Understanding Workers' Compensation: What Qualifies as a Work-Related Injury?

Hi, can someone please explain what is a work-related injury under workers' compensation? I am an HR officer in a Generalist role. One of my colleagues says workers' compensation should be for every employee in the company regardless of your role. However, my knowledge from my experience and curriculum is that workers' compensation is only eligible if you are involved in certain activities at work that involve the risk of causing injury or other mishaps. Please correct me if I am wrong by providing the correct meaning and eligibility details of this benefit.

Thanks & Regards,
Vidyalakshmi KV

Dear Vijayalakshmi,

Please refer to the link below, which contains the bare act of the Workmen's (Employees') Compensation Act. This act predominantly covers blue-collar jobs and does not apply to clerical, managerial, or supervisory positions.

Link: [Employees' Compensation Act 1923](https://www.citehr.com/253120-employees-compensation-act-1923-amended-attached-zip.html)

You may consider approaching insurance companies to provide workmen's compensation insurance for all employees.

Thank you.

Employer Liability for Employee Injury

If personal injury is caused to an employee by an accident arising out of and in the course of their employment, the employer shall be liable to pay compensation in accordance with the provisions of this Chapter:

Provided that the employer shall not be so liable:

- In respect of any injury which does not result in the total or partial disablement of the employee for a period exceeding three days;
- In respect of any injury not resulting in death or permanent total disablement, caused by an accident which is directly attributable to:
- The employee having been at the time thereof under the influence of drink or drugs, or
- The willful disobedience of the employee to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of employees, or
- The willful removal or disregard by the employee of any safety guard or other device which they knew to have been provided for the purpose of securing the safety of employees.

This makes clear the liability of an employer with respect to the payment of compensation to employees.

Dear Vidyalakshmi,

Warm greetings!

Every employee in the organization, irrespective of their designation, is covered under the Employee Compensation Act. Employees will benefit either through the Employee Compensation Act or the ESI Act. However, in organizations where the gross salary of the employee is more than Rs. 15,000, they are exempted from being covered under the ESI Act.

Thanks and warm regards,
Pranab Chakraborty
9404384433

Every employee is not covered by the Employees' Compensation Act. Only those who fall under the definition of an employee according to the Act, and are not covered under the ESI Act, are entitled to benefits under the said Act.

Even if the organization is covered under the ESI Act, there could be employees with a salary of Rs. 15,000 or more. If the company is in an area not covered by ESI, then you need to obtain a Workers' Compensation (WC) policy for all employees. If the above sentence is true, then you need to cover employees earning Rs. 15,000 or more under the WC policy. Depending on age and percentage of injury, compensation is payable to the injured or the family of the deceased. The amount can run into lakhs of rupees; therefore, obtaining a WC policy is a must for such businesses. It is available from general insurance companies.

An "employee" who suffers an injury or dies due to an accident that arises out of and in the course of his employment is entitled to receive compensation under the Employees' Compensation Act from his employer. The term "employee" is defined in the EC Act.

Understanding Work-Related Accidents

When an accident could be said to have arisen out of and in the course of his employment, courts have held that an accident could be said to have arisen out of and in the course of employment if there is a causal connection between the accident and the employment. This depends on the facts of each case.

With regards,

Dear Cite HR Members,

Thank you for your precious time taken to clarify the question I had raised on Workmen's/Employees' Compensation. I would like to highlight that I am based out of the UAE and not in India, so I would need guidance as per UAE Labor Law. May I please present a scenario and request one of you to provide clarification on the same subject?

Scenario: Employee Injury in Office

An employee (office-based, UAE) who is stepping out for a break or simply walking inside the office space and moves from one cabin to another, causing themselves an injury by walking towards the exit or any other doors and accidentally banging against the door, thereby getting injured. Will this employee be covered under Workmen's Compensation or by regular Medical Insurance?

Regards,
Vidya KV

The injury has occurred within the office premises and could reasonably be attributed to be the result of employment.

While I am not aware of UAE law, the injury should be covered by Workmen's compensation as applicable in the UAE.

Those who are not eligible for ESI are eligible for workmen's compensation only during work hours, as per the Workmen Compensation Act of 1923.

Applicability of ESI and Employees' Compensation Act

The applicability of the ESI is based on monthly wages. The Act is currently applicable to employees drawing a monthly salary of Rs. 15,000. All employees earning more than this amount fall under the Employees' Compensation Act.

Employees engaged in 'uncovered' ESI areas will fall under the Employees' Compensation Act. The injury caused while going to and coming from duty is covered under the Employees' Compensation Act due to Supreme Court rulings. The ESI Act has been amended to cover these aspects. Please note this.

Somebody has mentioned that the Employees' Compensation Act is not applicable to managers; this is a totally wrong statement.

Regards,
Shrikant
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