To ensure higher compensation to employees in case of industrial accidents, the Lok Sabha has unanimously passed the Employees Compensation (Amendment) Act 2016. Labour and Employment Minister Bandaru Dattatreya has said that the government was committed to ensure protection of jobs, wages, social security and fair wages to workers.
The bill provides for higher compensation in case an employee is injured in industrial accident and has a provision for hefty penalty in case of violation by employers. The new legislation raises compensation to Rs 50,000 to 1 lakh to employees and their dependents in the event of injury in industrial accidents, including occupational diseases. Earlier this compensation was Rs 5,000.
Besides, Rs 50,000 compensation, there will be 'penalty for failure to display the Act' by the employers. The Bill says that wherever an establishment or factory is there, an employer has to inform the employee of his right to compensation under the Act. Such information must be given in writing (in English, Hindi or the relevant official language) at the time of employing him.
Dattatreya has said that a large number of organised workforces will be benefited by it. He further said that the government has also increased the minimum pension from Rs 350 crore to Rs 1000 crore and has launched a National Career Service Portal, in which 9 lakh people have registered.