The growing complexities of industries with the increasing use of machineries and consequent danger to workmen along with the comparative poverty of the workmen themselves rendered it advisable that they should be protected, as far as possible, from hardship arising from accidents. The law was enacted with a dominant purpose. The main objective of the Act was to impose an obligation upon the employers to pay compensation to workers for accidents arising out of and in the course of employment.
The Employee’s Compensation Act which was earlier known as Workmen’s Compensation Act came into force on first day of July, 1924 and extends to the whole of India. It was amended in the year 2009 and called the Employee’s Compensation (Amendment) Act, 2009.It is applied to those person who is employed in railway, factories, mines, etc.
The Act applies to any person who is employed otherwise than in a clerical capacity, in railway, factories, mines, plantations, vehicles propelled by stream or other mechanical power or by electricity or in connection with loading and unloading work, construction, maintenance and repairs of roads and bridges, electricity generation, cinemas, catching or trading of wild elephants, circus and other hazardous occupations and other employments specified in Schedule II of the Act. The Act, however does not apply to members serving in the Armed Forces of the Indian Union and employees covered under the provisions of Employees State Insurance Act, 1948 as disablement and dependents benefits under this Act.