Lok Sabha passes Employee’s Compensation (Amendment) Bill 2016

Aug 11, 2016 15:06 IST

The Lok Sabha on 9 August 2016 passed the Employee’s Compensation (Amendment) Bill, 2016 to reduce litigation in cases of disputes arising over compensation to workers.

The Bill seeks to amend the Employee’s Compensation Act, 1923. This law provides payment of compensation to employees and their dependents in the case of injury by industrial accidents, including occupational diseases.

Provisions of the Bill
• It makes it mandatory for employer to inform the employee of his right to compensation under the parent Act. Such information must be given in writing in Hindi, English or relevant official language at the time of employment.
• It penalises an employer if he fails to inform his employee of his right to compensation.  Such penalty may be between fifty thousand to one lakh rupees.
• Any dispute related to an employee’s compensation will be heard by a Commissioner, only if the amount in dispute is ten thousand rupees. It allows Union Government to further raise this amount.
• It deletes the provision of withholding payments towards the employee if an employer has appealed against a Commissioner’s order in High Court.

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