Draft Code On Social Security (Employee’ s Compensation) (Central) Rules, 2021

Ministry of Labour vide notification no G.S.R. 385( E) has notified the draft Code On Social Security (Employee’ s Compensation) (Central) Rules, 2021 for providing compensation to workers under the Code on Social Security, 2020. The proposed draft Rules will supersede the Employee’s Compensation Rules, 1924, the Employee’s Compensation (Transfer of Money) Rules, 1935 and the Employee’s Compensation (Venue of Proceedings) Rules, 1996 under the erstwhile Employee’s Compensation Act, 1923. The Act has been repealed by section 164 of the said Code on Social Security, 2020 passed by the Parliament in September 2020. As per the new rules, if the amount of compensation payable under sub-section (3) of section 77 is not paid by the employer within the period of thirty days, the employer shall pay, from the date on which the compensation become payable to the date on which it is paid, simple interest at the rate of 12% per annum or any other rate notified by the Central Government from time to time. Further, it has also notified Rules to give effect to arrangements with other countries for the transfer of money paid as compensation under section 159 of the Code. When any sum is transmitted by any authority in India to any other authority in accordance with these rules, the costs of such transmission may be deducted from the sum so transmitted and such money shall be transmitted by remittance transfer receipt or by money order. It further stated that when the whole or any part of a lump sum deposited with a competent authority for payment as compensation under the Code is payable to any person or persons residing or about to reside in any other country, the competent authority may order the transfer to that country of the sum so payable. Please refer to the notification for detailed information.

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