Employees Compensation (Amendment) Act, 2017 Receives President’s Assent [Read The Act]

The Employees Compensation (Amendment) Act, 2017 received the President’s assent on April 12, 2017. It was introduced in the Lok Sabha in August, 2016, and amends the Employee’s Compensation Act, 1923.

The main amendments introduced by the Act are:

• The employer needs to inform an employee of his rights to compensation under the Act in writing as well as through electronic means. Failure to do so will make the employer liable to penalty.


• Penalties have been increased from a maximum of Rs. 5000 to a definite penalty of Rs. 50,000 which may extend to Rs. 1 lakh.


• The minimum amount involved in a dispute for which an appeal may be filed with the High Court has been increased from Rs. 300 to Rs. 10,000, or such higher amount as the Central Government may, by notification, specify.


• Appeals can be made against orders related to compensation, distribution of compensation, award of penalty or interest, etc. only if the amount in dispute is at least three hundred rupees.


• Under the original Act, if an employer has appealed against a Commissioner’s order, any payments towards the employee can be temporarily withheld.  The Commissioner may do so only by an order of the High Court, until the matter is disposed of by the Court.  The Amendment Act deletes this provision.