Understanding the Recent Clarification on Disbursement of Compensation Amount under EC Act, 1923

Introduction:

In a recent clarification issued by the Office of the Commissioner (Labour), Government of NCT of Delhi, significant guidance has been provided regarding the disbursement of compensation amounts under the Employees Compensation Act, 1923. This advisory aims to ensure uniformity and adherence to prescribed guidelines across all sectors. Let's delve into the key points outlined in this clarification to understand its implications.

Key Points of the Clarification:

1. Timely Disbursement: The clarification emphasizes the timely disbursement of compensation amounts. It specifies that in cases not covered under para 10 of the advisory, the compensation should be disbursed at the end of the limitation period, i.e., within 60 days, without the need for a show-cause notice.

2. Notice Requirement: However, in cases where an appeal has been filed against the Commissioner's order before the Hon'ble High Court, and the management has requested not to disburse the deposited amount, at least a 15-day notice should be sent to the respondent before disbursement, seeking justification for withholding the amount.

3. Withdrawal of Previous Advisory: The clarification also withdraws a previous advisory and introduces a Standard Operating Procedure (SOP) for handling claims and compensation disbursement. This SOP streamlines the process and ensures consistency in practice among all Compensation Commissioners in NCT of Delhi.

Implications and Benefits:

This clarification brings clarity and uniformity to the disbursement process, ensuring that compensation reaches the rightful claimants in a timely manner. By adhering to the prescribed guidelines, both employers and employees can navigate the compensation process more efficiently, reducing delays and discrepancies.

Conclusion:

The recent clarification regarding the disbursement of compensation amounts under the EC Act, 1923, underscores the commitment of the Labour Department towards ensuring fairness and efficiency in the adjudication of claims. It is imperative for all stakeholders to familiarize themselves with these guidelines to facilitate smoother and more transparent compensation proceedings.

Disclaimer:

This blog post aims to provide an overview of the recent clarification issued by the Labour Department, Government of NCT of Delhi, regarding the disbursement of compensation amounts under the EC Act, 1923. Readers are encouraged to refer to the official documentation for comprehensive understanding and compliance.

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