Sections 88 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.
Section 88 lets the competent authority require an employer to explain a fatal accident within thirty days. Section 89 requires a lump-sum compensation agreement to be sent for registration. Section 90 sends disputed questions to the competent authority and keeps civil courts out.
When the competent authority learns that an employee died in an accident arising out of employment, he may serve a notice requiring the employer to file a statement within thirty days saying whether he is liable; if he is, he must deposit within thirty days (s.88). A lump-sum agreement (including a redemption of half-monthly payments, or any settlement for a woman or a person under legal disability) must be sent to the authority for recording; if it is not, the employer pays the full compensation and can deduct no more than half of what he paid (s.89). Disputes on liability or amount are for the competent authority, and civil courts have no jurisdiction (s.90).
Why it matters
Many compensation matters are settled by agreement, and employers often assume the signed settlement ends the matter. Under section 89 an unregistered agreement does not protect the employer in the way he expects. A company facing a fatal accident or a settlement should take legal consultation on the notice and registration steps. This article follows sections 82 to 84 (notice and claim) and leads into sections 91 and 92.
Section 88: statement on a fatal accident
| Step | Text |
|---|---|
| Trigger | The competent authority receives information from any source that an employee has died as a result of an accident arising out of and in the course of employment |
| Notice | He may send, by registered post or electronically where possible, a notice to the employer requiring a statement within thirty days of service, in the form the State Government prescribes, giving the circumstances of the death and saying whether the employer thinks he is or is not liable to deposit compensation; a copy goes to the dependants he has ascertained (s.88(1)) |
| Liable | The employer deposits within thirty days of service of the notice (s.88(2)) |
| Not liable | The statement must give the grounds for disclaiming (s.88(3)) |
| After a disclaimer | After inquiry, the authority may tell dependants that they may prefer a claim and give other information (s.88(4)) |
| Legal help | If a dependant cannot afford to engage an advocate, the authority may provide one from the State Government's panel (s.88(5)) |
The power is on the authority's initiative, so an employer cannot rely on silence when a death occurs. Dependants receive a copy, so the statement will be read by the people with the claim.
Section 89: registering agreements
What must be sent
A memorandum must be sent by the employer to the competent authority where:
- a lump sum has been settled by agreement, whether by redeeming a half-monthly payment or otherwise; or
- any compensation has been settled as payable to a woman or a person under legal disability.
The authority, satisfied as to genuineness, records it in a register, electronically or otherwise, in the manner the appropriate Government prescribes.
Provisos
- No memorandum is recorded before seven days after the authority's notice to the parties.
- The authority may rectify the register at any time.
- He may refuse to record where the sum is inadequate or the agreement was obtained by fraud, undue influence or other improper means, and may make such order, including about any sum already paid, as he thinks just.
Effect
| Situation | Consequence |
|---|---|
| Registered agreement (s.89(2)) | Enforceable under the Code, notwithstanding the Indian Contract Act, 1872 or any other law |
| Memorandum not sent (s.89(3)) | Employer is liable to pay the full amount of compensation due; and, despite the proviso to s.76(1), cannot, unless the authority directs otherwise, deduct more than half of any amount paid to the employee as compensation, whether under the agreement or otherwise |
So an unregistered settlement may leave an employer paying twice over part of the sum.
Section 90: who decides disputes
If a question arises in any proceedings under the Chapter on:
- the liability to pay compensation (including whether an injured person is an employee); or
- the amount or duration of compensation (including the nature or extent of disablement),
it is, in default of agreement, to be settled by a competent authority (s.90(1)). No Civil Court has jurisdiction to settle, decide or deal with any question the Chapter requires a competent authority to handle, or to enforce any liability under the Chapter (s.90(2)). Note that "whether a person is an employee" is expressly within the authority's remit, which is significant for gig and contract cases.
Central Rules and State rules
The forms for the statement under section 88 and the register under section 89 are for the State Government to prescribe, as the section says. The Central Rules, 2026 deal with transfers, applications and interest (rules 57 to 62), which we cover in our articles on sections 77, 91 and 93. The Central Rules apply where the Central Government is the appropriate Government; where the State Government is, the State's own rules apply.
A worked example
A factory worker dies after a fall at work. The competent authority learns of it from a newspaper report and serves a notice on the employer. The employer has thirty days to file the statement. He accepts liability and deposits compensation within those thirty days. In a separate case, an injured worker agrees to a lump sum in place of half-monthly payments but the employer never sends the memorandum. Later the authority finds that the employer must pay the full compensation and may deduct only half of what was paid under the agreement, unless it directs otherwise. (Illustrative.)
Need help with a fatal accident notice or a settlement?
The thirty-day clock in section 88 and the registration step in section 89 are easy to miss in the confusion after an accident. If you need advice on a notice, a settlement or a dispute on whether a person is an employee, our legal consultation team can assist.
Key takeaways
- On a fatal accident, the authority may require a statement within 30 days; liable employers deposit within 30 days.
- Dependants get a copy, and may be given an advocate from the State panel.
- Register every lump-sum settlement, and every settlement for a woman or person under legal disability.
- The authority may refuse an inadequate or improperly obtained agreement.
- Unregistered: full compensation due and no more than half deductible.
- Civil courts have no jurisdiction; the competent authority decides liability, employee status and amount.
Read next
- Sections 85 to 87: Contracting, remedies against third parties and insolvency
- Sections 91 and 92: Appointment and venue of competent authority
- Sections 79 to 81: Review, commutation and distribution of compensation
- Workmen Compensation vs ESI: which applies
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.