Difference between Employee and Worker

Forums Miscellaneous Provisions Difference between Employee and Worker

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  • #3055
    leaglesamiksha
    Keymaster

    The Code On Wages 2019 defines employee and worker, while the two terms are used interchangeably in day-to-day parlance. Ques: What is the difference between Employee and Worker?

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    • #3056
      Intern
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      Section 2(k) and Section 2(z) of The Code On Wages 2019 defines employee and worker respectively.
      Section 2(k): The employee definition includes all employees engaged on wages to do skilled, semi-skilled, unskilled operational or manual work including managers, supervisors and administrative staff except an apprentice engaged under the Apprentices Act 1961 and members of the Armed forces of the Union.

      Section 2 (z): The definition of worker includes any person employed in any industry to do any manual, unskilled, skilled, technical, operational,clerical or supervisory work for hire or reward.
      It includes working journalist and sales promotion employees but does not include a person:
      a) who is subject to Air Force Act or the Army Act or the Navy Act
      b) Employed in the police force or as an officer or other employee of a prison
      c) employed mainly in a managerial or administrative capacity
      d) employed in a supervisory capacity drawing wage of exceeding rupees 15000 per month or a sum notified by the Central Government
      e) who is apprentice engaged under the apprentices act 1961

      The difference between an employee and worker is that the term ’employee’ is inclusive of all employees including managers, supervisors and administrative staff whereas the definition of ‘worker’ does not include administrative and managerial staff.

    • #3610
      leaglesamiksha
      Keymaster

      “employee” means, – (i) in respect of an establishment, a person, excluding an apprentice engaged under the Apprentices Act, 1961, employed on wages by such establishment to do any skilled, semi-skilled, unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied; and (ii) a person declared to be an employee by the appropriate Government; but does not include any member of the Armed Forces of the Union: The proviso in the definition of employee is in the form of a non-obstante clause and it explains who may be considered persons ‘employed’ in a mine.

      “worker” means any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and includes working journalists and sales promotion employees for the purposes of any proceeding under this Code in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person–– (i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or (ii) who is employed in the police service or as an officer or other employee of a prison; or (iii) who is employed mainly in a managerial or administrative capacity; or (iv) who is employed in a supervisory capacity drawing wage of exceeding fifteen thousand rupees per month or an amount as may be notified by the Central Government from time to time.

      From the above it is prima facie clear that the definition of employee is wider and seeks to cover a larger group of individuals than that of worker. Whereas the definition of worker is confined to those individuals working in factories and industries by and large. The difference between the two definitions lies in the inclusion of the term manufacturing process and the elements relating to contractors and principal employers. This change has been made as the term contract labour has been defined in detail under the Code, thereby making the addition of that aspect redundant. However, the exclusion of the manufacturing process aspect is a notable change done with the objective of making the definition of the term more inclusive.

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