NOTES
Self-Instructional
Material 139
Employee Welfare,
Separation
o The premium of the insurance is either paid the employer or by the
employer and the employee both.
The Workmen’s Compensation Act, 1923
The Workmen’s Compensation Act was established by the government in the
year 1923. According to this Act, a company needs to provide a payment of
compensation to its employees and their family on the occurrence of organizational
accidents and some disease leading to the death or any kind of disablement of the
individual. The main objective of this Act is to apply a commitment on the employers
to offer compensation to the employees against the accidents that occur during the
course of employment. The following are the important features of The Workmen’s
Compensation Act:
This Act provides social security to the employees of a company by providing
them compensation against various risks.
A company is liable to pay the compensation only if the accident or the
injury to the employee has been caused during the course of employment.
This Act also provided overtime pay and the value of concessions or benefits
in the form of food, clothing and accommodation.
The amount of compensation that a company needs to pay to an employee
depends upon the type of injury or disablement suffered by the employee.
The minimum amount of compensation that must be paid to an employee on
the occurrence of permanent disablement or death is ` 60,000 and ` 50,000
respectively. However, the maximum amount of compensation that must be
paid to an employee on the occurrence of permanent disablement or death
is ` 2.28 lakh and ` 2.74 lakh respectively.
This Act is applicable for all the employees that work in railways, factories,
mines and other companies. It also applies to all the companies that are involved in
an industry specified in Schedule II of the Act.
The Maternity Benefit Act, 1961
The Maternity Benefit Act was launched in 1961. This is a compensation given
against the loss of salary to a woman who discontinues to work during the period
of pregnancy. The following are the main objectives of this Act:
Enable the female employee of a company to withdraw her services during
the 6 weeks before her expected confinement date
Allow the female employee to discontinue her services after 6 weeks of
confinement
Provide free medical treatment to a female employee during her pregnancy
Provide an expected female employee the facility of public funds along with
cash benefit so that she can take good care of herself and her child
