Labour Laws Q/A

Professional Consultants – Coverage under the employees’ state insurance act

Who are those professional consultants who are covered under the ESI Act?

The professionals who are engaged on a regular basis and who are paid monthly will be covered under the Scheme. However, the payment made to Labour Consultants, Lawyers, Engineers, Counsels, Chartered Accountants does not constitute wages and no contribution is payable on such amount. However, the term “employee” in section 2(9) of the Employees’ State Insurance Act, 1948 cannot be equated with the definition of the term “workman’ or ‘employee’ as given in other Acts, as settled by Courts. Hence, a teacher, drawing wages below the statutory minimum specified for coverage, is an employee within section 2(9) read with section 1(5) of the Employees’ State Insurance Act, 1948.

Nirmala College v. Employees’ State Insurance Corporation, 2014 LLR 1048 (Ker HC).
Source: H L Kumar, Advocate, Chief Editor: Labour Law Reporter

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