Employee’s Compensation (Amendment) Act 2017

The Employee’s Compensation (Amendment) Act 2017 becomes effective from May 16, 2017. This amendment Act was notified by the Central Government on 12th April 2017 however it becomes effective only from May 16, 2017.

As per this Amendment Act, a new provision is inserted in the principal Act which says that every employer shall immediately at the time of employment of an employee, inform the employee of his rights to compensation in writing as well as through electronic means in English or Hindi or in any official language of the area of employment as understood by the employee.

Now, employer must inform the employees in both the ways in writing and through electronic means and in such language which in preferred by employee of the company. Amendment Act also prescribed the penalty for non compliance of this provisions which shall not be less than fifty thousand rupees. Maximum penalty for this non compliance cannot be more than one lakh rupees.

Every employer should review their current procedures and policies in relation to informing employees about their rights to compensation and make required changes, if any,  to continue complying such provisions of the Act.