The Supreme Court has delivered a game-changing judgment affirming that employees injured or killed while commuting to or from work may be entitled to compensation under the Employees’ Compensation Act, 1923 (EC Act), if there is a clear connection between the accident and their employment.
The ruling, passed on July 29, 2025, by Justices Manoj Misra and K V Viswanathan in Davishala & Ors vs Oriental Insurance Company Ltd & Anr, interprets the phrase “accident arising out of and in the course of employment” to include reasonable commutes linked to work.
Notional Extension of the Workplace
Historically, Indian courts have been divided on whether commuting accidents qualify for compensation. The Supreme Court applied the “notional extension” principle, which extends the workplace to certain times and locations beyond the actual premises, provided there is a strong nexus with the job.
Referring to Section 51E of the Employees’ State Insurance Act, 1948 (ESI Act), the court noted that this provision clearly recognises commuting accidents as work-related if time, place, and circumstances connect them to employment. Importantly, the bench deemed Section 51E as clarificatory and applicable retrospectively, harmonising its interpretation with the EC Act.
Case Background
The case concerned Shahu Sampatrao Jadhavar, a watchman at a sugar factory, whose duty hours were 3 am to 11 am. On April 22, 2003, he met with a fatal motorcycle accident around five kilometres from his workplace while on his way to duty.
The Workmen’s Compensation Commissioner had awarded his family ₹3.26 lakh plus 12% interest, but the Bombay High Court overturned the decision. The Supreme Court reinstated the award, holding that the early-morning commute directly linked the accident to his employment.
Implications for Workers
This judgment is expected to benefit employees across sectors—especially shift workers, factory staff, and those required to travel at odd hours. It reinforces the EC Act as a beneficial legislation and aligns compensation laws to ensure that workers and their families are safeguarded from the economic consequences of work-related injuries and deaths.
