Workmen Compensation Act, 1923- Aspects And Objectives Of The Act
Workmen Compensation Act, 1923- Aspects And Objectives Of The Act




  1. Introduction
  2. Aspects Of The Workmen Compensation Act
  3. Objective Of The Act
  4. Conclusion


  1. Introduction

The Workmen Compensation Act, 1923 is an enactment that was issued by the Central Government and was implemented by various State Governments which gives social security to workers. This security is offered by the law for people who work.

The Act was formed after it was noted that laborers were getting more exposed to danger with the use of advanced and sophisticated machinery. The common law had it that the employer would only take up the compensation responsibility if it is found that the industrial accident was a result of his negligence.

In India, the issue of compensating workmen after fatal and major accidents hit the road in 1884. It was then in 1885 that the factory and mining inspectors realized that the Fatal Accidents Act, 1885, was not enough to attend to the intended purposes.

The State offered a hearing ear when members of the Legislative Assembly, employers’ representatives, workers and experts in medicine and insurance formed a committee that gave a report that led to the enacting of the Workmen’s Compensation Act in 1923.

The passing of the Act put a stop and offered a relief for workers who would have gone through court processes that are often expensive, an effort to seek compensation whenever they acquired an injury during employment.


  1. Aspects Of The Workmen Compensation Act

The Act has its basis on two aspects:

  1. Theory of least cost.
  2. The production cost shall have the cost of blood and workmen included.

For an industry to run, an employer uses capital, skills in business and the labor of workers who are paid for the labor. The management has to put aside finances for the possibility of the expense needed to repair the machines when they break down. If that care and attention can be given to machines, human beings working in the same environment need also receive care and attention for the risks they undertake when working in that industry.

Social security offers to ensure compensation is paid to a disabled or injured person only if the accident rose in the middle of the employment. The compensation paid to a workman by an employer when an accident occurs is a relief and social security measure provided by the Act. A workman is now able to get compensation regardless of his negligence.

The Act also puts in place the amount that is to be paid according to the intensity of the injury. This makes an employer aware of the amount of compensation he is liable to pay in case of an accident.

The Act is recognized all over India and applies to all workmen and casual workers in factories, plantations, mines, transport establishments, railways, ships, circuses, construction work and any other potentially dangerous occupations made mention in Schedule II of this Act. The Act is not applicable to people in the Armed Forces.

  1. Objective Of The Act

The Workmen’s Compensation Act of 1923 was formed majorly to give compensations to workmen in the event of an accident.

The Act has it that employers should have duties and obligations that include the welfare of workers after an injury resulting from employment in the same way they have reserved the right to make profits. The Act aims to see workmen have a sustainable life after an employment-related accident.

The Royal Commission on Labour made note of the following:

  • The Act also goes further to ensure the prevention of accidents by giving workmen a relief from anxiety and renders the industry more friendly and desirable.
  • It has become a necessity for workmen to be protected due to the increasing complexity of the industry through the increased use of sophisticated machinery that poses a potential danger to workers and also the possibility of poverty after injury.
  • The Act tried as much as possible to curb the chances of disputes which has led to events which are arbitrary. However, the general outcome is satisfactory since the merits are more than the demerits when it comes to the welfare of workmen.


  1. Conclusion

The Workman Compensation Act, 1923 was formed to provide compensations for workers who acquired/acquire injuries caused by accidents in the course of employment. It ensure that their rights and value as labourers is maintained. Therefore employers are obligated to pay compensations to workers who got injuries that led to disablement or even death in the course of employment.


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