Casual employees covered as employee in ESI Act

Supreme Court, in Royal Western India Turf Club Ltd. Vs. E.S.I. Corporation, has held that casual workers are covered under definition of employee as defined in Section 2(9) of the Employees State Insurance Act, 1948.

Apex Court Bench comprising of Justices V. Gopala Gowda and Arun Misra was hearing the appeal preferred by Royal Western India Turf Club Ltd. The main question in this appeal was referred to a three judge Bench which had held that the Turf Club would fall within the meaning of the word ‘shop’ as mentioned in the notification issued under the ESI Act. Thereafter it was placed before Division Bench.

‘Employee’ definition very wide

The Court observed that the definition of “employee” is very wide and a person who is employed for wages in the factory or establishment on any work of, or incidental or preliminary to or connected with the work is covered. The definition brings various types of employees within its ken. The Act is a welfare legislation and is required to be interpreted so as to ensure extension of benefits to the employees and not to deprive them of the same which are available under the Act, the Bench said.

Courtesy to live law.