Compensation calculations under Section 4 are based on the nature of the injury and the age/wages of the employee, removing the need for long litigation to prove negligence.
1. Kinds of Disablement
- Permanent Total Disablement: Disables the employee from all work which they were capable of performing at the time of the accident.
- Permanent Partial Disablement: Reduces the earning capacity of the employee in every employment which they were capable of undertaking at that time.
- Temporary Disablement (Total or Partial): Temporarily reduces or disables the earning capacity for a specific period.
2. Section 4: Calculation of Compensation
- In case of Death: An amount equal to 50% of the monthly wages of the deceased employee multiplied by the relevant factor (based on age), or Rs. 1,20,000 (whichever is more).
- In case of Permanent Total Disablement: An amount equal to 60% of the monthly wages multiplied by the relevant factor, or Rs. 1,40,000 (whichever is more).
- Note: The maximum monthly wage for calculation is capped by central notification (currently Rs. 15,000).
3. The Employee's Compensation Commissioner
Appointed by the State Government under Section 19. The Commissioner holds exclusive jurisdiction to settle any question regarding the liability of an employer, the duration of disablement, or the amount of compensation. Civil courts are completely barred from entertaining these disputes.