Road Accident Outside Work: Is the Company Liable for Compensation?

Dear Seniors,

If a company employee, while reporting for duty or leaving from duty, is involved in a road accident (outside) and is seriously injured or faces death, is the company liable to pay any compensation?

Note: He is ESI exempted and not covered by any insurance. Please advise.

With thanks,
Shiv

Hi Shiv,

It's based on the employee's contract agreement with the company and the service period. Many companies initially place employees under a probationary/confirmation period, typically 3 months/6 months, etc. In that case, it is a matter of courtesy. Even if he has been with the company for a long time, the company will consider the following:

1. Whether the person has a valid driving license.
2. If he was in a drunken state.
3. The way the accident happened, based on the FIR report given by the police department. Even in this case, it is a matter of courtesy by management.

If any accident or incident happens to an employee, the company is the one who has to pay the compensation. It's usually like that.