Employer Liability When an Employee Is Injured in an Accident: What Should We Do?

Dear All,

One of our employees met with an accident the day before yesterday morning while coming to the office. She is badly injured and hospitalized. Her gross salary is $13,303.00. I want to know what the liability is on the employer for her.

Please reply as soon as possible.

Regards, Akhilesh
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Employer's Moral Responsibility in Employee Welfare

It is a complete moral responsibility of an employer to take care of their employees' interests in times of need. All other employees can also accumulate funds for their medical expenses and facilitate a faster recovery with the help of the best medical attention. However, the main responsibility falls on the employer to take care until they resume the office.

Regards,
Pankaj

I agree with Mr. Pankaj, but according to the ESIC new amendment regarding the wage ceiling increasing from $10,000 to $15,000, effective from May 10th, you have to fill the declaration form for the employee and send it to the local offices for her temporary card. Additionally, submit the accident report to the local ESI office. By doing this, you can claim benefits for leave, etc.

Dear Akhilesh, can you provide me with your company's name? The reason is that in our wide group, we can inform everybody not to join your company. Dear, your employee is your responsibility. Don't look for ESI or other factors. Just go to your employee and assure her that she need not worry, and the company will take care of her. This will create a positive image of your company, and as HR, it is your responsibility. In our company, a laborer met with an accident (contract for a month), and he was airlifted to Mumbai for treatment and taken good care of for 23 days before being brought back. This cost the company more than 10 lakh rupees, but the employees and the contract staff feel secure and safe here.

At this time, your employee is under pressure and may be feeling low—go ahead and console her—that is what I personally think. Others may differ—it's their opinion.

Regards

I agree with Mr. Neeraj Dubey in this context. The first and foremost important thing in cases of an accident is to get them the best possible medical attention immediately without hesitating or wasting time about eligibility or responsibility. Once the injured is stabilized, then being in HR, you will have a lot of options based on criteria like ESIC, Group Mediclaim, GTA, contributions from employees and management, etc.

Lesson Learned

Propose good welfare schemes to employees in the organization which will come to our rescue in emergencies like this, creating a sense of belongingness.

Thanks & Regards

As an HR professional, your first and foremost responsibility is to look after the welfare of the employees. Now is the time for you to ensure that she is receiving good medical attention and to address any matters related to ESI and group insurance. These issues can be adjusted once she is cured and returns to the company.

I hope you understand my message.

Thanks!

First moral responsibility is to take care of employees, regardless of what the laws say. It is immaterial.

Notional Extension Theory

Next, this is a clear-cut incidence of the "Notional Extension Theory," where employer responsibility starts from the moment an employee leaves their house gate to go directly to the workplace and continues until they reach back home directly (without deviating for personal matters). The employee is considered on duty even if they have not officially reported for duty.

Thanks,
Satish B

As an HR person, it is your first duty upon enrolling a person to ensure that he or she has insurance coverage for unforeseen incidents. This foresight would take care of hospitalization and immediate expenses. If you have failed in your primary duty, it becomes your moral duty to rush to their help instead of rushing to this site and seeking loopholes and escape routes.

Regards,
Rajendra

Employer's Responsibility for Employee Accidents

Morally, as soon as any employee leaves their home to join their assigned duty, it becomes the responsibility of the employer to take care of the employee if they meet with an accident.

Also, I believe there are cases finalized in court where an employee is considered to be on duty as soon as they leave home for work at the normal time they usually depart daily.

I have known companies to take care of employees who met with accidents when they left home to report for duty on the very first day of their joining, as per the appointment letter. According to the law, the candidate may not have been an employee as they were yet to complete their appointment formalities.

In all such cases, extend help first and worry about who is to bear the cost later. Human relations come before anything else.

Regards,
Daljit Singh

Here, the above case did not come under "Notional Extension Theory" even if she is covered by ESI benefits, as stated by Mr. Aki Sharma. The Notional Extension Theory may be applied if the employee has been provided a vehicle (any agreement between employee and employer) from home to the office and office to home or traveling on duty, or if the company's vehicle is in repair and the employee goes on another private vehicle, not a public vehicle, with employer permission.

Of course, it is the moral duty of an employer, and other employees can also voluntarily help her.

Dear Neeraj Dubey,

Thanks for highlighting a case from your organization. In fact, this is the kind of "Concern for people" that is exhibited by good and great companies like the Tatas or some PSUs in India. I personally know of many such cases where philanthropic companies have helped their employees without any expectation of tangible returns. It goes beyond what is stipulated by law and is also one of the best examples of Corporate Social Responsibility, which to many companies is just a propaganda gimmick. However, certain "rogue" companies, rather than accepting moral/legal responsibility, just try their best to wash their hands of the situation when faced with such circumstances.

Warm regards.

Dear Venkatramrao,

The Workmen's Compensation Act of 1923 covers such cases under the "Notional Extension Theory" as well as other cases of accidents that arise during or in the course of employment, even if the employee has gone to another city or the accident happened during odd hours.

Regards.

Thanks to all of you, now I would like to inform you that she (our employee) is no more. I respect your feelings, but a few comments are very strange, as stated by Neeraj:

"Dear Akhilesh,

Can you provide me your company's name? The reason is that in our wide group we can inform everybody NOT to join your company. Dear, your employee is YOUR responsibility."

I may also say, "Should I send all employees to your company because your company is giving a lot of benefits to the employees," but it's not worthy and practical to follow the same philosophy in all companies. Employees know very well what they are getting and what they will get in the future.

She was also in the HR Department and a good friend of mine. She knew the rules and laws, as well as management philosophy. I have so many examples of big companies that don't give any benefits when they are liable to pay.

On a human ground, all people here are emotionally advised for that employee (not for the incident).

Now I know what we can provide to her family (after-death benefits).

Thanks a lot for your valuable suggestions.

Regards, Akhilesh