Coverage Under Employees State Insurance (ESI) Act: Who Can Avail ESI Benefits

Employee's Covered under ESI Act, 1948

WHO IS AN EMPLOYEE UNDER THE ACT:

1.  Any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and

2. Who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the factory or establishment whether such work is done by the employee in the factory or establishment or elsewhere; or

3. Who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment; or

4. Whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service; 

5. Includes any person employed for wages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or with the purchase of raw materials for, or the distribution or sale of the products of, the factory or establishment or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961, or under the standing orders of the establishment;

6.  But “Employee” will not include:-

a. Any member of the Indian naval, military or air forces; or A

b. Any person so employed whose wages excluding remuneration for overtime work exceed such wages as may be prescribed by the Central Government:

c. PROVIDED that an employee whose wages excluding remuneration for overtime work exceed such wages as may be prescribed by the Central Government at any time after and not before the beginning of the contribution period, shall continue to be an employee until the end of that period;

WHAT IS WAGES:-  

All remuneration paid or payable,

a. In cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and

b.  Includes any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or lay -off and

c.  Other additional remuneration, if any, paid at intervals not exceeding two months,

d. But does not include-

                                                                     i. Any contribution paid by the employer to any pension fund or provident fund, or under this Act;

                                                                   

                                       ii.Any travelling allowance or the value of any travelling concession;

                                                                  

                                      iii.Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or

                                                                 

                                      iv.Any gratuity payable on discharge