Employers liability for compensation

Author – By Ankita Gaba and Ankit Gupta (Intern)

 

INTRODUCTION

Every employee wants to be paid for the costs he has incurred and requires a stable work. Regardless of how big or small the organisation is, this is a need that must be met. After all, employees are what make a firm successful. Therefore, a company’s main goal is to defend its employees’ rights and ensure their safety. This page covers a wide range of topics, including who is eligible to file a claim for compensation, how much compensation is provided, and more. The “Employees Compensation Act, 1923” is a law that allows businesses to compensate employees for whatever injuries they may have sustained in an accident.[1]

The Workmen Compensation Act, 1923, was the previous name for this legislation. Imagine what would happen if an employee who is putting in great effort learned that they would not be receiving any benefits. After all, people frequently take actions in hopes of receiving a reward. When the vicarious liability rule is in effect, the employer is responsible for paying damages regardless of culpability. Although the employer expects it to be compensation for damages, the employees really feel relieved. When an employee is hurt while doing their job duties due to an accident or other unforeseen circumstances, the employer is held accountable. One could wonder if a part-time employee would still be eligible for Act benefits. The answer is -Yes, the Act’s benefits will continue to apply to the employer.

There are various prerequisites that must be met in order to qualify for Employees’ Compensation Act benefits:

  • You must work for the company or organization.
  • You must have been injured at the workplace or the job was as such that you have been injured.[2]

 

Doctrine of added peril

The employer is not responsible for covering the costs of injuries when an employee performs a task that is outside the scope of his or her job and poses additional risks. Devidayal Ralyaram v. Secretary of State is the matter at hand. The notion of additional risk was found to have been employed as a defence, and the employer was not held responsible for the compensation.

The adjudication is done by the commissioner in calculation of the amount of compensation.The quantum of compensation is calculated from the date of the accident.

 

Self-inflicted Injury

A self-inflicted injury is one that a worker inflicts on themselves. Whether the injury was caused on purpose or by accident, the employer is not held responsible. There are certain professions that carry a higher risk of self-inflicted injury, including:

 

  • Law enforcement
  • Medical employees
  • Farmers
  • Teachers
  • Salespeople

 

Contributory negligence

Employees have an obligation to exercise reasonable care while doing their duties in order to prevent mishaps and injuries. Employers are vicariously accountable for the negligence of their workers, but in some situations, they are also entitled to request a payment or compensation from the offending employee. Therefore, if both the employee and the employer were negligent, the employer would be responsible for paying damages to the amount of his own fault rather than that of the employee. As a result, since the employer won’t be held accountable for the employee’s negligence, the amount of compensation may decrease.

 

According to the Act, benefits are only given to employees and their dependents if the accident-related injuries include occupational disorders. The incident must have happened while performing work-related duties. The Employees Compensation Act also applies to those working as railway servants and in other positions as listed in Schedule 2. Schedule 2 covers those who work in industries, mines, plantations, cars, construction, and several other hazardous occupations. An employee’s life is lost or is in grave danger of being lost in a terrible accident. In the event of a deadly accident, the employee may pass away or sustain serious injuries and disabilities. Non-fatal accidents, on the other hand, are ones in which there is a low likelihood of fatality. Non-fatal accidents could result in permanent disability or other types of personal injuries for the worker or employee.

Accidents that result in the aforementioned contingencies in the act are covered by the Employees Compensation Policy, whether they are deadly or not. Accidents that cause death, permanent entire or partial disability, or fatal injuries are considered fatal accidents. If any of these scenarios materialises, the company’s claim would be covered by the employees’ compensation policy. However, the covered eventualities might not materialise in the case of non-fatal incidents.

 

Wilful disobedience of orders or safety devices, etc.

If the employee disobeys the order expressly given or denies to obey any rules. The rules are made for the safety of the workmen but if they disobey the accident might happen. The accident can take place if the employee wilfully disregards the safety guards or any other device. If the employee knew that he has been provided safety for the purpose of securing employees and still disregards it is said to be done wilfully.[3]

 

Notional extension of Employer’s Premises

According to the Employees Compensation Act, benefits are due for a person’s disability or death when there is a causal link between the accident and the workplace where the employee is employed. This is the workplace’s Doctrine of Notional Extension.

Compensation under Agreement

An employee’s payment for services rendered to a corporation as an employee is guaranteed by a compensation agreement. A compensation agreement guarantees that a person will be paid for the services they render to a company while working as an employee.

 

If an employee has filed a lawsuit for damages in a civil court about any injury against any employer, the employee cannot grant any right to compensation in relation to the accident. An employee may not file a lawsuit in a court of law for damages. The Act was primarily created for the benefit of the workers so that they might receive reimbursement from the employers for any costs associated with an accident-related injury. The act is subject to the fundamental principle of vicarious liability. Employees are servants to their employers, who are their master. Only when an injury occurs during the course of employment and at work does the employee receive compensation.

[1] THE WORKMAN COMPENSATION ACT: 1923

[2] THE WORKMAN COMPENSATION ACT: 1923

[3] https://www.coursehero.com/file/p672s37/Wilful-disobedience-of-orders-or-safety-devices-etc-Chaitram-v-Steel-Authority/

Need Legal Guidance?

Schedule a Consultation

UPSCALE LEGALAbout
Upscale Legal is a multi-service law firm catering to the needs and interests of various Corporate houses, Financial institutions, Government agencies & departments, along with assisting in supplementary business & legal issues of our individual clients.
AWARDSOur Presence
https://upscalelegal.com/wp-content/uploads/2022/09/iblj.jpg
The 10 Highly Recommend
Untitled design (1)
Legal era
Insight
image 6
image 5
Untitled design (2)
Legal Era awards
certificate-of-Indian-business-law-journal-new
GET IN TOUCHUpscale Social links
UPSCALE LEGALHeadquarters
Upscale Legal is a multi-service law firm catering to the needs and interests of various Corporate houses, Financial institutions, Government agencies & departments, along with assisting in supplementary business & legal issues of our individual clients.
OUR LOCATIONSWhere to find us
https://upscalelegal.com/wp-content/uploads/2019/04/img-footer-map.png
AWARDSOur Presence
https://upscalelegal.com/wp-content/uploads/2022/08/Awards.png
GET IN TOUCHSocial links

Copyright by Upscale Legal. All rights reserved.

Copyright by Upscale Legal. All rights reserved.

Kshitij Suri

Kshitij Suri is a practicing advocate, having completed his B.A.LLB from the University School of Law and Legal Studies, with focused experience in civil and criminal litigation. He has trained and practiced in a rigorous chamber environment prior to joining the Firm, where his work was primarily rooted in trial-level advocacy across a range of forums.

His practice includes handling civil disputes, consumer litigation, and select criminal matters, with substantial involvement in drafting pleadings, applications, written arguments and legal notices.

He is also adept in conducting in-depth and exhaustive legal research, providing comprehensive legal answers.

Aditya Chopra

Aditya is a professionally qualified Advocate with over 8 years of post-qualification experience, specializing in diverse domains including Commercial Law, Dispute Resolution, Contract Management, Corporate Advisory, Tender Management, Labor & Employment, Intellectual Property Rights, Document Processing, Business Set-up & Management Services, and Start-Up Advisory.

His expertise lies in contract management, due diligence, corporate advisory, and litigation, where he has successfully drafted, negotiated, and reviewed complex agreements, conducted risk assessments, ensured regulatory compliance, and represented clients before various judicial and quasi-judicial forums. Aditya has actively handled high-stakes disputes and achieved tangible results through negotiations, settlements, and arbitration.

With a strong foundation in legal drafting and research, Aditya is adept at providing strategic solutions to clients across industries. I take pride in building and maintaining trusted professional relationships with clients, colleagues, and law enforcement authorities, thereby ensuring effective outcomes and long-term success.

Vagisha Gupta

Vagisha is a highly skilled legal professional with extensive experience as an advocate, legal advisor, and consultant, specializing in litigation, arbitration, and corporate advisory. I have successfully represented clients before labour courts, sessions courts, trial courts, and the High Court of Delhi, handling diverse legal disputes with strategic precision and professionalism. Her expertise spans drafting and reviewing a wide range of legal documents, including commercial suits etc.

In the corporate sphere, Vagisha has conducted comprehensive due diligence in transactions, evaluated risks, and ensured adherence to regulatory frameworks across HR policies and governance structures. Ms. Gupta has advised clients extensively on employment agreements, labour law compliance, and POSH policies, contributing to legally sound and ethically compliant workplaces. Vagisha’s work reflects a blend of technical legal expertise and practical business insight, ensuring effective solutions for complex challenges.

With strong analytical, drafting, and negotiation skills, she remains committed to safeguarding client interests, upholding the highest standards of ethics and confidentiality, and fostering enduring professional relationships.

Shreya Shrivastav

Shreya Shrivastav is a strategic outreach and coordination professional with over three years of cross-functional experience spanning HR operations, stakeholder management, and growth-oriented communication. At Upscale Legal, she operates at the intersection of leadership coordination and external engagement, working closely with founders, HR heads, and institutional partners.

Her expertise lies in people management, structured planning, negotiation, and disciplined execution. She plays a key role in managing professional relationships, coordinating internal teams, and ensuring seamless communication across operational and growth initiatives. Her ability to balance strategy with execution allows her to contribute meaningfully to both organizational development and market positioning.

Shreya brings a strong foundation in digital marketing and operational structuring, enabling her to align outreach efforts with long-term business objectives. She is known for her clarity in communication, composure in professional interactions, and ability to build trust-driven relationships.

Her approach is deliberate and growth-focused — combining strategic thinking with reliable execution.

Saurabh Dikshit

Saurabh is a corporate law professional holding a B.A., LL.B. (H) (Batch 2016–2021) and a Master’s degree in Corporate Law from Amity University (Batch 2023–24), with over two years of focused experience in corporate advisory and real estate transactions. He currently serves as a Legal Associate at Upscale Legal, advising clients on a wide spectrum of commercial, transactional, and regulatory matters.

His core expertise lies in transaction structuring, drafting, and documentation, including Lease Deeds, Sale Deeds, MOUs, MSAs, Trust Deeds, Undertakings, NDAs, Settlement Deeds, and Statutory Legal Notices, including Notices under Section 138 of the Negotiable Instruments Act, 1881. He has substantial experience in conducting legal Due Diligence, Share Transfer Transactions, Labour Law Advisory, Licensing and Regulatory Registrations, and Comprehensive Document Vetting across complex commercial arrangements.

He has actively handled corporate leasing transactions and conducted extensive real estate and corporate due diligence for a leading edutech enterprise undertaking pan-India expansion, supporting multi-city commercial leasing, title verification, regulatory compliance, and transaction risk assessment across jurisdictions.

His practice reflects strong proficiency in contract management, risk assessment, corporate governance advisory, and dispute pre-litigation strategy. He brings a commercially driven approach to legal structuring, ensuring enforceability, compliance, and long-term risk mitigation for his clients.

Samriddhi Goswami

Samriddhi Goswami is a law graduate from the Faculty of Law, University of Delhi (Batch 2021–2024). Her professional journey has provided her with substantial exposure to both Corporate Advisory and Litigation, enabling her to address legal issues from preventive as well as remedial perspectives.

With approximately one year of post-qualification experience in Corporate Advisory, she has developed proficiency in drafting and reviewing a wide range of complex agreements, including Service Agreements, Memorandum of Understanding (MoUs), Lease Deeds, and Non-Disclosure Agreements (NDAs). Her practice further extends to Intellectual Property advisory, Labour and Employment law matters, Real Estate transactions, Tender management, Due Diligence, Mergers and Acquisitions (M&A) support, RERA compliance, and regulatory registrations, including TRAI compliance and Start-up advisory.

On the litigation front, she has represented clients before various judicial forums, including District Courts, the High Court of Delhi, and several Tribunals. Her litigation experience encompasses civil disputes, criminal matters, labour and employment disputes, and proceedings under Section 138 of the Negotiable Instruments Act.

Anushrut Rajawat

A versatile legal professional with a strong foundation in both corporate law and litigation. Anushrut holds a B.A.LL. B from the School of Law, University of Petroleum and Energy Studies, Dehradun. His journey in the legal field began early, as he gained invaluable experience as a legal advisor during my 5th year of law school.

With over one year of post-qualification experience at Upscale Legal, He has developed a robust skill set. Anushrut’s corporate experience includes drafting and reviewing a wide range of agreements (including SHA’s, NDAs, and Service Agreements), conducting due diligence for real estate and company acquisitions, and managing regulatory tasks such as GST registrations. He has also gained unique insight into corporate legal departments through a client secondment.

On the litigation front also, he has a proven track record of representing clients in civil and criminal matters before the District Courts and High Court of Delhi. Anushrut has specific expertise in recovery and labour matters, providing effective legal counsel and representation in court. This dual expertise allows him to offer comprehensive legal solutions, blending proactive corporate advice with assertive dispute resolution.

Jasleen Kaur

Jasleen Kaur is an Advocate providing comprehensive legal solutions across a broad spectrum of practice areas. She has developed a dynamic and well-rounded practice that seamlessly combines effective courtroom advocacy with strategic legal advisory services for individuals, corporates, and institutions. She holds a Bachelor of Laws (LL.B.) degree and commenced her professional journey in 2017 through extensive internships and rigorous practical training. This early exposure afforded her substantial hands-on experience in both litigation and corporate law even prior to her formal enrolment as an Advocate, enabling her to cultivate a mature, practical, and in-depth understanding of the legal profession from an early stage.

Jasleen is recognised for her strong command over litigation and dispute resolution, having successfully represented clients before District Courts, High Courts, arbitral tribunals, and statutory forums. Her practice spans civil litigation, criminal defence, arbitration proceedings, labour and employment disputes, matrimonial and family law matters, consumer complaints, corporate and commercial disputes, and cases under Section 138 of the Negotiable Instruments Act (cheque dishonour matters). She has developed a particularly robust practice in criminal law, handling complex trials, sensitive matters, and bail applications with precision and diligence. She is also actively involved in critical stages of criminal proceedings, including police station proceedings, interactions with investigating officers, and safeguarding clients’ procedural and constitutional rights at every stage.

In the field of arbitration, Jasleen possesses a strong working knowledge of the Arbitration and Conciliation Act, 1996, and regularly appears in arbitral proceedings, including matters before institutional arbitration forums. She is experienced in drafting pleadings, applications, and written submissions, managing procedural aspects of arbitration, and advising clients on strategy and enforcement.

She also commands significant expertise in labour and employment laws, representing clients in disputes relating to illegal termination, non-payment of dues, disciplinary proceedings, industrial disputes, and service-related matters before Labour Courts, Industrial Tribunals, and other appropriate forums. Her approach in labour matters is both legally sound and commercially pragmatic, balancing employer compliance with employee rights.

In addition to domestic corporate advisory, Jasleen advises clients on international incorporation and cross-border business structuring, assisting startups and businesses with company incorporation in foreign jurisdictions, regulatory compliance, shareholder structuring, and coordination with overseas professionals, ensuring legally sound and commercially viable expansion beyond India.

Jasleen has actively participated in court-referred mediations, facilitating amicable and commercially viable settlements in civil and matrimonial disputes. She has further handled accident claims, sensitive criminal cases, and disputes arising out of altercations, equipping her with a comprehensive and practical understanding of civil, criminal, and quasi-criminal proceedings.

While litigation remains her core strength, she also efficiently manages complex corporate and commercial assignments, including drafting, vetting, and negotiating high-value contracts, agreements, and legal documentation. Her drafting and advocacy are marked by clarity, precision, and persuasive articulation, and she is particularly known for identifying weaknesses in the opposing party’s case and presenting focused, effective submissions before judicial and arbitral forums.

Disclaimer

Welcome to the website of Upscale Legal. As per the rules of the Bar Council of India, lawyers and law firms are not permitted to solicit work or advertise. By clicking on the “AGREE” button below, the website visitor agrees and acknowledges that:-

* There has been no advertisement, personal communication, solicitation, invitation or any other inducement of any sort whatsoever by or on behalf of Upscale Legal or any of its members to solicit any work through this website.
* The user wishes to gain more information about Upscale Legal for his/her/their own information and use.
* All information about Upscale Legal on this website is being provided to the user only on his/her/their specific request and any information obtained or materials downloaded from this website is completely at the user’s volition and any transmission, receipt or use of this site would not create any lawyer-client relationship.
* All material and information (except any statutory instruments or judicial precedents) on this website is the property of Upscale Legal, and no part thereof shall be used, with or without adaptation, without the express prior written consent of Upscale Legal