A DETAILED STUDY ON THE LIABILITY OF THE EMPLOYER TO COMPENSATE THE EMPLOYEE UNDER THE EMPLOYEES’ COMPENSATION ACT, 1923

AUTHOR – TASNEEM BANU T, SCHOOL OF EXCELLENCE IN LAW THE TAMIL NADU DR AMBEDKAR LAW UNIVERSITY, CHENNAI

BEST CITATION – TASNEEM BANU T, A DETAILED STUDY ON THE LIABILITY OF THE EMPLOYER TO COMPENSATE THE EMPLOYEE UNDER THE EMPLOYEES’ COMPENSATION ACT, 1923, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (1) OF 2026, PG.1125-1129, APIS – 3920 – 0001 & ISSN – 2583-2344

Abstract

The Employees’ Compensation Act, 1923 is one of the foundational social welfare legislations in India, enacted to provide financial protection to employees and their dependents against risks arising from workplace accidents and occupational diseases. This paper presents a comprehensive analysis of the statutory framework governing the liability of employers to compensate employees under the Act. Rooted in the principle of vicarious liability, the legislation imposes a statutory obligation on employers to compensate employees for personal injuries caused by accidents arising out of and in the course of employment, irrespective of fault.

The study examines the essential conditions for claiming compensation under Section 3, including the requirement of personal injury, causal connection between employment and accident, and disability exceeding three days. It further analyses the computation of compensation under Sections 4 and 5, the procedural safeguards under Sections 4A, 7, 8, 9, and 10, and the role of the Commissioner in adjudication. The paper also explores occupational diseases under Schedule III and doctrines such as added peril, contributory negligence, and self-inflicted injury, which limit employer liability in specific circumstances.

Judicial interpretations have significantly shaped the scope of employer liability. Landmark decisions have clarified that employer liability extends even to injuries caused by natural events, third-party acts, and employment-related stress, provided a nexus with employment is established. The paper highlights how courts have adopted a welfare-oriented approach to ensure social justice while balancing reasonable limitations. The study concludes that the Act plays a vital role in strengthening labour welfare by ensuring timely compensation, protecting dependents, and reinforcing the employer’s statutory duty. Despite evolving labour reforms, the fundamental principles of employer liability under the Act continue to uphold the objectives of social security and financial protection for employees.

Keywords: Employees’ Compensation Act, 1923, Employer’s Liability, Occupational Diseases. Arising out of and in the Course of Employment)