COVERAGE OF 'EMPLOYEE'

>> Who are the persons to be covered as "Employees" ?

My person employed for wages in or in connection with the work of a covered factory or establishment, and: 

1) Directly employed by the Principal employer on any work of the Factory or establishment within the premises or elsewhere, or in any part, department or branch dealing with administration, purchase of raw materials, sale, or distribution of the products of the factory or establishment. 

2) Employees of the Immediate employer: 

a) Employed in the premises on any work of the factory or establishment; 

b) Employed outside the premises on any work of the factory or establishment under the supervision of the Principal employer or his agent; 

c) Employees lent or let on hire to the principal employer on any work of the factory, or 

d) Paid Directors of a company. 

Exclusions: 1. An Apprentice engaged for the first time under the Apprentice Act 1961 and 2. An employee drawing wages above the wage ceiling prescribed by the Central Government 

>> What is the wage ceiling limit prescribed for coverage of an employee? 

It is Rs. 15,000 per month from 1-May, 2010. 

The wage ceiling for cover age of an employee with 'disability' is Rs. 25,000/- per month from 1-4-2010. 

>> What is 'Average Daily Wages'? 

Average daily wages: 

a) ln respect of an employee who is employed on time rate basis, the amount of wages which would have been payable to him for the complete wage period had he worked on all the working days in that wage period divided by 26, if he is monthly rated, 13 if he is fortnightly rated,6 if he is weekly rated and 1 if he is daily rated. 

(b) In respect of piece rated employee, the amount of wages earned during the complete wage period divided by the number of days in full or part for which he worked for wages in that wage period (Rule 1-B). 

>> Who is an 'Exempted Employee'? 

An employee who is exempted from payment of employees' contribution is called an exempted employee. The present exemption limit is average daily wages of Rs.70 (seventy rupees). However, employers contribution is payable on these wages.