Is a Company Liable for Employee Accidents During Lunch Breaks? Seeking Advice and Insights

There is one issue that happened in our company. The company provides a 1-hour lunch break during which employees can go outside if they wish. The lunchtime is from 12:30 PM to 1:30 PM. Unfortunately, one employee had an accident during this lunch break while he was outside the company on his vehicle. He was injured severely.

Liability for Employee Accidents During Lunch Breaks

Is the company liable to pay for the expenses related to this accident? Our company operates in the IT domain, and PF and ESIC benefits are available.

Please share your views on this matter and suggest the further procedure to follow.

Thank you.

Lunchtime is considered "on duty." Even journey hours between the house and the place of work are considered for the payment of compensation in case of an accident, as a notional extension.

In your case, the accident occurred during duty hours. You need to submit the accident report to various authorities immediately, including ESIC if the employee is covered under ESIS. Fortunately, the accident is not fatal. The IP must have been admitted not to an ESI Hospital due to an emergency. You need to communicate this to ESIC and claim the expenses incurred. You should submit a certificate from the hospital for the absence of the IP to ESI BO through the ESI panel doctor. The corporation is liable to pay the expenses incurred, subject to its conditions. The corporation is also liable to pay the leave salary to the IP. There is also a form, to my knowledge, to claim the expenses incurred in a non-ESI hospital under certain circumstances.

You are advised to approach ESI BO.

Well, lunchtime falls within duty hours, and in case of any mishap involving an employee, the company needs to cover the costs. It is also a part of the employment agreement, depending on the clause or section of the agreement, so the company may deny it if they do not permit an employee to leave the office premises during duty hours.

Dear Rakesh, My opinion is a bit different from others. It is true that the lunch hour comes under duty time, but it is the duty of the employee or worker to remain within the Factory/Office premises. If he goes out from your factory or premises without any official work and meets with any accident, then it is not the liability of the employer to bear the expense or take the responsibility; it is purely the liability of the employee/worker.

You need to check if he took any gate pass or signed any register for outside movement. If he did the same, then it is not your responsibility. But if you didn't take the same proof, then he can claim that he was out of the office due to official work, etc.

With respect to Keshav's expert opinion, it occurred to me: Is the lunch hour paid or unpaid? If paid, I would concur with Keshav's view. However, if it is unpaid, then surely the employee is free to do whatever he wishes during the unpaid period. Having said that, surely it is morally correct to support the employee in his time of need.

Regards,
Harsh

Hello Vm,

Though it is expected that employees stay inside the office premises during lunch hours, it is not always possible. Let us consider my case. I am working in a small office in an industrial estate. We have to bring lunch or go out to have it. If on an unfortunate day I could not bring my lunch and had to step out for it, and then met with an accident, am I at fault?

Just asking so that I can understand the liabilities better. I would appreciate it if you could educate me on this matter. Thanks in advance.

Regards.

Well, even I believe that the company should take care of it. However, when there are no rules and regulations for going out during working hours (whenever employees feel like), it should be made crystal clear that if an employee goes out without the permission of his/her reporting manager, then the company will not be liable for any mishappening. Reporting managers should be kept informed, as due to some personal reasons, anyone might have to go outside to complete some urgent work, then these issues should be entertained; otherwise, NOT. (We have to be polite but have to be strict too).

Regards,
Vishal
Sr. HR Executive

In my opinion, it all depends on how management reacts to situations such as this. While we can all keep quoting rules, at times like this, an organization should and must rise above all that is written in black and white and come forward to protect an employee and provide assistance without hesitation.

Corporate Social Responsibility vs. Employee Welfare

On another note, we often speak of Corporate Social Responsibility (CSR) and so on, but why not prioritize our own employees? Just think about it seriously.

What if an employee is helping a senior with a personal task and gets into an accident? Would you still strictly adhere to rules and regulations in that situation?

Regards,
Sandeep Sharma

All the replies were really educational. I would also like to share here that in our company, too, it's a similar kind of rule. One can go to their home during the lunch hour, and similarly, the total shift hours are 9, while working hours (deducting 1 hour for lunch) become 8, which is as per the law. Hence, if someone is leaving the factory premises, then that person will be responsible for their actions, and whatever happens to them will not be a liability of the organization.

However, a responsible organization will definitely oversee this and assist their employees, but technically, there is no liability.

Thanks.

Good (and big) companies have a Standing Committee that inquires into all such cases where accidents are caused "during or arising out of and in the course of duty."

The Committee examines the case, along with witnesses and documents, to decide whether compensation is admissible or not.

Hope you are well-versed with the terminology "arising out of and in the course of duty."

This case relates to the latter, as it was lunchtime.

The committee, or if you are the lone HR, then you should look for answers to the following:

- Do you have any canteen facility? Or is it absolutely imperative to go out for lunch?
- The spot where the accident took place - was it on the way to the usual place of lunch? Or were the employees going to some other, out-of-the-way place for lunch?
- How did the accident occur? Was it a two or four-wheeler that he was driving? Did he comply with all safety norms (like for 2 wheelers - wearing a helmet; 4 wheelers - seat belt; driving within speed limits, etc.)?
- Did the accident occur due to his carelessness?
- On which route did the accident take place?
- Did the employee have any plans to come back after lunch? In case the accident happened at an out-of-route place, was the employee planning to take an unannounced half-day leave and leave for the day?

These answers would help arrive at a proper and correct decision.

Warm regards.

This may fall under the Workmen's Compensation Act. As per the Act, the employer is liable to pay compensation if the worker is injured by an accident that:

1. Arises out of (i.e., while engaged in work), and;
2. In the course of his/her employment (i.e., during work hours), and;
3. Such an injury results in the disablement of the worker.

If the three conditions are met, the employer of an establishment covered by the Act is bound to pay compensation. Work timings include the lunch hour, and to my knowledge, nowhere is it clearly defined about this scenario.

My View

Since lunch timing is part of office hours (during work hours), the employer is liable if they have not defined any process and not informed the employees in this regard. The process suggested by Mr. Raj Kumar is also good. I would also suggest discussing with a statutory consultant to have a clear view.

Just to add... These days, most organizations are taking Group Personal Accident policies with all four tables, and it is a 24-hour worldwide coverage. This is a very good benefit to cover the employees.

Tables

1. Death
2. Permanent total disablement
3. Permanent partial disablement
4. Temporary total disablement

Thanks and Regards,

Srinivas Marnade

Employer Liability for Employee Accidents During Lunch Breaks

If a company provides a statutory canteen facility on its premises, there is no need for employees to go outside. However, if an employee meets a fatal accident on the road, is the employer liable to pay compensation under the Employee Compensation Act? On humanitarian grounds, medical expenses can be considered.

Regards,
Niroja P
HR

Dear All,

There is one issue that happened in our company. The company provides a 1-hour lunch break, during which employees can go outside if they wish. Lunchtime is from 12:30 PM to 1:30 PM. One employee had an accident during this lunch break (he was outside the company on his vehicle) and got injured. Is the company liable to pay expenses for this accident? Our company domain is IT, and PF and ESIC are available. Share your views on what the further procedure should be.

I agree and appreciate Sandeep Sharma & Raj Kumar for their apt replies. Since I am not familiar with the exact laws/rules of ESIC, I would request any expert to comment on the coverage of ESIC. Many members here have pointed out that an incident/accident during duty hours is payable by the company, and one outside of duty hours is not payable. I am 99% sure that I am right, but the remaining 1% would be confirmed by an ESIC expert, Mr. Sandeep Sharma, or Mr. Raj Kumar.

Understanding Insurance Policy Terms

First, I would like to mention the following points: Any insurance policy would have its terms and conditions, which are unique from other policies. In the case of life insurance, the conditions under which death should occur are defined, and reimbursement is only payable when these conditions are fulfilled. For example, in some life insurance cases, death by accident while in an inebriated condition or suicide is not reimbursed. Similarly, many other insurance policies have their terms and conditions. In all cases, the company does not pay the money; it only processes the claim and forwards it to their insurance partner for payment. In deserving cases where cashless hospitalization is not possible, the company can pay the bill and later claim from the insurance company on humanitarian grounds.

Insurance Policy Applicability

To the best of my knowledge, no insurance policy/ESIC policy defines applicability based on working hours. It is all based on the course of employment, meaning as long as the person is employed with the company, the insurance policy should be honored, irrespective of whether the incident occurs during lunchtime, after office hours, on a Sunday, or on Republic Day. If you look at your vehicle insurance policy, it mentions a period of one year until midnight on the next year, which means the insurance is payable even if the accident happens at night or early in the morning at 3 am or 4 am, and no one can question why you were driving at that time.

So, first, understand how insurance policies work, and then, depending on the case, decide whether it fulfills all conditions for a claim. If some condition is not fulfilled, the company can pay the whole claim on humanitarian grounds. Asking whether lunchtime is paid or unpaid will not educate you about insurance and claims because tomorrow, if a person in your company has an accident at night, you will post another query asking if nighttime is paid or unpaid. In any insurance company policy, there are specific conditions.

Regards.

Dear Ravi,

Thanks for raising some pertinent and important issues. It takes at least 6 hours of classroom sessions, hours of essential readings, recommended readings, and a few evaluation sessions to cover the issues of the Employees' Compensation Act and terms like "Arising out of and in the course of employment" with examples. Unfortunately, here we have to grapple with INSTANT GYAAN!!

As correctly pointed out by you:

- During duty hours or out of duty hours has no application in the Act.

A person who is sent on a tour or is traveling at night is not in duty hours; however, he will get compensation. The critical term is "in the course of employment"!! The employee is not traveling at night for the fun of it but because he is in the course of his official duties. Similarly, employees on tour staying in hotels and getting injured due to a fire in a hotel at night are also eligible for compensation - though it may not be during duty hours at midnight. Hope the above examples clarify the concept and its applicability.

- Similarly, paid and unpaid hours have no meaning here.

Incidentally, the lunch hour is excluded from the (eight) hours of work. It is always in addition to the working hours!! Also, to qualify for paid hours, does the employer pay a salary for the time taken to have lunch? It would indeed be a very benevolent employer and one of the "Best Places To Work"!!!

To conclude, it has been rightly pointed out that for the sake of humanity, such cases (death or disablement) are dealt with sympathy, and the benefit is allowed to the family so that they do not suffer the consequences. This is a practice adopted in all good, established companies.

Warm regards.

Company Responsibility for Employee Accidents During Lunch Breaks

Lunchtime is not considered part of duty hours in this case. If the employee had gone to a different location for a few days on company work, then the company should take responsibility. Otherwise, the company can choose not to involve itself in this matter.

Regards

Understanding Work-Related Accidents

Starting from home to the place of work, during work, and returning from the place of work to home is considered work time only. If an employee meets with an accident during such time, it should be considered an accident arising out of and in the course of their employment. This is called the theory of notional extension. However, if the employee does not return home in the normal way and goes somewhere else and meets with an accident, or if an employee violates any of the safety regulations (such as riding a two-wheeler without wearing a helmet, etc.), then the company can contest that they are not responsible.

Likewise, if it is a normal practice for employees to leave the workplace during rest hours to purchase something from a nearby shop, it should be considered an industrial accident only.

Beyond anything else, if anything happens to an employee during working hours or while traveling, it is the fundamental responsibility of the employer to take care of such employees for their treatment on a humanitarian concern.

The company can very well try to enforce discipline to ensure that employees do not leave the campus during break times.

Thanks and regards,

Ranganathan RS Chennai

Well, I have another view about this problem. I agree that lunchtime should be included in the duty time. However, when an employee goes outside the factory on a Gate Pass, they are then able to claim accident benefits.

Regards,
Nobal

I think we all are right, but I would like to add a few more points.

1. A factory/office must have space or a canteen so that employees do not have to go outside to have lunch.

2. In case the company has the facility of a canteen where employees can have lunch, even though employees go outside to have lunch, please write the purpose as "Lunch." In that case, I think the company is not responsible.

Thank you.

Yup, the lunchtime is considered to be part of duty time, but going outside during lunchtime depends upon the context of the work. Whether the employee is going outside the company for personal reasons or for the company's work is crucial. If the employee is outside the company for official work and unfortunately gets injured, then the company is liable to pay. However, if the employee is outside for personal reasons, the company may share the responsibility, but it could deduct from his/her salary. The major portion of payments depends upon the company's policies.