Part time employees to be covered under the ESI Act

The Employees’ State Insurance Act (ESI), 1948, provides not only accident benefit but also other benefits such as sickness benefit, maternity benefit and medical benefit to employees of factories and establishments. It also provides for dependents’ benefits to the dependents of such employees.

As per the ESI Act, any premises whereon 20 or more persons are employed or were employed for wages is covered under this Act. An 'employee' under Section 2(9) of ESI Act, means “any person who is engaged/employed for wages/salary in connection with the work of the establishment”. However, employees whose wage limit exceeds Rs. 15000 pm with effect from May 1, 2010 are excluded under this Act.

The question frequently raised is “whether the part-time employees are to be covered under this Act”. To this, the provisions of the Act refers broadly that all categories of employees are covered under this Act. Whether they are Regular, Casual, Badli, Temporary Contract, Part-time, etc. The part-time employees employed on contract basis are also eligible for coverage under this Act.



1. Labour Law Reporter, Pg. No. 33, September 2010



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