Are Contract Labour Included in the Definition of Employee Under the Shops and Establishment Act?
As per my interpretation, it should be included. What is your opinion?
“Employee” means a person wholly or principally employed in, or in connection with, an establishment, whether working on permanent, periodical, contract, or piece-rate wages or on a commission basis, even though they receive no reward for their labor, but does not include a member of the employer’s family.
From India, Delhi
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As per my interpretation, it should be included. What is your opinion?
“Employee” means a person wholly or principally employed in, or in connection with, an establishment, whether working on permanent, periodical, contract, or piece-rate wages or on a commission basis, even though they receive no reward for their labor, but does not include a member of the employer’s family.
From India, Delhi
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Dear Colleague,
Let's take a look at Section 7 of the Act:
The Delhi Shops and Establishments Act, 1954
[(7) "employee" means a person wholly or principally employed, whether directly or otherwise, and whether for wages (payable on a permanent, periodical, contract, piece-rate, or commission basis) or other consideration, about the business of an establishment and includes an apprentice and any person employed in a factory but not governed by the Factories Act, 1948 (43 of 1948), and for the purpose of any matter regulated by this Act, also includes a person discharged or dismissed whose claims have not been settled in accordance with this Act.]
Hence:
Understanding the Definition of "Employee"
The first part of the definition: "employee" means a person wholly or principally employed, whether directly or otherwise - both directly as well as engaged otherwise.
The second part of the definition talks about the payment of wages "whether for wages (payable on a permanent, periodical, contract, piece-rate, or commission basis) or other consideration." Hence, the payment of wages may be on a permanent basis, periodical basis, contract basis, piece-rated basis, or for any other consideration, etc. This part specifically addresses the payment aspect.
To understand the query, we need to depend on..."employee" means a person wholly or principally employed, whether directly or otherwise. Here it is clear that:
- Those persons wholly or principally employed
- Whether directly or otherwise
"Whether directly or otherwise" - Hence, direct or otherwise is the clue that it includes any other pattern of engagement as well. From this, we may understand that for compliance counting, we need to include both direct as well as "otherwise" pattern employees for coverage of the establishment under the Shops and Establishment Act. (We need to ensure that the contractor ensures compliance for all types of employees under various statutory aspects like PF, ESI, and so on for their employees)
Thank you.
From India, Chennai
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321Let's take a look at Section 7 of the Act:
The Delhi Shops and Establishments Act, 1954
[(7) "employee" means a person wholly or principally employed, whether directly or otherwise, and whether for wages (payable on a permanent, periodical, contract, piece-rate, or commission basis) or other consideration, about the business of an establishment and includes an apprentice and any person employed in a factory but not governed by the Factories Act, 1948 (43 of 1948), and for the purpose of any matter regulated by this Act, also includes a person discharged or dismissed whose claims have not been settled in accordance with this Act.]
Hence:
Understanding the Definition of "Employee"
The first part of the definition: "employee" means a person wholly or principally employed, whether directly or otherwise - both directly as well as engaged otherwise.
The second part of the definition talks about the payment of wages "whether for wages (payable on a permanent, periodical, contract, piece-rate, or commission basis) or other consideration." Hence, the payment of wages may be on a permanent basis, periodical basis, contract basis, piece-rated basis, or for any other consideration, etc. This part specifically addresses the payment aspect.
To understand the query, we need to depend on..."employee" means a person wholly or principally employed, whether directly or otherwise. Here it is clear that:
- Those persons wholly or principally employed
- Whether directly or otherwise
"Whether directly or otherwise" - Hence, direct or otherwise is the clue that it includes any other pattern of engagement as well. From this, we may understand that for compliance counting, we need to include both direct as well as "otherwise" pattern employees for coverage of the establishment under the Shops and Establishment Act. (We need to ensure that the contractor ensures compliance for all types of employees under various statutory aspects like PF, ESI, and so on for their employees)
Thank you.
From India, Chennai
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SELF-CERTIFICAT E PROFORMA UNDER THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958.doc
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