Employees compensation explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter V of the Code on Social Security (Gujarat) Rules, 2023 (rules 14 to 57, in six Parts) sets out the employees' compensation procedure. This article states it as amended by the Amendment Rules dated 28 January 2026: rule 14 now deals with the deposit of funeral expenses, and the earlier text of rule 14 (review without a medical certificate) has become rule 14A.
The rules are the Code on Social Security (Gujarat) Rules, 2023, as notified on 30 December 2023 (No. GR/2023/158/PGA/172021/24659/M3) and amended by the Code on Social Security (Gujarat) (Amendment) Rules, 2026 dated 28 January 2026. Where an injury results in death, the employer deposits with the competent authority a sum of Fifteen thousand rupees or the higher amount as prescribed by the Central Government within Forty Eight hours of the incident towards funeral expenses (rule 14, as substituted). The competent authority disposes of an application within six months (rule 57).
Later amendments and State notifications under these rules should be checked in the State Gazette.
Commencement and the amendment
Rule 1(3) reads: "They shall come into force from the commencement of the Code on Social Security, 2020." The four Labour Codes were brought into force from 21 November 2025. Rule 1(2) of the Amendment Rules says they come into force "on the date of their publication in the Official Gazette"; the Gazette date is not printed in the notification text, and no in-force date for the amendment is asserted here. See our article on what the Amendment Rules changed. The Central rules are in rules 57, 58 and 59 (interest, notice and claim) and Forms XXVII to XXX. For a fatal accident or contested claim, our legal dispute resolution team can advise on the steps.
Deposit of funeral expenses (rule 14, as substituted in 2026)
Under the substituted rule 14, made under section 76(7) of the Code, if the injury results in death, the employer, in addition to the compensation under section 76(1):
- deposits with the competent authority a sum of Fifteen thousand rupees or the higher amount as prescribed by the Central Government from time to time, within Forty Eight hours of the incident, towards the funeral expenses, to be paid to the eldest surviving dependent, excluding the transport charges of the body;
- on the competent authority calculating the actual transport charges from the place of death, accident or hospital to the native place of the deceased, or the place where the dependents wish to perform the rituals, and passing an order, deposits that amount with the competent authority within Forty Eight hours of the death;
- where the employee had no dependent, or was not living with dependents, pays the funeral expenses and transport charges to whoever actually incurred them.
These sums are in addition to the compensation under section 76(1).
Review without a medical certificate (rule 14A, inserted in 2026)
An application for review of a half-monthly payment under section 79 may be made without a medical certificate: by the employer, on the ground that the employee's wages have increased since the right to compensation was determined; by the employee, on the ground that his wages have diminished, or that the employer, having begun to pay compensation, has ceased to pay without any change in his condition warranting it; or by either, on the ground that the determination was obtained by fraud, undue influence or other improper means, or that there was a mistake or error apparent on the face of the record. On an employer's review application seeking reduction or discontinuance, the competent authority may, on reasonable ground, withhold the half-monthly payments in whole or in part pending decision (rule 15).
The steps at a glance
| Obligation | Rule | Form | Time limit as printed | Authority |
|---|---|---|---|---|
| Deposit funeral expenses | 14 | Deposit | Within Forty Eight hours of the incident or death | Competent authority |
| Notice from the competent authority to employer | 22(1)(a) | Form XIII, with blank Form XIV | Reply within the period stated in the notice | Competent authority |
| Notice book | 22(1)(b) | Form XV | Readily accessible | Employer |
| Employer's statement | 22(2) | Form XIV | Same period | Competent authority |
| Report of fatal accidents | 23 | Form XVI | Not stated | Competent authority |
| Employer's memorandum on an accident | 24 | Supported by affidavit; fee | At any time, even if no claim is made | Competent authority |
| Memorandum of agreement | 25 | Form XVII, XVIII or XIX, in duplicate | Not stated | Competent authority |
| Record of memorandum | 26, 29 | Notice in Form XX; register in Form XXIV | Not stated | Competent authority |
| Application for relief | 31 | Form XXV or XXVI, in duplicate | Not stated | Competent authority |
| Disposal of an application | 57(1) | Within six months of receipt | Competent authority |
Medical examination (rules 16 to 21)
An employee must submit to medical examination under section 84 only as these rules provide. If the employee is at the employer's premises and a qualified medical practitioner is present, the employer offers examination without charge and the employee submits forthwith. Otherwise the employer may send the practitioner to where the employee is residing, or offer in writing an examination without charge at the premises or another place in the vicinity, at a specified time that, without the employee's express consent, is not between 6 p.m. and 9 a.m. An employee in receipt of a half-monthly payment cannot be required to attend elsewhere than where he is residing more than twice in the first month after the accident or more than once in any later month. After a suspension of the right to compensation, the examination takes place within 72 hours after the employee offers himself, unless he consents otherwise. A woman cannot be examined by a male practitioner without her consent, save in the presence of another woman.
Memorandum of agreement (rules 25 to 29)
The competent authority records a memorandum of agreement unless there are grounds to refuse, after fixing a date and issuing a Form XX notice. Where he is inclined to refuse, parties absent are sent notice in Form XXII or XXIII, with a date not earlier than seven days after issue. A refusal is recorded with reasons; no order for a sum above the agreed amount is passed without giving the party liable an opportunity to show cause. A recorded memorandum is entered in the register in Form XXIV.
Procedure before the competent authority (rules 30 to 57)
The applicant presents the application in duplicate in Form XXV or XXVI, with a signed certificate that the statement of facts is accurate as far as the applicant knows and believes. Documents the application relies on are appended; others are produced at or before the first hearing. The authority may examine the applicant, dismiss summarily with reasons, call for evidence, send notice to the opposite party, require a written statement, frame issues, record a judgment with findings on each issue, enter the place of injury for a local inspection (an industrial establishment's premises only in working hours, save with permission), and, if a party claims indemnity from a third person, issue notice in Form XXVII or XXVIII. Parts of the Code of Civil Procedure, 1908 apply as listed in rule 52. Under rule 57, the application is disposed of within six months of receipt; certified copies cost rupees hundred per copy, and the authority may exempt an applicant unable to pay.
A worked example
At Mehsana Cement Works Pvt Ltd, a fitter dies in a plant accident. The company deposits Fifteen thousand rupees (or any higher amount the Central Government has prescribed) with the competent authority within Forty Eight hours of the incident towards funeral expenses, in addition to compensation. The authority orders the actual transport charge for taking the body to the village, which the company deposits within Forty Eight hours of the death. Later, the competent authority sends Form XIII with a blank Form XIV; the company replies within the period in that notice.
Need help with a compensation claim or fatal accident?
A fatal accident carries a short deposit window and a notice that must be answered. Our legal dispute resolution team can prepare the deposit, the Form XIV statement and the response to an application.
Key takeaways
- On a death, deposit Fifteen thousand rupees or the higher Central amount within Forty Eight hours; transport charges follow the competent authority's order, within Forty Eight hours.
- Rule 14A allows review without a medical certificate on the grounds listed.
- The employer's statement goes in Form XIV; keep the notice book in Form XV.
- Medical examination follows rules 16 to 21.
- The competent authority disposes of an application within six months.
Read next
- Code on Social Security (Gujarat) (Amendment) Rules, 2026: what changed
- Code on Social Security (Gujarat) Rules, 2023: gratuity nomination, application and recovery
- Code on Social Security (Gujarat) Rules, 2023: maternity benefit claims
- Rules 57 to 59 of the Central Rules: interest, notice and claim
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.