Employees’ Compensation (Amendment) Act 2017: What is it?


It provides more rights to employees and safeguards their interests.

The Employees’ Compensation (Amendment) Act, 2017, introduced in the Lok Sabha in August, 2016 received the President’s approval last week. The amendment is to the Employees’ Compensation Act, 1923.

The details of the amended bill are as follows:

1. It is the employer’s responsibility and duty to inform an employee of his rights. According to the Act, “Every employer shall immediately at the time of employment of an employee, inform the employee of his rights to compensation under this Act, in writing as well as through electronic means, in English or Hindi or in the official language of the area of employment, as may be understood by the employee.

2. Failure to do so will make the employer liable to penalty. The Bill penalises an employer if he fails to inform his employee of his right to compensation. As per the amendment, the penalty amount has been increased from a maximum of Rs. 5000 to a definite penalty of Rs. 50,000 which may be further extended to Rs. 1 lakh.

3. As per the amended act, appeals can be made against orders related to compensation, distribution of compensation, award of penalty or interest, only if the amount in dispute is at least Rs 10,000. The same has been revised from the earlier minimum amount of Rs 300.

4. Any dispute related to an employee’s compensation will be heard by a commissioner who will have the powers of a civil court. Appeals from the commissioner’s order, related to a substantial question of law, will lie before the High Court.

5. In a further amendment, the Act has scrapped the rule as per which the employer could temporarily withhold any payments towards the employee in case the former had appealed against a commissioner’s order.



  1. I worked? for 7 days in a company named Destimoney Securities Pvt Ltd. During this period I was absent for 3 days for my illness that I informed early. But com. processed my exit from system without informing me. Now com. do not want to release my outstanding dues that I have earned by working 7 days.
    Pls I need help.

  2. I am the Admin Officer at Lae Biscuit Company. Would like to bring it to your kind attention that most of our staffs who have encountered workplace injuries, and have permanently lost their body parts and have been waiting for years to get their company compensation? Why is it so?

  3. Raise your grievance in writing before the Labour Commissioner, W. Bengal if you belongs to Bengal. It is his duty call for conciliation.

  4. What will be the new rate of simple interest, on the amount due awarded to the injured employee, since there is a gradual decrease in the lending rates of any scheduled bank, which would specified by the Central Govt., by notification in the official gazette ? Since the employer is suppose to pay the injured employee at the rate of simple interest of 12% per annum as mentioned Section 4A part 3(a).Please explain.

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