Dear Bala Panmand,
An employee, including paid directors, is employed by the company. Therefore, I believe you can proceed with your grievances.
Section 2(9) of the ESI Act defines the term 'Employee' as follows:
Any person employed for wages in or in connection with the work of a factory or establishment to which the Act applies.
To qualify as an employee under the ESI Act, a person should belong to any of the following categories:
1. Those directly employed for wages by the Principal Employer within or outside the premises in connection with the work of the factory or establishment.
2. Those employed for wages by or through an immediate employer in the premises of the factory or establishment in connection with its work.
3. Those employed for wages by or through an immediate employer outside the premises of the factory or establishment under the supervision and control of the Principal Employer or his agent.
4. Employees whose services are temporarily lent or hired out to the Principal Employer by an immediate employer under a contract of service.
5. Employees directly employed by the Principal Employer in any part, department, branch situated in the same station or elsewhere, in connection with the administration of the factory or establishment for the purchase of raw materials, sale, or distribution of the products of the factory, etc.
Exclusions apply to:
- An apprentice engaged under the Apprentice Act, 1961, or under the Standing Orders of the Establishment.
- Members of the Navy, Army, or Air Force.
- Any person whose wages (excluding overtime wages) exceed Rs. 7,500/- a month.
All categories of employees, whether regular, casual, badli, temporary contract, etc., fall under the covered category. Employees engaged in various activities like loading, unloading, movement of raw materials, gardening, guest house maintenance, watch and ward, housekeeping, cleaning, civil construction, repairs of buildings, erection, repairs, and maintenance of machinery, plant, equipment, furniture, fixtures, either directly employed by the principal employer or through a contractor are covered.
If contractors' employees are engaged in any work outside the factory or establishment premises, supervision by the Principal Employer or his agent is necessary for their coverage.
Even paid Directors of a company are considered "employees" if they receive a salary not exceeding Rs. 10,000/- per month. However, proprietors and working partners receiving a salary are excluded from coverage.
Part-time employees employed on a contract of service are also considered employees.
Regards,
Jaleel