Fabian Tract No. 82. 


THE 

Workmen's Compensation Act 


WHAT IT MEANS, AND HOW TO MAKE USE OF IT. 

'VITH THE TEXT OF THE A T AND MO T OF THE S HED LES. 

P UBLISHED BY 

THE FABIAN SOCIETY. 


ONE PENNY. 

LONDON: 


THE Workmen's Compensation Act, 1897, is a new law about 
accidents to workmen. It comes into force on 1st July, 1898, and 
as it alters the present law of employers' liability to pay for accidents 
to their workmen, every workman ought to know what it says. If 
any part of the tract is not clear to any reader, or any point is 
omitted on which he wants information, he can write to the Secretary 
of the Fabian ociety, 276 Strand, London, W.C., who will send 
him a full and clear answer free of charge.

To und rstand the change which the new law will make, it will 
be well short! y to state the existing law. 

The Old Law. 

Before the first day of January, I88I, if a workman were injuredby an accident when working, he could only bring an action at law 
against his master


(i.) where the master employed a servant knowing that the servant 
was incompetent to do the work; or 
(ii.) where a master used bad machinery or plant which he knew 
was unsafe and dangerous. 

But if the master proved (i.) that the workman knew the machinery 
or plant was unsafe, or (1i.) that the workman was partly to 
blame for the accident, the workman could not win his action. 

The workman could not at this time, therefore, recover compensation 
.£: r injuries caus d by a fellow servant, unless he proved that 
the mployer knew the fellow servant to be incompetent. This is. 
called th Doctrine of Common Employment, and as foremen were 
generally held to be fellow servants, it was very seldom that a work-. 
man c uld get any compensation for his injuries. This was a flagrant 
injustice, C r which a remedy was badly needed. 

In 188o, however, Parliament made a law called the Employers''
Liability Act, 18~o, which said that an employer is liable to pay 
damages to a workman if he be injured, or to his relatives if he 
be killed, 

(i.) by some defect in the machinery or plant which ought to. 
have been put right by the master or his foreman ; 

(ii.) by th care! ssness of a foreman ; 

(iii.) through obeying an order which caused the injury ; 

(iv.) through a fellow workman obeying a rule or order of his. 
master, and 
(v.) by the car lessness of a man in charge of any engine, points, 
or signal on a railway. 

• A longer work on the Act is Tilt Wor.ime,.'s Compmsation Act: with copioug 
.. .tes, by W. Ad<.lington Willis. Second edn., 1897; Butterworth & Co. 2s. 6d. net. 

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But the master can escape liability by proving that the workman 
injured knew the danger of the bad machinery, or was partly to 
blame for the accident. 

It will be seen that the Act of 188o did not abolish the doctrine 
of common employment except so far as it applied to foremen. A 
workman could get no compensation for injuries caused by a fellow 
servant who was not known to be incompetent by the master. For 
the great majority of accidents, therefore, there was still no remedyagainst the employer.

The Act of 188o only applies to manual laborers, and masters 
are not liable to pay more than three years' wages to the man . 
injured, or, if he is killed, to his relatives. To decide whether the 
master is liable an action has to be brought in the County Court, 
either before the judge alone, or the judge and a jury. This costs 
money, and as the workman may only obtain a verdict for a small 
sum, in many cases there is not much, if any, left for the workman 
after paying the legal expenses. Besides, it is difficult to get workmen 
to give evidence against their master, and so the cases which · 
can safely be brought into the County Court are very few indeed. 

And if a master dies before the case is decided in the CountyCourt, the workman cannot obtain any damages at all. 

In many cases, an employer formed a society or scheme, bywhich the men employed by him had to forego any claim under the 
Act of I 88o, and be content with the compensation which would be 
paid under the scheme. This is called "contracting out." 

Such is the state of the law until Ist July, 1898. 

But it must be remembered that the Employers' Liability Act, 
188o, is not repealed by the new law. It will, after Ist July, 1898, 
still be open to a workman or his relatives to bring an action under 
the law of 188o. But in such cases, although more compensation , 
may sometimes be obtained, the employer can escape liability byproving that the workman was partly to blame for the accident or 
knew the danger he was incurring. It will be seen later that in 
accidents under the new law the employer cannot do so. 

The New Law. 

The chief changes made by the new law are as follows :


I. If a master dies before an injured workman has obtained compensation, 
the personal representatives, that is, the executors of the 
will, or the administrator of the estate; of the master, are liable to 
pay. 
2. The new Act applies to more men and women than the Act 
of 188o. 
3· The doctrine of common employment is abolished in the 
trades t.o which the new law applies, and therefore the master is . 
liable in a great many more cases of injury or death than before. 

4· "Contracting out" is only allowed under certain conditions. 
5· The new law alters the way of compelling payment of corn-. 
pensation.

6. It alters in some ways the amount which must be paid. 

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Explanation of the Changes made by the New Law. 

I. Deceased Employe1'S.-About this change, nothing more need 
be said than that a workman can take proceedings in the manner 
mentioned later, just as if the master were alive. 
z. Persons Included.-The new law applies to all workmen or 
women, whether manuallaborers or not, in factories, docks, wharves, 
mines, quarries, or on railways and buildings. That is to say, it 
includes clerks, miners, engineers, dock laborers, wharfingers, railway 
servants, quarrymen, bricklayers, joiners, general laborers, and 
apprentices.
ln fact, it is best to say th:J.t the new law applies to all employments 
except (i.) agricultural laborers, (ii.) seamen and fishermen, 
(iii.) domestic servants, (iv.) workshop operatives, (v.) shop assistants, 
(vi.) persons engaged in transport services, (vii.) sailors in the navyand soldiers in the army. 

The new law applies to women as well as to men ; but the word 
"workman" will be used in orc!er to save space. 

The Act unfortunately only applies to work on buiidings of a 
certain height. Where a building is being erected, or repaired, or 
pulled down, a workman who is injured can only get compensationwhere the building is more than thirty feet high. 

In the case of a shipbuilding yard, a workman may get compensation 
when working on the ship after it has been launched into anydock, river, or tidal water near the yard. And when a ship has been 
dry-docked for repairs, a workman who is injured whilst working on 
her can get compensation. 

3· Accz'deuts Included.-For what accidents is an employer liable? 
This is the great question to be answered when considering the law 
of employers' liability. The new law makes a great change.

If an accident happens, and a workman is either killed or so 
ziz.fured that he z's unable to earn full wages for the next two weeks, 
his employer must pay compensation to the injured man or those 
supported by him, provided that the man be working at a trade to 
which the new law applies. 

A workman can obtain compensation even though he was partly 
to blame for the accident; but the master will not be compelled to 
pay anything if the workman is entirely to blame and causes the 
accident by his own bad behaviour. A workman therefore may now 
obtain compensation where the accident was caused by a fellow-
servant. But if the fellow-servant caused the accident by bad 
behaviour he also cannot obtain compensation, although he was 
injured at the same time. 

If, however, the injury be caused by the negligence of the em· 
ployer himself, or of a foreman, the workman injured can ·either 
claim compensation under the new law, or bring an action either in 
the County Court under the Employers' Liability Act, 188o, or at 
common law, z'.e., the law as it was before 1881. 

The cases in which a workman will, with some degree of certainty, 
obtain a larger sum under the old than he will get under the 


new Jaw, are few. But, if a workman does bring an action at law, 
and the judge who tries the case decides that the employer is liable 
under the new, but not under the old, Jaw, he can, if the workman 
asks him to do so, fix the amount which the employer must pay, and 
so save further costs. 

4· '' Contrac!z"ng Out"-Under the Act of r88o, an employercould force a workman engaged by him to contract out of the Act 
and to join any scheme or society formed by him. In many cases: 
the benefits under the scheme were very small, and as the workman 
had to pay contributions, the employer gained more than the 
workman. 

The new Jaw abolishes "contracting out," except under two 
conditions


(i.) The employer must not force a workman engaged by him to 
join any society formed by him. That is to say, if a workman 
applies for a job, the master cannot make it a condition of employment 
that the workman joins the society or scheme. 

(ii.) And before any such scheme can exist the employer must 
submit it to the chief Registrar of Friendly Societies. 

If the Registrar, after co1lsulting tlze workmen as well as the 
employer, thinks the men will get as much benefit from it as from 
the new law, he may grant a certificate. But until the certificate is 
granted, no scheme or society formed by an employer is legal. The 
certificate lasts for five years, but if during that time the workmen 
find that (i.) they lose by the scheme, or (ii.) they are not fairlytreated under it, or (iii.) that it is not fully carried out in practice, 
they may complain to the Registrar. If after enquiry the Registrarthinks the complaint is justified, he may cancel the certificate unless 
the scheme is made satisfactory and the subject-matter of the complaint 
remedit.d. 

S· How to Make the Employer Pay. Under the Act of r88o, an 
action in the County Court is necessary. The difficulty and expenseof this has been already mentioned. The new law makes a great 
alteration. 

But first of all, who is "the employer"? The employer may be 
(i.) a company ; (ii.) a firm of partners, or (iii.) a single master. And 
further, the employer is not of necessity the employer by whom the 
workman is engaged. The new law says that if an employer undertakes 
to do a job, and contracts with another employer to do part of 
that job, it is the employer who has undertaken the whole job who 
must pay for any accident which happens. But this is only the case 
where both employers are engaged in the same trade or branch of 
trade. If they are engaged in different businesses, the employerby whom the workman is engaged must pay compensation for anyaccident which occurs. For instance, if an employer contracts with 
a decorator to paint his works, and a painter employed by the 
decorator is injured by an accident, the employer who owns the 
works is not liable, but the employer who undertakes the painting of 
the works. 


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Notz'ce.-In order to claim compensation for an injury, notice of 
the accident must be given to the employer. If the workman is 
killed, the notice must be given by his family. 

The notice must be in writing, and give the following information: 
(i.) name and address of the injured workman; (ii.) the date 
of the accident ; (iii.) the cause of the injury. 

In giving notice, the following rules must be observed : (i.) it 
must be given as soon as possible after the accident ; (ii.) and before 
the injured workman ceases of his own accord to work for the 
employer; (iii.) only ordinary language is necessary, and the notice 
need not be in any special form; (iv.) the notice must be accurate, 
and all the information already mentioned given-if not, the workman 
may not be able to claim and get compensation. 

The notice may be sent either (i.) by hand or (ii.) by registeredletter, to the place of business of the employer, whether the employeris a company, a firm, or a single master, and if the workman knows 
where his employers or one of them lives, the notice may be sent to 
their or his house in the same way. Although no definite time is 
fixed for giving tzotz'ce, yet claz'ms for compensation must be made 
within six months of the accident, whether it results in death or not. 
Unless the claim is made within the proper time, no compensation 
can be obtained. 

After notice of the accident has been given there are two points 
to be considered : 

(i.) Is the accident one for which the employer is liable to pay? 

(ii.) What is the amount of compensation to be paid ? 

A dispute may arise between the workman and the employer on 
one or both of these questions. The new law says they must be 
settled in one of two ways. 

First, if any committee of employers and workmen has been 
formed to set tie disputes under the new law, that committee must 
decide the question. But 

(i.) if the committee does not settle the dispute within three 
months from the day when they are asked to do so, or 
(ii.) if the committee thinks it would be best to have the disputesettled by a single person chosen by them, or 

(iii.) if either the employer or the injured workmen, before the 

committee meet to settle the dispute, sends a notice in writing to 

the committee, objecting to the committee deciding the dispute, or 

(iv.) unless the employer or workman can agree;

then in any of these cases, the dispute must be settled by arbitration. 

An arbitrator is to be appointed by the master and workman 

jointly, if they can agree on a suitable person.

If they cannot agree, the County Court judge is to decide the 

dispute. But the County Court judge may be able to appoint an 

arbitrator if the Lord Chancellor issues rules authorising him to 

do so. 

The arbitrator can ask the County Court judge to decide any 

questions of law which arise during an arbitration. But, unless the 


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master and workman have agreed otherwise, an appeal to a higher

Court is allowed from any decision given by him on a point of law. 

The arbitrator decides whether the master or workman shall pay

the costs of the arbitration. The costs will be fixed by a scale set 

out in the rules of the County Court. 

When the amount to be paid has been fixed either by the County

Court judge, or the arbitrator, or the committee, as the case may

be, a memorandum must be sent either by the committee or 

arbitrator, to the Registrar of the County Court of the district in 

which the workman lives. This memorandum must state the 

decision arrived at, and will be entered in a special register without 

any fee. When registered, the memorandum can be enforced like 

a County Court judgment, that is, by execution against the goods of 

the person liable to pay the amount mentioned in the memorandum. 

6. How much compensatzon must the employer pay ?-Under the 
Act of I88o an action against the employer in the County Court is 
necessary before he can be made to pay compensation to an injuredworkman. And this is so whether the workman was killed or onlyinjured. 
Under the law of I88o the highest amount payable is three 
years' wages of an average workman engaged in the same trade 
and district; and the judge or jury may award any smaller sum. 
Under the new law a different system will be introduced. A lump 
sum is payable if the workman is killed by an accident whilst 
working for his employer. But a weekly sum is to be paid to the 
workman if his injuries prevent him from working or earning full 
wages for more than two weeks. 

CoMPENSATION FOR A DEATH. 

How much must be paid if the workman be killed? 

The amount of compensation to be paid depends on whether the 
workman killed leaves (i.) relatives who were wholly supported and 
kept by him; or (ii.) relatives who were partly kept by him; or (iii.) 
110 relatives kept by him. If the workman leaves a wife, husband, . 
father, mother, grandfather, grandmother, stepfather, stepmother, 
son, daughter, stepson or stepdaughter whom he entz"re~y supportedby his wages, the employer must pay at least £Iso, but z't may be 
more. It depends on the average weekly earnings of the workman 
whilst he had worked for his employer. 

If he had been employed for three years or more, the amount is 
fixed by finding out the average wages per week for the three yearsbefore the accident. If three years' wages at that average wage perweek come to more than £ISO, the employer must pay a sum equal 
to them. In other words, the employer must pay I s6 times (that is, 
three years, as there are 52 weeks in the year) the average weekly 
earnings. But if the workman had not worked for the same 
employer during the three years before the accident, his average 
wages per week whilst he had worked for his employer must be 
found out. When that is done, the amount to be paid is three 
years' wages at that rate, that is, I 56 times his aYerage wages, but 


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his relatives must never get less than £rso from the employer. If, 
however, the workman's relatives were not altogether kept by him, 
the amount cannot be more than £300, but it may be les~ 
than £rso. 

Unless the employer and the relatives agree as to the amount, it 
must be fixed by the committee or arbitrator as already mentioned; 
but the amount can be lower than £I 50, if a smaller sum would be 
sufficient compensation. The workman may, however, have none 
of the relatives mentioned living at his death. When this is so, the 
employer must pay reasonable funeral expenses, but they must not 
be more than £Io. 

COMPENSATION FOR INJURY. 

Ifthe accident does not kill the workman, but prevents him from 
working, the compensation is fixed in a different manner. 

If the injured workman is unable to work for more than two 
weeks after the accident, the master must pay him a weekly sum 
during the time he is away from work. The amount depends on 
his average wages. 

If the workman has been employed by the master for a year or 
more, the sum to be paid is half the average weekly wages earned byhim during that period.

If he has not been employed by the master for twelve months, 
the amount payable is half the average weekly wages earned by him 
whilst he has been employed by the employer.

In any case the workman cannot get more than £I per week. 
When the injured workman is not entirely prevented from workingafter the accident, he is still entitled to a weekly sum if he cannot 
earn full wages because of his injuries. That is to say, the master 
must pay him half the difference between what the workman can getafter the accident and what he earned before. If he earned 30s. 
before the accident, and for some time afterwards can only get £I a 
week, the master must pay him ss. a week until he is well again. 

But it must be rememl;lered that the employer has not to payanything during the first two weeks after the accident. 
The question remains, who is to say whether the workman can 
or cannot go to work? 

The new law says, that after a workman has given notice of an 
accident, the employer can send a doctor to examine him ; and 
during the time a workman is getting a weekly payment from his 
master he must, if the employer wishes it, allow a doctor to 
examine him. Unless he allows the doctor to do so, he can get no 
compensation. But if the workman is not satisfied with the doctor, 
or with any report which the doctor makes, he can be examined by 
another doctor. This doctor must be one specially appointed to 
report under the new law, and he will be paid by Parliament. 

When a weekly payment has been made for six months, the 
employer may pay a lump sum. If he does so, it will be in full 
settlement of the weekly payments which would otherwise be payable 
to the workman. 


But at any time while a workman is getting a weekly paymentbecause of the accident preventing him from earning full wages or 
from working at all, the workman or employer may want it to' be 
altered. The workman may find that his accident was more serious 
than he thought, and that he cannot earn as much as he thought to 
do. The employer may wish to pay less, or to stop the weekly payment 
altogether, because the workman is better in health and can 
earn mor~ than was expected. In ~ithe_r case, unless they can agree, 
the questiOn must be settled by arb1trat10n as already mentioned. 

A workman who is being paid a weekly sum for injuries from an 
accident, cannot legally transfer it to somebody else ; that is to saythe employer cannot pay it to a creditor of the workman. Th~ 
workman is meant to have the benefit of it, although the workman 
can pay his debts out of it by paying in instalments. 

OTHER REGULATIONS. 

When a workman who is killed by an accident has made a will, 
the compensation must be paid by the employer to the executor of 
the will. If there is no will, it will be paid to the administrator of 
the workman's property. 

The relatives to whom compensation is payable under the new 
law, are entitled to administration in the following order :-(i.) Wife, 
or husband ; (ii.) child; (iii.) grandchild ; (iv.) father ; (v.) mother ; 
(vi.) brothers or sisters, or grandfather or grandmother. 

The committee or arbitrator, when they find that an employer 
must pay compensation, may order the money to be invested in the 
Post Office Savings Bank. It would then be entered in the name of 
the Registrar of the County Court within whose district the 
deceased workman lived. 

The money may be invested in the purchase of an annuity from 
the National Debt Commissioners; or it may be paid into the Post 
Office Savings Bank, although the sum is larger than the amount 
usually allowed in the bank. 

When the money is invested in the Post Office Savings Bank, it 
cannot be paid out unless the County Court judge or the Treasurysign a form authorizing it to be paid out. 

Although a person who is entitled to money paid as compensation 
has an account at the Savings Bank of his or her own savings,
another account may be opened in order to pay in the compensation 
money. 

In case the employer becomes bankrupt before payment of the 
compensation awarded, and has insured himself against the Act, the 
insurers must pay the amount to the workman or his relatives. The 
money may not be used by the employer to pay his debts. 

This applies also where the employer makes any arrangementwith his creditors. 
If the employer is a company which is insolvent and being wound 
up, the rule applies as if the company were a private person. 


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Regulations as to Time under New and Old Law. 
NoTICES.-Under the new law, notice of the accident, whethel 
resulting in death or not, has not to be given within any certain 
time, but as soon as possible. 
Under the Act of I 88o, notice of the accident has to be given 
within six weeks of the injury, but in case of death may be excused 
altogether if the judge thinks the excuse reasonable. 
CLAIMS.-Under the new law, compensation must be claimed 
within six months from the date of the injury or death. 
Under the Act of 188o, an action must be started: 
(i.) in case of death, within twelve months from that date; 
(ii.) in case of injury, within six months of the accident. 
If an action is brought under neither the new law nor the Act of 
188o, it must be started within twelve months from the date of 
death. 
It will be seen that notice is not really necessary under the new 
law. But compensation cannot be obtained unless it is claimed 
within six months of the day of the injury or of the death of the 
workman. To avoid friction, notice should always be sent within 
six weeks of the accident, whether the workman is killed or not. In 
fact, if the workman is injured, and prevented from working for two 
weeks, notice should be sent immediately the two weeks have expired, 
so as to get a weekly payment as soon as possible. 

Alternatives. 
As the new law does not repeal the Act ot 188o, but expressly 
states that a workman may still, where possible, bring an action under 
it in the County Court, it will be useful to consider in what cases such 
an action is possible. 
It must be remembered that it is not every workman injured (orhis relatives, if killed) who can bring an action under the Act of 188o. 
The Act of 188o applies to manual laborers only, whereas the new 
law applies to all persons engaged in certain trades, whether as 
manual laborers or otherwise. 
An action under the Employers' Liability Act, r88o, can only be 
maintained : 
(i.) If the workman is engaged in manual labor at an empl<"'vment 
to which the Act applies; (
ii.) if the workman is injured or killed in any of the five ways 
mentioned in the Act of r88o (seep. 2). 
(iii.) if notice has been given within the time fixed by the Act ot 
r88o. 
As the workman or his relatives will be certain in most cases of 
some compensation under the new Act, actions under the Act of r88o 
should be avoided except in cases of very serious injuries to the workman 
and very clear liability of the employer. The reasons for this are(
i.) The difficulty of getting workmen to give evidence against 
their employer is great ; 
(ii.) The expenses are considerable, as the costs of the employer 
may have to be paid by the workman if he loses his case; 


(iii.) The amount _f the damages which the judge or jury will 
award is uncertain ; 

(iv.) The employer is not liable if the workman was partly to 
blame for the accident, or knew of the dangerous state of the 
machinery or plant. And, of course, an action cannot be broucrht 
for injuries caused by a fellow servant. "' 

But as the highest amount of compensation which a workman's 
relatives can get under the new law is only £300·-and this is onlywhere they were entirely kept by the workman killed-it maysometimes be well to claim under the Act of I 88o. 

It will be remembered that although the case should be lost, yetif the judge finds that the employer is liable to pay compensationunder the new law, he may fix the amount to be paid. He can onlydo so when asked by the workman's relatives, who should, to save 
further trouble and expense, always do so. The expenses of the 
employer, or part of them, may have to be paid by the relatives if 
their case is not successful. 

In what :::ases ought such an action to be started? 
Now, £3oo, the highest amount of compensation under the 
new law, means that the workman was earning on the average£2 a week at the time of his death. The highest amount under the 
Act of 188o, is three years' average wages of a worker in the same 
trade, grade and district, as the worker killed. Therefore an action 
under the Act of 188o should only be started if the workman'~ 
wages were at least £2 10s. a week, and even then, as the full amount 
of three years' wages, viz., £390, may not be obtained, it is only in 
cases where the employer or his foreman is clearly and seriously to 
blame, that the expense and uncertainty of such an action should 
be risked. 
Where the workman is injured, he can, under the new law, at 
most, only get a weekly payment of £I. This is liable to alteration, 
and if paid for six months, the employer may pay a lump sum 
instead of continuing the weekly payment. Now £I a week is only 
to be paid if the injured workman's wages are at least £2. It may,
therefore, be said, that actions under the Act of 188o for injuries 

should only be started


(i.) if the workman's wages were £2 I os. a week; 

(ii.) if the action is almost certain to be successful because of the 

employer or his foreman being clearly and seriously to blame ; and 
(iii.) if the workman's injuries are very serious and likely to continue 
for life. 
These conditions are, of course, arbitrary, but probably a judgeand jury would be influenced very much by calculating what a man 
could get under the new law. But if a counter prejudice caused by 
the injuries and the circumstances of the accident can be raised in 
their minds, they may be inclined to penalize the employer. 
If (ii.) and (iii.) are not present in the facts, the limit of wage~ 
in (i.) should be raised to £3· 


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General Advice. 

The Trade Union secretary and relatives should obtain the names 
and addres es, at least, of those present at an accident. If those 
persons would write down a short account of what they recollect of 
the matter, it would be very valuable in the event of subsequentproceedings, whether under the new Act or otherwise. 

Reforms. 

So far we have dealt with tht: way to take advantage of the Act 
as it stands. The basis upon which further reform should proceed 
is, that since industry is carried on for the ultimate benefit of the 
community, therefore the community is bound to see to the welfare 
of all ngaged in industry. This duty has two sides, the preventionof accidents and injury to health by means of tabor-protective legislation, 
and the compensation for accidents and injury when they 

ccur. To the State, therefore, the workman must look for his 
compensation. The employer can most effectively be dealt with 
for breach of the protective laws. Here are the chief points on which 
the present measure needs alteration :


I. Extwst(m ofthe 111eaSitre.-It was admitted by the Government 
that their Bill was incomplete, but they refused to "overload" 
it. They pledged themselv s to introduce a special Bill for seamen, 
but it giv no signs of app aring above the political horizon. Seamen, 
workshop operatives, builders, agricultural laborers, shop assistants, 
and at least those domestic servants who are engaged in hotels 
and institutions, should be included. Not the frequency of accidents, 
but the fact that a worker is injured, should be the test of the applicability 
of the Act. 
Secondly, the employer should be li:lble not only for accidents, but 
also for injury to health caused by industrial processes. At present,
the wr clc turned out every year from the chemical and white-lead 
works r c •ive no compensation, while a man who is laid aside for 
three week by a slight accident gets something. This is neither 
iust nor logical. 

Thirdly, the present Act d es not come into operation until a 
C rtnight after an accident. Thi · limitation should be removed, for a 
man who i laid up for a week is as much ntitled to his proportion-
ale comp ' ll'ation as the man who cannot go to work for a month.• 

2. illode ofPa ment.-t present, the injured party has to recov 
r from the ' mployer, and if a pension is awarded and the employ 
r goes ban 1-rupt, there is no effectual remedy. At least the 
pa m nt sh uld be mad a pr •rerenc d ·bt in all ea es. As in German 
, th ' worl man ·hould look to the Late for compensation, and 
the Late should r 'Co\·er from the employer where p ssible. 
• The importnn(' of thi, m;ty be seen from the fnct that of the accidents which 
O('('tnl d • t the Oldbtny Alkali wo•ks during the past 17 y nr, 6o per cent. of the 
uiT r ·r would have been xcluded from the benefits of the new Act in consequence 
of lhe 14 days clause.-Bit mtnglwm Post, 141h March, 1898. 


13 

Compensation may be made either in a lump sum or in a pension 
and the provisions of the Act make it probable that lump sums will 
generally be given, both to secure the employer against a permanentobligation, and the workman against his employer's bankruptcy. 
Now, a pension is the most favorable form for the injured party for 
it cannot be invested in a small shop and lost. If payment 1~ere 
made by the State in the first place, pensions would be quite safe. 
Compensation should therefore be confined to the form of pension. 

3· "Act of God" Accz'dents.-The Conservative Government did 
an injustice to its proteges, the capitalists, in making them liable for 
all kinds of accidents. When negligence is proved, or there has been 
a contravention of the law, liability is proper ; but outside these 
classes accidents are "acts of God." This will be a very serious 
matter the first time a big colliery explosion occurs. A certain proportion 
of accidents is a necessary occurrence in industry. The State 
can reduce them by imposing more stringent regulations on the 
employers of labor, and thereby proportionately increase their liability 
for accidents. But the German experience shows that there will 
be a remainder of accidents whose number will be statistically a certainty. 
The workman pays his toll of responsibility in suffering, the 
State as profiting by the industry should bear the financial burden. 
Otherwise the employer will be certain to shift the incidence of compensation 
from his own shoulders to those of the consumer. The 
State should compensate the workman directly, and, in cases of 
negligence or breach of the law, should recover the amount from the 
employer. 

4· Notz'ce.-As notice of all accidents has already to be givenby the employer to the factory-inspector, there is no need for anyfurther notice from the workman to the employer, and the provisionsrequiring it sh uld be struck oul as unnecessary. 

5. Arbz'tratz'on.-The factory inspector has at present to enquireinto all accidents. If the primary responsibility for payment is 
thrown on the State there is no necessity for the elaborate provisionsfor arbitration. The State should pay on the report of the inspector,
and further investigation could be made if the employer resisted the 
proceedings taken against him to recover penalties for breach of the 
Factory or other Acts ; there would then be no chance of the injured 
party being forced to the Court of Appeal on a point of law. 
6. Common Employment: Contrzbutory Negligence.-With t.he 
extension of the principle of compensation to all trades, opportumtyshould be taken to sweep away these antiquated legal theones which 
are now abandoned even by lawyers. A bill to abolish this has 
actually passed its second reading in the House of Commons. 
7· "Contractzizg Out."-The existing compromise on contracting 
out removes many of the worst features of private compensation 
schemes, but the eagerness of coalowners to promote schemes under 
the Act shows that they think such scht.m~s less onerous to them 
than the schedules of the .Act. There is no reason why a workman 


should contribute at all towards his own compensation, and contracting 
out should be abolished altogether. 

8. Scale of Compensatzon.-The present niggardly scale should 
be revised in favor of pensions, which should be based on a real 
living wage. Permanently incapacitated workmen should not be 
treated as out-door paupers. 
TEXT OF THE 

WORKMEN'S COMPENSATION ACT, 1897· 

1.-(r.) If in any employment to which this\ et applies personal injury byaccident arising out of and in the course of the emplo)_ bent is caused to a workman, 
his employer shall, subject as hereinafter mentione..l, be liable to pay compensation in 
accordance with the First Schedule to this Act. 

(2.) Provided that:(
a.) The employer shall not be liable under this Act in respect of any injurywhich does not disable the workman for a period of at least two weeks 
from earning full wages at the work at which he was employed ; 
(b.) When the injury was caused by the personal negligence or wilful act of the 
employer, or of some person for whose act or default the employer is responsible, 
nothing in this Act shall affect any civil liability of the employer, but 
in that case the workman may, at his option, either claim compensation 
under this Act, or take the same proceedings as were open to him before the 
commencement of this Act; but the employer shall not be liable to paycompensation for injury to a workman by accident arising out of and in the 
course of the empl0yroent both independently of and also under this Act, 
and shall not be liable to any proceediugs-independently of this Act, except 
in case of such personal negligence or wilful act as aforesaid ; 
(c.) If it is proved that the injury to a workman is attributable to the serious 
and wilful misconduct of that workman, any compensation claimed in respect 
of that injury shall be disallowed. 

(3.) If any question arises in any proceedings under this Act as to the liability to 
pay compensation under this Act (including any question as to whether the employment 
is one to which this Act applies), or as to the amount or duration of compensation 
under this Act, the question, if not settled by agreement, shall, subject to the provisions 
of the First Schedule to this Act, be settled by arbitration, in accordance with 
the Second Schedule to this Act. 

(4.) If, within the time hereinafter in this Act limited for taking proceedings, an 
action is brought to recover damages independently of this Act for injury caused by 
any accident, and it is determined in such action that the injury is one for which the 
employer is not liable in such action, but that he would have been liable to pay compensation 
under the provisions of this Act, the action shall be dismissed ; but the 
court in which the action is tried shall, if the plaintiff shall so choose, proceed. to 
assess such compensation, and shall be at liberty to deduct from such compensatiOn 
all the costs which, in its judgment, have been caused by the plaintiff bringing the 
action instead of proceeding under this Act. 

In any proceeding under this subsection, when the Court assesses the •compen~tion 
it shall give a certificate of the compensation it has awarded and the directions tt 
ha~ given as to the deduction for costs, and such certificate shall have the force and 
effect of an award under thts Act. 


IS 

(5.) Nothing in this Act shall affect any proceeding for a fine under the enactments 
relating to mines or factories, or the application of any 5uch fine, but if anysuch fine, or any part thereof, has been applied for the benefit of the person injured, 
the amount so applied shall be taken into account in estimating the compensation

under this Act. 

2.-(r.) Proceedings for the recovery under this Act of compensation for an injury 
shall not be maintainable unless notice of the accident has been given as soon as 
practicable after the happening thereof and before the workman has voluntarily left 
the employment in which he was injured, and unless the claim for compensation with 
respect to such accident has been made within six months from the occurrence of the 
accident causing the injury, or, in case of death, within six months from the time of 
death. Provided always that the want of or any defect or inaccuracy in such notice 
shall not be a bar to the maintenance of such proceedings, if it is found in the proceedings 
for settling the claim that the employer is not prejudiced in his defence by 
the want, defect, or inaccuracy, or that such want, defect, or inaccuracy was occasioned 
by mistake or other reasonable cause. 

(2.) Notice in respect of an injury under this Act shall give the name and 
address of the person injured, and shall state in ordinary language the cause of the 
injury and the date at which it was sustained, and shall be served on the employer, or, 
if there is more than one employer, upon one of such employers. 

(3.) The notice may be served by delivering the same to or at the residence or 
place of business of the person on whom it is to be served. 

(4.) The notice may also be served by post by a registered letter addressed to the 
person on whom it is to be served at his last known place of business, and if served 
by post shall be deemed to have been served at the time when the letter containing 
the same would have been delivered in the ordinary course of post, and in provingthe service of such notice it shall be sufficient to prove that the notice was properly 
addressed and registered. 

(S.) Where the employer is a body of persons corporate or unincorporate, the 
notice may also be served by delivering the same at, or by sending it by post in a 
registered letter addressed to the employer at the office, or, if there be more than one 
office, any one of the offices of such body. 

3.-(1.) If the Registrar of Friendly Societies, after taking steps to ascertain the 
views of the employer and workmen, certifies that any scheme of compensation,
'benefit, or insurance for the workmen of an employer in any employment, whether or 
not such scheme includes other employers and their workmen, is on the whole not less 
favorable to the general body of wOrkmen and their dependants than the provisionsof this Act, the employer may, until the certificate is revoked, contract with any of 
those workmen that the provisions of the scheme shall be substituted for the provisions 
of this Act, and thereupon the employer shall be liable only in accordance 
with the scheme, but, save as aforesaid, this Act shall apply notwithstanding anycontract to the contrary made after the commencement of this Act. 

(2.) The registrar may give a certificate to expire at the end of a limited period 
not less than five years. 
(3.) No scheme shall be so certified which contains an obligation upon the workmen 
to join the scheme as a condition of their hiring. 

(4.) If complaint is made to the Registrar of Friendly Societies by or on behalf 
of the workmen of any employer that the provisions of any scheme are no longer on 
the whole so favorable to the general body of workmen of such employer and their 
dependants as the provisions of this Act, or that the provisions of such scheme are 
being violated, or that the scheme is not being fairly administered, ?r th.at satisfactory 
reason exi5ts for revoking the certificate, the Registrar shall examme mto the complaint, 
and, if satisfied that good cause exists for such complaint, shall, unless the 
cause of complaint is removed, revoke the certificate. 

(5.) When a certificate is revoked or expires any moneys or securities held for the 
purpose of the scht:me shall be distributed as may be arranged between the employer 
and workmen, or as may be determint:d by the Registrar of Friendly Societies in the 
event of a difference of opinion. 


(6.) Whenever a scheme has been certified as aforesaid, it shall be the duty of the 
employer to answer all such inquiries and to furnish all such accounts in regard to 
the scheme as may be made or required by the Registrar of Friendly Societies. 

(7.) The Chief Registrar of Friendly Societies shall include in his annual reportthe particulars of the proceedings of the Registrar under this Act. 

4.-Where, in an employment to which this Act applies, the undertakers as hereinafter 
defined contract with any person for the execution by or under such contractor of 
any work, and the undertakers would, if such work were executed by workmen 
immediately employed by them, be liable to pay compensation under this Act to 
those workmen in respect of any accident arising out of and in the course of their 
employment, the undertakers shall be liable to pay to any workman employed in the 
execution of the work any compensation which is payable to the workman (whether 
under this Act or in respect of personal negligence or wilful act independently of this 
Act) by such contractor, or would be so payable if such contractor were an employer 
to whom this Act applies. 

Provided that the undertakers shall be entitled to be indemnified by any other 
person who would have been liable independently of this section. 

This section shall not apply to any contract with any person for the execution by or 
under such contractor of any work which is merely ancillary or incidental to, and is 
no part of, or process in, the trade or business carried on by such undertakers respectively. 


5.-(r.) Where any employer becomes liable under this Act to pay compensationin respect of any accident, and is entitled to any sum from insurers in respect of the 
amount due to a workman under such liability, then in the event of the employer 
becoming bankrupt, or making a composition or arrangement with his creditors, or if 
the employer is a company of the company having commenced to be wound up,
such workman shall have a first charge upon the sum aforesaid for the amount so due, 
and the judge of the county court may direct the insurers to pay such sum into the 
Post Office Savings Bank in the name of the registrar of such court, and order the 
same to be invested or applied in accordance with the provisions of the First 
Schedule hereto with reference to the investment in the Post Office Savings Bank of 
any sum allotted as compensation, and those provisions shall apply accordingly. 

(2 .) In the application of this section to Scotland, the words "have a first charge 
upon" shall mean "be preferentially entitled to." 

6 .-Where the injury for which compensation is payable under this Act was caused 
under circumstances creating a legal liability in some person other than the employer 
to pay damages in respect thereof, the workman may, at his option, proceed, either 
at law against that person to recover damages, or against his employer, for compensation 
under this Act, but not against both, and if compensation be paid under this Act, 
the employer shall be entitled to be indemnified by the said other person. 

7.-(r.) This Act shall apply only to employment by the undertakers as hereinafter 
defined, on or in or about a railway, factory, mine, quarry, or engineering work, 
and to employment by the undertakers as hereinafter defined on in or about anybuilding which exceeds thirty feet in height, and is either heing constructed or 
repaired by means of a scaffolding, or being demolished, or on which machinerydriven by steam, water, or other mechanical power, is being used for the purpose of 
the construction, repair, or demolition thereof. 

(2.) In this Act" 
Railway" means the railway of any railw"y company to which the Regulation 
of Railways Act, 1873, applies, and includes a light railway made 
under the Light Railways Act, r8g6; and "railway" and "railway company"
have the same meaning as in the said Acts of 1873 and 1896: 
"Factory" has the same meaning as in the Factory and Workshop Acts, 1878 
to r8gr, and also i:~cludes any dock, wharf, quay, warehouse, machinery, or 
plant, to which any provision of the Factory Acts is applied by the Factoryand Workshop 'Act, 1895, and every laundry workeJ by steam, water, or 
other mechanical power: 


"Mine" means a mine to which the Coal Mines Regulation Act, 1887 or the 
Metalliferous Mines Regulation Act, 1872, applies: ' 
"Quarry" means a quarry under the Quarries Act, 1894 : 

"Engineering work" means any work of construction or alteration or repair of 
a railroad, harbour, dock, canal, or sewer, and includes any other work for 
the construction, alteration, or repair of which machinery driven by steam 
water, or other mechanical power is used : ' 

"Undertakers" in the case of a railway means the railway company; in the 
case of a factory, quarry, or laundry means the occupier thereof within the 
meaning of the Factory and Workshop Acts, 1878 to 1895 ; in the case of a 
mine means the owner thereof within the meaning of the Coal Mines Regulation 
Act, 1887, or the Metalliferous Mines Regulation Act, 1872, as the 
case may be, and in the case of an engineering work means the person undertaking 
the construction, alteration, or repair; and in the case of a building 
means the persons undertaking the construction, repair, or demolition: 

"E'Tlployer" includes any body of persons corporate or unincorporate and the 
legal personal representative of a deceased employer : 

"Workman" includes every person who is engaged in an employment to which 
this Act applies, whether by way of manual labour or otherwise, and whether 
his agreement is one of service or apprenticeship or otherwise, and is 
expressed or impijed, is oral or in writing. Any reference to a workman who 
has been injured shall, where the workman is dead include a reference to his 
legal personal representative or to his dependants, or other person to whom 
compensation is payable : 

"Dependants " means(
a.) in England and Ireland, such members of the workman's family specified 
in the Fatal Accidents Act, 1846, as were wholly or in part dependent 
upon the earnings of the workman at the time of his death; and 
(b.) in Scotland, such of the persons entitled according to the law of Scotland 
to sue the employer for damages or solatium in respect of the death of the 
workman, as were wholly or in part dependent upon the earnings of the 
workwan at the time of his death. 

(3.) A workman employed in a factory which is a shipbuilding yard shall not be 
excluded from this Act by reason only that the accident arose outside the yard in the 
course of his work upon a vessel in any dock, river, or tidal water near the yard. 

8 .-(r.) This Act shall not apply to persons in the naval or military service of the 
Crown, but otherwise shall apply to any employment by or under the Crown to which 
this Act would apply if the employer were a private person. 

(2.) The Treasury may, by warrant laid before Parliament, modify for the purposes 
of this Act their warrant made under section one of the Superannuation Act, 
1887, and notwithstanding anything in that Act, or any such warrant, may frame a 
scheme with a view to its being certified by the Registrar of Friendly Societies under 

this Act. 

9 .-Any contract existing at the commencement of this Act, whereby a workman 
relinquishes any right to compensation from the employer for personal injury arising 
out of and in the course of his employment, shall not, for the purposes of this Act, be 
deemed to continue after the time at which the workman's contract of service would 
determine if notice of the determination thereof were given at the commencement of 
this Act. 

10.-(r.) This Act shall come into operation on the first day of July, One 
thousand eight hundred and ninety-eight. 
(2} This Act m:ty be cited as the Workmen's Compensation Act, 1897. 


EXTRACTS FROM SCHEDULES. 
FIRST SCHEDULE. 


ScALE AND CONDITIONS OF COMPENSATION. 

(1.) The amount of compensation under this Act shall be(
a.) where death results from the injury


(i.) if the workman leaves any dependants wholly dependent upon his 
earnings at the time of his death, a sum equal to his earnings in the 
employment of the same employer during the three years next preceding 
the injury, or the sum of one hundred and fifty pounds, whichever 
of those sums is the larger, but not exceeding in any case three 
hundred pounds, provided that the amount of any weekly paymentsmade under this Act shall be deducted from such sum, and if the 
period of the workman's employment by the said employer has been 
less than the said three years, then the amount of his earnings duringthe said three years shall be deemed to be 156 times his averageweekly earnings during the period of his actual employment under 
the said employer;

(ii.) if the workman does not leave any such dependants, but leaves anydependants in part dependent upon his earnings at the time of his 
death, such sum, not exceeding in any case the amount payable under 
the foregoing provisions, as may be agreed upon, or, in default of agreement, 
may be determined, on arbitration under this Act, to be reasonable 
and proportionate to the injury to the said dependants; and 

(iii.) if he leaves no dependants, the reasonable expenses of his medical 
attendance and burial, not exceeding ten pounds;

(b.) where total or partial incapacity for work results from the injury, a 
weekly payment during the incapacity after the second week not exceeding 
fifty per cent. of his average weekly earnings during ,the previoustwelve months, if he has been so long employed, but if not, then for anyless period during which he has been in the employment of the same employer, 
such weekly payment not to exceed one pound.

(2.) In fixing the amount of the weekly payment, regard shall be had to the 
difference between the amount of the average weekly earnings of the workman before 
the accident and the average amount which he is able to earn after the accident, 
and to any payment not being wages which he may receive from the employer 
in respect of his injury during the period of his incapacity.

(3.) Where a workman has given notice of an accident, he shall, if so requiredby the employer, submit himself for examination by a duly qualified medical 
practioner provided and paid by the employer, and if he refuses to submit himself 
to such examination, or in any way obstructs the same, his right to compensation 
and any proceeding under this Act in relation to compensation, shall be suspended 
until such examination takes place.

(4.) The payment shall, in case of death, be made to the legal personal representative 
of the workman, or, if he has no legal personal representative, to or for 
the benefit of his dependants, or, if he leaves no dependants, to the person to 
whom the expenses are due; and if made to the legal personal representativeshall be paid by him to or for the benefit of the dependants or other person en· 
titled thereto under this Act. 

(5.) Any question as to who is a dependant, or as to the amount payable to 
each dependant, shall, in default of agreement, be settled by arbitration under 
this Act. 

(6.) The sum allotted as compensation to a dependant may be invested or 
otherwise applied for the benefit of the person entitled thereto, as agreed, or as 
ordered by the committee or other arbitrator. 

(7.) Any sum which is agreed or is ordered by the committee or arbitrator to 
be invested may be invested in whole or in part in the Post Office Savings Bank 
by the Registrar of the county court in his name as registrar. 

(8.) Any sum to be so invested may be invested in the purchase of an annuityfrom the National Debt Co=issioners through the Post Office Savings Bank, or 
be accepted by the Postmaster-General as a deposit in the name of the registrar ... 

(10.) Any person deriving any benefit from any moneys invested in a post office 
savings bank under the provisions of this Act may, nevertheless, open an account. 
in e. post office savings bank or in any other savings bank in his own name ... 


(11.) Any workman receiving weekly payments under this Act shall, if so required 
by the employer, or by any person by whom the employer is entitled under 
this Act to be indemnified, from time to time submit himself for examination bya duly qualified medical practitioner provided and paid by the employer, or such 
other person; bu't if the wor'kman objects to an examination by that medical practitioner, 
or is dissatisfied by the certificate of such practitioner upon his condition 
when co=unicated to him, he may submit himself for examination to one of the 
medical practitioners appointed for the purposes of this Act, as mentioned in the 
Second Schedule to this Act, and the certificate of that medical practitioner as to 
the condition of the workman at the time of the examination shall be given to 
the employer and workman, and shall be conclusive evidence of that condition. 
If the workman refuses to submit himself to such examination, or in any wayobstructs the same, his right to such weekly payments shall be suspended until 
such examination has taken place. 

(12.) Any weekly payment may be reviewed at the request either of the 
employer or of the workman, and on such review may be ended, diminished or 
increased, subject to the maximum above provided, and the amount of paymentshall, in default of agreement, be settled by arbitration under this Act. 

(13.) Where any weekly payment has been continued for not less than six 
months, the liability therfor may, or. the application by or on behalf of the 
employer, be redeemed by the payment of a lump sum, to be settled, in default 
of agreement, by arbitration under this Act, and such lump sum may be ordered 
by the co=ittee or arbitrator to be invested or otherwise applied as above mentioned. 


(14.) A weekly payment, or a sum paid by way of redemption thereof, shall 
not be capable of being assigned, charged, or attached, and shall not pass to anyother person by operation of law, nor shall any claim be set off against the same. 

SECOND SCHEDULE. 

ARBITRATION. 
The following provisions shall apply for settling any matter which under this 
Act is to be settled by arbitration :(
1.) If any co=ittee, representative of an employer and his workmen exists 
with power to settle matters under this Act in the case of the employer and workmen, 
the matter shall, unless either party objects, by notice in writing sent to the 
other party before the co=ittee meet to consider the matter, be settled by the 
arbitration of such committee, or be referred by them in their discretion to arbitration 
as hereinafter provided.
(2.) If either party so objects, or there is no such co=ittee, or the co=ittee 
so refers the matter or fails to settle the matter within three months from the date 
of the claim, the matter shall be settled by a single arbitrator agreed on by the 
parties, or in the absence of agreement by the county court judge, according to the 
procedure prescribed by rules of court, or if in England the Lord Chancellor so 
authorises, according to the like procedure, by a single arbitrator appointed by such 
county court judge.
(3.) Any arbitrator appointed by the county court judge shall, for the purposesof this Act, have all the powers of a county court judge, and shall be paid out of 
moneys to be provided by Parliament ..... 
(6.) The costs of and incident to the arbitration and proceedings connected 
therewith shall be in the discretion of the arbitrator.... . 
(11.) No court fee shall be payable by any party in respect of any proceedingunder this Act in the county court prior to the award. 
(12.) Any sum awarded as compensation shall be paid on the receipt of the person 
to whom it is payable under any agreement or award, and his solicitor or agentshall not be entitled to recover from him, or to claim a lien on, or deduct anyamount for costs from, the said sum awarded, except such sum as may be awarded 
by the arbitrator or county court judge, on an application made by either party to 
determine the amount of costs to be paid to the said solicitor or agent, such sum 
to be awarded subject to taxation and to the scale of costs prescribed by rules of 
court. 

[The omitted parts of the Sched~es de11-l with. matters which in the main 
only concern la:wyers.] 


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