The Employee’s Compensation (Amendment) Bill,2017

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The Central Government has introduced Bill in parliament, on 5th Aug 2016 to amend few provisions of EC Act and the proposals are as mentioned below:-

1. 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 in Hindi or in the official language of the area of employment’
2. Penalty of non-compliance of any provision of the Act is revised to Rs.50000/- minimum to Rs.100000/- maximum;
3. Appeal in the High Court has revised more than Rs.10000/- compensation from present Rs.300/-
4. On the direction of High Court commissioner can withheld payment of any sum in deposit with him – This provision is omitted;

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 dependents 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.