in the case of injury, caused by an accident arising out of and in the course
of employment, exceeding 3 days. In cases where the disablement prolongs for 28
days or more, compensation is payable from the date of disablement. No compen-
sation is, however, payable if the injury, not resulting in death, is caused by the
fault of the employee, arising from factors such as influence of alcoholic drinks and
drugs, wilful disobedience of the employee to an order or rule, wilful removal or
disregard by the employee of any safety guard or other device, etc. Besides, under
Sub-section (2) of Section 3 of the Act, compensation is also payable to such em-
ployees who contract occupational diseases in the course of their employment as
specified in Schedule-III of the Act.

DEFINITION OF EMPLOYEE: SECTION 2(1) (n)

Employee means any person who is -
a. a railway servant not permanently employed in any administrative,
district or sub-divisional office of a railway and or not employed in
any such capacity as specified in Schedule II, or

b. (i) a master, seamen or other member of the crew or a ship,

(ii) a captain or other member of the crew of an aircraft,
 (iii) a person recruited as driver, helper, mechanic, cleaner or in any
other capacity in connection with a motor vehicle.
(iv) a person recruited for work abroad by a company,

and who is employed outside India in any such capacity as is speci-

fied in Schedule II and the ship, aircraft or motor vehicle, or com-
pany, as the case may be, is registered in India; or

c. Employed in any such capacity as is specified in Schedule II whether

the contract of employment was made before or after the passing of
this Act and whether such contract is expressed or implied, oral or
in writing; but does not include any person working in the capacity
of the member of the Armed forces of the Union; and any reference
to any employee who has been injured shall, where the employee is
dead, include a reference to his dependants or any of them;

COMPENSATION AND DISABLEMENT

Under the Act, there are four types of eventualities, which can be compensated, namely:

1. Death
2. Permanent Total Disablement: disablement that incapacitates a employee from all
kinds of work.
3. Permanent partial disablement: disablement that reduces the capacity to work in
any employment similar to that the employee was performing at the time of the
accident.
4. Temporary disablement: This may be total or partial disablement, which is of tem-
porary nature, which reduces the earning capacity of the employee in any similar
employment for the period of disablement.
Note: Total disability (i.e. 100% disability) has a different meaning under the Employees
Compensation Act as compared to its meaning in normal language. According to the Act,
disability is determined with reference to the work that the employee was doing immedi-
ately before accident took place and if the resulting injury leaves him incapable of per-
forming any work of a similar nature then his disability is considered as 100%.

Compensation [Sec. 2 (1) (c)]: means compensation as provided for by this Act

Disablement: Disablement means loss of capacity to work or to move. Disablement of a

employee may result in loss or reduction of his earning capacity. In the latter case, he is
not able to earn as much as he used to earn before his disablement. Disablement may be
partial, or total. Further Partial disablement may be permanent, or temporary.

 Partial Disablement [Section 2 (1) (g)]: This means any disablement as reduces
the earning capacity of a employee as a result of some accident. Partial disablement
may be temporary or permanent.
o Temporary partial disablement means any disablement as reduces the
earning capacity of a employee in any employment in which he was en-
gaged at the time of accident which resulted in such disablement.
o Permanent partial disablement is one which reduces the earning capacity
of a employee in every employment which he was capable of undertaking
at the time of injury.

 Total Disablement [Section-2(1)(L)]: It means such disablement, whether of a

temporary or permanent nature, as incapacitates an employee for all work which he
was capable of performing at the time of the accident resulting in such disablement.
It refers to that condition where a employee becomes unfit for every type of work
and is not able to get job anywhere due to that disablement. Total disablement is
deemed to result from every injury specified in Part I of Schedule I or from any
combination of injuries specified in Part II thereof where the aggregate percentage
 of the loss of earning capacity, as specified in Part II against those injuries, amounts
to 100 per cent or more. Where an employee becomes unfit for a particular class of
job but is fit for another class which is offered to him by the employer, the employee
is entitled to claim compensation only on the basis of partial disablement and not
total disablement.

EMPLOYER’S LIABILITY TO PAY COMPENSATION

In case a personal injury is caused to a employee by accident arising out of and in the course
of his employment, his employer is liable to pay compensation in accordance with the pro-
vision of the Act within 30 days from the date when it fell due otherwise he would also be
liable to pay interest and penalty.

As per Section-3(1) of the Act, the employer is liable to pay compensation if the employee
is injured by accident -
 that arises out of (i.e. while engaged in work), and;
 in the course of his employment (i.e. during work hours),and;
 Such an injury results in temporary or permanent disablement of the employee.

If these three conditions are met, the employer of an establishment covered by the Act shall
be liable to pay compensation in accordance with the provisions of this Act. An accident
alone does not give an employee a right to compensation. To entitle him to compensation
at the hands of the employers the accident must arise out of and in the course of his em-
ployment. The language in Section 3 shows that injury is caused by accident and not ‘by
an accident’. So the injury should be caused by accident by some mishap, unexpected or
unforeseen.

Personal Injury:

 Not defined but not confined to physical injury but it may include a mental strain
or mental imbalance. Includes sun stroke, nervous collapse, traumatic neurosis,
hysterical paralysis and neurasthenia.
 In Indian News Chronicle Ltd vs Luis Lazarus1 an electrician had to frequently go
to a heating room and thereafter a cooling room fell ill and contracted pneumonia
and died. Injury may include a strain. In this case pneumonia contracted by the
employee was held to be personal injury under section 3(1).
 There must be a causal link between the employment and the injury.

Accident:

 Means some unexpected event happening without design i.e. an unlooked or mis-
hap or untoward event.
 It includes not only such occurrences such as collision, tripping, falls of roofs but
also less obvious ones causing injury e.g. strain which causes rupture , exposure to
a draught causing chill, shock causing neurasthenia.
 In Director, Combat vehicle and Research Establishment v. Dy. Commissioner of
Labor2, the court observed that, the term accident has not been defined in the Em-
ployees Compensation Act, but it means some unexpected event happening without
a design. It must be regarded from the view of the employee who suffers it.

1
AIR 1961 Punj. 102
2 1995 Lab IC 1998 (Mad)
Out of and In The Course of Employment:
 Out of employment i.e due to

 In the course i.e during

 In P.P.L. factory v. Mangilal3, the defendant employee became blind by his left
eye due to leakage of ammonia Gas in the premises of his employer where he was
working. The court held that the blindness of the eye is an injury arising due to an
accident arising in and out of and in the course of the employment

According to Section 3 (2) the employer’s liability for occupational disease arises under
three circumstances:
 If an employee, employed in any employment specified in Part A of Schedule III
contracts any occupational disease peculiar to that employment, or
 If an employee, who has been employed for a continuous period of not less than six
months in any employment specified in Part B of Schedule III contracts any occu-
pational disease peculiar to that employment, or
 If an employee, whilst in the service of one or more employers, in respect of any
employment specified in Part C of Schedule III contracts any occupational disease
peculiar to that employment
-the contracting of the disease shall be deemed to be an injury by accident within the mean-
ing of this section and, the contrary is proved, the accident shall be deemed to have arisen
out of, and in the course of, the employment.

Schedule III is divided into three parts, viz., A, B and C. No specific period of employment
is necessary for a claim for compensation with respect to occupational diseases mentioned
in Part A. For diseases specified in Part B the employee must be in continuous service of
the same employer for a period of six months in the employment specified in that part. For
diseases in Part C the period of employment would be such as is specified by the Central
Government for each of such employment whether in the service of one or more employers.

3
1999 Lab IC 3466 (M.P.)
If an employee employed in any employment mentioned in Part C of the Schedule II con-
tracts any occupational disease peculiar to that employment, the contracting whereof is
deemed to be an injury by accident within the meaning of Section 3 and such employment
was under more than one employer then all the employers shall be liable for the payment
of compensation in such proportion as the commissioner in the circumstances may deem
just.

WHEN EMPLOYER’S LIABILITY DOES NOT ARISE

In case the disablement of employee is three or less days; except in case of death when the
injury is caused due to influence of drink or drug taken by the employee or upon his wilful
disobedience to obey safety rules or removal of safety guards by him.

As per Section 3 (1) (a) any injury which does not result in the total or partial disablement
of the employee for a period exceeding 3 days subsequent to the accident.

Section 3 (1) (b) any injury not resulting in death or permanent total disablement caused
by an accident which is directly attributable to -
 the employee having been at the time thereof under the influence of drinks or drugs,
or
 Wilful disobedience of the employee to an order expressly given, or to a rule ex-
pressly framed, for the purpose of securing the safety of the employees, or
 Wilful removal or disregard by the employee of any safety guard or other device
which he knew to have been provided for the purpose of securing the safety of the
employees.

Section 3 (4) states that save as provide by Section 3 sub-sections (2), (2A) and (3), no
compensation shall be payable to an employee in respect of any disease unless the disease
is directly attributable to a specific injury by accident arising out of and in the course of his
employment.

Section 3 (5) nothing herein contained shall be deemed to confer any right to compensation
on an employee in respect of any injury if he has instituted in a Civil Court a suit for dam-
ages in respect of the injury against the employer or any other person; and no suit for dam-
ages shall be maintainable by an employee in any Court of law in respect of any injury –
a) If he has instituted a claim to compensation in respect of the injury before a Com-
missioner; or
b) If an agreement has been come to between the employee and his employer provid-
ing for the payment of compensation in respect of the injury in accordance with the
provisions of this Act.
In Chaitram v. Steel Authority of India Ltd., Bihar4 held that the burden of proving
intentional disobedience on the part of the employee is on the employer who claims the
benefit of the provision.

4 (1991) 2 LLJ 144 (M.P.)

 DECIDING COMPENSATION

AMOUNT OF COMPENSATION
The amount of compensation payable to an employee depends on:
1) The nature of the injury caused by accident.
2) The monthly wages of the employee concerned, and
3) The relevant factor for working out lump-sum equivalent of compensation amount as
specified in Schedule IV.

There is no distinction between an adult and a minor employee with respect to the amount
of compensation.

Section-4: Provides for the circumstances under which compensation is to be paid by the
employer for injuries caused to the employee. This has been categorised as follows:

Compensation is payable in case of:

1. Death;
2. Disablement -
a) Permanent total disablement;
b) Permanent partial Disablement;
c) Temporary disablement -
i. Temporary total disablement;
ii. Temporary partial disablement.

In addition, the guiding principle is the higher the age of the injured employee, the lower
the compensation [as per Schedule IV]

WHAT IS THE BASIS OF CALCULATING THE AMOUNT OF COMPENSA-

TION
Wages are the basis for amount of compensation paid. Two employees earning different
salaries therefore will get different amounts of compensation even though the injury they
suffered might be identical. Compensation under this Act is calculated on the basis of the
monthly wage received by the employee. According to this Act, it is the amount of wages
which would be payable for a month’s service - i.e. irrespective of whether the employee
is paid on a daily, weekly or piece rate basis.

Where an employee received a monthly wage less than what is prescribed under the Mini-
mum Wages Act, 1948, she/he would be deemed to be drawing the monthly wages as pre-
scribed by the Act for the purposes of calculating compensation.

Wages [Section 2 (1) (m)]: Wages includes any privilege or benefit which is capable of
being estimated in money other than a travelling allowance or the value of any travelling
concession or a contribution paid by the employer of a employee towards any pension or
provident fund or a sum paid to an employee to cover any special expenses entailed on him
by the nature of his employment.

COMPENSATION FOR DEATH

Section 4 (1) (a): Where death results, from an injury the compensation is payable to the
employees dependants.

 Dependent [Section- 2(1)(d)]: Dependent means any of the following relatives of

a deceased employee, namely:
a) A widow, a minor, legitimate or adopted son, an unmarried legitimate or
adopted daughter or a widowed mother
b) If wholly dependent on the earnings of the employee at the time of his death
a son or a daughter who has attained the age of 18 years and who is infirm;
c) If wholly or in part dependant on the earnings of the employee at the time
of his death:
i. A widower,
 ii. A parent other than a widowed mother,
iii. A minor, illegitimate son, an unmarried illegitimate daughter, or a
daughter legitimate or illegitimate or adopted if married and a minor
or if widowed and minor,
iv. A minor brother or an unmarried sister or a widowed sister if a mi-
nor,
v. A widowed daughter-in-law,
vi. A minor child of a pre-deceased son,
vii. A minor child of a pre-deceased daughter where no parent of
the child is alive, or
viii. A paternal grandparent if no parent of the employee is alive.

The compensation due to the dependants is an amount equal to fifty percent of the monthly
salary of the deceased employee multiplied by the relevant factor or an amount of one
lakh and twenty thousand rupees, whichever is more. The minimum compensation in the
case of death in no circumstances can be less than Rs. 1,20,000/-. Although the Central
Government may, by notification in the Official Gazette, from time to time, enhance the
amount of compensation. 5

The ‘relevant factor’ is mentioned in the schedule-IV of the Act. The factor depends on the
age of the person deceased, i.e., the number of years the person could have worked for, if
he did not die on the job.

Where the monthly wages of an employee exceeds Rs. 4000, his monthly wages for the
purpose of Section 4 (a) shall be deemed to be four thousand rupees only.

COMPENSATION FOR PERMANENT TOTAL DISABLEMENT

5
Inserted by the Workmen’s Compensation (Amendment) Act, 2009, w.e.f. 18-1-2010
Section 4 (1) (b): Where there is total permanent disablement resulting from the injury
suffered, the employee is entitled to be paid an amount equal to sixty percent of his
monthly salary, multiplied by the relevant factor, or an amount of one lakh and forty
thousand rupees, whichever is more.

The minimum compensation in the case of total permanent disablement, in no circum-

stances can be less than Rs. 1, 40,000/-. Although the Central Government may, by notifi-
cation in the Official Gazette, from time to time, enhance the amount of compensation.

The formula for calculating the amount of compensation in case of permanent total disa-
blement resulting from an injury will be as follows:

60% of monthly wages x Relevant factor or Rs. 1, 40,000 whichever is more

Where the monthly wages of an employee exceeds Rs. 4000, his monthly wages for the
purpose of Section 4 (b) shall be deemed to be four thousand rupees only.

COMPENSATION FOR PERMANENT PARTIAL DISABLEMENT

Section 4 (1) (c): Where permanent partial disablement results from the injury -

i. In the case of an injury specified in Part II of Schedule I, such percentage of the

compensation which would have been payable in the case of permanent total disa-
blement as is specified therein as being the percentage of the loss of earning capac-
ity caused by the injury.
Explanation: In other words, the percentage of compensation payable is proportionate
to the loss of earning capacity permanently caused by the scheduled injury. Thus, if the
loss of earning capacity caused by an injury specified in Part II of Schedule I is 30 percent,
the amount of compensation shall be 30 percent of compensation payable in case of per-
manent total disablement.

ii. In the case of an injury not specified in Schedule I such percentage of the compen-
sation payable in the case of permanent total disablement as is proportionate to the
loss of earning capacity (as assessed by the qualified medical practitioner) perma-
nently caused by the injury.

COMPENSATION FOR TEMPORARY DISABLEMENT (WHETHER TOTAL

OR PARTIAL)

Section 4 (1) (d): In case of temporary disablement, a monthly payment of the sum equiv-
alent to twenty-five per cent (25%) of the monthly wages of the employee, to be paid in
accordance with the provisions of Section 4 (2) to Section 4(4).

Section 4 (2): The half monthly payment shall be payable on sixteenth day –
i. from the date of disablement where such disablement lasts for a period of 28 days
or more, or
 ii. after the expiry of a waiting period of three days from the date of disablement where
such disablement lasts for a period of less than twenty-eight days; and thereafter
half-monthly during the disablement or during a period of five years, whichever
period is shorter

Provided that--

(a) There shall be deducted from any lump sum or half-monthly payments to which the
employee is entitled the amount of any payment or allowance which the employee has
received from the employer by way of compensation during the period of disablement prior
to the receipt of such lump sum or of the first half-monthly payment, as the case may be;
and

(b) No half-monthly payment shall in any case exceed the amount, if any, by which half
the amount of the monthly wages of the employee before the accident exceeds half the
amount of such wages which he is earning after the accident.

Section 4 (2A): The employee shall be reimbursed the actual medical expenditure incurred
by him for treatment of injuries caused during course of employment.

Section 4 (3): On the ceasing of the disablement before the date on which any half-monthly
payment falls due, there shall be payable in respect of that half-month a sum proportionate
to the duration of the disablement in that half-month.

Section 4 (4): If the injury of the employee results in his death, the employer shall, in
addition to the compensation under sub-section 1 , deposit with the commissioner a sum of
not less than 5 thousand rupees for payment of the same to the eldest surviving dependant
of the employee towards the expenditure of the funeral of such employee or where the
employee did not have a dependant or was not living with his dependant at the time of his
death to the person who actually incurred such expenditure. The Central Government may
by notification in the official Gazette, from time to time, enhance the amount specified in
this sub-section.

COMPENSATION TO BE PAID WHEN DUE AND PENALTY FOR DEFAULT

Section 4A (1): Mandates employer to pay compensation amount as soon as it falls due to
victim or his or her legal heirs.

Section 4A (2): In cases where the employer does not accept the liability for compensation
to the extent claimed, he shall be bound to make provisional payment based on the extent
of liability which he accepts, and such payment shall be deposited with the Commissioner
or made to the employee, as the case may be, without prejudice to the right of employee to
make any further claim.

Section 4A (3): Where any employer is in default in paying the compensation due under
this Act within one month from the date it fell due, the Commissioner shall -

direct that the employer shall, in addition to the amount of the arrears, pay simple interest
thereon at the rate of twelve per cent per annum or at such higher rate not exceeding the
maximum of the lending rates of any scheduled bank as may be specified by the Central
Government, by notification in the Official Gazette, on the amount due; and

if, in his opinion, there is no justification for the delay, direct that the employer shall, in
addition to the amount of the arrears and interest thereon, pay a further sum not exceeding
fifty per cent of such amount by way of penalty: Provided that an order for the payment of
penalty shall not be passed under clause (b) without giving a reasonable opportunity to the
employer to show cause why it should not be passed.

Section 4A(3a): The interest and the penalty payable under sub-section (3) shall be paid
to the employee or his dependant, as the case may be.
BIBLIOGRAPHY:

• The Employees Compensation Act, 1923

• Meenu Paul, Labour and Industrial Law