Statue designed to govern, order and regulate industrial activities
Employee’s Compensation Act, 2010 is a social security/welfare scheme that provides comprehensive compensation to employees who suffer from occupational diseases or sustain injuries arising from accidents at workplace or in the course of employment. The basis or justification for ‘compensation’ is the employer’s duty of care. The idea of compensation suggests that someone has suffered a wrong for which he has to be compensated monetarily. This implies that another person has a duty to prevent the occurrence of the wrong suffered.
Payment of compensation by the employer to the employee is rooted in the accepted principle that the employer has a duty of care, a duty to protect the health, welfare and safety of workers at work. Where the worker sustains injuries, gets ill or dies in work-related circumstances, the employer is liable to pay compensation to the worker or to his dependents, in the event of death. The foregoing forms the underlying philosophy behind the enactment of the Employee’s Compensation Act, 2010 (hereinafter called “the Act”).