Centre

Clarification regarding disbursement of compensation amount under Employees' Compensation Act 1923

The Labour Commissioner's office has issued a clarification regarding the compensation disbursement under the Employees' Compensation Act.

Vide advisory dated 31/01/2023 which is regarding disbursement of Compensation Amount under Employees Compensation Act, 1923, all the Commissioners were advised to adhere to the guidelines contained in the aforesaid advisory. Para 10 of the aforesaid advisory reads as under:

In case an appeal has been filed against the order of the Commissioner before Hon 'ble High Court within time prescribed under Law and the management/respondent has filed an application on affidavit, before the Commissioner that they are preferring appeal and has also requested not to disburse the amount deposited by them. In such cases at least a notice should be sent to the respondents giving him at least 15 days time before disbursement, asking him as to why the amount deposited by them should not be disbursed to the claimants.

It has come to notice that in other matters not covered under para 10, the amount of compensation is not disbursed after the period of limitation. In all such cases the amount of compensation should be disbursed at the end of the limitation period i.e 60 days and no show cause notice is required further.

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