Attachment and assignment of compensation

Under section 9 of the Workmen’s Compensation Act 1923, the compensation paid is protected. Assignment or attachment of the compensation cannot be done.

Section 9 as stated: Save as provided by this Act no lump-sum or half-monthly payment payable under this Act shall in any way be capable of being assigned or charged or be liable to attachment or pass to any person other than the workman by operation of law nor shall any claim be set off against the same.

The law states that according to the section 9 of the Workmen’s Compensation Act 1923, no amount of compensation, whether half-monthly or lump-sum could be given or passed to any person other than the workman by the operation of law. No compensation can be assigned or charged to any other person. Also, any claim by a third-party cannot be set-off against the compensation of a workman.

For example:

1. In case a workman is disabled because of the injury, whether permanent or temporary, then the amount of compensation to be received by the workman from his employer shall be received by him and him alone. The employer cannot assign or charge this compensation to any third-party.
2. In case a workman is disabled because of the injury, whether permanent or temporary, then the amount of compensation to be received by him from his employer cannot be attached or charged to any other payment to be received or paid by the workman from or towards his employer. The compensation is required to be paid as it is and cannot be attached to any other payments.
3. In case a workman is disabled because of the injury, whether permanent or temporary, the payment of compensation cannot be set-off against any claim. Even if the workman had any earlier debts to the employer, the employer cannot set-off any debts or claim against the payment of the compensation.
4. In case of the death of the workman because of the injury, the employer needs to make the payment of the compensation to the dependants of the workman subject to the jurisdiction. Even in case of death of a workman, the compensation cannot be assigned to any third-party, cannot be attached to any payment due to workman or his dependant and cannot be set-off against any other charge or claim of the workman or his dependant.

In case of death of the workman, the compensation can be given to his dependants. This again needs to be done under the jurisdiction of the commissioner. The commissioner shall meet all the supposed dependants to ascertain who is actually entitled to receive the compensation on behalf of the deceased workman. Any person, who is not legally authorized to receive the compensation on behalf of the workman, shall not be entitled to the amount of compensation.