Page 75 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes 4.1 Definitions

Employee

The term “employee” as defined under Section 2(9) of the Act, refers to any person employed on
wages in, or in connection with, the work of a factory or establishment to which this Act applies.
It has a wide connotation and includes within its scope clerical, manual, technical and supervisory
functions. Persons whose remuneration (excluding the remuneration for over-time work) does
not exceed 6,500 a month are covered under the Act. The Act does not make any distinction
between casual and temporary employees or between technical and non-technical employees.
There is also no distinction between those employed on time-rate and piece-rate basis.

Appropriate Government

“Appropriate Government” means in respect of establishments under the control of the Central
Government or a railway administration or a major port or a mine or oil-field; the Central
Government, and in all other cases, the State Government. [Section 2(1)]

Benefit Period

A benefit period is a length of time during which a benefit is paid. This may be a government

benefit such as the British Housing Benefit, or a healthcare benefit system such as the
American Medicare, or payment from an insurance policy such as a Payment protection insurance
which covers mortgage or other commitments after accident, illness or redundancy. It may also
be known as the Payment period.

Corporation

“Corporation” means the Employees’ State Insurance Corporation set up under this Act;

Contribution

“Contribution” means the sum of money payable to the Corporation by the principal employer
in respect of employees and includes any amount payable by or on behalf of the employee in
accordance with the provisions of this Act. [Section 2(4)]

Insurable Workman

“Insurable workman” means a person who is or was an employee in respect of whom
contributions are or were payable under this Act and who is, by reason thereof, entitled to any
of the benefits provided by this Act.

Notes Employees employed directly by the principal employer and those employed by
or through a contractor on the premises of the factory and those employed outside the
factory premises under the supervision of the principal employer are all included under
the Act. It also covers administrative staff and persons engaged in the purchase of raw
materials or the distribution or sale of products and similar or related functions. However,
the definition of “employee” does not include any member of the Indian naval, military
or air force.

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