EnglishFrenchPortugueseRussianUrdu

Workmen's Compensation Act, 1923

SECTIONS

CONTENTS

 

CHAPTER I

PRELIMINARY

1

Short title, extent and commencement

2

Definitions

 

CHAPTER II 

WORKMEN'S COMPENSATION

3

Employer's liability for compensation

4

Amount of compensation

5

Method of calculating wages.

6

Review

7

Commutation of half-monthly payments

8

Distribution of Compensation

9

Compensation not to be assigned attached or charged

10

Notice and claim

10-A

Power to require from employers statements regarding fatal accidents

10-B

Reports of fatal accidents

10-C

Officers authorised may refer case for payment of compensation

10-D

Fixation of abstracts of the Act or Rules of the entrance oil premises

11

Medical examination

12

Contracting

13

Remedies of employer against stranger

14

Insolvency of employer

15

Special provisions relating to masters and seamen

16

Returns as to compensation

17

Contracting out

18

Proof of age

18-A

Penalties

 

CHAPTER III

COMMISSIONERS

19

Reference to Commissioners

20

Appointment of Commissioners

21

Venue of proceedings and transfer

22

Form of application

22-A

Power of Commissioner to require further deposit in cases of fatal accident

23

Powers and procedure of Commissioners

24

Appearance of parties

25

Method of recording evidence

26

Costs

27

Power to submit cases

28

Registration of agreements

29

Effects of failure to register agreement

30

Appeals

30-A

Withholding of certain payments pending decision of appeal

31

Recovery

 

CHAPTER IV

RULES

32

Powers of the Provincial Government to make rules

33

Power of Local Government to make rules [Omitted]

34

Publication of rules

35

Rules to give effect to arrangements with other countries for the transfer of money paid as compensation

 

Schedule I

 

Schedule II

 

 

The Workmen's Compensation Act, 1923

VIII OF 1923

5th March, 1923

An Act to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident

 

Preamble : —

Whereas it is expedient to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident;

It is hereby enacted as follows –

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement; (1) This Act may be called the Workmen's Compensation Act, 1923.

(2) It extends to the whole of Pakistan.

(3) It shall come into force on the first day of July 1924.

2. Definitions: (1) In this Act, unless there is anything repugnant in the subject or context, –

(a) 'adult' and '-minor' means respectively a person who is not a person and who is under the age of fifteen years ;

(b) 'Commissioner' means a Commissioner of Workmen's Compensation appointed under Section 20;

(c) 'Compensation' means compensation as provided by this Act;

(d) 'dependent' means any of the following relatives of a deceased workman, namely :-

(i) a widow, minor legitimate son, and unmarried legitimate daughter, or a widowed mother ; and

(ii) if wholly or in part dependent on the earnings of the workman at the time of his death, a widower, a parent other than a widowed mother, a minor illegitimate son, an unmarried illegitimate daughter, a daughter legitimate, or illegitimate if married and a minor or if widowed, a minor brother, an unmarried and widowed sister, a widowed daughter-in-law a minor child of a deceased son, a minor child of a deceased daughter where no parent of the child I is alive, or, where no parent of the workman is alive, a paternal. grand-parent ;

(e) 'employer' includes any body of persons whether incorporated or not and any managing agent of an employer and the legal representative of a deceased employer, and, when the services of a workman are temporarily lent or let on hire to another person by the person whom the workman has entered into a contract of service or apprenticeship, means such other person while the workman is working for him ;

(f) 'managing agent' means any person appointed or acting as the representative of another person for the purpose of carrying on such other person's trade or business, but does not include an individual manager subordinate to an employer ;

(g) 'partial disablement' means, where the disablement is of a temporary nature, such disablement as reduces the earning capacity of a workman in any employment in which he was engaged at the time of the accident resulting in the disablement, and, where the disablement is of a permanent nature, such disablement as reduces his earning capacity in every employment which be was capable of undertaking at that time :

Provided that every injury specified in Schedule I shall be deemed to result in permanent partial disablement;

(h) 'prescribed' means prescribed by rules made under this Act ;

(i) 'qualified medical practitioner' means any person registered […] under any Act of the Federal Legislature or any Provincial Legislature providing for the maintenance of a register of medical practitioners, or : in any area where no such last-mentioned Act is in force, any person declared by the Provincial Government, by notification in the official Gazette to be a qualified medical practitioner for the purposes of this Act ;

(j) Omitted by the Workmen's Compensation (Amendment) Act XV of 1933 ;

(k) 'seaman' means any person forming part of the crew of any ship, but does not include the master of the ship ;

(l) 'total disablement' means such disablement, whether of a temporary or permanent nature, as incapacitates a workman for all work which he was capable of performing at the time of the accident resulting in such disablement :

Provided that permanent total disablement shall be deemed to result from the permanent total loss of the sight of both eyes or from any combination of injuries specified in Schedule 1 where the aggregate percentage of the loss of earning capacity, as specified in that Schedule against those injuries, amounts to one hundred per cent. ;

[(ll) ‘Tribunal’ has the same meaning as in the Industrial Relations Ordinance, 1969:]

(m) 'wages' includes any privilege or benefit which is capable of being estimated in money, other than a travelling allowance or the value of any travelling concession or a contribution paid by the employer of a workman towards any pension or a provident fund or a sum paid to a workman to cover any special expenses entailed on him by the nature of his employment ;

(n) ''workman' means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purpose of the employer's trade or business) who is-

(i) a railway servant as defined in Section 3 of the Railways Act, 1890 (IX of 1890), not permanently employed in any administrative, district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II, or

(ii) employed on monthly wages not exceeding [one thousand] rupees, in any such capacity as is specified in Schedule II,

Whether the contract of employment was made before or after the passing of this Act and whether such contract is expressed or implied, oral or in writing; but does not include any person working in the capacity of a member of [xxx] naval, military or Air forces; and any reference to a workman who has been injured shall, where the workman is dead, include a reference to his dependants or any of them.

(2) The exercise and performance of the powers and duties of a local authority or of any department acting on behalf of the Government shall, for the purposes of this Act, unless a contrary intention appears, be deemed to be the trade or business of such authority or department.

(3) The Provincial Government, after giving, by notification in the official Gazette, not less than three months, notice of its intention so to ' do, may, by a like notification, add to Schedule 11 any class of persons employed in any occupation, which it is satisfied is a hazardous occupation and the provisions of this Act shall thereupon apply within the Province to such clauses of persons:

Provided that in making such addition the Provincial Government may direct that the provisions of this Act shall apply to such classes of person in respect of specified injuries only].

 

 

CHAPTER 2

WORKMEN'S COMPENSATION

 

3. Employer's liability for compensation: (1) If personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provisions of this Chapter: '

Provided that the employer shall not be so liable-

(a) in respect of any injury which does not result in the total or partial disablement of the workman for a period exceeding four days ;

(b) in respect of any injury, not resulting in death, caused by an accident which is directly attributable to-

(i) the workman having been at the time thereof under the influence of drink or drugs, or

(ii) the wilful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workman, or

(iii) the wilful removal or disregard by the workman of any safety guard or other device which he knew to have been provide for the purpose of securing the safety of workmen.

(c) Omitted by the Workmen's Compensation (Amdt.) Act, V of I929.

(2) If a workman employed in any employment specified in Part A of Schedule III contracts any disease specified therein as au occupational disease peculiar to that employment or if a workman, whilst in the service of an employer in whose service he has been employed for a continuous period of not less than six months in any employment specified in Part B of Schedule III contracts any disease specified therein as an occupational disease peculiar to that employment, (he contracting of the disease shall be deemed to be an injury by accident within the moaning of this section and, unless the employer proves the contrary, the accident shall be deemed to have arisen out of and in the course of the employment.

Explanation: For the purpose of this sub-section a period of service shall be deemed to be continuous which has not included a period of service under any other employer in the same kind of employment.

(3) The Provincial Government, after giving, by notification in the official Gazette, not less than three months' notice of its intention so to do. may, by a like notification, add any description of employment to the employments specified in Schedule III, and shall specify in the case of the employments so added the diseases which within the Province shall be deemed for the purposes of this section to be occupational diseases peculiar to those employments respectively, and the provisions of subsection (2) shall thereupon apply within the Province as if such diseases had been declared by this Act to be occupational diseases peculiar to those employments.

 

(4) Save as provided by sub-sections (2) and (3), no compensation shall be payable to a workman in respect of any disease unless the disease is directly attributable to a specified injury by accident arising out of and in the course of his employment.

(5) Nothing herein contained shall be deemed to confer any right to compensation on a workman in respect of any injury if he has instituted in Civil Court a suit for damages in respect of the injury against the employer or any other person, and no suit for damages shall be maintained by a workman in any Court of Law in respect of any injury-

(a) if he has instituted a claim to compensation in respect of the injury before a Commissioner ; or

(b) if an agreement has been coma to between the workman and his employer providing for the payment of compensation in respect of the injury in accordance with the provisions of this Act.

4. Amount of Compensation: (1) Subject to the provisions of this Act, the amount of compensation shall be as follows, namely: –

A. Where death results from the injury-

(i) in the case of an adult in receipt of monthly wages falling within limits shown in the first column of Schedule IV-the amount shown against such limits in the second column thereof, and

(ii) in the case of a minor four thousand rupees.

B. Where permanent total disablement results from the injury-

(i) in the case of an adult in receipt of monthly wages falling within limits shown in the first column of Schedule IV the amount shown against such limits in the third column thereof, and |

(ii) in the case of a minor [ten thousand] rupees,

C. Where permanent partial disablement results from the injury-

(i) in the case of an injury specified in Schedule I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury, and

(ii) in the case of an injury not specified in Schedule 1, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity permanently caused by the injury.

Explanation: Where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries

D. Where temporary disablement, whether total or partial, results from the injury, a half-monthly payment payable on the sixteenth day after the expiry of waiting period of four days from the date of the disablement, and thereafter half- monthly during the disablement, or during a period of five years, whichever period is shorter, -.

(i) in the case of an adult in receipt of monthly wages falling within limits shown in the first column of Schedule IV -of the sum shown against such limits in the fourth column thereof, and

(ii) in the case of a minor-of one-half of his monthly wages, subject to a maximum of [seventy-five] rupees :

Provided that-

(a) there shall be deducted from any lump-sum of half-monthly payments to which the workman is entitled the amount of any payment or allowance which the workman has received from the employer by way of compensation during the period of disablement prior to the receipt of such lump-sum or the first half-monthly payment as the case may be, except payment made to the worker during the period of his convalescent towards medical treatment [and the half-monthly payments made for the first four months disablement] ;

(b) no half-monthly payment shall in any case exceed the amount any, by which half the amount of the monthly wages of the workman before the accident exceeds half the amount of such which he is earning after the accident, [and]

[(c) the amount of half-monthly payments to which a workman is entitled shall in no case be less than the amount of half-monthly payments to which a workman drawing lesser monthly wages than such workman is entitled]

(2) On the ceasing of the disablement before the date on which any half-monthly payment falls due, there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement in that half-month.

5. Method of calculating wages: In this Act and for the purposes thereof the expression 'monthly wages' means the amount of wages deemed to be payable for a month's service whether the wages are payable by the month or by whatever other period or at piece rates, and calculated as follows, namely: –

(a) where the workman has, during a continuous period of not less than twelve months immediately preceding the accident, been in the service of the employer who is liable to pay compensation, the monthly wages of the workman shall be one-twelfth of the total wages which have fallen due for payment to him by the employer in the last twelve months of that period ;

(b) where the whole of the continuous period of service immediately preceding the accident during which the workman was in the service of the employer who is liable to pay the compensation was less than one month, the monthly wages of the workman shall be the average monthly amount which during the twelve months immediately preceding the accident, was being earned by a workman employed on the same work by the same employer, or, if there was no workman so employed, by a workman employed on similar work in the same locality ;

(c) in other cases, the monthly wages shall be thirty times the total wages earned in respect of the last continuous period of service immediately preceding the accident from the employer who is liable to pay compensation, provided by the number of days comprising such period.

Proviso: Omitted by the Workmen's Compensation (Amdt.) Act, XV of 1933.

Explanation: A period of service shall, for the purposes of this section be deemed to be continuous which has not been interrupted by a period of absence from work exceeding fourteen days.

(2) Omitted by the Workmen's Compensation Act, XV of 1933.

6. Review: (1) Any half-monthly payment payable under this Act. either under an agreement between the parties or under the order of a Commissioner, may be reviewed by the commissioner, on the application cither of the employer or of the workman accompanied by the certificate of a qualified medical practitioner that there has been a change in the condition of the workman or, subject to rules made under this Act, on application made without such certificate.

(2) Any half monthly payment may, on review under this section subject to the provisions of this Act, be continued, increased, decreased, or ended, or if the accident is found to have resulted in permanent disablement be converted to the

lump sum to which the workman is entitled less any amount which he has already received by way of half-month) payments.

7. Commutation of half-monthly payments: Any right to receive half-monthly payments may, by agreement between the parties or, if the, parties cannot agree and the payments have been continued for not less than six months, on the application of either party to the Commissioner' be redeemed by the payment of a lump-sum of such amount as may be agreed to by the parties or determined by the Commissioner, as the case may be.

8. Distribution of Compensation: (1) No payment of compensation in respect of a workman whose injury has resulted in death, and no payment of lumpsum as compensation to a workman or a person under legal disability, shall be made otherwise than by deposit with the Commissioner, and no such payment made directly by an employer shall be deemed to be a payment of compensation:

Provided that in case of a deceased workman, an employer may make to any dependant advances on account of compensation not exceeding an aggregate of one hundred rupees, and so much of such aggregate as does not exceed the compensation payable to that dependant shall be deducted by the Commissioner from such compensation and repaid to the employer,

(2) Any other sum amounting to not less than ten rupees which is payable as compensation may be deposited with the Commissioner on behalf of the person entitled thereto.

(3) The receipt of the Commissioner shall be a sufficient discharge in respect of any compensation deposited with him.

(4) On the deposit of any money under sub-section (1) as compensation in respect of a deceased workman the Commissioner shall deduct therefrom the actual cost of the workman's funeral expenses, to an amount not exceeding twenty-five rupees and pay the same to the person by whom such expenses were incurred, and shall, if he thinks necessary, cause notice to be published or to be served on each dependant in such manner as he thinks fit, calling upon the dependants to appear before him on such date as he may fix for determining the distribution of the compensation, 1f the Commissioner is satisfied after any inquiry which he may deem necessary, that no dependant exists he shall not less than two years after the date of deposit, transfer the balance of the money to such fund or funds for the benefit of workmen as the Provincial Government may by notification in the official Gazette specify or establish. The Commissioner shall, on application by the employer, furnish a statement showing in detail all disbursements made.

(5) Compensation deposited in respect of a deceased workman shall, subject to any deduction made under the proviso to sub-section (l) or under sub-section (4), be apportioned among the dependants of the deceased workman or any of them in such proportion as the Commissioner thinks fit, or may, in the discretion of the Commissioner, be allotted to any one dependant.

(6) Where any compensation deposited with the Commissioner is payable to any person, the Commissioner shall, if the person to whom the compensation is payable is not a woman or a person under a legal disability, and may, in other cases pay the money to the person entitled thereto.

(7) Where any lump-sum deposited with the Commissioner is payable to a woman or a person under a legal disability, such sum may be invested, applied or otherwise dealt with for the benefit of the woman, or of such person during his disability, in such manner the Commissioner may direct ; and where a half-monthly payment is payable to any person under legal disability, the Commissioner may, of his own motion or on an application made to him in this behalf, order that the payment be made during the disability to any dependant of the workman or to any other person whom the Commissioner thinks best fitted to provide for the welfare of the workman.

(8) Where, on application made to him in this behalf or otherwise, the Commissioner is satisfied that on account of neglect of children on the part of a parent or on account of the variation of the circumstances of any dependant or for any other sufficient cause, an order of the Commissioner as to the distribution of any sum paid as compensation or as to the manner in which any sum payable to any such dependant is to be invested, applied or otherwise dealt with, ought to be varied, the Commissioner may make such orders for the variation of the former order as he thinks just in the circumstances of the case :

Provided that no such order prejudicial to any person shall be made unless such person has been given an opportunity of showing cause why the order should not be made or shall be made in any case in which it would involve the repayment by a department of any sum already paid to him.

(9) Where the Commissioner varies any order under subsection (8) by reason of the fact that payment of compensation to any person has been obtained by fraud, impersonation or other improper means, any amount so paid to or on behalf of such person may be recovered in the manner hereinafter provided in Section 31.

9. Compensation not to be assigned, attached or changed: Save as provided by this Act, no lump-sum or half-monthly payment payable under this Act shall in any way be capable of being assigned or charged or be liable to attachment or pass to any person other than the workman by operation of law, nor shall any claim be set off against the same.

10. Notice and claim : (1) No claim for compensation shall be entertained by a Commissioner unless notice of the accident has been given in the manner hereinafter provided as soon as practicable after the-happening thereof and unless the claim is preferred before him within [three years] of the occurrence of the accident or, in case of death, within [three years] from the date of death :

Provided that, where the accident is the contracting of a disease in respect of which the provisions of sub-section (2) of Section 3 are applicable the accident shall be deemed to have occurred on the first of the days during which the workman was continuously absent from work in consequence of the disablement caused by the disease :

Provided further, that the want of or any defect or irregularity in a notice shall not be a bar to the entertainment of a claim: –

[a) If the claim is preferred in respect of the death of a workman resulting from an accident which occurred on the premises of the employer, or at any place where the workman at the time of the accident was working under the control of the employer or of any person employed by him, and the workman died on such premises or at such place, or on any premises belonging to the employer, or died without having left the vicinity of the premises or place where the accident occurred, or

(b) if the employer or any one of several employers or any person responsible to the employer for the management of any branch of the trade or business in which the injured workman was employed had 'knowledge of the accident from any other source at or about the time when it occurred ,

Provided further, that the Commissioner may entertain and decide any claim to compensation in any case notwithstanding that the notice has not been given, or the claim has not been preferred in due time as provided in this sub-section, if he is satisfied that the failure so to give the notice or prefer the claim, as the case may be, was due to sufficient cause.

(2) Every such notice shall give the name and address of the person injured and shall state in ordinary language the cause of the injury and the date on which the accident happened, and shall be served on the employer or upon any one of several employers, or upon any person responsible to the employer for the management of any branch of the trade or business in which the injured workman was employed.

(3) The Provincial Government may require that the prescribed class of employers shall maintain at their premises at which workmen are employed a notice-book, in the prescribed form, which shall be readily accessible at all reasonable times to any injured workman employed on the business and to any person acting bona fide on his behalf.

(4) A notice under this section may be served by delivering it at, or sending it by registered post addressed to, the residence or any office or place of business of the person on whom it is to be served or, where a notice-book is maintained, by entry in the notice-book.

[10-A. Power to require from employers statements regarding fatal accidents: (1) Where a Commissioner receives information from any source that a workman has died as a result of an accident arising out of and in the course of his employment, he may send by registered post a notice to the workman's employer requiring him to submit, within thirty days of service of the notice, a statement, in the prescribed from, giving the circumstances attending the death of the workman, and indicating whether, in the opinion of the employer, he is or is not liable to deposit compensation on account of the death.

(2) If the employer is of opinion that he is liable to deposit condensation, he shall make the deposit within ten days of the service of the notice.

(3) If the employer is of opinion that he is not liable to deposit compensation, he shall in his statement indicate the grounds on which he disclaims liability,

(4) Where the employer has so disclaimed liability the Commissioner, after such inquiry as he may think fit, may inform any of the dependants of the deceased workman that it is open to the dependants to prefer a claim for compensation, and may give them such other further information as he may think fit]

[10-B. Reports of fatal accidents: (1) Where, by any law for the time being in force, notice is required to be given to any authority by or on behalf of an employer, of any accident occurring on his premises which results in death the person required to give the notice shall, within seven days of the death, send a report to the Commissioner giving the circumstances attending the death:

 

Provided that where the Provincial Government has so prescribed, the person required to give the notice may instead of sending such report to the Commissioner send it to the authority to whom he is required to give the notice.

(2) The Provincial Government may, by notification in the official Gazette, extend the provisions of sub-section (1) to any class of premises other than those coming within the scope of that sub-section, and may, by such notification, specify the persons who shall send the report to the Commissioner.]

[10-C. Officers authorised may prefer cases for payment of compensation. A Labour Commissioner, an Inspector of Factories or any other officer authorised by the Provincial Government for this purpose may refer, in the prescribed manner, to the Commissioner, cases of workmen who have not been paid due compensation by employers under the provisions of this Act.

10-D. Fixation of abstracts of the Act or rules at the entrance of the premises. There shall be affixed in some conspicuous place near the main entrance of every place where workmen are employed, in English and in the language of the majority of the workmen, such abstracts of this Act and of the rules made thereunder as may be prescribed.]

11. Medical examination: (1) Where a workman has given notice of an accident, the employer shall, before the expiry of three days from the time at which service of the notice has been effected, have the workman examined free of charge by a qualified medical practitioner, and the workman shall submit himself for such examination, and any workman who is in receipt of a half-monthly payment under this Act, shall if so required, submit himself for such examination from time to time:

Provided that a workman not examined free of charge as aforesaid may get himself examined by a qualified medical practitioner and the expenses of such medical examination shall be reimbursed to the workman by the employer :

Provided further that a workman shall not be required to submit himself for examination by a medical practitioner otherwise than in accordance with rules made under this Act, or at more frequent intervals than may be prescribed.

(2) If a workman, on being required to do so by the employer under sub-section (1) or by the Commissioner at any time, refuses to submit himself for examination by a qualified medical practitioner or in any way obstructs (he same, his right to compensation shall be suspended during the continuance of such refusal or obstruction unless, in the case of refusal, be was prevented by any sufficient cause from so submitting himself.

(3) If a workman, before the expiry of the period within which he is liable under sub-section (1) to be required to submit himself for medical examination voluntarily leaves without having been so examined the vicinity of the place in which he was employed, his right to compensation shall be suspended until he returns and offers himself for such examination.

(4) Where a workman, whose right to compensation has been suspended under sub-section (2) or sub-section (3), dies without having submitted himself for medical examination as required by either of those sub-sections, the Commissioner may, if he thinks fit, direct the payment of compensation to the dependants of the deceased workman.

(5) Where under sub-section (2) or sub-section (3) a right to compensation is suspended, no compensation shall be payable in respect of the period of suspension, and, if the period of suspension commences before the expiry of the waiting period referred to in clause D of sub-section (1) of Section 4, the waiting period shall be increased by the period during which the suspension continues.

(6) Where an injured workman has refused to be attended by a qualified medical practitioner whose services have been offered to him by the employer free of charge or having accepted such offer deliberately disregarded the instructions of such medical practitioner, then, if it is proved that the workman has not thereafter been regularly attended by a qualified medical practitioner or having been so attended has deliberately failed to follow his instructions and that such refusal, disregard or failure was unreasonable in the circumstances of the case and that the injury has been aggravated thereby, the injury and resulting disablement shall be deemed to be of the same nature and duration as they might reasonably have been expected to be if the workman had been regularly attended by a qualified medical practitioner whose instructions he had followed, and compensation, if any, shall be payable accordingly.

12. Contracting: (1) Where any person (hereinafter in this section referred to as the principal) in the course of or for the purposes of his trade or business contracts with any other person (hereinafter in this section referred to as the contractor) for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the principal, the principal shall be liable to pay to any workman employed in the execution of the work any compensation which he would have been liable to pay if that workman had been immediately employed by him ; and where compensation is claimed from the principal, this Act shall apply as if references to the principal were substituted for references to the employer except that the amount of compensation shall be calculated with reference to the wages of the workman under the employer by whom he is immediately employed.

 

(2) Where the principal is liable to pay compensation under this section he shall be entitled to be indemnified by the contractor, or any other person from whom the workman could have recovered compensation and where a contractor who is himself a principal is liable to pay compensation or to indemnify a principal under this section he shall be entitled to be indemnified by any person standing to him in the relation of a contractor from whom the workman could have recovered compensation and all questions as to the right to and the amount of any such indemnity shall, in default or agreement, be settled by the Commissioner.

 

(3) Nothing in this section shall be construed as preventing a workman recovering compensation from the contractor instead of principal.

 

(4) This section shall not apply in any case where the accident Occurred elsewhere than on, in or about the premises on which the principal has undertaken or usually undertakes, as the case may be, to execute the work or which are otherwise under his control or management.

13. Remedies of employer against stranger: Where a workman has recovered compensation in respect of any injury caused under circumstances creating a legal liability of some person other than the person by whom the compensation was paid to pay damages in respect thereof, the person by whom the compensation was paid and any person who has been called on to pay an indemnity under Section 12 shall be entitled to be indemnified by the person so liable to pay damages as aforesaid.

14. Insolvency of employer: (1) Where any employer has entered into a contract with any insurers in respect of any liability under this Act to any workman, then in she event of the employer becoming insolvent or making a composition or scheme of arrangement with his creditors or, if the employer is a company, in the event of the company having commenced to be wound up, the rights of the employer against the insurers as respect that liability shall, notwithstanding anything in any law for the-time being in force relating to insolvency or the winding up of companies, be transferred to and vest in the workman, and upon any such transfer the insurers shall have the same rights and remedies and be subject to the same liabilities as if they were the employer, so, however, that the insurers shall not be under any greater liability to the workman than they would have been under to the employer,

(2) If the liability of the injuries to the workman is less than the liability of the employer to the workman, the workman may prove for the balance in the insolvency proceedings or liquidation.

(3) Where in any cases such as is referred to in sub-section (1) the contract of the employer with the insurers is void or voidable by reason of non-compliance on the part of the employer with any terms or conditions of the contract (other than a stipulation for the payment of premia), the provision of that sub-section shall apply as if the contract were not void or voidable, and the insurers shall he entitled to prove in the insolvency proceedings or liquidation for the amount paid to the workman :

Provided that the provisions of this sub-section shall not apply in any case in which the workman fails to give notice to the insurers of the happening of the accident and of any resulting disablement as soon as practicable after he becomes aware of the insolvency or liquidation proceedings.

(4) There shall be deemed to be included among the debts which under Section 49 of the [Insolvency (.Karachi Division and Dacca) Act,] 1909 1111 of 1909), or under Section 61 of the Provincial Insolvency Act, 1920 (V of 1920), or under Section 230 of the Companies Act, 1913 (VII of 1913), art in the distribution of the property of an insolvent or in the distribution of the assets of a company being wound up to be paid in priority to all other debts, the amount due in respect of any compensation the liability where for accrued before date of the order of adjudication of the insolvent or the date of the commencement of the winding up, as the case may be, and those Acts shall have effect accordingly.

(5) Where the compensation is a half-monthly payment, the amount due in respect thereof shall, for the purpose of this section, be taken, to be the amount of the lump-sum for which the half monthly payment could, it redeemable, be redeemed if applications were made for that purpose under Section 7, and a certificate of the Commissioner as to the amount of such sum shall be conclusive proof thereof.

(6) The provisions of sub-section (4) shall apply in the case of any amount for which an insurer is entitled to prove under sub-section (3), but otherwise those provisions shall not apply where the insolvent or the company being wound up has been entered into such a contact with insurers as is referred in sub-section (1).

(7) This section shall not apply where a company is wound up voluntarily merely for the purpose of reconstruction or of amalgamation wilt another company.

15. Special provisions relating to masters and seamen : This Act shall apply in the case of workmen who are masters of ships or seamen subject to the following modifications, namely :-

(1) The notice of the accident and the claim for compensation mail except where the person injured is the master of the ship, be served on the master of the ship as if he were the employer but where the accident happened and the disablement commenced on board the ship, it shall not be necessary for any seaman to give any notice of the accident.

(2) In the case of the death of a master or seaman, the claim for compensation shall be made within six months after the news of the death has been received by the claimant or, where the ship has been or is deems to have been lost with all hands, within eighteen months of the date on which the ship was, or is deemed to have been, so lost.

(3) When an injured master or seaman is discharged or left behind [xxx] in a foreign country any depositions taken [xxx] by any Consular Officer in the foreign country and transmitted by the person by whom they are taken to the Federal Government or any Provincial Government shall; in any proceedings for enforcing the claim, be admissible in evidence-,

(a) if the deposition is authenticated by the signature of the [xxx] Consular Officer before whom it is made ;

(b) if the defendant or the person accused, as the case may be, had an opportunity by himself or his agent to cross examine the witness; and

(c) if the deposition was made in the course of a criminal proceeding, on proof that the deposition was made in the presence oft accused ;

and it shall not be necessary in any casa to prove the signature or official character of the person appearing to have signed any such deposition and a certificate by such person that the defendant or the persons accused had an opportunity of cross-examining the witness and that deposition if made in a criminal proceeding was made in the presence the person accused shall, unless the contrary is proved, be sufficient evidence that he had that opportunity and that it was so made.

(4) No half-monthly payment shall be payable in respect of the period during which the owner of the ship is, under any law in force for the time being in Pakistan relating to merchant shipping, liable to defray the expenses of the injured master or seaman.

(5) No compensation shall be payable under this Act in respect of any injury in respect of which provision is made for payment of a gratuity, allowance or pension under the War Pensions and Detention Allowances (Mercantile Marine, etc.) Scheme, 1939 or the War Pensions and Detention Allowance (Indian Seaman, etc.) Scheme. 1941. made under the Pensions (Navy Army, Air Force and Mercantile Marine) Act, 1938, (2 & 3 Goe 6. c. 83,) or under the War Pensions and Detention Allowance (Indian Seaman) Scheme, 1942, made by the Central Government.

(6) Failure to give a notice or make a claim or commence proceedings within the time required by this Act shall not be a bar to the maintenance of proceedings under this Act in respect of any personal injury if-

(a) an application has been made for payment in respect of the injury under any of the schemes referred to in the preceding clause, and

(b) the Provincial Government certifies that the said application was made in the reasonable belief that the injury was one in respect of which the scheme under which (he application was made, makes provision for payments, and that the application was rejected or that payments made in pursuance of the application were discontinued on the ground that the injury was not such an injury, and

(c) the proceedings under this Act are commenced within one month from the date on which the said certificate of the Provincial Government was furnished to the person commencing the proceedings.

16. Returns as to compensation: The Provincial Government may, by notification in the official Gazette, direct that every person employing workmen, or that any specified class of such persons, shall send at such time and in such form and to such authority, as may be specified in the notification, a correct return specifying the number of injuries in respect of which compensation has been paid by the employer during the previous year and the amount of such compensation, together with such other particulars as to the compensation as the Provincial Government may direct.

17. Contracting out: Any contract or agreement whether made before or after the commencement of this Act, whereby a workman relinquishes any right of compensation from the employer for personal injury arising out of or in the course of the employment, shall be null and void insofar as it purports to remove or reduce the liability of any person to pay compensation under this Act.

18. Proof of age: Where any question arises as to the age of a person injured by accident arising out of and in the course of his employment in a factory a valid certificate granted in respect of such person under Section 12 or Section 52 of the Factories Act, 1934 (XXV of 1934) before the occurrence of the injury shall be conclusive proof of the age of such person.

[18-A. Penalties : (1) Whoever-

(a) fails to maintain a notice-book which he is required to maintain under sub-section (3) of Section 10, or

(b) fails to send to the Commissioner a statement which he is required, to send under sub-section (I) of Sec. 10-A, or

(c) fails to make a report which he is required to make under Section 10-B, or

(d) fails to make a return which he is required to make under Section 16, or

(e) fails to affix the abstracts of this Act or the rules as required by Section 10-D, shall be punishable with fine which may extend to one hundred rupees.

(2) No prosecution under this section shall be instituted except by 01 with the previous sanction of a Commissioner, and no Court shall take cognizance of any offence under this section, unless complaint thereof is made within six months of the date on which the offence is alleged to have been committed]

 

CHAPTER III

COMMISSIONERS

 

19. Reference to Commissioners: (1) If any question arises in any proceedings under this Act as to the liability of any person to pay compensation (including any question as to whether a person injured is or is not a workman) or as to the amount or duration of compensation (including any question as to the nature or extent of disablement), the question shall, in default of agreement, be settled by a Commissioner.

(2) No Civil Court shall have jurisdiction to settle, decide or deal with any question -which is by or under this Act required to be settled, decided or dealt with by a Commissioner or to enforce any liability incurred under this Act.

20. Appointment of Commissioners: (1) The Provincial Government may, by notification in the official Gazette, appoint any person to be a Commissioner for Workmen's Compensation for such areas as may specified in the notification.

(2) Where more than one Commissioner has been appointed for any local area, the Provincial Government may, by general or special order regulate the distribution of business between them.

(3) Any Commissioner may, for the purpose of deciding any mate referred to him for decision under this Act, choose one or more persons possessing special knowledge of any matter relevant to the matter under inquiry to assist him in holding the inquiry.

(4) Every Commissioner shall be deemed to be a public servant within the meaning of the Pakistan Penal Code (XLV of 1860).

21. Venue of proceedings and transfer; (1) Where any matter is under this Act to be done by or before a Commissioner, the same shall, subject to the provision of this Act and to any rules made hereunder, be done by or before a Commissioner for the local area in which the accident took place which resulted in the injury:

Provided that, where the workman is the master of a ship or a seaman, any such matter may be done by or before a Commissioner for the local area in which the owner or agent of the ship resides or carries on business.

(2) If a Commissioner is satisfied that any matter arising out of any proceedings pending before him can be more conveniently dealt with by any other Commissioner, whether in the same Province or not, he may subject to rules made under this Act, order such matter to be transferred to such other Commissioner either for report or for disposal, and, if he does so, shall forthwith transmit to such other Commissioner all documents relevant for the decision of such matter and, where the matter is transferred for disposal, shall also transmit in the prescribed manner any money remaining in his hands or invested by him for the benefit of any party to the proceedings :

Provided that the Commissioner shall not, where any party to the proceedings has appeared before him, make any order of transfer relating to the distribution among dependants of a lump-sum without giving such party an opportunity of being heard:

Provided further, that no matter other than a matter relating to the actual payment to a workman or the distribution among dependants of a lump sum shall be transferred for disposal under this sub-section to a Commissioner in the same Province save with the previous sanction of the Provincial Government or to a Commissioner in another Province save with the previous sanction of the Provincial Government of that Province, unless all the parties to the proceedings agree to the transfer.

(3) The Commissioner to whom any matter is or so transferred shall, subject to rules made under this Act, inquire there into and, if the matter was transferred for report, return his report thereon or, if the matter was transferred for disposal, continue the proceedings as if they had originally commenced before him.

(4) On receipt of a report from a Commissioner to whom any matter has been transferred for report under sub-section (2), the Commissioner by whom it was referred shall decide the matter referred in conformity wish such report.

(5) The Provincial Government may transfer any matter from any Commissioner appointed by it to any other Commissioner appointed by it.

22. Form of application: (1) No application for the settlement of any matter by a Commissioner, other than an application by a dependant or dependants for compensation, shall be made unless and until some question has arisen between the parties in connection therewith which they have been unable to settle by agreement.

(2) An application to a Commissioner may be made in such form and shall be accompanied by such fee, if any, as may be prescribed, and shall contain, in addition to any particulars which may be prescribed, the following particulars, namely:

(a) a concise statement of the circumstances in which the application is made and the relief or order which the applicant claims ;

(b) in the case of a claim for compensation against an employer, the date of service of notice of the accident on the employer and, if such notice has not been served or has not been served in due time, the reason for such omission ;

(c) the names and addresses of the parties ; and

(d) except in the case of an application by dependants for compensation a concise statement of the matters on which agreement has and of those on which agreement has not been come to.

(3) If the applicant is illiterate or for any other reason is unable to furnish the required information in writing, the application shall, if the applicant so desires, be prepared under the direction of the Commissioner.

[22-A. Power of Commissioner to require further deposit in cases of fatal accident: (1) Where any sum has been deposited by an employer as compensation payable in respect of a workman whose injury has resulted in death, and in the opinion of the Commissioner such sum is insufficient, the Commissioner may, by notice in writing stating his reasons, call upon the employer to show cause why he should not make a further deposit within such time as may be stated in the notice.

(2) If the employer fails to show cause to the satisfaction of the Commissioner, the Commissioner may make an award determining the total amount payable, and requiring the employer to deposit deficiency]

Print Friendly, PDF & Email

Related Case Law