Section 8 of ECA : Section 8: Distribution Of Compensation

Explanation using Example

Imagine a worker named Raj who was employed at a construction site. Unfortunately, Raj suffered a fatal accident on the job. According to Section 8 of The Employees Compensation Act, 1923, Raj's employer cannot directly pay compensation to Raj's dependants. Instead, the employer must deposit the compensation with the Commissioner.

Following the procedure, Raj's employer deposits the compensation and also gives an advance of three months' wages to Raj's family to help them with immediate expenses. This advance will later be deducted from the total compensation by the Commissioner.

The Commissioner then takes steps to notify all potential dependants of Raj to come forward and claim their share of the compensation. After verifying the dependants and ensuring no one else comes forward, the Commissioner apportions the compensation among Raj's wife and children.

Raj's underage son, who is a legal minor, is entitled to a portion of the compensation. The Commissioner decides to invest this sum for the son's benefit until he comes of age, ensuring the money is used for his welfare and education.

Later on, it's discovered that Raj's wife has been neglecting the needs of their children. The Commissioner, upon learning of this, uses his authority under the Act to vary the previous order and redirect the compensation to better serve the children's interests, after giving Raj's wife a chance to present her case.