Employment Injury - Accidents, Compensation & Benefits - Employers' obligations ,social security code
The social securities available to workers/ employees for employment injury are manifold;their rights and the corresponding obligations by the employers/Employees' State Insurance Corporation ( ESI) has a complex nexus. Fair working knowledge is esssential for not only employers and employees, but every one, to ensure that the victim's family avail due benefits without much ordeal. This article endeavours to provide a brief perspective of such social security benefits under law.
Under Section 3(1) of the Employees Compensation Act, 1923, if personal injury is caused to an employee by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation;
Sec. 2 (8) of the ESI Act defines an employment injury as a personal injury to an employee caused by an accident or occupational disease arising out of and in the course of insurable employment whether the accident occurs or the occupational disease is caused within or outside the territorial limits of India
Social Security Code:
Sec. 28 of the Code defines an employment injury as a personal injury to an employee caused by an accident or occupational disease, as the case may be, arising out of and in the course of insurable employment ,
(i) for the purposes of Chapter IV, if the employee is an insured or insurable employee under section 28 whether such accident occures or the occupational disease contracted within or outside the territorial limites of India; and
(ii) for the purposes of Chapter VII, whether such accident occures or the occupational disease is contracted within or outside the territorial limites of India;
Employers' Obligations
As outlined, the law casts and an obligation on the employer (for employees not covered under the ESI) to provide compensation to the employees/nominees for any injury/disability caused to the employee, during the course or arising out of the course of employment. Section 4 of the Act covers comprehensive methodology for provision of compensation for various kind of injuries, disabilities and deatch caused and Section 4 A provides for payment of compensation including interest. Section 2A covers provision fo reimbursement of medical expenses incurred due to employment injury.
Employment Injury
The scope and coverage of an employment injury, arising out of and/or in the course of employment has been widely extended by the Supreme Court/High Court(s) and covers diverse instances where the , casual connection, notional extension and deemed coverage have been demonstrated.
- Accident compensation will be payable on death due to snake bite while on duty - He was cutting sugarcane in the employer's field when snake bit him...(2020 LLR 285 - Bom.HC) EMPLOYEES’ COMPENSATION ACT, 1923 – Sections 4, 4A and 12 – Death due to snake biting Employer is liable to pay compensation – Employee engaged through contractor as labourer for cutting sugarcane – His dependents claimed compensation Compensation commissioner allowed the claim with 12% interest and 50% penalty Appellants challenged the award by filing appeal – Held, employer-employee relationship existed between appellant and deceased – Death during course of employment is not questionable –
- Murder just near the Gate of a Factory of an employee, for attending to work during a strike
(2012 LLR 86 - Chattisgharh HC): ...."A workman is certainly in the course of his employment if he reaches the place of his work or a point or an area which comes within the theory of ‘notional extension’. Merely because the deceased reached the place of work sometime earlier, would not make the accident out of purview of ‘employment injury’ within the meaning of Section 2(8) of the Act of 1948 (ESI Act). Accordingly, the ratio laid down by the Hon’ble Supreme Court in the case of‘Regional Director, ESI Corporation and Another vs. Francis De Costa and Another AIR 1997 SC (Couresy/source: 11/17/2020 Labour Law Reporter - November 2020)
- An employee working on sales/service was to report at his outstation work desination by 10 am and the usual travel time from hime home was one hour av. On the spateful day, he had left his home by 8.00 on a bike, early to drop his relative at a bus stop and proceed for his destination, en route he met with an accided and dies on the spot. The authorities took note of fact and considered this instance as arising out of the empoloyment and sanctioned benefits to his nominees
- A merchandiser working for a retail outlet in a mall was sitting aside the basement car parking when a speeding car hit her due to which her leg has to be amputated, rendering her partial disabled. Here while the officer in charge delined to consider this, the high authorities on representation of the casual connection, she was sitting for a tea break and the basement was the earmarked lesiure place for the mall workers, hence this was also considered to be a deemed work place and she was granted with the cost of treatment and also disability pension
As per Section 4(2A) of the EC Act, 1923 an employer is liable to reimburse actual medical expenditure. Amount of 'reimbursement of actual medical expenses' is also to be governed by Section 4A of the Act which deals generally with interest payable on 'compensation' which is to be paid. Interest on the amount of compensation is to be paid as soon as the compensation falls due i.e., from the date of accident or when it comes to the knowledge of the employer.
- Recently, while reiterating this liability, the High Court of Kerala in. MFA No. 168/2019 and 171/2019, Dt/-7-2-2020 M.G. Gineesh vs. K.C. Ninan and Another, inter alia, held that Interest on delayed payment of medical reimbursement bills also is covered by Section 4A and should be paid as compensation.
I am sure this explainer would be of practice use to employers and employees. You may write to me for any further queries or assistance on any specific queries.
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