The Employee's Compensation Act, 1923: Issues in Implementation and Access to Compensation

Abstract

A historic piece of social welfare legislation, the Employee’s Compensation Act, 1923 was passed in order to compensate workers who sustain accidents, occupational illnesses, disabilities or fatalities while working. Despite its welfare-oriented goal, many workers still have difficulty obtaining timely and sufficient compensation. The Act’s effective implementation has been significantly undermined by factors such as procedural delays, employee ignorance, employer non-compliance, underreporting of workplace accidents, difficulties in identifying occupational diseases and insufficient enforcement tools. In the unorganised sector, where workers frequently lack access to institutional assistance and legal remedies, these problems are especially severe. By examining the statutory framework, constitutional underpinnings, judicial interpretations and India’s responsibilities under international labour norms, this study critically investigates the Employee’s Compensation Act, 1923. In addition to secondary sources such as books, peer-reviewed journals, government reports and academic articles, the study employs a doctrinal research methodology based on the examination of primary sources, such as statutes, constitutional provisions, judicial precedents and international conventions. It also reviews whether the current legislative framework sufficiently meets modern employment realities, such as occupational health concerns and the expanding gig economy, as well as the practical obstacles that keep workers from collecting timely compensation. The study concludes that although the Act upholds the values of social justice and labour welfare, its goals can only be achieved through stricter enforcement, streamlined claim processes, increased institutional accountability, better legal knowledge and legislative changes that guarantee timely and efficient compensation for all qualified employees.