Amendment in Employees Compensation Act to mandate employer to educate employees on their 'Right to Compensation'

New Delhi, May 10 (KNN) The Amendment in the Employees Compensation Act of 1923 got the President’s nod last month.  Under the amendment, which is yet to be notified,  the employer will have to inform the employee about his rights to compensation under the Act.

The information has to be given both in written form and also electronically.

Talking to KNN, Mukesh Saxena, Labour Law Advisor from Meerut explained the amendment. 

He informed that now the act would mandate imparting of information to the employee (not covered under the Employees State Insurance Act 1948), this has to be done in English or Hindi or in the official language of the area of employment, a language in which the employee can understand.

The information is to be given to the employee at the time of appointment itself.

Any employer failing to do so will be subject to prosecution with a fine amounting up to Rs50,000 to Rs 1 Lakh, while the penalty amount earlier was Rs 5000.

The minimum amount involved in a dispute that is eligible to be filed at the High Court has been revised; appeals can be made only if the amount in dispute is at least 300 rupees

The Amended Act will be  applicable from the date the Government would notify it. It is passed but yet not notified.

Commenting upon the Amendment Saxena said that the law falls in line with the set of initiatives to empower the worker citing the recent Amendment in the Maternity Benefit Bill. 

Saxena said the bill is seen as a good move towards the welfare of the workers, while the Large Scale industries might welcome this whole heartedly, there are chances of a different response from the Medium and Small Scale Enterprises.

For the MSMEs it might be an added burden, and they might not very willingly adapt to it, he added. (KNN/ DA)