Director remuneration can qualify as wages under the ESI Act when paid for entrusted duties and contribution follows.

Directors receiving remuneration for duties entrusted by the company may fall within the ESI Act's definition of "employee" where they are paid from wages in connection with the establishment's work. The Court applied the broad definitions of "employee" and "wages" under Sections 2(9) and 2(22), and treated remuneration for assigned duties as contribution-bearing where the company produced no evidence to rebut the Corporation's finding. The employer's challenge failed, and the contribution demand was maintained as operative.

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Issues: Whether directors of a company receiving remuneration for discharge of assigned duties fall within the definition of "employee" under Section 2(9) of the Employees' State Insurance Act, 1948, and whether contribution is payable on such remuneration.

Analysis: The definition of "employee" under Section 2(9) is wide and covers persons employed from wages in or in connection with the work of the establishment. The definition of "wages" under Section 2(22) includes all remuneration paid or payable in cash to an employee. The earlier decision concerning a Managing Director was applied on the basis that a person may hold a dual capacity and remuneration for duties performed under the establishment's directions can constitute wages. On the facts, the company led no evidence to rebut the Corporation's finding that the directors were paid remuneration for duties entrusted to them.

Conclusion: Directors who are paid remuneration for discharge of assigned duties can fall within the definition of "employee" under the ESI Act, and contribution is payable on such remuneration.

Final Conclusion: The impugned orders were set aside and the employer's challenge to the contribution demand failed, leaving the Corporation's demand operative.

Ratio Decidendi: A director who receives remuneration for performing duties entrusted by the company may be treated as an employee under the ESI Act, and such remuneration constitutes wages for contribution purposes.

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