India’s labour laws offer protection not only to permanent employees but also to casual workers. But when a casual worker dies during the course of employment, can the employer escape responsibility simply by stating the worker wasn’t permanent?
This article examines a real-life situation where a casual worker died while on duty, and his widow sought compensation from the employer, who refused the request. Here’s a detailed analysis through facts, issues, legal principles, and judgment.
Facts of the Case
A small private construction firm hired a casual labourer on a daily wage basis. He was assigned the task of loading cement bags at a site. During the job, a stack of cement collapsed, causing a severe head injury. Despite being taken to a nearby clinic, the worker succumbed to his injuries.
His widow filed a claim seeking compensation for the accidental death. The employer denied the claim, arguing that the deceased was only a casual worker with no formal contract and therefore not entitled to benefits.
The widow then approached the Commissioner under the Employees’ Compensation Act, 1923 (formerly Workmen’s Compensation Act) to seek justice.
Issues of the Case
Several critical legal issues arose from this incident:
- Is a casual worker considered an employee under labour law?
- Does the employer bear liability if the worker dies while performing duties?
- Is the existence of a formal contract necessary for a compensation claim?
- Can the employer escape liability by denying the worker’s status as an official employee?
These issues bring the employer’s responsibilities and the worker’s rights under direct legal scrutiny.
Principles and Legal Framework
The Employees’ Compensation Act, 1923 governs compensation for work-related injuries and deaths. The Act applies to both permanent and temporary workers, including casual labourers, if the accident occurs “in the course of and arising out of employment.”
Key Legal Provisions:
- Section 2(1)(n): Defines “employee” to include anyone engaged in specified types of work, regardless of the job being regular or casual.
- Section 3(1): Clearly states that if an employee suffers injury or dies in the course of employment, the employer is liable to pay compensation.
- The Supreme Court of India, in the case of Bharat Heavy Electricals Ltd. v. Mahendra Prasad, upheld that the status of employment (permanent or casual) does not affect the right to compensation if the injury or death happens during official duty.
In the middle of the hearing, the court observed that the nature of employment does not dilute the responsibility of the employer. A valid compensation claim depends on whether the accident arose out of and in the course of employment—not on the worker’s job title or contract type.
Judgment and Conclusion
The labour court held that the employer was indeed liable to pay compensation. It found that:
- The worker was performing an assigned task at the time of death.
- His employment may have been casual, but the accident clearly arose out of and during the course of work.
- The lack of a formal contract does not exempt the employer from liability.
The court ordered the employer to pay compensation to the widow as per the formula under the Employees’ Compensation Act, including funeral expenses and interest for delayed payment.
The judgment stressed that employers must treat all workers with equal responsibility, regardless of their classification. Denying compensation based on informal employment status violates the spirit of India’s protective labour laws.
