“A CRITICAL ANALYSIS ON EMPLOYEE COMPENSATION SCHEME IN INDIA”
AUTHOR – M. MATHAN, 2nd LLM (LABOUR LAW AND ADMINISTRATIVE LAW), TAMILNADU DR. AMBEDKAR LAW UNIVERSITY CHENNAI – 13
BEST CITATION – M. MATHAN, “A CRITICAL ANALYSIS ON EMPLOYEE COMPENSATION SCHEME IN INDIA”, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (12) OF 2025, PG. 361-373, APIS – 3920 – 0001 & ISSN – 2583-2344.
ABSTRACT
This research paper provides a comprehensive analysis of India’s employee compensation framework, primarily examining the Employees’ Compensation Act, 1923, and its evolution through various amendments. The study investigates the effectiveness of current compensation mechanisms, employer liability structures, and the adequacy of statutory provisions in protecting workers’ rights. Through doctrinal analysis of legal provisions, judicial interpretations, and comparative examination of international conventions, this research reveals significant gaps between legislative intent and practical implementation. The findings indicate that while India’s compensation scheme provides a foundational framework for worker protection, issues persist regarding compensation adequacy, procedural complexities, and enforcement mechanisms. The study employs a mixed methodology approach, incorporating statutory analysis, case law examination, and comparative legal research. Key findings suggest that current compensation rates remain insufficient to meet modern living standards, administrative delays compromise timely relief, and awareness levels among workers remain inadequate. The research recommends comprehensive legislative reforms, enhanced enforcement mechanisms, simplified claim procedures, and increased compensation amounts aligned with contemporary economic realities. This analysis contributes to the existing body of knowledge by providing updated insights into India’s evolving compensation landscape and offering practical recommendations for policy reform and implementation improvement.
Keywords: Employee Compensation, Workmen’s Compensation Act, Employer Liability, Industrial Accidents, Labor Law, Social Security, Occupational Safety