Employee’s Compensation (Amendment) Bill 2016

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

Question: In the recently passed Employee’s compensation (Amendment) Bill, 2016 there is provision for removal of which of the following section from the original Act?
(a) Section -28
(b) Section -29
(c) Section -30
(d) Section -31
Ans: (c)
Related fact:

  • On 9 August 2016 the Lok Sabha passed the Employee’s Compensation (Amendment) Bill 2016 by voice vote.
  • It was presented in the Lok Sabha by Labour and Employment Minister Bandaru Dattatreya on 5 August 2016.
  • The Bill amends the Employee’s Compensation Act, 1923. The Act provides payment of compensation to employees and their dependants in the case of injury by industrial accidents, including occupational diseases.
  • Under the amendments Section 30 of the Employees’ Compensation Act 1923 provides for appeal in high courts whenever the disputed amount of compensation is more than Rs 300.
  • The bill seeks to raise this to Rs 10,000, which may be further increased through a notification later.
  • The bill also provides for increase in penalty for contravention of the Act to Rs 50,000 from the current Rs 5000 that may be later raised to Rs 1 lakh.
  • 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.
  • In this there is provision for removal of section-30 from the original Act.
  • The Law Commission of India, in its reports in 1974 and 1989 related to the Workmen’s Compensation Act, 1923, (now known as Employees’ Compensation Act, 1923), had recommended to review/amend/repeal various provisions of the Act.


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