Thanks a lot . This article and the points suggested by you have really solved my problem .
Just to confirm as cross domain call from Silverlight to WCF was also a constraint in Silverlight 1 or 1.1 .
Thanks for your time 
After suggested changes my Script mamanger tag will look like as following
<asp:ScriptManager ID="ScriptManager1" runat="server">
<Services>
<asp:ServiceReference Path="http://localhost:81/WCFWebService/EmployeeService.svc" />
</Services>
<Scripts>
<asp:ScriptReference Path="~/getEmployeeData.js" />
</Scripts>
</asp:ScriptManager>
IN above example , Please note readers that my silverlight 2.0 application and WCF are both hosted on port 81 .
Now my Silverlight URL is : http://localhost:81/EmployeeDetails.aspx
And WCF application URL is : http://localhost:81/WCFWebService/EmployeeService.svc