Supreme Court Clarifies Employee Commute Accidents Under Compensation Act

The Supreme Court ruled that under the Employees' Compensation Act, accidents occurring while commuting to or from work are included in 'accident arising out of and in the course of employment.' This clarification came after overturning a Bombay High Court decision, restoring compensation to a deceased watchman's family.

The Supreme Court has issued a landmark interpretation regarding employee compensation, stating commutes to and from work are covered under the Employees' Compensation Act. This ruling potentially expands the scope of what is considered 'in the course of employment,' providing further support for injured parties or their families.

The case in question involved a watchman employed at a sugar factory, who suffered a fatal accident while traveling to his duty. The court emphasized the need for a clear nexus between the circumstances, time, and location of the accident with the employment to qualify for compensation.

In this particular case, a December 2011 Bombay High Court decision was overturned, restoring the original ruling by the Commissioner for Workmen's Compensation that awarded over Rs 3 lakh to the family of the deceased. This ruling underscores the court's commitment to ensuring fair interpretation and application of employee benefits.

(With inputs from agencies.)