What are the different circumstances under which compensation is given to an employee?

According to the Employee Compensation Act, 1923 it is necessary for the firm to give legal assurance and protection to the employee working under his firm. There are certain benefits to the employee and duties to the employer that is to be performed by him in case of any disparity that occurs in the firm. The different situations under which employee compensation is provided are in case of injury that happened to an employee at the time he was rendering service to the employer and disease incursion to the employee due to continuous exposure to those conditions as part of his work. Under both this employer is liable to pay compensation to the employee for the loss incurred by him.

Under Section 3 of the Workmen’s Compensation Act, an employer is liable to pay compensation to the employee if:

1. The employee has ceased or is injured due to the working conditions in the workplace. His level of compensation depends on the level of injury he has incurred.
2. The employee is exposed to a disease-prone condition and is working under that condition. This is mainly the case of employees working in mines and quarries. When we look into real-life instances working in these kinds of places attracts better remuneration. The main reason is the situation in which they have to work.

The employer usually registers and takes an employee policy for the employee working in his firm. He must follow the rules stated in the policy. The compensation stated in the different circumstances that arise in the working conditions are as follows:

1. Death of an employee caused by factors relating to work or injury which he incurred during the work he is liable to get 50% of the worker's monthly wages multiplied by relevant factors; or ₹1,20,000, whichever is more.
2. In case the employee suffers a disability as a result of an injury caused to him earlier in work he is liable to 60% of the monthly wages, multiplied by the relevant factor; or ₹1,40,000, whichever is more if there is a total permanent disability and percentage of the loss of earning capacity due to the injury if there is a permanent partial disability and 25% of the employee’s monthly wages if it is a temporary disability.