ESI Act: Company Directors, Who Receive Remuneration, Are Also 'Employees': SC [Read Judgment]

Ashok Kini

5 Feb 2019 7:12 PM IST

"We have no hesitation in concluding that the High Court in the present case has been in error in assuming that the Director of a Company, who had been receiving remuneration for discharge of duties assigned to him, may not fall within the definition of an employee for the purpose of the ESI Act.”

The Supreme Court has held that Directors of Company, who are receiving remuneration, comes within the purview of "employee" under sub-section (9) of Section 2 of the Employees' State Insurance Act, 1948. In this case (Employees' State Insurance Corporation vs. Venus Alloy Pvt. Ltd.), the company had challenged the order of Employees' State Insurance Corporation directing them to...

ESI Act: Company Directors, Who Receive Remuneration, Are Also 'Employees': SC [Read Judgment]

Ashok Kini

Tags