Workmen's Compensation Act, 1923

The Workmen's Compensation Act, 1923 requires certain classes of employers to pay compensation to workers who are injured in accidents connected with their employment, without the worker needing to prove the employer was at fault. It is one of Pakistan's oldest labour-protection statutes and remains a foundational law on workplace injury compensation.

Section 2 defines key terms, including "dependent" (the family members - widow, minor children, and in some cases parents, siblings or grandparents - who can claim compensation if a worker dies), "partial disablement" and "total disablement" (linked to Schedule I, which lists specific injuries and the percentage loss of earning capacity they represent), and "employer" (which extends to labour contractors and businesses that borrow a worker's services). Section 3 sets out the employer's basic liability to pay compensation for injury by accident arising out of and in the course of employment.

Section 4, read with Schedule IV, fixes the amount of compensation. As amended over time, the extract shows the current figures in the schedule as Rs. 2,00,000 for death and for permanent total disablement, with half-monthly payments (calculated as a fraction of monthly wages) for temporary disablement, continuing for the period of disablement or up to specified maximum periods. Section 5 explains how wages are calculated for this purpose, Section 6 allows review of compensation, and Section 7 allows commutation of half-monthly payments into a lump sum.

Sections 8 and 9 protect compensation money from being wrongly distributed or seized - it cannot be assigned, attached or charged. Section 10 sets out notice and claim requirements for a worker or dependent to bring a claim, and Sections 10A-10D (added later) require employers to report fatal accidents and to display abstracts of the Act at the workplace entrance. Section 11 covers medical examination of an injured worker, and Section 17 prohibits "contracting out" - an employer cannot make a worker agree in advance to give up their right to compensation under the Act. Section 18A creates penalties for employers who fail to comply, though the extract does not show the specific penalty amounts.

Chapter III (Sections 19-31) sets up the machinery for resolving disputes: claims are referred to a Commissioner for Workmen's Compensation (Section 20 covers appointment), who has defined powers and procedure, and whose decisions can be appealed under Section 30. Because this is a 1923 law that has been amended many times - including changes to the compensation amounts as recently as 2001 and 2007 shown in the extract - readers should verify the current compensation figures and any updated definitions against the latest official text rather than assuming the numbers here are still current.