In a significant judgment, the Himachal Pradesh High Court has ruled that workers engaged under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), 2005, are not covered under the Employees’ Compensation Act, 1923. This decision affirms that such workers do not qualify as “employees” as defined under Section 2(dd) of the Act, thereby disqualifying them from compensation claims arising from workplace deaths or injuries.
MNREGA Workers Not Recognized as Employees Under the Law
Justice Vivek Singh Thakur, presiding over the case, stated that since MNREGA workers are not recognized as employees under the Employees’ Compensation Act, any claim for compensation under this law in case of death—even during the course of work—is not legally maintainable.
Case Background: Fatal Incident During MNREGA Work
The case involved Ramesh Chand, who had been working under the MNREGA scheme in Shimla. Tragically, on February 7, 2009, a large rock fell on his chest while he was at work, leading to his immediate death. Following the incident, his family approached the Deputy Commissioner seeking compensation under the Employees’ Compensation Act.
However, the authorities argued that Ramesh Chand was not directly employed under a contract of service, nor was there any employer-employee control as defined by the Act. They emphasized that MNREGA is a rural welfare initiative aimed at providing temporary, voluntary employment to needy households, not permanent job opportunities.
The Deputy Commissioner accepted this argument and held that the deceased did not fall under the definition of an “employee” as per the law. The family was, however, given a one-time ex-gratia amount of Rs. 25,000 by the Government of India.
High Court Dismisses Appeal Seeking Additional Compensation
Unhappy with the Deputy Commissioner’s ruling, the deceased’s family escalated the matter to the Himachal Pradesh High Court. They argued that Ramesh Chand qualified as an unorganized worker and should be entitled to compensation under the e-Shram Scheme, which offers financial aid for accidental deaths among unorganized workers.
However, the respondents clarified that the e-Shram benefits are available only to those workers who were registered on the portal before March 31, 2022. Since Ramesh Chand was not registered, he was ineligible for any benefits under that scheme.
Court’s Final Observations
The High Court highlighted that MNREGA is designed to provide 100 days of wage-based employment per household annually, and the work is voluntary in nature. Employment is not provided to individuals in the traditional employer-employee format, but to the household as a whole.
Given the absence of a formal employment relationship or contractual obligations, and based on Section 2(dd) of the Employees’ Compensation Act, the court ruled that MNREGA workers are not entitled to compensation under the Act.
Furthermore, since the deceased was not registered under the e-Shram portal, retrospective benefits could not be granted.
Final Verdict
The court upheld the Deputy Commissioner’s decision and dismissed the appeal filed by the deceased’s family. It held that the Rs. 25,000 ex-gratia payment already made by the government was the only compensation applicable in this case.
Case Title: Geeta Devi and Others vs. State of Himachal Pradesh
Case Number: FAO No. 07 of 201