Labour Law Case Analysis
Labour Law Case Analysis
Labour Law Case Analysis
by tushar Kaushal
______________________________________________________________
Submitted by:
TUSHAR KAUSHAL
Batch: 2017-2022
In
August, 2021
(Course In-Charge)
DATE: 30.09.2021
NAGPUR ELECTRIC LIGHT AND POWER VS ESIC
Respondent: ESIC
FACTS
The question in issue in these appeals is whether certain employees of the Nagpur Electric
Light & Power Co. Ltd., are employees within the meaning of Section 2(9) of the Employees
State Insurance Act, 1948 (34 of 1948). The company and the employees filed two separate
applications before the Employees' Insurance Court under Section 75 of the Act for the
determination of the question. Their case is that out of the five categories of staff mentioned
in Appendices I to V to the Company's petition, those connected with the receiving station
and workshop (Appendices I and II) were employees within the meaning of Section 2(9), but
those connected with the engineering, stores and outdoor work, meter consumers and
allocation departments and administration (Appendices II, IV and V) were not such
employees. The Regional Director, Employees State Insurance Corporation contested the
applications, but he admitted that the workers of the categories mentioned in Items 5 to 14 of
Appendix IV and Items 1, 7 and 8 of Appendix V were not employees within the meaning of
Section 2(9).
ISSUE
Whether certain employees of the company like engineers, draughtsmen, clerks, accountants
etc. mentioned in the company's petition before the Employees' Insurance Court, were
'Employees' or not within the meaning of s.2(9) of the Employees Insurance Act, 1948.
RULE
Section 2(9) in The Employees' State Insurance Act, 1948
Section 2(12) in The Employees' State Insurance Act, 1948
Section 75 in The Employees' State Insurance Act, 1948
The Factories Act, 1948
ANALYSIS
The definition of employee in s.2(9) may be contrasted with that of a worker in s.2 (1) of the
Factories Act 1948, which is in these terms worker' means a person employed, directly or
through any agency, whether for wages or not, in any manufacturing process, or in cleaning
any part of the machinery or premises used for a manufacturing process, or in any other kind
of work incidental to, or connected with, the manufacturing process, or the subject of the
manufacturing process;"
The definition of an employee in the Employees State Insurance Act is wider than that of a
worker in the Factories Act. The object of the Factories Act is to secure the health, safety,
welfare, proper working hours, leave and other benefits for workers employed in factories.
The benefit of this Act does not extend to field workers working outside the factory, see the
State, of Uttar Pradesh v. M. P. Singh. The object of the Employees' State Insurance Act is to
secure sickness, maternity, disablement and medical benefits to employees of factories and
establishments and dependents' benefits to their dependants. The benefit of this Act extends
inter alia to the employees mentioned in s.2 (9) (i) whether working inside the factory or
establishment or elsewhere.
Section 2(9) deals with three classes of employees. We are concerned with the class of
employees mentioned in section 2(9)(i). The courts below concurrently found that all the
workers of the disputed categories are persons employed for wages in or in connection with
work of the company's factory and are directly employed by the company on work of or
incidental to or connected with the work of the factory. Some of them do the work in the
factory and some work elsewhere, but they are all employees within the meaning of section
2(9)(i).
CONCLUSION
The company maintains one establishment for its factory. The factory does the work of
transforming and transmitting electrical energy. All the workers in question including the
clerks and the administrative staff are engaged in connection with this work. None of them is
employed in any separate establishment unconnected with the work of the factory. Some of
the employees work outside the factory, but their duties are connected with the work of the
factory. They are therefore employees within the meaning of s.2 (9) (i).