Bombay High Court: Short-Term Driver Engagement Still Entitles Family to Compensation
Court Says Duration of Employment Not Relevant
Labour Commissioner Directed to Pay Compensation in Eight Weeks
By Our Legal Correspondent
New Delhi: February 24, 2026:
In a landmark judgment, the Bombay High Court has ruled that even short-term hiring of a driver establishes an employer-employee relationship under the Employees’ Compensation Act, 1923. The decision ensures that families of workers engaged for brief periods are not denied compensation in case of accidents.
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Justice Jitendra Jain delivered the ruling on February 18, 2026, in the case of Shakuntala Tilakdhari Gupta vs. Jawaharlal R. Gupta, overturning the Labour Commissioner’s earlier order that had denied compensation to the deceased driver’s family.
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Case Background
- Incident: On March 29, 2009, Tilakdhari Gupta was driving a Toyota Qualis from Thane to Rajasthan for his employer, Jawaharlal Gupta, who had hired him for two months to attend his brother’s funeral.
- Accident: The vehicle met with an accident en route, resulting in Tilakdhari’s death. Other passengers, including Jawaharlal, sustained injuries.
- Dispute: While Jawaharlal initially admitted in the FIR that Tilakdhari was his “driver,” he later denied an employer-employee relationship before the Labour Commissioner to avoid liability.
Court’s Observations
Justice Jain emphasized that:
- The definition of “employee” under Section 2(dd) of the Employees’ Compensation Act includes drivers, helpers, mechanics, and cleaners, regardless of the duration of employment.
- The act of recruitment itself establishes the relationship, not the length of service.
- Even casual or temporary hiring creates a contract of service, where the worker renders service and the employer agree to pay.
- The absence of a long-term contract does not negate employee status during the period of work.
The court noted: “Hiring a person even for a short period would bring in an employee-employer relationship under the Act.”
Judgment
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- The Labour Commissioner’s order denying compensation was quashed.
- Compensation was ordered to be paid to Tilakdhari’s family within eight weeks.
- The ruling sets a precedent that temporary or casual workers are entitled to protection under the Employees’ Compensation Act.
Broader Implications
This judgment has significant implications for India’s workforce:
- Casual Workers: Millions of workers engaged on short-term contracts, especially in transport and logistics, gain stronger legal protection.
- Employers: Cannot escape liability by claiming short-term or informal arrangements.
- Legal Clarity: Reinforces that the law prioritizes the act of employment over contractual duration.
Expert Reactions
Legal experts hailed the ruling as a progressive step. They noted that India’s informal sector often relies on short-term or casual hiring, and this judgment ensures justice for families of workers who lose their lives while on duty.
Conclusion
The Bombay High Court’s ruling underscores a vital principle: employment is defined by engagement, not duration. By recognizing short-term drivers as employees, the court has extended the protective umbrella of the Employees’ Compensation Act to thousands of casual workers across India.
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