Payment of compensation and filing of report

  • Act/Rule/Legislation

  • Online Link to Act/Rule/Legislation

  • Initial Setup or Ongoing Maintenance

    Ongoing compliance requirement

  • Filing and Maintenance Requirements

    • The Employees’ Compensation Act provides for payment of compensation by an employer to its employees on account:

    - of death; or

    - injury; or

    - by contracting occupational diseases

    during the course of their employment/ duties.

    • The Employees’ Compensation Act specifies the nature of injury, the percentage loss of earning capacity, the list of persons included in the definition of employees (which includes employees employed in a factory or employed for the purpose of sale of any article in any premises), and the list of occupational diseases. Compensation to workmen is granted on the basis of relevant factors such as the gravity of injury.
    • An employer is required to send a report to the concerned commissioner in Form EE, within 7 (seven) days of any accident occurring on its premises which results in death or serious bodily injury.

  • Penalty

    • Any employer who fails to pay the compensation when due, may be directed by the relevant commissioner that in addition to the amount of arrears, simple interest at 12% (twelve percent) per annum be paid on the due amount or at such higher rate not exceeding the maximum lending rates of any prescribed scheduled banks.

    • Further, if there is no justification for the delay, the employer may be directed by the relevant commissioner that in addition to the amount of the arrears and interest, a further sum not exceeding 50% (fifty percent) of the amount of arrears and interest be paid by way of penalty.

    • Further, any employer who, amongst other things, fails to maintain a notice-book, fails to send statements/ reports required to be sent or fails to file returns in contravention of the Employees’ Compensation Act, is liable to be punished with a maximum fine of Rs. 5,000 (Rupees Five Thousand only).

  • Application Guidelines / Responsible Persons / Comments

    Not available