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Employees compensation (Amendment) Act, 2017 July, 2017

The Employees Compensation (Amendment) Act, 2017 received the President’s assent on April 12, 2017. It was introduced in the Lok Sabha in August, 2016. This Amendment Act amends the Employee’s Compensation Act, 1923.

The amendments are as follows:

  • The employer is required to immediately at the time of employment of an employee, inform the employee of his rights to compensation under the Employees Compensation Act, 1923, in writing as well as through electronic means, in English or Hindi or in the official language of the area of the employment, as may be understood by the employee. Failure to do so will make the employer liable to pay a penalty.
  • Penalties have been increased from a maximum of Rs. 5,000/-, to a definite penalty of Rs. 50,000/- which may extend to Rs. 1,00,000/-.
  • The minimum amount involved in a dispute for which an appeal may be filed with the High Court has been increased from Rs. 300/- to Rs. 10,000/- or such higher amount as the Central Government may, by notification in the Official Gazette, specify.
  • Under the Employees Compensation Act, 1923, if an employer has appealed to the High Court against a Commissioner’s order, the Commissioner may, and if so directed by the High Court shall, pending the decision of the appeal, withhold payment of any sum in deposit with him. The Employees Compensation (Amendment) Act, 2017 deletes this provision from the Employees Compensation Act, 1923.