A bill seeking to raise the cap on disputed amount of compensation for appeal in High Courts was introduced in Lok Sabha today. Labour Minister Bandaru Dattatreya introduced the Employees' Compensation (Amendment) Bill, 2016.<br/><br/> The one of the main objectives of the bill is to reduce litigation. The bill also provides for increase in penalty for contravention of the Act to 50 thousand rupees from the current 5 thousand rupees that may be later raised to one lakh rupees.<br/><br/>The Employees' Compensation Act, 1923, provides for payment of compensation to workmen and their dependants in the case of injury by industrial accidents, including certain<br/>occupational diseases.<br/><br/>The bill makes it obligatory for the employer to inform the employee of his rights to compensation under the Act, in writing as well as through electronic means. The Act provides under section 30A that the Commissioner could exercise discretion to withhold payment of an employee whenever an appeal in a high court is filed.<br/><br/><br/>The proposed Bill is based on the report of the Law Commission which intends to close more litigations at the level of Commissioner for Workmen's Compensation appointed by state governments for a particular area.