Country ReportCountry ReportWorkmen’s Compensation Workmen’s Compensation

System in Sri LankaSystem in Sri Lanka

By Shirley AmarasekaraLL.B LL.M (SriLanka), LL.M. (Belfast)

Attorney- At-Law,Commissioner for workmen's

Compensation

IntroductionIntroduction

• Population is nearly 20 million – work force Population is nearly 20 million – work force 8 million (approximately)8 million (approximately)

• Various Social Security Schemes – Loss of Various Social Security Schemes – Loss of employment, health, injuries due to work employment, health, injuries due to work related accidents.related accidents.

• Employment Injury – Compensation is one Employment Injury – Compensation is one of the oldest labour welfare legislationof the oldest labour welfare legislation

• Transformation of traditional society to an Transformation of traditional society to an Industrial Society. – frequent accidents.Industrial Society. – frequent accidents.

Social Security Scheme in Sri Social Security Scheme in Sri LankaLanka

1. Government controlled1. Government controlled2. Private Insurance Companies2. Private Insurance Companies1. Government controlled – compulsory1. Government controlled – compulsory EPF (Employees Provident Fund)EPF (Employees Provident Fund) ETF (Employees Trust Fund)ETF (Employees Trust Fund)2. Private Insurance Companies – Optional2. Private Insurance Companies – Optional Workmen’s Compensation InsuranceWorkmen’s Compensation Insurance Regulated by Workmen’s Compensation Regulated by Workmen’s Compensation

Law Law but optional,but optional,

Workmen’s Compensation Law in Workmen’s Compensation Law in Sri LankaSri Lanka

• Enacted in 1934Enacted in 1934• Employer is bound to pay compensation to an Employer is bound to pay compensation to an

employee for industrial accidents.employee for industrial accidents.

Liability:- If an employee meets withLiability:- If an employee meets with i. an accident andi. an accident and ii. arising out of his employment andii. arising out of his employment and iii. in the course of his employment.iii. in the course of his employment.the employer is liable to pay compensation.the employer is liable to pay compensation.Occupational diseases also treated as an injury, if Occupational diseases also treated as an injury, if

it is directly or reasonably attributable to the it is directly or reasonably attributable to the work.work.

CoverageCoverage

• Applies to any workman (Private or Applies to any workman (Private or Public Sector)Public Sector)

• Length of serviceLength of service

Size of the industry Size of the industry

not relevant not relevant

Number of employeesNumber of employees

ExceptionsExceptions

• A. (i) the employee under the A. (i) the employee under the influence of liquor at the time of the influence of liquor at the time of the accident. accident.

• (ii) willfully neglecting or disobeying (ii) willfully neglecting or disobeying the instructions given by the employerthe instructions given by the employer

• (iii) willfully remove or disregard the (iii) willfully remove or disregard the safety devices given by the employer.safety devices given by the employer.

• B. trivial injuries – which last less than B. trivial injuries – which last less than three (3) days.three (3) days.

Procedural steps for claiming Procedural steps for claiming CompensationCompensation

• (i) must have informed the employer of (i) must have informed the employer of the accidentthe accident

• (ii) must make the claim within 2 years (ii) must make the claim within 2 years of the accident.of the accident.

But the commissioner has the discretion But the commissioner has the discretion to admit any claim irrespective of the to admit any claim irrespective of the above conditions, if the employee shows above conditions, if the employee shows a “reasonable cause”.a “reasonable cause”.

Amount of CompensationAmount of Compensation

• Depends on the average monthly Depends on the average monthly wage of the employee.wage of the employee.

• Corresponding amounts are Corresponding amounts are prescribed by lawprescribed by law

• maximum at present is Rs. 550,000/-maximum at present is Rs. 550,000/-

Administration of Workmen’s Administration of Workmen’s Compensation systemCompensation system

Commissioner for Workmen’s Compensation

Additional Commissioner Deputy Commissioner

Accounts unit

Compensation Unit

Administration unit

Process of Awarding Process of Awarding CompensationCompensation

I.I. Claim by the employee (or Claim by the employee (or dependants in case of death)dependants in case of death)

II.II. answer by the employeranswer by the employer

If admits the liability order the If admits the liability order the amount to be paid amount to be paid

If denies liability Judicial If denies liability Judicial inquiry by calling witnessesinquiry by calling witnesses

In a case of injury:-In a case of injury:-• The amount ordered can be either paid to the The amount ordered can be either paid to the

employee or deposit with the commissioner to be employee or deposit with the commissioner to be paid to the employeepaid to the employee

In a case of death:-In a case of death:-• The amount to be deposited with the The amount to be deposited with the

commissioner to be distributed among the commissioner to be distributed among the dependants.dependants.

• minor dependants share is deposited under minor dependants share is deposited under commissioner’s custody till they attain 18commissioner’s custody till they attain 18

• delay in payment of Compensation entails a 10% delay in payment of Compensation entails a 10% surcharge. surcharge.

Payment of Compensation through Payment of Compensation through InsuranceInsurance

• not compulsorynot compulsory• regulated by workmen’s Compensation lawregulated by workmen’s Compensation law• non contributory by the employeenon contributory by the employee• Initiated by the employer and premium Initiated by the employer and premium

must be paid solely by the employermust be paid solely by the employer• If Insurance pays a lesser amount than the If Insurance pays a lesser amount than the

prescribed, the employer is liable to pay the prescribed, the employer is liable to pay the balance.balance.

a license has to be obtained from the a license has to be obtained from the Commissioner to operate such insurance.Commissioner to operate such insurance.

ConclusionConclusion

Towards a compulsory Insurance SchemeTowards a compulsory Insurance Scheme

(a) earlier situation(a) earlier situation• application of common lawapplication of common law• rigid principlesrigid principles• difficulty in claiming Compensationdifficulty in claiming Compensation (b) Introduction of special laws of Workmen's Compensation(b) Introduction of special laws of Workmen's Compensation• an adversarial processan adversarial process• though it is easier than the common law- mighty employers though it is easier than the common law- mighty employers

can edge out of the employeescan edge out of the employees(c) Introduction of Compulsory Insurance Schemes(c) Introduction of Compulsory Insurance Schemes• ease the burden of both employees and employersease the burden of both employees and employers• do away with adversarial processdo away with adversarial process

(1)Monthly wage of the

workman injured

(2)Death of workmen

(3)permanent total disablement of

workman

(4)Half-monthly

compensation for temporary

disablement of workman

Rs . Rs.0 - 2,5002,501 - 5,0005,001 - 7,5007,501 - 10,00010,001 - 12,50012,501 - 15,00015,001 - 17,50017,501 - 20,00020,001 - and above

Rs.181,665.00258,640.80330,968.00407,427.90478,495.60522,495.60549,631.50550,000.00550,000.00

Rs.196,083.80295,075.00351,461.00444,494.60519,593.80550,000.00550,000.00550,000.00550,000.00

Rs.1,320.001,804.002,186.802,733.503,231.803,561.803,890.704,221.805,500.00

Annex 1

AMOUNT OF COMPENSATION

Permanent and incurable paralysis of the limbs or injuries resulting in being permanently bedridden ............................ 100

Permanent incurable loss of mental capacity resulting in total incapacity to work or any other ............................ 100

Injury causing permanent total incapacity to workEye Injuries

                I.      Total loss of sight in both eyes ... ... ... ... ... 100              II.      Total loss of sight in one eye ... ... ... ... ... 50

Hearing Injuries              I.      Total loss of hearing ... ... ... ... ... 60           II.      Total loss of hearing in one ear ... ... ... ... ... 30

Loss of speech              I.      Total loss of speech ... ... ... ... ... 75

Sensory Loss I. Total loss of senses of smell and taste ... ... ... ... ... 50

           II.      Total loss of sense of smell ... ... ... ... ... 25         III.      Total loss of sense of taste ... ... ... ... ... 25

Arm Injuries              I.      Loss of arm at or above ... ... ... ... ... 75           II.      Loss of arm at or below elbow ... ... ... ... ... 65

Hand Injuries              I.      Loss of both hands ... ... ... ... ... 100           II.      Loss of hand or loss of thumb and 4 fingers ... ... ... ... ... 65         III.      Loss of thumb (both phalanges) ... ... ... ... ... 35        IV.      Loss of thumb (one phalanx) ... ... ... ... ... 20           V.      Loss of four fingers ... ... ... ... ... 60

Loss of Index finger              I.      Three phalanges ... ... ... ... ... 30           II.      Two phalanges ... ... ... ... ... 20         III.      One phalanges ... ... ... ... ... 10

Loss of middle, ring and little fingers              I.      Three phalanges ... ... ... ... ... 20           II.      Two phalanges ... ... ... ... ... 10         III.      One phalanx ... ... ... ... ... 5

Loss of Leg              I.      at or above knee ... ... ... ... ... 75           II.      at or below knee ... ... ... ... ... 65

Foot Injuries              I.      Loss of both feet ... ... ... ... ... 100           II.      Loss of one foot ... ... ... ... ... 75

Loss of Toes              I.      Great toe-both phalanges ... ... ... ... ... 20           II.      great toe-one phalanx ... ... ... ... ... 10         III.      Other than great toe, if more than lost, each ... ... ... ... ... 10

Miscellaneous              I.      Total loss of genitals 75           II.      Partial loss of genital 40         III.      Severe facial scarring or disfigurement 75        IV.      Serve bodily disfigurement, other than facial scarring or disfigurement a maximum of ... 50           V.      Loss of single tooth ... 5        VI.      Loss of any member or part thereof not mentioned above (e.g. nose, breast, ear etc) ... 50

to be a assessed by a medical officer up to a maximum of

Note:-Assessment not to exceed 100% in any one accident.

Office of the Commissioner for Workmen’s Compensation

Claims received within the year – 201001. Total No. of claims (fatal) - 110

02. Total No. of Temporary disability claims- 6303. Total No. of Permanent disability claims- 84

100%

disability

- 0375%

- 100%

- 0760%

- 75%

- 1050%

- 60%

- 1425%

- 50%

- 265%

- 25%

- 24

84