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(1)For the purposes of this Act the term " employee " means an individual who has entered into or works under a contract of service or apprenticeship with an employer whether by way of manual labour, clerical work or otherwise, whether such contract is expressed or implied, oral or in writing.
(2)This Act shall not require an employer to insure—
(a)in respect of an employee of whom the employer is the husband, wife, father, mother, grandfather, grandmother, step-father, step-mother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister; or
(b)except as otherwise provided by regulations, in respect of employees not ordinarily resident in Great Britain.
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