Page 129 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes punishment or penalty or treating the absence as break in service has been passed in accordance
with the standing orders, rules or regulation governing the employees of the establishment),
lay-off, strike or a lockout or cessation of work not due to any fault of the employees, whether
such uninterrupted or interrupted service was rendered before or after the commencement of
this Act.
(i) Where an employee (not being an employee employed in a seasonal establishment) is not in
continuous service within the meaning of the above clause for any period of one year or six
months, he shall be deemed to be in continuous service under the employer if he has actually
worked for 190 days during the preceding 12 months in an establishment which works less than
6 days a week and 240 days in any other case.
(ii) Further, for determining the continuous period of six months, an employee should have
completed 95 days in an establishment which works for not less than 6 days in a week and 120
days in any other case.

2. Employee

An employee is a person (other than apprentice) employed on wages (no wage ceiling) in any
establishment, factory, mine, oilfield, plantation, railway company or shop, to do any: skilled,
semi-skilled or unskilled, manual, supervisory, technical or clerical work, where the terms of
such employment are express or implied, and includes any such person, who is employed in a
managerial or administrative capacity, but does not include any person who holds a civil post
under the Central Government or a State Government, or who is subject to the Air Force Act,
1950, the Army Act, 1950, or the Navy Act, 1956.
A female employee can exclude her husband from her family by a notice in writing to the
controlling authority. In such event, her husband and his dependent parents will not be deemed
to be included in her family unless the said notice is subsequently withdrawn.

Notes The fancily consists of:
(i) In the case of a male employee, himself, his wife, his children, whether married or
unmarried, his dependant-parents and the widow and children of his predeceased
son, if any;
(ii) In the case of female employee, herself, her husband, her children, whether married
or unmarried, her dependant parents, and the dependant parents of her husband,
and the widow and children of her predeceased son, if any.

3. Wages

The term ‘wages’ under the Act means all emoluments, which are earned by an employee while
on duty or on leave in accordance with the terms and conditions of his employment and which
are paid or are payable to him in cash and includes dearness allowance, overtime wages and any
other allowance.

4. Retirement

The term “retirement” has been defined under the Act as the termination of the service of an
employee otherwise than on superannuation. Superannuation means the attainment of such age

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