“COMPENSATION TO EMPLOYEES IN CASE OF ACCIDENT DURING WORK COMMUTE : SUPREME COURT”
The Supreme Court passed a significant ruling on 29th July expanding the definition of Workplace Accidents under section 3 of Employees’ Compensation Act, 1923. This ruling aligns with Section 51E of the ESI Act, 1948, extending compensation coverage to accidents occurring during work-related commutes, even outside the physical premises of the workplace. As per the judgement, the Supreme Court states that "Accidents that occur while travelling to or from work” will now qualify as workplace injuries, provided there is a direct nexus between the time, place, and circumstances of the travel and the employment. Also, as per Section 51 E of the ESI Act 1948, Commute-related accidents are now classified as employment injuries, thereby making the employee (or their dependents) eligible for compensation and legal protection, even if the accident occurs outside the office premises.
For more details, please download the official circular or send your query to legal@ihrcgroup.com