Employee Accidents on Tour: What Are Employers Legally Responsible For?

Please suggest if an employee meets with an accident during the tour or outside the premises, what is the statutory liability of the employer.

Accidents During Employee Tours and Employer Liability

An accident caused to an employee while on tour is covered under the EC Act 1923, as the employee is entirely on duty during the tour. Therefore, the accident "arose out of and in the course of employment."

Accidents Outside the Premises

As regards an accident happening while being outside the premises, the factual position needs to be verified to determine whether the accident arose out of and in the course of employment. Both conditions must be met. With a notional extension of employment, the employee could be deemed to be in an accident that arose in the course of employment. However, the crux of the issue is whether it occurred as a result of employment.

In simple terms, the question is whether the employee was at the accident site due to employment terms (such as employer-arranged transport, which is mandatory) or was he like any other person (such as in public transport).

The employee met with an accident during his tour (tour means it is outside the work premises) is nothing but in the course of employment. The employee is eligible for compensation from the employer for his disablement and expenditure for the medical treatment.

Where is the problem?

Thank you for your reply. Could you please clarify which act covers this situation? The ESIC and Workmen's Compensation Act typically apply within factory premises.

If an employee is commuting from home to the office and has an accident, would the employer be liable in this case?

If the employee is covered under ESIC, they will receive compensation from ESIC. Otherwise, they will receive compensation under the EC Act.

If an employee is commuting from home to the office and meets with an accident, is it the liability of the employer or not? Thank you.

Hi, If the employee is covered under the ESI Act, accidents caused during commuting to work and back are considered work-related, and benefits are paid to the covered IPs. If the employer has provided a Mediclaim insurance facility, the same can also be utilized for hospitalization expenses.

Employee Compensation Acts and Employer Liability

The Employee Compensation (EC) Acts are applicable when an employee sustains any personal injury (whether physical or psychological) due to an accident while functioning within an establishment. In such cases, the employer is liable to compensate the employee.

Any accident occurring to an employee outside the work premises does not fall under the employer's liability. However, the employee may still receive compensation if the employer has taken insurance or has other provisions in place.