THE CODE ON SOCIAL SECURITY, 2020
THE CODEON SOCIAL SECURITY, 2020
ARRANGEMENT OF CLAUSES
CHAPTER I PRELIMINARY
1. Short title, extent, commencement and application.
2. Definitions.
3. Registration and cancellation of an establishment.
CHAPTER II
SOCIAL SECURITY ORGANISATIONS
4. Constitution of Board of Trustees of Employees' Provident Fund.
5. Constitution of Employees' State Insurance Corporation.
6. National Social Security Board and State Unorganised Workers' Board
7. Constitution of State Building Workers’ Welfare Boards.
8. Disqualification and removal of a member of any Social Security Organisation.
9. Procedure for transaction of business of Social Security Organisation, etc.
10. Executive Heads of Central Board and Corporation.
11. Supersession of Corporation, Central Board , National Social Security Board or State Unorganised Workers' Board or the Building Workers' Welfare Board.
12. State Board, Regional Boards, local committees, etc.
13. Entrustment of additional functions to Social Security Organisations.
CHAPTER III
EMPLOYEES’ PROVIDENT FUND
14. Appointment of officers of Central Board.
15. Schemes.
16. Funds.
17. Contribution in respect of employees and contractors.
18. Fund to be recognised under Act 43 of 1961.
19. Priority of payment of contributions over other debts.
20. Chapter not to apply to certain establishments.
21. Authorising certain employers to maintain provident fund accounts.
22. Transfer of accounts.
23. Appeal to Tribunal.
CHAPTER IV
EMPLOYEES STATE INSURANCE CORPORATION
1. Principal Officers and other staff.
2. Employees' State Insurance Fund.
3. Purposes for which Employees' State Insurance Fund may be expended.
4. Holding of property, etc.
5. All employees to be insured.
6. Contributions.
7. Administrative expenses.
8. Provisions as to payment of contributions by employer, etc.
9. Benefits.
10. Corporation's power to promote measures for health, etc., of Insured Persons.
11. Presumption as to accident arising in course of employment.
12. Accidents happening while acting in breach of law, etc.
13. Occupational disease.
14. References to medical board.
15. Dependants' benefit.
16. Medical benefit.
17. Provision of medical treatment by State Government or by Corporation.
18. General provisions as to benefits.
19. Corporation's rights when an employer fails to register, etc.
20. Liability of owner or occupier of factories, etc., for excessive sickness benefit.
21. Scheme for other beneficiaries.
22. Schemes for unorganised workers, gig workers and platform workers.
23. Exemption of factories or other establishments belonging to Government or any local authority.
24. Contributions, etc., due to Corporation to have priority over other debts.
25. Constitution of Employees' Insurance Court.
26. Matters to be decided by Employees' Insurance Court.
27. Powers of Employees' Insurance Court.
28. Proceedings of Employees' Insurance Courts.
29. Appeal to High Court.
CHAPTER V
GRATUITY
53. Payment of gratuity.
54. Continuous service.
55. Nomination.
56. Determination of amount of gratuity.
57. Compulsory insurance.
58. Competent authority.
CHAPTER VI
MATERNITY BENEFIT
59. Employment of, or work by, women prohibited during certain period.
60. Right to payment of maternity benefit.
61. Continuance of payment of maternity benefit in certain cases.
62. Notice of claim for maternity benefit and payment thereof.
63. Payment of maternity benefit in case of death of a woman.
64. Payment of medical bonus.
65. Leave for miscarriage, etc.
66. Nursing breaks.
67. Creche facility.
68. Dismissal for absence during pregnancy.
69. No deduction of wages in certain cases.
70. Forfeiture of maternity benefit.
71. Duties of employer.
72. Power of Inspector-cum-Facilitator to direct payments to be made.
CHAPTER VII
EMPLOYEE'S COMPENSATION
73. Reports of fatal accidents and serious bodily injuries.
74. Employer's liability for compensation.
75. Compensation in case of death of or injury in plantation.
76. Amount of compensation.
77. Compensation to be paid when due and damages for default.
78. Method of calculating monthly wages for purposes of compensation.
79. Review. 80. Commutation of half-monthly payments.
81. Distribution of compensation.
82. Notice and claim.
83. Special provisions relating to accidents occurring outside Indian territory.
84. Medical examination. 85. Contracting.
86. Remedies of employer against stranger.
87. Insolvency of employer.
88. Power to require from employers statements regarding fatal accidents.
89. Registration of agreements.
90. Reference to competent authority.
91. Appointment of competent authority.
92. Venue of proceedings and transfer.
93. Form of application.
94. Power of competent authority to require further deposit in cases of fatal accident.
95. Powers and procedure of competent authority.
96. Appearance of parties.
97. Method of recording evidence.
98. Power to submit cases.
99. Appeal against order of competent authority
(i)
AS PASSED BY LOK SABHA
ON 22.9.2020
Bill No. 121-C of 2020
CLAUSES
THE CODE ON SOCIAL SECURITY, 2020
—————— ARRANGEMENT OF CLAUSES
—————— CHAPTER I PRELIMINARY
1. Short title, extent, commencement and application.
2. Definitions.
3. Registration and cancellation of an establishment.
CHAPTER II
SOCIAL SECURITY ORGANISATIONS
4. Constitution of Board of Trustees of Employees' Provident Fund.
5. Constitution of Employees' State Insurance Corporation.
6. National Social Security Board and State Unorganised Workers' Board
7. Constitution of State Building Workers’ Welfare Boards.
8. Disqualification and removal of a member of any Social Security Organisation.
9. Procedure for transaction of business of Social Security Organisation, etc.
10. Executive Heads of Central Board and Corporation.
11. Supersession of Corporation, Central Board , National Social Security Board or State Unorganised Workers' Board or the Building Workers' Welfare Board.
12. State Board, Regional Boards, local committees, etc.
13. Entrustment of additional functions to Social Security Organisations.
CHAPTER III EMPLOYEES’ PROVIDENT FUND
14. Appointment of officers of Central Board.
15. Schemes.
16. Funds.
17. Contribution in respect of employees and contractors.
18. Fund to be recognised under Act 43 of 1961.
19. Priority of payment of contributions over other debts.
20. Chapter not to apply to certain establishments.
21. Authorising certain employers to maintain provident fund accounts.
22. Transfer of accounts.
23. Appeal to Tribunal.
CLAUSES
CHAPTER IV
EMPLOYEES STATE INSURANCE CORPORATION
24. Principal Officers and other staff.
25. Employees' State Insurance Fund.
26. Purposes for which Employees' State Insurance Fund may be expended.
27. Holding of property, etc.
28. All employees to be insured.
29. Contributions.
30. Administrative expenses.
31. Provisions as to payment of contributions by employer, etc.
32. Benefits.
33. Corporation's power to promote measures for health, etc., of Insured Persons.
34. Presumption as to accident arising in course of employment.
35. Accidents happening while acting in breach of law, etc.
36. Occupational disease.
37. References to medical board.
38. Dependants' benefit.
39. Medical benefit.
40. Provision of medical treatment by State Government or by Corporation.
41. General provisions as to benefits.
42. Corporation's rights when an employer fails to register, etc.
43. Liability of owner or occupier of factories, etc., for excessive sickness benefit.
44. Scheme for other beneficiaries.
45. Schemes for unorganised workers, gig workers and platform workers.
46. Exemption of factories or other establishments belonging to Government or any local authority.
47. Contributions, etc., due to Corporation to have priority over other debts.
48. Constitution of Employees' Insurance Court.
49. Matters to be decided by Employees' Insurance Court.
50. Powers of Employees' Insurance Court.
51. Proceedings of Employees' Insurance Courts.
52. Appeal to High Court.
53. Payment of gratuity.
54. Continuous service.
55. Nomination.
CHAPTER V GRATUITY
CLAUSES
56. Determination of amount of gratuity.
57. Compulsory insurance.
58. Competent authority.
CHAPTER VI MATERNITY BENEFIT
59. Employment of, or work by, women prohibited during certain period.
60. Right to payment of maternity benefit.
61. Continuance of payment of maternity benefit in certain cases.
62. Notice of claim for maternity benefit and payment thereof.
63. Payment of maternity benefit in case of death of a woman.
64. Payment of medical bonus.
65. Leave for miscarriage, etc.
66. Nursing breaks.
67. Creche facility.
68. Dismissal for absence during pregnancy.
69. No deduction of wages in certain cases.
70. Forfeiture of maternity benefit.
71. Duties of employer.
72. Power of Inspector-cum-Facilitator to direct payments to be made.
CHAPTER VII EMPLOYEE'S COMPENSATION
73. Reports of fatal accidents and serious bodily injuries.
74. Employer's liability for compensation.
75. Compensation in case of death of or injury in plantation.
76. Amount of compensation.
77. Compensation to be paid when due and damages for default.
78. Method of calculating monthly wages for purposes of compensation.
79. Review.
80. Commutation of half-monthly payments.
81. Distribution of compensation.
82. Notice and claim.
83. Special provisions relating to accidents occurring outside Indian territory.
84. Medical examination.
85. Contracting.
86. Remedies of employer against stranger.
87. Insolvency of employer.
CLAUSES
88. Power to require from employers statements regarding fatal accidents.
89. Registration of agreements.
90. Reference to competent authority.
91. Appointment of competent authority.
92. Venue of proceedings and transfer.
93. Form of application.
94. Power of competent authority to require further deposit in cases of fatal accident.
95. Powers and procedure of competent authority.
96. Appearance of parties.
97. Method of recording evidence.
98. Power to submit cases.
99. Appeal against order of competent authority.
CHAPTER VIII
SOCIAL SECURITY AND CESS IN RESPECT OF BUILDING AND OTHER CONSTRUCTION WORKERS
100. Levy and collection of cess.
101. Interest payable on delay in payment of cess.
102. Power to exempt from cess.
103. Self-assessment of cess.
104. Penalty for non-payment of cess within the specified time.
105. Appeal to appellate authority.
106. Registration of building workers as beneficiaries.
107. Cessation as a beneficiary.
108. Building and Other Construction Workers' Welfare Fund and its application.
CHAPTER IX
SOCIAL SECURITY FOR UNORGANISED WORKERS, GIG WORKERS AND PLATFORM WORKERS
109. Framing of schemes for unorganised workers.
110. Funding of State Government schemes.
111. Record keeping.
112. Helpline, facilitation centre, etc., for unorganised workers, gig workers and platform workers.
113. Registration of unorganised workers, gig workers and platform workers.
114. Schemes for gig workers and platform workers.
CHAPTER X FINANCE AND ACCOUNTS
115. Accounts.
116. Audit.
117. Budget estimates.
118. Annual report.
CLAUSES
119. Valuation of assets and liabilities.
120. Holding of property, etc., by Social Security Organisations.
121. Writing off of losses.
CHAPTER XI
AUTHORITIES, ASSESSMENT, COMPLIANCE AND RECOVERY
122. Appointment of Inspector-cum-Facilitators and their powers. 123 . Maintenance of records, registers, returns, etc.
124. Employer not to reduce wages, etc.
125. Assessment and determination of dues from employer.
126. Appeal against order of Authorised Officer relating to Chapter IV.
127. Interest on amount due.
128. Power to recover damages.
129. Recovery of amount due.
130. Validity of certificate and amendment thereof.
131. Other modes of recovery.
132. Application of certain provisions of Income-tax Act.
CHAPTER XII OFFENCES AND PENALTIES
133. Penalty for failure to pay contributions, etc.
134. Enhanced punishment in certain cases after previous conviction.
135. Offences by companies.
136. Cognizance of offences.
137. Prior opportunity before prosecution.
138. Compounding of offences.
CHAPTER XIII
EMPLOYMENT INFORMATION AND MONITORING
139. Reporting of vacancies to career centres.
140. Exclusions from application of this Chapter.
CHAPTER XIV MISCELLANEOUS
141. Social Security Fund.
142. Application of Aadhaar.
143. Power to exempt establishment.
144. Power to defer or reduce.
145. Liability in case of transfer of establishment.
146. The members, officers and staff to be public servants.
147. Protection of action taken in good faith.
148. Misuse of benefits.
(vi)
CLAUSES
149. Power of Central Government to give directions to State Government and Social Security Organisations.
150. Power to frame schemes.
151. Protection against attachment, etc.
152. Power to amend Schedule.
153. Transitional provisions.
154. Power of appropriate Government to make rules.
155. Power of Central Government to make rules.
156. Power of State Government to make rules.
157. Power of Corporation to make regulations.
158. Prior publication of rules, regulations, etc.
159. Rules to give effect to arrangements with other countries for the transfer of money paid as compensation.
160. Laying of rules, regulations and schemes, etc.
161. Effect of laws and agreements inconsistent with this Code.
162. Delegation of powers.
163. Power to remove difficulties.
164. Repeal and savings. THE FIRST SCHEDULE. THE SECOND SCHEDULE. THE THIRD SCHEDULE. THE FOURTH SCHEDULE. THE FIFTH SCHEDULE. THE SIXTH SCHEDULE. THE SEVENTH SCHEDULE.
1
AS PASSED BY LOK SABHA
ON 22.9.2020
Bill No. 121-C of 2020
THE CODE ON SOCIAL SECURITY, 2020
A
BILL
to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:—
CHAPTER I PRELIMINARY
5 1. (1) This Act may be called the Code on Social Security, 2020.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Code and any reference in any such provision to the
10 commencement of this Code shall be construed as a reference to the coming into force of that provision.
Short title, extent, commencement and application.
Definitions.
(4) The applicability of the Chapters specified in columns (1) and (2) of the First Schedule shall, without prejudice to the applicability of the other provisions of this Code, be such as is specified in corresponding entry in column (3) of that Schedule.
(5) Notwithstanding anything contained in sub-section (4), where it appears to the Central Provident Fund Commissioner, whether on an application made to him by the 5 employer of an establishment or otherwise, that the employer and majority of employees
of that establishment have agreed that the provisions of Chapter III should be made applicable to that establishment, the Central Provident Fund Commissioner, may, by notification, apply the provisions of the said Chapter to that establishment on and from the date of such agreement or from any subsequent date specified in the agreement: 10
Provided that where the employer of an establishment to which the provisions of Chapter III applied under this sub-section desires to come out of such applicability, he may make an application to the Central Provident Fund Commissioner and the Central Provident Fund Commissioner shall, if satisfied that there is an agreement between the employer and majority of the employees to this effect, make the provisions of that Chapter 15
inapplicable to such establishment, in such manner and subject to such conditions as may be prescribed by the Central Government.
(6) The Central Government may, after giving not less than two months' notice of its intention so to do, by notification, apply the provisions of this Code to any establishment employing not less than such number of persons as may be specified in the notification. 20
(7) Notwithstanding anything contained in sub-section (4), where it appears to the Director General of the Corporation, whether on an application made to him by the employer of an establishment or otherwise, that the employer and majority of employees of that establishment have agreed that the provisions of Chapter IV should be made applicable to
that establishment, the Director General of the Corporation, may, by notification, apply 25
the provisions of the said Chapter to that establishment on and from the date of such agreement or from any subsequent date specified in the agreement:
Provided that where the employer of an establishment to which the provisions of Chapter IV applied under this sub-section desires to come out of such applicability, he may make an application to the Director General of the Corporation and Director General 30
of the Corporation shall, if satisfied that there is an agreement between the employer and majority of the employees to this effect, make the provisions of that Chapter inapplicable to such establishment, in such manner and subject to such conditions as may be prescribed by the Central Government.
(8) Notwithstanding anything contained in sub-section (4), an establishment to which 35
any Chapter applies at the first instance shall continue to be applied thereafter even if the number of employees therein at any subsequent time falls below the threshold specified in the First Schedule in respect of that Chapter.
2. In this Code, unless the context otherwise requires,—
(1) "agent" when used in relation to an establishment, means every person, 40
whether appointed as such or not, who acting or purporting to act on behalf of the owner, takes part in the management, control, supervision or direction of such establishment or part thereof;
(2) "aggregator" means a digital intermediary or a market place for a buyer or user of a service to connect with the seller or the service provider; 45
(3) "appropriate Government" means—
(a) in relation to, an establishment carried on by or under the authority of the Central Government or concerning any such controlled industry as may be specified by notification in this behalf, by the Central Government or the
establishment of railways including metro railways, mines, oil field, major 50
ports, air transport service, telecommunication, banking and insurance company or a corporation or other authority established by a Central Act or the central public sector undertaking or subsidiary companies set up by the central public sector undertakings, subsidiary companies set up by the principal undertakings
5 or autonomous bodies owned or controlled by the Central Government, including establishment of contractors for the purposes of such establishment, corporation or other authority, central public sector undertakings, subsidiary companies or autonomous bodies or any company in which not less than fifty- one per cent. of the paid up share capital is held by the Central Government, as
10 the case may be, or in relation to an establishment having departments or branches in more than one State, as the case may be, the Central Government; and
(b) in relation to any other establishment, the State Government.
Explanation 1.—For the purposes of this clause, the expression "metro railway"
15 means the metro railway as defined in sub-clause (i) of clause (1) of section 2 of the Metro Railways (Operation and Maintenance ) Act, 2002.
Explanation 2.—For the purposes of this clause, the Central Government shall continue to be the appropriate Government for the central public sector undertakings even if the holding of the Central Government reduces to less than fifty per cent. equity in that
20 public sector undertaking after the commencement of this Code;
(4) "audio-visual production" means audio-visual produced wholly or partly in India and includes—
(i) animation, cartoon depiction, audio-visual advertisement;
(ii) digital production or any of the activities in respect of making thereof; and
25 (iii) features films, non-feature films, television, web-based serials, talk shows, reality shows and sport shows;
(5) "Authorised Officer" means such officer of the Central Board, or as the case may be, of the Corporation notified by the Central Government;
(6) "building or other construction work" means the construction, alteration, repairs,
30 maintenance or demolition in relation to buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, flood control works (including storm water drainage works), generation, transmission and distribution of power, water works (including channels for distribution of water), oil and gas installations, electric lines, internet towers, wireless, radio, television, telephone, telegraph and overseas
35 communications, dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aqua- ducts, pipelines, towers, cooling towers, transmission towers and such other work as may be specified in this behalf by the Central Government, by notification, but does not include any building or other construction work which is related to any factory or mine or any building or other construction work employing less than ten workers in the preceding
40 twelve months or where such work is related to own residential purposes of an individual or group of individuals for their own residence and the total cost of such work does not exceed fifty lakhs rupees or such higher amount and employing more than such number of workers as may be notified by the appropriate Government;
(7) "building worker" means a person who is employed to do any skilled, semi-skilled
45 or unskilled, manual, technical or clerical work for hire or reward, whether the terms of such employment are express or implied, in connection with any building or other construction work, but does not include any such person who is employed mainly in a managerial or supervisory or administrative capacity;
(8) "Building Workers' Welfare Board" means the State Building and other Construction
50 Workers' Welfare Board constituted under sub-section (1) of section 7;
60 of 2002.
(9) "career centre" means any office (including employment exchange, place or portal) established and maintained in the manner prescribed by the Central Government for providing such career services (including registration, collection and furnishing of
information, either by the keeping of registers or otherwise, manually, digitally, virtually
or through any other mode) as may be prescribed by the Central Government, which may,
5
inter alia, relate generally or specifically to—
(i) persons who seek to employ employees;
(ii) persons who seek employment;
(iii) occurrence of vacancies; and
(iv) persons who seek vocational guidance and career counselling or guidance
10
to start self-employment;
(10) "Central Board" means the Board of Trustees of the Employees' Provident Fund
constituted under section 4;
(11) "Central Provident Fund Commissioner" means the Central Provident Fund
Commissioner of the Central Board appointed under sub-section (1) of section 14;
15
(12) "child", for the purposes of Chapter VI, includes a stillborn child;
(13) "Commissioning mother" means a biological mother who uses her egg to create
an embryo implanted in any other woman;
(14) "company" means a company as defined in clause (20) of section 2 of the Companies Act, 2013;
20
18
of
2013.
(15) "compensation" means compensation as provided under Chapter VII;
(16) "competent authority" means any authority appointed under section 58 for the
purposes of Chapter V or notified for the purposes of Chapter VI or appointed under
section 91 for the purposes of Chapter VII, as the case may be, as competent authority by
the appropriate Government or the State Government, as the case may be;
25
(17) "completed year of service" means continuous service for twelve months;
(18) "confinement" means labour resulting in the issue of a living child, or labour
after twenty-six weeks of pregnancy resulting in the issue of a child whether alive or dead;
(19) "contract labour" means a worker who shall be deemed to be employed in or in
connection with the work of an establishment when he is hired in or in connection with
30
such work by or through a contractor, with or without the knowledge of the principal
employer and includes inter-State migrant worker but does not include an employee (other
than part time employee) who is regularly employed by the contractor for any activity of
his establishment and his employment is governed by mutually accepted standards of the
conditions of employment (including engagement on permanent basis), and gets periodical
35
increment in the pay, social security coverage and other welfare benefits in accordance
with the law for the time being in force in such employment;
(20) "contractor", in relation to an establishment means a person, who—
(i) undertakes to produce a given result for the establishment, other than a
mere supply of goods or articles of manufacture to such establishment through contract
40
labour; or
(ii) supplies contract labour for any work of the establishment as mere human
resource,
and includes a sub-contractor;
(21) "contribution" means the sum of money payable by the employer, under this
45
Code, to the Central Board and to the Corporation, as the case may be, and includes any
amount payable by or on behalf of the employee in accordance with the provisions of this
Code;
(22) "Corporation" means the Employees' State Insurance Corporation constituted under section 5;
(23) "delivery" means the birth of a child;
(24) "dependant" means any of the following relatives of deceased employee,
5 namely:—
(a) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted daughter or a widowed mother:
Provided that for the purposes of Chapter IV, a legitimate adopted son, who has not attained the age of twenty-five years, shall be dependant of the
10 deceased employee;
(b) if wholly dependant on the earnings of the employee at the time of his death, a legitimate or adopted son or a daughter who has attained the age of eighteen years and who is infirm; except for the purposes of Chapter IV wherein the word "eighteen" occurring in this sub-clause shall be deemed to have been substituted by the word
15 "twenty-five";
(c) if wholly or in part dependent on the earnings of the employee at the time of his death,—
(i) a widower;
(ii) a parent other than a widowed mother;
20 (iii) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or illegitimate or adopted if married and a minor or if widowed and a minor;
(iv) a minor brother or an unmarried sister or a widowed sister if a minor;
(v) a widowed daughter-in-law;
25 (vi) a minor child of a pre-deceased son;
(vii) a minor child of a pre-deceased daughter where no parent of the child is alive, or;
(viii) a grandparent if no parent of the employee is alive.
Explanation.—For the purposes of sub-clause (b) and items (vi) and (vii) of
30 sub-clause (c), references to a son, daughter or child include an adopted son, daughter or child, respectively;
(25) "dock work" means any work in or within the vicinity of any port in connection with, or required for, or incidental to, the loading, unloading, movement or storage of cargoes into or from ship or other vessel, port, dock, storage place or landing place, and
35 includes—
40
52 of 1961.
45
(i) work in connection with the preparation of ships or other vessels for receipt or discharge of cargoes or leaving port;
(ii) all repairing and maintenance processes connected with any hold, tank structure or lifting machinery or any other storage area on board the ship or in the docks; and
(iii) chipping, painting or cleaning of any hold, tank, structure or lifting machinery or any other storage area in board the ship or in the docks;
(26) "employee" means any person (other than an apprentice engaged under the Apprentices Act, 1961) employed on wages by an establishment, either directly or through a contractor, to do any skilled, semi-skilled or unskilled, manual, operational, supervisory,
managerial, administrative, technical, clerical or any other work, whether the terms of employment be express or implied, and also includes a person declared to be an employee by the appropriate Government, but does not include any member of the Armed Forces of the Union:
Provided that for the purposes of Chapter III, except in case of the Employees’ Provident 5 Fund Scheme and Chapter IV, the term "employee" shall mean such employee drawing wages less than or equal to the wage ceiling notified by the Central Government and includes such other persons or class of persons as the Central Government may by notification, specify to be employee, for the purposes of those Chapters:
Provided further that for the purposes of counting of employees for the coverage of 10 an establishment under Chapter III and Chapter IV, as the case may be, the employees, whose wages are more than the wage ceiling so notified by the Central Government, shall
also be taken into account:
Provided also that for the purposes of Chapter VII, the term "employee" shall mean only such persons as specified in the Second Schedule and such other persons or class of 15 persons as the Central Government, or as the case may be, the State Government may add
to the said Schedule, by notification, for the purposes of that Government;
(27) "employer" means a person who employs, whether directly or through any person, or on his behalf, or on behalf of any person, one or more employees in his establishment
and where the establishment is carried on by any department of the Central Government or 20 the State Government, the authority specified, by the head of such department, in this behalf or where no authority is so specified, the head of the department and in relation to
an establishment carried on by a local authority, the chief executive of that authority, and includes,—
(a) in relation to an establishment which is a factory, the occupier of the factory; 25
(b) in relation to mine, the owner of the mine or agent or manager having requisite qualification under the law for the time being in force and appointed by the owner or agent of the mine as such;
(c) in relation to any other establishment, the person who, or the authority which has ultimate control over the affairs of the establishment and where the said 30 affairs are entrusted to a manager or managing director, such manager or managing director;
(d) contractor; and
(e) legal representative of a deceased employer;
(28) "employment injury" means a personal injury to an employee, caused by accident 35 or an occupational disease, as the case may be, arising out of and in the course of his employment,—
(i) for the purposes of Chapter IV, if the employee is an insured or insurable employee under section 28 whether such accident occurs or the occupational disease
is contracted within or outside the territorial limits of India; and 40
(ii) for the purposes of Chapter VII, whether such accident occurs or the occupational disease is contracted within or outside the territorial limits of India;
(29) "establishment" means—
(a) a place where any industry, trade, business, manufacture or occupation is carried on; or 45
(b) a factory, motor transport undertaking, newspaper establishment, audio- visual production, building and other construction work or plantation; or
(c) a mine, port or vicinity of port where dock work is carried out.
Explanation.—For the purposes of Chapter III, where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment;
(30) "executive officer" means such officer of the appropriate Government as may be
5 notified by that Government for the purposes of Chapter XIII or an officer authorised in writing by such executive officer to discharge his duties under that Chapter;
(31) "exempted employee" for the purposes of Chapter III, means an employee to whom any of the schemes referred to in section 15, but for the exemption granted under this Code, would have applied and for the purposes of Chapter IV, means an employee,
10 whose wage is specified in the notification by the Central Government and who is not liable to pay employee's contribution;
(32) "factory" means any premises including the precincts thereof—
(a) whereon ten or more employees are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is
15 being carried on with the aid of power, or is ordinarily so carried on, or
(b) whereon twenty or more employees are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on,
but does not include a mine, or a mobile unit belonging to the Armed Forces of the Union,
20 railways running shed or a hotel, restaurant or eating place.
Explanation 1.—For computing the number of employees for the purposes of this clause, all the employees in (different groups and relays) a day shall be taken into account.
Explanation 2.—For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof, shall
25 not be construed as factory if no manufacturing process is being carried on in such premises or part thereof;
(33) "family" means all or any of the following relatives of an employee or an unorganised worker, as the case may be, namely:—
(a) a spouse;
30 (b) a minor legitimate or adopted child dependent upon the employee or an unorganised worker, as the case may be;
(c) a child who is wholly dependent on the earnings of the employee or an unorganised worker, as the case may be, and who is—
(i) receiving education, till he attains the age of twenty-one years; and
35 (ii) an unmarried daughter;
(d) a child who is infirm by reason of any physical or mental abnormality or injury and is wholly dependent on the earnings of the employee or an unorganised worker, as the case may be, so long as the infirmity continues;
(e) dependent parents (including father-in-law and mother-in-law of a woman
40 employee), whose income from all sources does not exceed such income as may be prescribed by the Central Government;
(f) in case the employee or an unorganised worker, as the case may be, is unmarried and his parents are not alive, a minor brother or sister wholly dependent upon the earnings of the Insured Person;
(34) "fixed term employment" means the engagement of an employee on the basis of a written contract of employment for a fixed period:
Provided that—
(a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent employee doing the same work or work of a similar nature; 5 and
(b) he shall be eligible for all benefits, under any law for the time being in force, available to a permanent employee proportionately according to the period of service rendered by him even if his period of employment does not extend to the required qualifying period of employment; 10
(35) "gig worker" means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship;
(36) "home-based worker" means a person engaged in, the production of goods or services for an employer in his home or other premises of his choice other than the workplace 15
of the employer, for remuneration, irrespective of whether or not the employer provides the equipment, materials or other inputs;
(37) "Inspector-cum-Facilitator" means an Inspector-cum-Facilitator appointed under section 122;
(38) "Insured Person" means the Insured Person referred to in section 28; 20
(39) "Insurance Fund" means the Deposit-Linked Insurance Fund established under clause (c) of sub-section (1) of section 16;
(40) "Insurance Scheme" means the Deposit-Linked Insurance Scheme framed under clause (c) of sub-section (1) of section 15;
(41) "inter-State migrant worker" means a person who is employed in an establishment 25
and who—
(i) has been recruited directly by the employer or indirectly through contractor in one State for employment in such establishment situated in another State; or
(ii) has come on his own from one State and obtained employment in an
establishment of another State (hereinafter called destination State) or has 30
subsequently changed the establishment within the destination State,
under an agreement or other arrangement for such employment and drawing wages not exceeding eighteen thousand rupees per month or such higher amount as may be notified by the Central Government from time to time;
(42) "manufacturing process" means any process for— 35
(i) making, altering, repairing, ornamenting, finishing, oiling, washing, cleaning, breaking up, demolishing, refining, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal; or
(ii) pumping oil, water, sewage or any other substance; or
(iii) generating, transforming or transmitting power; or 40
(iv) composing, offset printing, printing by letter press, lithography, photogravure screen printing, three or four dimensional printing, prototyping, flexography or other types of printing process or book binding; or
(v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or 45
5
10
34 of 1971.
35 of 1952.
15
45 of 1860.
20
25
30
18 of 2013.
35
40
45
53 of 1948.
(vi) preserving or storing any article in cold storage; or
(vii) such other activities as the Central Government may notify;
(43) "maternity benefit", in respect of Chapter VI, means the payment referred to in sub-section (1) of section 60;
(44) "medical practitioner" means a person registered under any law for the time being in force, or, any person declared by the State Government, by notification, to be qualified as medical practitioner for the purposes of this Code:
Provided that different class or classes of medical practitioner having specific qualification may be notified by the Central Government for the purposes of Chapter IV and by the appropriate Government for other Chapters of this Code;
(45) "medical termination of pregnancy" means the termination of pregnancy permissible under the provisions of the Medical Termination of Pregnancy Act, 1971;
(46) "mine" shall have the meaning assigned to it in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952;
(47) "minor" means a person who has not attained the age of eighteen years;
(48) "miscarriage" means expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of pregnancy, but does not include any miscarriage, the causing of which is punishable under the Indian Penal Code;
(49) "National Social Security Board" means the National Social Security Board for Unorganised Workers constituted under sub-section (1) of section 6;
(50) "notification" means a notification published in the Gazette of India or the Official Gazette of a State, as the case may be, and the expression "notify" with its grammatical variations and cognate expressions shall be construed accordingly;
(51) "occupational disease" means a disease specified in the Third Schedule as a disease peculiar to the employment of the employee;
(52) "occupier" in respect of a factory means the person who has ultimate control over the affairs of the factory:
Provided that—
(a) in the case of a firm or other association of individuals, any one of the individual partners or members thereof;
(b) in the case of a company, any one of the directors, except any independent director within the meaning of sub-section (6) of section 149 of the Companies Act, 2013;
(c) in the case of a factory owned or controlled by the Central Government or any State Government, or any local authority, the person or persons appointed to manage the affairs of the factory by the Central Government, the State Government or the local authority or such other authority as may be prescribed by the Central Government,
shall be deemed to be the occupier:
Provided further that in the case of a ship which is being repaired, or on which maintenance work is being carried out, in a dry dock which is available for hire, the owner of the dock shall be deemed to be the occupier for all purposes except the matters as may be prescribed by the Central Government which are directly related to the condition of ship for which the owner of ship shall be deemed to be the occupier;
(53) "oilfield" shall have the meaning assigned to it in clause (e) of section 3 of the Oilfields (Regulation and Development) Act, 1948;
(54) "organised sector" means an enterprise which is not an unorganised sector;
(55) "permanent partial disablement" means, where the disablement is of a permanent nature, such disablement as reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accident resulting in
the disablement: 5
Provided that every injury specified in Part II of the Fourth Schedule shall be deemed to result in permanent partial disablement;
(56) "permanent total disablement" means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement: 10
Provided that permanent total disablement shall be deemed to result from every injury specified in Part I of the Fourth Schedule or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts to one hundred per cent.;
(57) "Pension Fund" means the Pension Fund established under clause (b) of sub- 15
section (1) of section 16;
(58) "Pension Scheme" means the Employees' Pension Scheme framed under clause (b) of sub-section (1) of section 15;
(59) "plantation" means—
(a) any land used or intended to be used for— 20
(i) growing tea, coffee, rubber, cinchona or cardamom which admeasures five hectares or more;
(ii) growing any other plant, which admeasures five hectares or more and in which ten or more persons are employed or were employed on any day
of the preceding twelve months, if, after obtaining the approval of the Central 25
Government, the State Government, by notification, so directs.
Explanation.—Where any piece of land used for growing any plant referred to in this sub-clause admeasures less than five hectares and is contiguous to any other piece of land not being so used, but capable of being so used, and both such pieces of
land are under the management of the same employer, then, for the purposes of this 30
sub-clause, the piece of land first mentioned shall be deemed to be a plantation, if the total area of both such pieces of land admeasures five hectares or more;
(b) any land which the State Government may, by notification, declare and which is used or intended to be used for growing any plant referred to in
sub-clause (a), notwithstanding that it admeasures less than five hectares: 35
Provided that no such declaration shall be made in respect of such land which admeasures less than five hectares immediately before the commencement of this Code; and
(c) offices, hospitals, dispensaries, schools and any other premises used for
any purpose connected with any plantation within the meaning of sub-clause (a) and 40
sub-clause (b); but does not include factory on the premises;
(60) "platform work" means a work arrangement outside of a traditional employer- employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in 45
exchange for payment;
(61) "platform worker" means a person engaged in or undertaking platform work;
15 of 1908.
5
24 of 1989.
10
15
20
11 of 1976.
25
30
35
40
(62) "port" shall have the meaning assigned to it in clause (4) of section 3 of the Indian Ports Act, 1908;
(63) "Provident Fund" means the Employees' Provident Fund established under clause (a) of sub-section (1) of section 16;
(64) "Provident Fund Scheme" means the Employees' Provident Fund Scheme framed under clause (a) of sub-section (1) of section 15;
(65) "prescribed" means prescribed by rules made under this Code;
(66) "railway" shall have the meaning assigned to it in clause (31) of section 2 of the Railways Act, 1989;
(67) "railway company" includes any persons whether incorporated or not, who are owners or lessees of a railway or parties to an agreement for working a railway;
(68) "Recovery Officer" means any officer of the Central Government, the State Government, the Central Board or the Corporation, who may be authorised by the Central Government or the State Government, as the case may be, by notification, to discharge the functions and to exercise the powers of a Recovery Officer under this Code;
(69) "regulations" means regulations made by the Corporation under this Code;
(70) "retirement" means termination of the service of an employee otherwise than on superannuation;
(71) "sales promotion employees" means the sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976;
(72) "Schedule" means a Schedule to this Code;
(73) "seamen" means any person forming part of the crew of any ship, but does not include the master of the ship;
(74) " seasonal factory " means a factory which is exclusively engaged in one or more of the following manufacturing processes, namely, cotton ginning, cotton or jute pressing, decortication of ground-nuts, the manufacture of indigo, lac, sugar (including gur) or any manufacturing process which is incidental to or connected with any of the aforesaid processes and includes a factory which is engaged for a period not exceeding seven months in a year in a manufacturing process as the Central Government may, by notification, specify;
(75) "self-employed worker" means any person who is not employed by an employer, but engages himself in any occupation in the unorganised sector subject to a monthly earning of an amount as may be notified by the Central Government or the State Government, as the case may be, from time to time or holds cultivable land subject to such ceiling as may be notified by the State Government;
(76) "shop", in respect of a State, means a shop as defined in any law for the time being in force dealing with the shop in that State;
(77) 'sickness" means a condition which requires medical treatment and attendance and necessitates abstention from work on medical ground;
(78) "social security" means the measures of protection afforded to employees, unorganised workers, gig workers and platform workers to ensure access to health care and to provide income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner by means of rights conferred on them and schemes framed, under this Code;
(79) "Social Security Organisation" means any of the following organisations established under this Code, namely:—
(a) the Central Board of Trustees of Employees' Provident Fund constituted under section 4;
(b) the Employees' State Insurance Corporation constituted under section 5;
(c) the National Social Security Board for Unorganised Workers constituted under section 6;
(d) the State Unorganised Workers' Social Security Board constituted under section 6;
(e) the State Building and other Construction Workers' Welfare Boards constituted under section 7; and
(f) any other organisation or special purpose vehicle declared to be the social security organisation by the Central Government;
(80) "State Government" includes—
(a) in relation to a Union territory with legislature, the Government of the Union territory; and
(b) in relation to a Union territory without legislature, the administrator appointed under article 239 of the Constitution as an administrator thereof;
(81) "State Unorganised Workers' Board" means the State Unorganised Workers' Social Security Board constituted under sub-section (9) of section 6;
(82) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service, as the age on the attainment of which the employee shall vacate the employment:
Provided that for the purposes of Chapter III, the age of superannuation shall be fifty-eight years;
(83) "temporary disablement" means a condition resulting from an employment injury which requires medical treatment and renders an employee, as a result of such injury, temporarily incapable of doing the work which he was doing prior to or at the time of the injury;
(84) "Tribunal" means the Industrial Tribunal constituted by the appropriate Government under section 7A of the Industrial Disputes Act, 1947;
(85) "unorganised sector" means an enterprise owned by individuals or self-employed workers and engaged in the production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten;
(86) "unorganised worker" means a home-based worker, self-employed worker or a wage worker in the unorganised sector and includes a worker in the organised sector who is not covered by the Industrial Disputes Act, 1947 or Chapters III to VII of this Code;
(87) "vacancy", for the purposes of Chapter XIII, means an unoccupied post (including newly created post, post of trainee, post to be filled through apprentice or any unoccupied post created in an establishment by any other means) in a cadre or occupation for the purpose of employing a person and carrying remuneration;
(88) "wages" means all remuneration, whether by way of salaries, allowances or otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes,—
(a) basic pay;
5
10
15
20
25
30
14 of 1947.
35
14 of 1947.
40
45
(b) dearness allowance; and
(c) retaining allowance, if any, but does not include—
(a) any bonus payable under any law for the time being in force, which does not
5 form part of the remuneration payable under the terms of employment;
(b) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the appropriate Government;
(c) any contribution paid by the employer to any pension or provident fund,
10 and the interest which may have accrued thereon;
(d) any conveyance allowance or the value of any travelling concession;
(e) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment;
(f) house rent allowance;
15 (g) remuneration payable under any award or settlement between the parties or order of a court or Tribunal;
(h) any overtime allowance;
(i) any commission payable to the employee;
(j) any gratuity payable on the termination of employment;
20 (k) any retrenchment compensation or other retirement benefit payable to the employee or any ex gratia payment made to him on the termination of employment, under any law for the time being in force:
Provided that for calculating the wages under this clause, if payments made by the employer to the employee under sub-clauses (a) to (i) exceeds one-half, or such other
25 per cent. as may be notified by the Central Government, of the all remuneration calculated under this clause, the amount which exceeds such one-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added in wages under this clause:
Provided further that for the purpose of equal wages to all genders and for the purpose of payment of wages, the emoluments specified in sub-clauses (d), (f), (g) and (h) shall be
30 taken for computation of wage.
Explanation.—Where an employee is given in lieu of the whole or part of the wages payable to him, any remuneration in kind by his employer, the value of such remuneration in kind which does not exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages of such employee;
35 (89) "wage ceiling" means such amount of wages as may be notified by the Central Government, for the purposes of becoming a member under Chapter III and Chapter IV;
(90) "wage worker" means a person employed for remuneration in the unorganised sector, directly by an employer or through any contractor, irrespective of place of work, whether exclusively for one employer or for one or more employers, whether in cash or in
40 kind, whether as a home-based worker, or as a temporary or casual worker, or as a migrant worker, or workers employed by households including domestic workers, with a monthly wage of an amount as may be notified by the Central Government and the State Government, as the case may be;
(91) "woman" means a woman employed, whether directly or through any contractor,
45 for wages in any establishment:
Provided that for the purposes of Chapter IV, a woman who is or was an employee in respect of whom contribution is or were payable under the said Chapter and who is by
Registration and cancellation of an establishment.
Constitution of Board of Trustees of Employees’ Provident Fund.
reason thereof, entitled to any of the benefits provided under the said Chapter shall be called 'insured woman' and shall include—
(i) a commissioning mother who as biological mother wishes to have a child and prefers to get embryo implanted in any other woman;
(ii) a woman who legally adopts a child of up to three months of age. 5
3. (1) Every establishment to which this Code applies shall be electronically or otherwise, registered within such time and in such manner as may be prescribed by the Central Government:
Provided that the establishment which is already registered under any other Central labour law for the time being in force shall not be required to obtain registration again under 10
this Code and such registration shall be deemed to be registration for the purposes of this Code:
(2) Any establishment to which Chapter III or Chapter IV applies, and whose business activities are in the process of closure, my may make an application for cancellation of registration granted under this section. 15
(3) The manner of making application for cancellation of the registration under sub-section (2), the conditions subject to which the registration shall be cancelled and the procedure of cancellation and other matters relating thereto, shall be such as may be prescribed by the Central Government.
CHAPTER II 20
SOCIAL SECURITY ORGANISATIONS
4. (1) The Central Government may, by notification, constitute, with effect from such date as may be specified therein, a Board of Trustees of the Employees' Provident Fund to be called the Central Board, for the purposes of Chapter III and the provisions of this Code
relating to that Chapter, for the administration of the funds vested in it in such manner as 25
may be prescribed by the Central Government, consisting of the following members, namely:—
(a) a Chairperson and a Vice-Chairperson to be appointed by the Central Government;
(b) not more than five persons appointed by the Central Government from amongst its officials; 30
(c) not more than fifteen persons representing Governments of such States as the Central Government may specify in this behalf, to be appointed by the Central Government;
(d) ten persons representing employers of the establishments to which the schemes referred to in sub section (1) of section 15 applies, to be appointed by the 35
Central Government after consultation with such organisations of employers as may be recognised by the Central Government in this behalf;
(e) ten persons representing employees in the establishments to which schemes referred to in sub-section (1) of section 15 applies, who shall be appointed by the Central Government after consultation with such organisations of employees as may 40
be recognised by that Government in this behalf; and
(f) the Central Provident Fund Commissioner, ex officio.
(2) The Central Board shall be a body corporate by the name of Board of Trustees of the Employees' Provident Fund, having perpetual succession and a common seal and shall
by the said name sue and be sued. 45
(3) The Central Government may, by notification, constitute, with effect from such date as may be specified therein, an Executive Committee from amongst the members of the Central Board to assist the Central Board in performance of its functions in such manner as may be prescribed by the Central Government.
(4) The Central Board may, by order, constitute one or more committees of such composition as may be specified in the order to assist it in the discharge of its functions.
(5) The Central Board may, by order, delegate to its Chairperson or to its Executive Committee or to any of its officers and a State Board constituted under section 12 may, by
5 order, delegate to its Chairperson or to any of its officers, subject to such conditions and limitations, if any, as it may specify in such order, such of its powers and functions under this Code as it may deem necessary for efficient administration of the schemes referred to in sub-section (1) of section 15.
(6) The terms and conditions, including tenure of office, subject to which a member
10 of the Central Board and Executive Committee shall discharge their respective duties may be such as may be prescribed by the Central Government:
Provided that a member of the Central Board shall, notwithstanding the expiry of the tenure of his office, continue to hold office until his successor is appointed.
(7) The Central Board, apart from the functions specified in this Code, shall also
15 perform such other functions in such manner as may be prescribed by the Central Government.
5. (1) The Central Government may, by notification, constitute with effect from such date as may be specified therein, the Employees' State Insurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions of this Code relating to
20 that Chapter and the administration thereof, in such manner as may be prescribed by the Central Government, consisting of the following members, namely:—
(a) a Chairperson to be appointed by the Central Government;
(b) a Vice-Chairperson to be appointed by the Central Government;
(c) not more than five persons to be appointed by the Central Government
25 from amongst its officials;
(d) one person representing each of such States in such manner, as may be prescribed by the Central Government;
(e) one person to be appointed by the Central Government to represent the Union territories;
30 (f) ten persons representing employers to be appointed by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government;
(g) ten persons representing employees to be appointed by the Central Government in consultation with such organisations of employees as may be
35 recognised for the purpose by the Central Government;
(h) two persons representing the medical profession to be appointed by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Government;
(i) three members of Parliament of whom two shall be members of the House
40 of the People (Lok Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the members of the House of the People and the members of the Council of States; and
(j) the Director General of the Corporation, ex officio.
(2) The Corporation shall be a body corporate by the name of Employees' State
45 Insurance Corporation, having perpetual succession and a common seal and shall by the said name sue and be sued.
(3) The Central Government may, by notification, constitute, with effect from such date as may be specified therein, a Standing Committee from amongst the members of the Corporation, in such manner as may be prescribed by the Central Government.
Constitution of Employees’ State Insurance Corporation.
National Social Security Board and State Unorganised Workers’ Board.
(4) Subject to the general superintendence and control of the Corporation, the Standing Committee—
(a) shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation in such manner as may
be prescribed by the Central Government; 5
(b) shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf; and
(c) may, in its discretion, submit any other case or matter for the decision of the Corporation.
(5) (a) The Central Government may, by notification, constitute, with effect from 10
such date as may be specified therein, a Medical Benefit Committee of such composition as may be specified therein, to assist the Corporation and the Standing Committee in performance of its functions relating to administration of medical benefits.
(b) the Medical Benefit Committee shall perform such duties and exercise such powers
as may be prescribed by the Central Government. 15
(6) The Corporation may, by order, constitute one or more committees of such composition as may be specified in the regulations to assist it in the discharge of its functions.
(7) The terms and conditions, including tenure of office, subject to which a member of the Corporation and Standing Committee shall discharge their respective duties may be
such as may be prescribed by the Central Government: 20
Provided that a member of the Corporation shall, notwithstanding the expiry of the tenure of his office, continue to hold office until his successor is appointed.
6. (1) The Central Government shall, by notification, constitute a National Social Security Board for unorganised workers to exercise the powers conferred on, and to perform
the functions assigned to, it under this Code, in such manner as may be prescribed by the 25
Central Government.
(2) The National Social Security Board shall consist of the following members, namely:—
(a) Union Minister for Labour and Employment as Chairperson;
(b) Secretary, Ministry of Labour and Employment as Vice-Chairperson; 30
(c) forty members to be nominated by the Central Government, out of whom—
(i) seven members representing unorganised sector workers;
(ii) seven members representing employers of unorganised sector;
(iii) seven members representing eminent persons from civil society;
(iv) two members representing the Lok Sabha and one from the Rajya 35
Sabha;
(v) ten members representing Central Government Ministries and Departments concerned;
(vi) five members representing State Governments;
(vii) one member representing the Union territories; and 40
(d) the Director General Labour Welfare, as Member—Secretary, ex officio.
(3) All members except Chairperson of the National Social Security Board shall be from amongst persons of eminence in the fields of labour welfare, management, finance, law and administration.
(4) The manner in which members shall be nominated from each of the categories specified in clause (c) of sub-section (2), the term of office and other conditions of service of members, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among the members of, the National Social Security Board shall
5 be such as may be prescribed by the Central Government:
Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the Scheduled Tribes, the minorities and women.
(5) The term of the National Social Security Board shall be three years.
(6) The National Social Security Board shall meet at least thrice a year, at such time
10 and place and shall observe such rules of procedure relating to the transaction of business at its meetings, as may be prescribed by the Central Government.
(7) The National Social Security Board shall perform the following functions, namely:—
(a) recommend to the Central Government for framing suitable schemes for
15 different sections of unorganised workers, gig workers and platform workers;
(b) advise the Central Government on such matters arising out of the administration of this Code as may be referred to it;
(c) monitor such social welfare schemes for unorganised workers, gig workers and platform workers as are administered by the Central Government;
20 (d) review the record keeping functions performed at the State level;
(e) review the expenditure from the fund and account; and
(f) undertake such other functions as are assigned to it by the Central Government from time to time.
(8) The Central Government may, by notification, constitute with effect from such
25 date as may be specified therein one or more advisory committee to advise the Central Government upon such matters arising out of the administration of this Code relating to unorganised workers and such other matters as the Central Government may refer to it for advice.
(9) Every State Government shall, by notification, constitute a State Board to be
30 known as (name of the State) Unorganised Workers' Social Security Board to exercise the powers conferred on, and to perform the functions assigned to, it under this Code, in such manner as may be prescribed by the State Government.
(10) Every State Unorganised Workers' Board shall consist of the following members, namely:—
35 (a) Minister of Labour and Employment of the concerned State as Chairperson,
ex officio;
(b) Principal Secretary or Secretary (Labour) as Vice-Chairperson;
(c) one member representing the Central Government in the Ministry of Labour and Employment;
40 (d) thirty-one members to be nominated by the State Government, out of whom—
45 State;
(i) seven representing the unorganised workers;
(ii) seven representing employers of unorganised workers;
(iii) two members representing the Legislative Assembly of the concerned
(iv) five members representing eminent persons from civil society;
(v) ten members representing the State Government Departments
concerned; and
(e) Member—Secretary as notified by the State Government.
Constitution of State Building Workers’ Welfare Boards.
(11) All members except Chairperson of the State Unorganised Workers' Board shall be from amongst persons of eminence in the fields of labour welfare, management, finance, law and administration.
(12) The manner in which members shall be nominated from each of the categories specified in clause (d) of sub-section (10), the term of office and other conditions of service 5 of members, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among the members of, the State Unorganised Workers' Board shall be such as may be prescribed by the State Government:
Provided that adequate representation shall be given to persons belonging to the Scheduled Castes, the Scheduled Tribes, the minorities and women. 10
(13) The term of the State Unorganised Workers' Board shall be three years.
(14) The State Unorganised Workers' Board shall meet at least once in a quarter at such time and place and shall observe such rules of procedure relating to the transaction of business at its meetings, as may be prescribed by the State Government.
(15) The State Board shall perform the following functions, namely:— 15
(a) recommend the State Government for framing suitable schemes for different sections of the unorganised sector workers;
(b) advise the State Government on such matters arising out of the administration of this Code as may be referred to it;
(c) monitor such social welfare schemes for unorganised workers as are 20
administered by the State Government;
(d) review the record keeping functions performed at the district level;
(e) review the progress of registration and issue of cards to unorganised sector workers;
(f) review the expenditure from the funds under various schemes; and 25
(g) undertake such other functions as are assigned to it by the State Government from time to time.
(16) The State Government may, by notification, constitute with effect from such date as may be specified therein, one or more advisory committee to advise the State Government upon such matters arising out of the administration of this Code relating to 30
unorganised workers and such other matters as the State Government may refer to it for advice.
7. (1) Every State Government shall, with effect from such date as it may, by notification, appoint, constitute a Board to be known as the........................................................ (name of the State)
Building and Other Construction Workers' Welfare Board to exercise the powers conferred 35
on, and perform the functions assigned to, it under this section and Chapter VIII.
(2) The Building Workers' Welfare Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal and shall by the said name sue and be sued.
(3) The Building Workers' Welfare Board shall consist of a chairperson to be 40
nominated by the State Government, one member to be nominated by the Central Government and such number of other members, not exceeding fifteen, as may be appointed to it by the State Government:
Provided that the Building Workers' Welfare Board shall include an equal number of members representing the State Government, the employers and the building workers and 45
that at least one member of the Board shall be a woman.
(4) The terms and conditions of appointment and the salaries and other allowances payable to the chairperson and the other members of the Building Workers' Welfare Board, and the manner of filling of casual vacancies of the members of the Building Workers'
Welfare Board, shall be such as may be prescribed by the State Government. 50
(5) (a) The Building Workers' Welfare Board shall appoint a Secretary and such officers and employees as it considers necessary for the efficient discharge of its functions under this Code.
(b) The Secretary of the Building Workers' Welfare Board shall be its chief executive
5 officer.
(c) The terms and conditions of appointment and the salary and allowances payable to the Secretary and the other officers and employees of the Building Workers' Welfare Board shall be such as may be prescribed by the State Government.
(6) The Building Workers' Welfare Board shall perform the following functions,
10 namely:—
(a) provide death and disability benefits to a beneficiary or his dependants;
(b) make payment of pension to the beneficiaries who have completed the age of sixty years;
(c) pay such amount in connection with premium for Group Insurance Scheme
15 of the beneficiaries as may be prescribed by the appropriate Government;
(d) frame educational schemes for the benefit of children of the beneficiaries as may be prescribed by the appropriate Government;
(e) meet such medical expenses for treatment of major ailments of a beneficiary or, such dependant, as may be prescribed by the appropriate Government;
20 (f) make payment of maternity benefit to the beneficiaries;
(g) frame skill development and awareness schemes for the beneficiaries;
(h) provide transit accommodation or hostel facility to the beneficiaries;
(i) formulation of any other welfare scheme for the building worker beneficiaries by State Government in concurrence with the Central Government; and
25 (j) make provision and improvement of such other welfare measures and facilities as may be prescribed by the Central Government.
(7) The State Government may, by notification, constitute with effect from such date as may be specified therein one or more advisory committee to advise the State Government upon such matters arising out of the administration of this Code relating to building workers
30 and such other matters as the State Government may refer to it for advice.
8. (1) No person shall be chosen as, or continue to be, a member of a Social Security Organisation, or any Committee thereof who,—
(a) is or at any time has been adjudged an insolvent; or
(b) is found to be a lunatic or becomes of unsound mind; or
35 (c) is or has been convicted of any offence involving moral turpitude; or
(d) is an employer in an establishment and has defaulted in the payment of any dues under this Code;
(e) is a member of a Social Security Organisation being a member of the Parliament or a member of a State Legislative Assembly, when he ceases to be such
40 member of the Parliament or State Legislative Assembly, as the case may be; or
(f) is a member of Social Security Organisation being a member of the Parliament or a member of a State Legislative Assembly, and he becomes a—
(i) Minister of Central or State Government; or
(ii) Speaker or Deputy Speaker of House of the People or a State
45 Legislative Assembly; or
(iii) Deputy Chairman of the Council of States.
Disqualification and removal of a member of any Social Security Organisation.
Procedure for transaction of business of Social Security Organisation, etc.
Explanation 1.—If any question arises whether any person is disqualified under clause (d), it shall be referred to the appropriate Government and the decision of the appropriate Government on any such question shall be final.
Explanation 2.—Clause (f) shall not apply in case of persons who are members of the Social Security Organisation ex officio, by virtue of being a Minister. 5
(2) The Central Government, in case of the Central Board, the Corporation and the National Social Security Board and the State Government in case of the State Unorganised Workers' Board and the Building Workers' Welfare Board, may remove any member of such Social Security Organisation from his office, who,—
(a) is or has become subject to any of the disqualifications mentioned in 10
sub-section (1); or
(b) is absent without leave of the Social Security Organisation of which he is a member for more than three consecutive meetings of the Social Security Organisation or a Committee thereof;
(c) in the opinion of such Government, has so abused the position of his office 15
as to render that member's continuation in the office detrimental to the public interest or is otherwise unfit or unsuitable to continue as such member in the opinion of such Government:
Provided that no person shall be removed under clauses (b) and (c), unless that person
has been given an opportunity to show cause as to why he should not be removed: 20
Provided further that a member of the Executive Committee of the Central Board or the Standing Committee of the Corporation shall cease to hold office if he ceases to be a member of the Central Board or the Corporation, as the case may be.
(3) Any member of a Social Security Organisation or a Committee thereof may at
any time resign from his office in writing under his hand addressed to the Central 25
Government or the State Government, as the case may be, which had made his appointment and on acceptance of such resignation, his office shall become vacant.
(4) If in a Social Security Organisation or a Committee thereof, the Central Government or the State Government, as the case may be, is of the opinion that—
(a) any member thereof representing employers or the employees or the 30
unorganised workers, as the case may be, ceases to adequately represent so; or
(b) any member thereof representing to be an expert in a specified area, is later on found not to possess sufficient expertise in that area; or
(c) having regard to exigencies of circumstances or services in such Government, the member thereof representing such Government cannot continue to 35
represent the Government;
then, such Government may, by order, remove such member from his office:
Provided that no person shall be removed under clause (a) or clause (b), unless that person has been given an opportunity to show cause as to why he should not be removed.
(5) If any member of a Social Security Organisation or a Committee thereof, who is 40
a director of a company and who as such director, has any direct or indirect pecuniary interest in any matter coming up for consideration of the Social Security Organisation or a Committee thereof, then, he shall, as soon as may be possible after such fact of interest has come to his knowledge, disclose the nature of the interest and such disclosure shall be recorded in the proceedings of the Social Security Organisation or the Committee thereof, 45
as the case may be, and such member, thereafter, shall not take part in any proceeding or decision of the Social Security Organisation, or a Committee thereof relating to that matter.
9. (1) A Social Security Organisation or any Committee thereof shall meet at such intervals and observe such procedure in regard to the transaction of business at its meetings (including the quorum at such meetings) as may be prescribed by the Central Government. 50
(2) All orders and decisions of the Social Security Organisation shall be authenticated by the Central Provident Fund Commissioner, Director General, Director General Labour Welfare, State Principal Secretary or Secretary (Labour) of the respective Social Security Organisations or such other officer as may be notified by the appropriate Government and
5 all other instruments issued by the Social Security Organisation shall be authenticated by the signature of such officer as may be authorised by an order by the respective Social Security Organisations.
(3) No act done or proceeding taken by a Social Security Organisation or any Committee thereof shall be questioned on the ground merely of the existence of any vacancy in, or any
10 defect in the constitution of the Social Security Organisation or the Committee thereof, as the case may be.
(4) Such members of a Social Security Organisation or any Committee thereof shall be entitled for such fee and allowances as may be prescribed by the Central Government.
10. The Central Provident Fund Commissioner and the Director General shall be the
15 whole-time officer of the Central Board and the Corporation, respectively, and such officer shall not undertake any work unconnected with his office without the prior approval of the Central Government.
11. (1) If the Central Government in case of the Central Board, the Corporation or the National Social Security Board and the State Government, in case of the State Unorganised
20 Workers' Board or the Building Workers' Welfare Board, is of the opinion that the Corporation or the Central Board or the National Social Security Board or the State Unorganised Workers’ Board or the Building Workers' Welfare Board or any of the Committee thereof, as the case may be, is unable to perform its functions, or, has persistently made delay in the discharge of its functions or has exceeded or abused its powers or jurisdiction, then such Government
25 may, by notification, supersede the Corporation or the Central Board or the National Social Security Board or the State Unorganised Workers' Board or the Building Workers’ Welfare Board, or any of the Committees thereof, as the case may be, and reconstitute it in such manner as may be prescribed by the Central Government:
Provided that, before issuing a notification under this sub-section on any of the
30 grounds specified herein, such Government shall give an opportunity to the Corporation or the Central Board or the National Social Security Board or the State Unorganised Workers’ Board or the Building Workers' Welfare Board or any Committee thereof, as the case may be, to show cause as to why it should not be superseded and shall consider the explanations and objections raised by it and take appropriate action thereon.
35 (2) After the supersession of the Corporation, or the Central Board or the National Social Security Board, the State Unorganised Workers’ Board or the Building Workers’ Welfare Board, or any of the Committee thereof, as the case may be, and until it is reconstituted, the Central Government or the State Government, as the case may be, shall make such alternate arrangements for the purpose of administration of the relevant
40 provisions of this Code, as may be prescribed by the Central Government.
(3) The Central Government or the State Government, as the case may be, shall cause, a full report of any action taken by it under this section and the circumstances leading to such action, to be laid before each House of Parliament or the State Legislature, as the case may be, at the earliest opportunity and in any case not later than three months
45 from the date of the notification of supersession issued under sub-section (1).
12. (1) The Central Government may, by notification,—
(i) after consultation with the Government of any State, constitute for that State, a Board of Trustees (hereinafter in this Code referred to as a State Board) which shall exercise such powers and perform such functions as may be assigned by
50 notification, to it by the Central Government from time to time;
(ii) specify the manner of constitution of a State Board, the terms and conditions of the appointment of its members and the procedure of its meeting and other proceedings relating thereto.
Executive Heads of Central Board and Corporation.
Supersession of Corporation, Central Board,
National Social Security Board or State
Unorganised Workers’ Board or the Building
Workers’ Welfare Board.
State Board, Regional Boards, local committees, etc.
Entrustment of additional functions to Social Security Organisations.
Appointment of officers of Central Board.
(2) The Corporation may, by order, appoint Regional Boards and local committees in such area and in such manner to perform such functions and to exercise such powers as may be specified in the regulations.
13. Notwithstanding anything contained in this Code, the Central Government may,
by notification,— 5
(i) assign additional functions to a Social Security Organisation including administration of any other Act or scheme relating to social security subject to such provisions as may be specified in this behalf in the notification:
Provided that while the additional function of administering the Act or scheme
are assigned under this clause to a Social Security Organisation, the officer or authority 10
of such organisation, to whom such function has been assigned, shall exercise the powers under the enactment or scheme required for discharging such function in the manner as may be specified in the notification:
Provided further that the Social Security Organisations may assign such additional functions to existing officers or appoint or engage new officers necessary 15
for such purpose, if such functions may not be performed and completed with the assistance of its personnel as existing immediately before the assignment of the additional functions;
(ii) specify the terms and conditions of discharging the functions under clause (i)
by the Social Security Organisation; 20
(iii) provide that the expenditure incurred in discharging the functions specified in clause (i) including appointment or engagement of personnel necessary for proper discharge of such functions shall be borne by the Central Government;
(iv) specify the powers which the Social Security Organisation shall exercise while discharging the functions specified in clause (i); and 25
(v) provide that any expenditure referred to in clause (iii) shall be made by the Social Security Organisation after prior approval of the Central Government.
CHAPTER III EMPLOYEES’ PROVIDENT FUND
14. (1) The Central Government may appoint a Central Provident Fund Commissioner 30
who shall be the Chief Executive Officer of the Central Board and shall also function as head of the Employees Provident Fund Organisation.
Explanation.—For the purposes of this Code, the expression "Employees’ Provident Fund Organisation" means the organisation consisting of officers and employees of the Central Board. 35
(2) The Central Provident Fund Commissioner shall be subject to the general control and superintendence of the Central Board in the discharge of his functions under this Code.
(3) The Central Government shall also appoint a Financial Advisor and Chief Accounts Officer to assist the Central Provident Fund Commissioner in the discharge of his duties.
(4) The Central Board may appoint, as many Additional Central Provident Fund 40
Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioners and such other officers and employees as it may consider necessary for the efficient administration of the Provident Fund Scheme, the Pension Scheme and the Insurance Scheme or other responsibilities assigned to the Central Board from time to time by the Central Government. 45
(5) No appointment to the post of the Central Provident Fund Commissioner or an Additional Central Provident Fund Commissioner or a Financial Adviser and Chief Accounts Officer or any other post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group 'A' or Group 'B' post under the Central Government shall be made except after consultation with the Union Public Service Commission: 50
Provided that no such consultation shall be necessary in regard to any such appointment—
(a) for a period not exceeding one year; or
(b) if the person to be appointed is, at the time of his appointment,—
5 (i) a member of the Indian Administrative Service, or
(ii) in the service of the Central Government or the Central Board in a Group 'A' or Group 'B' post.
(6) The method of recruitment, salary and allowances, discipline and other conditions of service of the Central Provident Fund Commissioner and the Financial Adviser and
10 Chief Accounts Officer shall be such as may be specified by the Central Government and such salary and allowances shall be paid out of the Provident Fund.
(7) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the Additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners, Assistant
15 Provident Fund Commissioners and other officers and employees of the Central Board shall be such as may be specified by the Central Board in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay:
Provided that where the Central Board is of the opinion that it is necessary to make
20 a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government:
Provided further that the salary and allowances of the officers specified in this clause shall not exceed the scale of pay respectively provided in the Provident Fund Scheme.
(b) In determining the corresponding scales of pay of officers and employees under
25 clause (a), the Central Board shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Central Board shall refer the matter to the Central Government whose decision thereon shall be final.
15. (1) The Central Government may, by notification—
30 (a) frame a scheme to be called the Employees' Provident Fund Scheme for which the provident funds shall be established under this Chapter for employees or for any class of employees and specify the establishments or class of establishments to which the said scheme shall apply;
(b) frame a scheme to be called the Employees' Pension Scheme for the purpose
35 of providing for—
(i) superannuation pension, retiring pension or permanent total disablement pension to the employees of any establishment or class of establishments to which this Chapter applies;
(ii) widow or widower's pension, children pension or orphan pension
40 payable to the beneficiaries of such employees; and
(iii) nominee pension;
(c) frame a scheme to be called the Employees' Deposit Linked Insurance Scheme for the purpose of providing life insurance benefits to the employees of any establishment or class of establishments to which this Chapter applies;
45 (d) frame any other scheme or schemes for the purposes of providing social security benefits under this Code to self-employed workers or any other class of persons; and
Schemes.
Funds.
(e) modify any scheme referred to in clauses (a), (b), (c) and (d) by adding thereto, amending or varying therein, either prospectively or retrospectively.
(2) Subject to the provisions of this Chapter, the schemes referred to in clauses (a), (b) and (c) of sub-section (1) may provide for all or any of the matters respectively specified in Part A, Part B and Part C of the Fifth Schedule. 5
(3) The schemes may provide that all or any of its provisions shall take effect either prospectively or retrospectively on and from such date as may be specified in that behalf in the scheme.
16. (1) The Central Government may, for the purposes of—
(a) the Provident Fund Scheme, establish a Provident Fund where the 10
contributions paid by the employer to the fund shall be ten per cent. of the wages for the time being payable to each of the employees (whether employed by him directly or by or through a contactor), and the employee's contribution shall be equal to the contribution payable by the employer in respect of him and may, if any employee so
desires, be an amount exceeding ten per cent. of the wages, subject to the condition 15
that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section:
Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification, specify, this section shall be subject to the modification that for the 20
words "ten per cent." at both the places where they occur, the words "twelve per cent." shall be substituted:
Provided further that the Central Government, after making such inquiry as it deems fit, may, by notification, specify rates of employees’ contributions and the period for which such rates shall apply for any class of employee; 25
(b) the Pension Scheme, establish a Pension Fund in the manner specified in that scheme by that Government into which there shall be paid, from time to time, in respect of every employee who is a member of the Pension Scheme,—
(i) such sums from the employer's contribution under clause (a) not exceeding eight and one-third per cent. of the wages or such per cent. of wages 30
as may be notified by the Central Government;
(ii) such sums payable as contribution to the Pension Fund, as may be specified in the Pension Scheme, by the employers of the exempted establishments under section 143 to which the pension scheme applies;
(iii) such sums as the Central Government after due appropriation by 35
Parliament by law in this behalf, specify;
(c) the Insurance Scheme, establish a Deposit-Linked Insurance Fund in the manner specified in that scheme by that Government into which there shall be paid by the employer from time to time in respect of every such employee in relation to
whom he is the employer, such amount, not being more than one per cent. of the 40
wages or such per cent. of wages as may be notified by the Central Government for the time being payable in relation to such employee:
Provided that the employer shall pay into the Insurance Fund such further sums of money, not exceeding one-fourth of the contribution which he is required to make under this clause, as the Central Government may, from time to time, determine 45
to meet all the expenses in connection with the administration of the Insurance Scheme other than the expenses towards the cost of any benefits provided by or under the Insurance Scheme.
5
10
15
20
25
31 of 2016.
2 of 1912. 30
35
40
45
(2) The Provident Fund, the Pension Fund and the Insurance Fund shall vest in, and be administered by, the Central Board in such manner as may be specified in the respective schemes.
17. (1) The amount of contribution (that is to say, the employer's contribution as well as the employee's contribution in pursuance of any scheme and the employer's contribution in pursuance of the Insurance Scheme) and any charge for meeting the cost of administering the fund paid or payable by an employer in respect of an employee employed by or through a contractor may be recovered by such employer from the contractor, either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.
(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect of any employee employed by or through him may recover from such employee, the employee's contribution under any scheme by deduction from the wages payable to such employee.
(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct the employer's contribution or the charges referred to in sub-section (1) from the wages payable to an employee employed by or through him or otherwise to recover such contribution or charges from such employee.
18. For the purposes of the Income-tax Act, 1961, the Provident Fund shall be deemed to be a recognised provident fund within the meaning of clause (38) of section 2 of that Act:
Provided that nothing contained in the said Act shall operate to render ineffective any provision of the Provident Fund Scheme (under which the Provident Fund is established) which is repugnant to any of the provisions of that Act or of the rules made thereunder.
19. Notwithstanding anything contained in any other law for the time being in force, any amount due under this Chapter shall be the charge on the assets of the establishment to which it relates and shall be paid in priority in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.
20. (1) This Chapter shall not apply—
(a) to any establishment registered under the Co-operative Societies Act, 1912 or under any other law for the time being in force in any State relating to cooperative societies employing less than fifty persons and working without the aid of power; or
(b) to any other establishment belonging to or under the control of the Central Government or a State Government and whose employees are entitled to the benefit of contributory provident fund or old age pension in accordance with any scheme or rule framed by the Central Government or the State Government governing such benefits; or
(c) to any other establishment set up under any Central or State or any other law for the time being in force and whose employees are entitled to the benefits of contributory provident fund or old age pension in accordance with any scheme or rule framed under that law governing such benefits; or
(d) to the employees who, immediately before the commencement of this Code, were receiving benefits of Provident Fund under any Central or State enactment.
(2) If the Central Government is of the opinion that having regard to the financial position of any class of establishment or other circumstances of the case, it is necessary or expedient so to do, it may, by notification and subject to such conditions, as may be specified in the notification, exempt, whether prospectively or retrospectively, that class of establishments from the operation of this Chapter for such period as may be specified in the notification.
Contribution in respect of employees and contractors.
Fund to be recognised under Act 43 of 1961.
Priority of payment of contributions over other debts.
Chapter not to apply to
certain establishments.
Authorising certain employers to maintain provident fund accounts.
Transfer of accounts.
Appeal to Tribunal.
21. (1) The Central Government may, on an application made to it in this behalf by the employer and the majority of employees in relation to an establishment employing one hundred or more persons, authorise the employer by an order in writing, to maintain a provident fund account in relation to the establishment, in such manner as may be prescribed
by the Central Government and subject to such terms and conditions as may be specified in 5
the Provident Fund Scheme:
Provided that no authorisation shall be made under this sub-section if the employer of such establishment had committed any default in the payment of provident fund contribution or had committed any other offence under this Code during the three years
immediately preceding the date of such authorisation. 10
(2) Where an establishment is authorised to maintain a provident fund account under sub-section (1), the employer in relation to such establishment shall maintain such account, submit such return, deposit the contribution in such manner, provide for such facilities for inspection, pay such administrative charges, and abide by such other terms and conditions,
as may be specified in the Provident Fund Scheme. 15
(3) Any authorisation made under this section may be cancelled by the Central Government by order in writing if the employer fails to comply with any of the terms and conditions of the authorisation or where he commits any offence under any provision of this Code:
Provided that before cancelling the authorisation, the Central Government shall give 20
the employer a reasonable opportunity of being heard.
22. Where an employee,—
(a) employed in an establishment to which this Chapter applies, relinquishes his employment therefrom and obtains employment in any other establishment to
which this Chapter applies or not; or 25
(b) employed in an establishment to which this Chapter does not apply, relinquishes his employment therefrom and obtains employment in an establishment to which this Chapter applies,
then, his accumulated amount in provident fund account or pension account, as the case may be, shall be transferred or dealt with in the manner as may be specified in the Provident 30
Fund Scheme or the Pension Scheme, as the case may be.
23. (1) Any person aggrieved by an order passed by any authority in regard to the following matters may prefer an appeal to the Tribunal constituted by the Central Government, namely:—
(a) determination and assessment of dues under section 125 relating to 35
Chapter III; and
(b) levy of damages under section 128 relating to Chapter III.
(2) Every appeal under sub-section (1) shall be filed in such form and manner, within such time and accompanied by such fees as may be prescribed by the Central Government.
(3) No appeal under clause (a) of sub-section (1) by the employer shall be entertained 40
by the Tribunal unless he has deposited with Social Security Organisation concerned twenty-five per cent. of the amount due from him as determined by an officer under section 125.
(4) The Tribunal shall endeavour to decide the appeal within a period of one year from
the date on which the appeal has been preferred. 45
CHAPTER IV
EMPLOYEES STATE INSURANCE CORPORATION
24. (1) The Central Government may appoint a Director General of the Corporation and a Financial Commissioner, who shall be the Principal Officers of the Corporation.
5 (2) The Director General and the Financial Commissioner shall hold office for such period, not exceeding five years, as may be specified in the order of appointment:
Provided that outgoing Director General or Financial Commissioner, as the case may be, shall be eligible for re-appointment if he is otherwise qualified.
(3) The Director General or the Financial Commissioner shall receive such salary and
10 allowances as may be prescribed by the Central Government.
(4) The Director General and the Financial Commissioner shall exercise such powers and discharge such duties as may be prescribed by the Central Government and shall perform such other functions as may be specified in the regulations.
(5) A person shall be disqualified from being appointed as or for being the Director
15 General of the Corporation or the Financial Commissioner if he is subject to any of the disqualifications specified in section 8.
(6) The Central Government may at any time remove the Director General of the Corporation or the Financial Commissioner from office and shall do so if such removal is recommended by a resolution of the Corporation passed at a special meeting called for the
20 purpose and supported by the votes of not less than two-third of the total strength of the Corporation.
(7) The Corporation may employ such other officers and employees as may be necessary for the efficient transaction of its business and for discharge of any other responsibilities assigned to the Corporation from time to time by the Central Government:
25 Provided that the sanction of the Central Government shall be obtained for the creation of any post the maximum monthly salary of which exceeds such salary as may be prescribed by the Central Government.
(8) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the officers and employees of the Corporation shall be such as
30 may be specified in the regulations in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay:
Principal Officers and other staff.
Provided that the terms and conditions of service including pay and allowances of such posts of medical specialists and super specialists in the Corporation possessing
35 comparable qualifications and expertise, as may be notified by the Central Government, with the equivalent posts of the specialists and super specialists in the All India Institute of Medical Sciences or in the Post Graduate Institutes of Medical Sciences and Research or other similar institutions established by the Central Government, shall respectively be similar:
40 Provided further that where the Corporation is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government:
Provided also that this sub-section shall not apply to appointment of consultants and specialists in various fields appointed on contract basis.
45 (b) In determining the corresponding scales of pay of officers and employees under clause (a), the Corporation shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Corporation shall refer the matter to the Central Government whose decision thereon shall be final.
Employees’ State Insurance Fund.
Purposes for which Employees’ State Insurance Fund may be expended.
(9) Every appointment to posts (other than medical, nursing or para-medical posts) corresponding to Group 'A' and Group 'B' Gazetted posts under the Central Government shall be made in consultation with the Union Public Service Commission:
Provided that the provisions of this sub-section shall not apply to an officiating or temporary appointment for a period not exceeding one year: 5
Provided further that any such officiating or temporary appointment shall not confer any claim for regular appointment and the services rendered in that capacity shall not count towards seniority or minimum qualifying service specified in the regulations for promotion to next higher grade.
(10) If any question arises whether a post corresponds to a Group 'A' and Group 'B' 10
posts under the Central Government, the question shall be referred to that Government whose decision thereon shall be final.
25. (1) All contributions and user charges paid under this Chapter and all other moneys received on behalf of the Corporation shall be paid into a fund (hereinafter referred as the Employees' State Insurance Fund) which shall be held and administered by the Corporation 15
for the purposes of this Code:
Provided that the user charges collected from the other beneficiaries referred to in section 44 shall be deemed to be contribution and shall form part of Employees' State Insurance Corporation.
(2) The Corporation may accept grants, donations, Corporate Social Responsibility 20
Fund and gifts from the Central or any State Government, local authority, or any individual or body whether incorporated or not, for all or any of the purposes of this Chapter.
(3) Subject to the other provisions contained in this Code and to any rules or regulations made in this behalf, all moneys accruing or payable to the said Fund shall be deposited in such bank or banks as may be approved by the Central Government to the 25
credit of an account styled the account of the Employees' State Insurance Fund.
(4) The Employees State Insurance Fund or any other money which is held by the Corporation shall be deposited or invested in the manner prescribed by the Central Government and the account referred to in sub-section (3) shall be operated by such officers
as may be authorised by the Committee constituted under sub-section (3) of section 5 30
(hereinafter referred to as the Standing Committee) with the approval of the Corporation.
26. Subject to the provisions of this Chapter and the rules and regulations relating thereto, made under this Code, the Employees' State Insurance Fund shall be expended only for the following purposes, namely:—
(a) payment of benefits and provision of medical treatment and attendance to 35
Insured Persons referred to in section 28 and, where the medical benefit is extended to their families, the provision of such medical benefit to their families, in accordance with the provisions of this Chapter and the rules and regulations relating thereto and defraying the charges and costs in connection therewith;
(b) payment of fees and allowances to members of the Corporation, the Standing 40
Committee, the Medical Benefit Committee or other Committees thereof;
(c) payment of salaries, leave and joining time allowances, travelling and compensatory allowances, gratuities and compassionate allowances, pensions, contributions to provident or other benefit fund of officers and staff of the Corporation
and meeting the expenditure in respect of offices and other services set up for the 45
purpose of giving effect to the provisions of this Code relating to this Chapter;
(d) establishment and maintenance of hospitals, dispensaries and other institutions and the provision of medical and other ancillary services for the benefit
of Insured Persons referred to in section 28 and, where the medical benefit is extended to their families;
(e) payment of contributions to any State Government, local authority or any private body or individual, towards the cost of medical treatment and attendance
5 provided to Insured Persons referred to in section 28 and, where the medical benefit is extended to their families, their families, including the cost of any building and equipment, in accordance with any agreement entered into by the Corporation;
(f) defraying the cost (including all expenses) of auditing the accounts of the Corporation and of the valuation of its assets and liabilities;
10 (g) defraying the cost (including all expenses) of the Employees' Insurance Courts set up under this Chapter;
(h) payment of any sums under any contract entered into for the purposes of this Code by Corporation or the Standing Committee or by any officer duly authorised by the Corporation or the Standing Committee in that behalf;
15 (i) payment of sums under any decree, order or award of any Court or Tribunal against the Corporation or any of its officers or staff for any act done in the execution of his duty or under a compromise or settlement of any suit or other legal proceeding or claim instituted or made against the Corporation;
(j) defraying the cost and other charges of instituting or defending any civil or
20 criminal proceedings arising out of any action taken under this Code relating to this Chapter;
(k) defraying expenditure, within the limits prescribed by the Central Government after consultation with the Corporation, on measures for the improvement of the health and welfare of Insured Persons and for the rehabilitation and
25 re-employment of Insured Persons referred to in section 28 who have been disabled or injured; and
(l) such other purposes as may be authorised by the Corporation with the previous approval of the Central Government.
27. (1) The Corporation may, subject to such conditions as may be prescribed by the
30 Central Government, acquire and hold property, both movable and immovable, sell or otherwise transfer any movable or immovable property which may have become vested in or have been acquired by it and do all things necessary for the purposes for which the Corporation is established.
(2) Subject to such conditions as may be prescribed by the Central Government, the
35 Corporation may from time to time invest any moneys which are not immediately required for expenses properly defrayable under this Code and may, subject to as aforesaid, from time to time re-invest or realise such investments.
(3) The Corporation may, with the previous sanction of the Central Government and on such terms as may be prescribed by it, raise loans and take measures for discharging
40 such loans.
(4) The Corporation may constitute for the benefit of its officers and staff or any class of them, such provident or other benefit fund as it may think fit.
28. (1) Subject to the provisions of this Code, every employee in an establishment to which this Chapter applies shall be insured in such manner whether electronically or
45 otherwise, as may be prescribed by the Central Government.
(2) An employee whether insured or insurable under sub-section (1) in respect of whom contributions are or were payable and who is by reason thereof, entitled to any of the benefits provided under this Chapter, shall be called "Insured Person".
Holding of property, etc.
All employees to be insured.
Contributions.
Administrative expenses.
Provisions as to payment of contributions by employer, etc.
29. (1) The contribution payable under this Chapter in respect of an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer's contribution) and contribution payable by the employee (hereinafter referred to as the employee's contribution) and shall be paid to the Corporation.
(2) The contributions (employer's contribution and the employee’s contribution both) 5
shall be paid at such rates as may be prescribed by the Central Government.
(3) The wage period in relation to an employee shall be the unit as specified in the regulations (hereinafter referred to as the wage period) in respect of which all contributions shall be payable under this Chapter.
(4) The contributions payable in respect of each wage period shall ordinarily fall due 10 on the last day of the wage period, and where an employee is employed for part of the wage period, or is employed under two or more employers during the same wage period,
the contributions shall fall due on such days as may be specified in the regulations.
30. The types of expenses which may be termed as administrative expenses and the percentage of the income of the Corporation which may be spent for such expenses shall 15 be such as may be prescribed by the Central Government and the Corporation shall keep
its administrative expenses within the limit so prescribed by the Central Government.
31. (1) The employer shall pay in respect of every employee, whether directly employed by him or by or through a contractor, both the employer's contribution and the employee's contribution. 20
(2) Notwithstanding anything contained in any other law for the time being in force, but subject to the provisions of this Code and the rules and regulations, if any, made thereunder in this behalf, the employer shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled to recover from the employee the
employee's contribution by reduction from his wages and not otherwise: 25
Provided that no such deduction shall be made from any wages other than such as relates to the period or part of the period in respect of which the contribution is payable or in excess of the sum representing the employee's contribution for the period.
(3) Notwithstanding any contract to the contrary, neither the employer nor the contractor shall be entitled to deduct the employer's contribution from any wages payable 30
to an employee or otherwise to recover it from him.
(4) Any sum deducted by the employer from wages under this Chapter shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted.
(5) The employer shall bear the expenses of remitting the contributions to the 35
Corporation.
(6) An employer, who has paid contribution in respect of an employee employed by or through a contractor, shall be entitled to recover the amount of the contribution so paid (that is to say the employer's contribution as well as the employee's contribution, if any,)
from the contractor, either by deduction from any amount payable to him by the employer 40
under any contract, or as a debt payable by the contractor.
(7) The contractor shall maintain a register of employees employed by or through him as provided in the regulations and submit the same to the employer before the settlement of any amount payable under sub-section (6).
(8) In the case referred to in sub-section (6), the contractor shall be entitled to recover 45
the employee's contribution from the employee employed by or through him by deduction from wages and not otherwise, subject to such conditions as specified in the proviso to sub-section (2).
(9) Subject to the provisions of this Code, the Corporation may make regulations for any matter relating or incidental to the payment and collection of contributions payable under this Chapter.
32. (1) Subject to the provisions of this Code, the Insured Persons, their dependants
5 or the persons hereinafter mentioned, as the case may be, shall be entitled to the following benefits, namely:—
(a) periodical payments to any Insured Person in case of his sickness certified by a duly appointed medical practitioner or by any other person possessing such qualifications and experience as the Corporation may, by the regulations, specify in
10 this behalf (hereinafter referred to as sickness benefit);
(b) periodical payments to an Insured Person being a woman in case of confinement or miscarriage or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage, such woman being certified to be eligible for such payments by an authority specified in this behalf by the regulations
15 (hereinafter referred to as maternity benefit);
(c) periodical payments to an Insured Person suffering from disablement as a result of an employment injury sustained by him as an employee for the purposes of this Chapter and certified to be eligible for such payments by an authority specified in this behalf by the regulations (hereinafter referred to as disablement benefit);
20 (d) periodical payments to such dependants of an Insured Person who dies as a result of an employment injury sustained by him as an employee for the purposes of this Chapter, as are entitled under this Chapter (hereinafter referred to as dependants' benefit);
(e) medical treatment for and attendance on Insured Persons (hereinafter referred
25 to as medical benefit); and
(f) payment to the eldest surviving member of the family of an Insured Person who has died, towards the expenditure on the funeral of the deceased Insured Person, or, where the Insured Person did not have a family or was not living with his family at the time of his death, to the person who actually incurs the expenditure on the
30 funeral of the deceased Insured Person (to be known as funeral expenses):
Provided that the amount of payment under this clause shall not exceed such amount as may be prescribed by the Central Government and the claim for such payment shall be made within three months of the death of the Insured Person or within such extended period as the Corporation or any officer or authority authorised by it in this behalf may
35 allow.
(2) The Corporation may, subject to such conditions as may be laid down in the regulations, extend the medical benefits to the family of an Insured Person.
(3) The qualification of a person to claim sickness benefit, maternity benefit, disablement benefit and dependants' benefit and the conditions subject to which such benefit
40 may be given and the rate and period thereof, shall be such as may be prescribed by the Central Government.
(4) Subject to the provisions of this Code and the rules made thereunder relating to this Chapter, the Corporation may make regulations for any matter relating or incidental to the accrual and payment of benefits payable under this Chapter.
45 33. The Corporation may, in addition to the benefits specified in this Chapter, promote measures for the improvement of the health and welfare of Insured Persons and for the rehabilitation and re-employment of Insured Persons who have been disabled or injured and may incur in respect of such measures, expenditure from the Employees' State Insurance Fund within such limits as may be prescribed by the Central Government.
Benefits.
Corporation’s power to promote measures for health, etc., of Insured Persons.
Presumption as to accident arising in course of employment.
Accidents happening while acting in breach of law, etc.
Occupational disease.
34. (1) For the purposes of this Chapter, an accident arising in the course of an employee's employment shall be presumed, in the absence of evidence to the contrary, to have arisen out of that employment.
(2) An accident happening to an employee in or about any premises at which he is for the time being employed for the purpose of his employer's trade or business shall be 5 deemed to arise out of and in the course of his employment, if it happens while he is taking steps, on an actual or supposed emergency at those premises, to rescue, succour or protect persons who are, or are thought to be or possibly to be, injured or imperilled, or to avert or minimise serious damage to property.
(3) An accident occurring to an employee while commuting from his residence to 10 the place of employment for duty or from the place of employment to his residence after performing duty, shall be deemed to have arisen out of and in the course of employment if nexus between the circumstances, time and place in which the accident occurred and the employment is established.
(4) An accident happening while an employee is, with the express or implied 15 permission of his employer, travelling as a passenger by any vehicle to or from his place of work shall, notwithstanding that he is under no obligation to his employer to travel by that vehicle, be deemed to arise out of and in the course of his employment, if—
(a) the accident would have been deemed so to have arisen had he been under such obligation; and 20
(b) at the time of the accident, the vehicle—
(i) is being operated by or on behalf of his employer or some other person by whom it is provided in pursuance of arrangements made with his employer; and
(ii) is not being operated in the ordinary course of public transport service. 25
Explanation.—In this section, "vehicle" includes a vessel and an aircraft.
35. An accident shall be deemed to arise out of and in the course of an employee's employment notwithstanding that he is at the time of the accident acting in contravention of the provisions of any law applicable to him, or of any orders given by or on behalf of his
employer or that he is acting without instructions from his employer, if— 30
(a) the accident would have been deemed so to have arisen had the act not been done in contravention as aforesaid or without instructions from his employer, as the case may be; and
(b) the act is done for the purpose of and in connection with the employer's trade or business. 35
36. (1) If an employee employed in any employment specified in Part A of the Third Schedule contracts any disease specified therein as an occupational disease peculiar to that employment, or if an employee employed in the employment specified in Part B of that Schedule for a continuous period of not less than six months contracts any disease
specified therein as an occupational disease peculiar to that employment or if an employee 40
employed in any employment specified in Part C of that Schedule for such continuous period as the Corporation may specify by regulations in respect of each such employment, contracts any disease specified in such Part C as an occupational disease peculiar to that employment, the contracting of the disease shall, unless the contrary is proved, be deemed
to be an "employment injury ", arising out of and in the course of employment. 45
(2) Save as provided by sub-section (1), no benefit shall be payable to an employee in respect of any disease unless the disease is directly attributable to a specific injury by accident arising out of and in the course of his employment.
(3) The provisions of sub-section (1) of section 34 shall not apply to the cases to which this section applies.
37. (1) Any question—
(a) whether the relevant accident has resulted in permanent disablement; or
5 (b) whether the extent of loss of earning capacity can be assessed provisionally or finally; or
(c) whether the assessment of the proportion of the loss of earning capacity is provisional or final; or
(d) in the case of provisional assessment, as to the period for which such
10 assessment shall hold good,
shall be determined by a medical board constituted in accordance with the provisions of the regulations (hereinafter referred to as medical board) and any such question shall hereafter be referred to as the "disablement question".
(2) The case of any Insured Person for permanent disablement benefit shall be referred
15 by the Corporation to a medical board for determination of the disablement in question and if, on that or any subsequent reference, the extent of loss of earning capacity of the Insured Person is provisionally assessed, it shall again be so referred to the medical board not later than the end of the period taken into account by the provisional assessment.
(3) Any decision under this Chapter of a medical board may be reviewed at any time
20 by the medical board if it is satisfied by fresh evidence that the decision was given in consequence of the non-disclosure or misrepresentation by the employee or any other person of a material fact whether the non-disclosure or misrepresentation was or was not fraudulent.
(4) Any assessment of the extent of the disablement resulting from the relevant
25 employment injury may also be reviewed by a medical board if it is satisfied that since the making of the assessment there has been a substantial and unforeseen aggravation of the results of the relevant injury:
Provided that an assessment shall not be reviewed under this sub-section unless the medical board is of the opinion, having regard to the period taken into account by the
30 assessment and the probable duration of the aggravation aforesaid, that substantial injustice will be done by not reviewing it.
(5) Except with the leave of a medical appeal tribunal constituted by regulations, an assessment shall not be reviewed under sub-section (4) on any application made less than five years, or in the case of a provisional assessment, six months, from the date thereof and
35 on such a review the period to be taken into account by any revised assessment shall not include any period before the date of the application.
(6) Subject to the foregoing provisions of this section, a medical board may deal with a case of review in any manner in which it could deal with it on an original reference to it, and in particular may make a provisional assessment notwithstanding that the
40 assessment under review was final and the provisions of sub-section (2) shall apply to an application for review under this sub-section and to a decision of a medical board in connection with such application as they apply to a case for disablement benefit under that sub-section and to a decision of the medical board in connection with such case.
(7) (a) If the Insured Person or the Corporation is aggrieved by any decision of the
45 medical board, the Insured Person or the Corporation, as the case may be, may appeal in such manner and within such time as may be prescribed by the Central Government to—
(i) the medical appeal tribunal constituted in accordance with the provisions of the regulations; or
References to medical board.
Dependants' benefit.
Medical benefit.
(ii) the Employees' Insurance Court directly:
Provided that no appeal by an Insured Person shall lie under this sub-section if such person has applied for commutation of disablement benefit on the basis of the decision of the medical board and received the commuted value of such benefits:
Provided further that no appeal by the Corporation shall lie under this sub-section if 5 the Corporation paid the commuted value of the disablement benefit on the basis of the decision of the medical board.
(b) Where the Insured Person or the Corporation preferred appeal to the medical appeal tribunal under sub-clause (i) of clause (a) instead of to the Employees' Insurance Court under sub-clause (ii) of that clause, then, he or it, as the case may be, shall have the 10 further right to file second appeal to the Employees' Insurance Court in such manner and within such time as may be prescribed by the appropriate Government.
38. (1) If an Insured Person dies as a result of an employment injury sustained as an employee under this Chapter (whether or not he was in receipt of any periodical payment
for temporary disablement in respect of the injury), dependants' benefit shall be payable to 15 his dependants specified in sub-clause (a) and sub-clause (b) of clause (24) of section 2 at such rates and for such periods and subject to such conditions as may be prescribed by the Central Government.
(2) In case the Insured Person dies without leaving behind him the dependants as aforesaid, the dependants' benefit shall be paid to the other dependants of the deceased at 20 such rates and for such periods and subject to such conditions as may be prescribed by the Central Government.
(3) Any decision awarding dependants' benefit under this Chapter may be reviewed at any time by the Corporation if it is satisfied by fresh evidence that the decision was
given in consequence of non-disclosure or misrepresentation by the claimant or any other 25 person of a material fact (whether the non-disclosure or misrepresentation was or was not fraudulent) or that the decision is no longer in accordance with this Chapter due to any birth or death or due to the marriage, re-marriage, or ceasing of infirmity, or attainment of the
age of twenty-five years by, a claimant.
(4) Subject to the provisions of this Chapter, the Corporation may, on such review 30
under sub-section (3), direct that the dependants' benefit be continued, increased, reduced or discontinued.
39. (1) An Insured Person or (where such medical benefit is extended to his family) a member of his family whose condition requires medical treatment and attendance shall
be entitled to receive medical benefit. 35
(2) Such medical benefit may be given either in the form of out-patient treatment and attendance in a hospital or dispensary, clinic or other institution or by visits to the home of the Insured Person or treatment as in-patient in a hospital or other institution.
(3) The qualification of an Insured Person and (where such medical benefit is extended
to his family) his family, to claim medical benefit and the conditions subject to which such 40
benefit may be given, the scale and period thereof shall be such as may be prescribed by the Central Government:
Provided that a person in respect of whom contribution ceases to be payable under this Chapter may be allowed medical benefit for such period and of such nature as may be
provided by the regulations: 45
Provided further that an Insured Person who has attained the age of superannuation, a person who retires under a Voluntary Retirement Scheme or takes premature retirement, and his spouse shall be eligible to receive medical benefits subject to payment of contribution and such other conditions as may be specified in the regulations:
Provided also that an Insured Person who ceases to be in insurable employment on account of permanent disablement caused due to employment injury shall continue to receive medical benefits, subject to payment of contribution and other conditions as may be prescribed by the Central Government:
5 Provided also that the conditions for grant of medical benefits to the Insured Person during employment injury shall be as specified in the regulations.
(4) (a) The Corporation may establish medical education institutions, including colleges, dental colleges, nursing colleges and the training institutes for its officers and staff with a view to improve the quality of their services.
10 (b) The medical education institutions referred to in clause (a) shall require its students to furnish a bond for serving the Corporation for such time and in such manner, as may be specified in the regulations.
(5) The medical education institutions and training institutes referred to in sub-section (4) may be run by the Corporation itself or on the request of the Corporation,
15 by the Central Government, any State Government, Public Sector Undertaking of the Central Government or the State Government or any other body notified by the Central Government.
Explanation.—For the purposes of this sub-section, the expression "other body" means any such organisation of persons which the Central Government considers capable to run colleges and training institutions referred to in sub-section (4).
20 (6) The Corporation may, in order to take preventive and curative measures for welfare of the Insured Persons, carry out such occupational and epidemiological surveys and studies for assessment of health and working conditions of Insured Persons in such manner as may be specified in the regulations.
40. (1) The State Government shall provide for Insured Persons and (where such
25 benefit is extended to their families) their families in the State, reasonable medical, surgical and obstetric treatment:
Provided that the State Government may, with the approval of the Corporation, arrange for medical treatment at clinics of medical practitioners on such scale and subject to such terms and conditions as may be agreed upon.
30 (2) Where the incidence of sickness benefit payment to Insured Persons in any State is found to exceed the all-India average, the amount of such excess shall be shared between the Corporation and the State Government in such proportion as may be fixed by agreement between them:
Provided that the Corporation may in any case waive the recovery of the whole or
35 any part of the share which is to be borne by the State Government.
(3) The Corporation may enter into an agreement with a State Government in regard to the nature and scale of the medical treatment that should be provided to Insured Persons and (where such medical benefit is extended to the families) their families (including provision of buildings, equipment, medicines, and staff) and for the sharing of the cost
40 thereof and of any excess in the incidence of sickness benefit to Insured Persons between the Corporation and the State Government.
(4) In default of agreement between the Corporation and any State Government as aforesaid, the nature and extent of the medical treatment to be provided by the State Government and the proportion in which the cost thereof and of the excess in the incidence
45 of sickness benefit shall be shared between the Corporation and that Government, shall be determined by an arbitrator who shall be appointed by the Central Government in consultation with the State Government.
(5) The State Government may, in addition to the Corporation under this Code, with the previous approval of the Central Government, establish such organisation (by whatever
Provision of medical
treatment by State
Government or by
Corporation.
General provisions as to benefits.
name called) to provide for certain benefits to employees in case of sickness, maternity and employment injury:
Provided that any reference to the State Government in this Code relating to this Chapter shall also include reference to the organisation as and when such organisation is established by the State Government. 5
(6) The organisation referred to in sub-section (5) shall have such structure, discharge functions, exercise powers and undertake such activities as may be prescribed by the Central Government.
(7) The Corporation may establish and maintain in a State such hospitals, dispensaries
and other medical and surgical services as it may think fit for the benefit of Insured Persons 10
and (where such medical benefit is extended to their families), their families.
(8) The Corporation may enter into agreement with any local authority, private body or individual in regard to the provision of medical treatment and attendance for Insured Persons and (where such medical benefit is extended to their families) their families, in
any area and sharing the cost thereof. 15
(9) The Corporation may also enter into agreement with any local authority, local body or private body for commissioning and running Employees' State Insurance hospitals through third party participation for providing medical treatment and attendance to Insured Persons and (where such medical benefit has been extended to their families), to their families. 20
(10) Notwithstanding anything contained in any other provision of this Chapter, the Corporation may, in consultation with the State Government, undertake the responsibility for providing medical benefit to Insured Persons and (where such medical benefit is extended to their families), to the families of such Insured Persons in the State subject to the condition
that the State Government shall share the cost of such medical benefit in such proportion 25
as may be agreed upon between the State Government and the Corporation.
(11) In the event of the Corporation exercising its power under sub-section (10), the provisions relating to medical benefit under this Chapter shall apply, so far as may be, as if a reference therein to the State Government were a reference to the Corporation.
(12) Notwithstanding anything contained in this Code, in respect of establishments 30
located in the States where medical benefit is provided by the Corporation, the Central Government shall be the appropriate Government.
41. (1) Save as may be provided in the regulations, no person shall be entitled to commute for a lump sum any disablement benefit admissible under this Chapter.
(2) Save as may be provided in the regulations, no person shall be entitled to sickness 35
benefit or disablement benefit for temporary disablement on any day on which he works or remains on leave or on a holiday in respect of which he receives wages or on any day on which he remains on strike.
(3) A person who is in receipt of sickness benefit or disablement benefit (other than benefit granted on permanent disablement) — 40
(a) shall remain under medical treatment at a dispensary, hospital, clinic or other institution provided under this Chapter, and shall carry out the instructions given by the medical officer or medical attendant in-charge thereof;
(b) shall not while under treatment do anything which might retard or prejudice
his chances of recovery; 45
(c) shall not leave the area in which medical treatment provided by this Chapter is being given, without the permission of the medical officer, medical attendant or such other authority as may be specified in this behalf by the regulations; and
(d) shall allow himself to be examined by any duly appointed medical officer or other person authorised by the Corporation in this behalf.
(4) An Insured Person shall not be entitled to receive for the same period—
(a) both sickness benefit and maternity benefit; or
5 (b) both sickness benefit and disablement benefit for temporary disablement; or
(c) both maternity benefit and disablement benefit for temporary disablement.
(5) Where a person is entitled to more than one of the benefits mentioned in sub-section (4), he shall be entitled to choose which benefit he shall receive.
10 (6) If a person dies during any period for which he is entitled to a cash benefit under this Chapter, the amount of such benefit up to and including the day of his death shall be paid to any person nominated by the deceased person in writing in such form as may be specified in the regulations or, if there is no such nomination, to the heir or legal representative of the deceased person.
15 (7) (a) Any person eligible for availing dependant or disablement benefit under this Chapter shall not be entitled to claim Employees’ Compensation from his employer under Chapter VII.
(b) Any women employee eligible for availing maternity benefit under this Chapter shall not be entitled to claim maternity benefit from her employer under Chapter VI.
20 (8) Where any person has received any benefit or payment under this Chapter when he is not lawfully entitled thereto, he shall be liable to repay to the Corporation the value of the benefit or the amount of such payment, or in the case of death, his legal representative shall be liable to repay the same from the assets of the deceased devolved on him.
(9) The value of any benefits received other than cash payments shall be determined
25 by such authority as may be specified in the regulations made in this behalf and the decision of such authority shall be final.
(10) The amount recoverable under this section may be recovered in the manner specified under sections 129 to 132.
42. (1) If any employer, —
30 (a) fails or neglects to insure under section 28, an employee at the time of his appointment or within such extended period as may be prescribed by the Central Government, as a result of which the employee becomes disentitled to any benefit under this Chapter; or
(b) insures under section 28, an employee on or after the date of accident which
35 resulted in personal injury to such employee which has the effect of making such employee disentitled to receive any dependant benefit or disablement benefit from the Corporation; or
(c) fails or neglects to pay any contribution which under this Chapter he is liable to pay in respect of any employee and by reason thereof such employee becomes
40 disentitled to any benefit or becomes entitled to a benefit on a lower scale,
then, the Corporation may, on being satisfied in the manner prescribed by the Central Government that the benefit is payable to the employee, pay to the employee benefit at such rate to which he is entitled or would have been entitled if the failure or neglect would not have occurred, and the Corporation shall be entitled to recover from the employer,
45 subject to the employer being given an opportunity of being heard, the capitalised value of the benefit paid to the employee, to be calculated in such manner as may be prescribed by the Central Government:
Corporation’s rights when an employer fails to register,
etc.
Liability of owner or occupier of factories, etc., for excessive sickness
benefit.
Scheme for other beneficiaries.
Provided that the capitalised value to be calculated may be adjusted for the payment of any contribution and interest or damages that the employer is liable to pay for delay in the payment of or non-payment of such contribution.
(2) The amount recoverable under this section may be recovered as if it were an arrear
of land revenue or recovered in the manner specified under sections 129 to 132. 5
43. (1) Where the Corporation considers that the incidence of sickness among Insured Persons is excessive by reason of—
(a) insanitary working conditions in a factory or other establishment or the neglect of the owner or occupier of the factory or other establishment to observe any health regulations enjoined on him by or under any enactment for the time being in 10
force, or
(b) insanitary conditions of any tenements or lodgings occupied by Insured Persons and such insanitary conditions are attributable to the neglect of the owner of the tenements or lodgings to observe any health regulations enjoined on him by or
under any enactments for the time being in force, 15
then, the Corporation may send to the owner or occupier of the factory or other establishment or to the owner of the tenement or lodgings, as the case may be, a claim for the payment of the amount of the extra expenditure incurred by the Corporation as sickness benefit; and if the claim is not settled by agreement, the Corporation may refer the matter, with a statement
in support of its claim, to the appropriate Government. 20
(2) If the appropriate Government is of the opinion that a prima facie case for inquiry is made out, it may appoint a competent person or persons to hold an inquiry into the matter referred under sub-section (1).
(3) If upon inquiry under sub-section (2), it is proved to the satisfaction of the person
or persons holding the inquiry that the excess in incidence of sickness among the Insured 25
Persons is due to the default or neglect of the owner or occupier of the factory or other establishment or the owner of the tenements or lodgings, as the case may be, the said person or persons shall determine, the amount of the extra expenditure incurred as sickness benefit as well as the person or persons by whom the whole or any part of such amount shall be paid to the Corporation. 30
(4) A determination under sub-section (3) may be enforced as if it were a decree for payment of money passed in a suit by a Civil Court.
(5) For the purposes of this section, "owner" of tenements or lodging shall include any agent of the owner and any person who is entitled to collect the rent of the tenements
or lodgings as a lessee of the owner. 35
44. Notwithstanding anything contained in this Chapter, the Central Government may, by notification, frame, amend, vary or rescind scheme for other beneficiaries and the members of their families for providing medical facility in any hospital established by the Corporation in any area which is underutilised on payment of user charges, and prescribe
the terms and conditions subject to which the scheme may be operated. 40
Explanation.— For the purposes of this section,—
(a) "other beneficiaries" means persons other than employees insured under section 28;
(b) "underutilised hospital" means any hospital not fully utilised by the employees insured under section 28; and 45
(c) "user charges" means the amount which is to be charged from other beneficiaries for medical facilities as may be specified in the regulations after prior approval of the Central Government.
5
10
15
31 of 2016.
20
25
30
35
40
45
45. (1) Notwithstanding anything contained in this Chapter, the Central Government may, by notification, frame scheme for unorganised workers, gig workers and platform workers and the members of their families for providing benefits admissible under this Chapter by the Corporation.
(2) The contribution, user charges, scale of benefits, qualifying and eligibility conditions and other terms and conditions subject to which the scheme may be operated shall be such as may be specified in the scheme.
46. The appropriate Government may, after consultation with the Corporation, by notification and subject to such conditions as may be specified in the notification, exempt any factory or other establishment belonging to the Government or any local authority, from the operation of this Chapter if the employees in any such factory or other establishment are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Chapter.
47. Notwithstanding anything contained in any other law for the time being in force, any amount due under this Chapter shall be the charge on the assets of the establishment to which it relates and shall be paid in priority in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.
48. (1) The State Government shall, by notification, constitute an Employees' Insurance Court for such local area as may be specified in the notification.
(2) The Employees’ Insurance Court shall consist of such number of Judges as the State Government may think fit.
(3) Any person who is or has been a judicial officer or is a legal practitioner of five years' standing shall be qualified to be a Judge of the Employees' Insurance Court.
(4) The State Government may appoint the same Court for two or more local areas or two or more Employees’ Insurance Courts for the same local area.
(5) Where more than one Employees’ Insurance Court has been appointed for the same local area, the State Government may by general or special order regulate the distribution of business between them.
49. (1) If any question or dispute or claim arises as to—
(a) whether any person is an employee within the meaning of this Code relating to this Chapter or whether he is liable to pay the employee's contribution; or
(b) the rate of wages or average daily wages of an employee for the purposes of this Chapter; or
(c) the rate of contribution payable by an employer in respect of any employee under this Chapter; or
(d) the person who is or was the employer in respect of any employee for the purposes of this Chapter; or
(e) the right of any person to any benefit under this Chapter and as to the amount and duration thereof; or
(f) any direction issued by the Corporation on a review of any payment of dependants' benefit under this Chapter; or
(g) any other matter which is in dispute between an employer and the Corporation relating to this Chapter, or between an employer and a Contractor relating to this Chapter or between a person and the Corporation relating to this Chapter or between an employee and an employer or Contractor relating to this Chapter, in respect of any contribution or benefit or other dues payable or recoverable under this Code relating to this Chapter; or
Schemes for unorganised workers, gig workers and platform workers.
Exemption of factories or
other establishments belonging to Government or any local
authority.
Contributions, etc., due to
Corporation to have priority
over other debts.
Constitution of Employees’ Insurance
Court.
Matters to be decided by
Employees’ Insurance
Court.
(h) claim for the recovery of contributions from the employer under this Code relating to this Chapter; or
(i) claim under sub-section (8) of section 41 for the recovery of the value or amount of the benefits received by a person when he is not lawfully entitled thereto;
or 5
(j) claim against an employer under section 42; or
(k) order of the appellate authority under section 126 in respect of Chapter IV;
or
(l) claim by an employer to recover contributions from any contractor under
Powers of Employees’ Insurance
Court.
Proceedings of Employees’ Insurance Courts.
this Code relating to this Chapter; or
(m) any other claim for the recovery of any benefit admissible under this Chapter, such matter shall be decided by the Employers' Insurance Court.
(2) No matter which is in dispute between an employer and the Corporation in respect of any contribution or any other dues under this Chapter shall be raised by the employer in the Employees' Insurance Court unless he has deposited with that Court fifty per cent. of the amount due from him as claimed by the Corporation:
Provided that the Employees' Insurance Court may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this sub-section.
(3) No Civil Court shall have jurisdiction to decide or deal with any question or dispute as specified in sub-section (1) or to adjudicate on any liability which by or under this Code relating to this Chapter is to be decided by a medical board, or by a medical appeal tribunal or by the Employees' Insurance Court.
50. (1) The Employees' Insurance Court shall have all the powers of a Civil Court for the purposes of summoning and enforcing the attendance of witnesses, compelling the discovery and production of documents and material objects, administering oath and recording evidence and such court shall be deemed to be a Civil Court within the meaning of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.
(2) The Employees' Insurance Court shall follow such procedure as may be prescribed by the State Government.
(3) All costs incidental to any proceeding before an Employees' Insurance Court shall, subject to such rules as may be made in this behalf by the State Government, be in the discretion of that court.
(4) An order of the Employees' Insurance Court shall be enforceable by it as if it were a decree passed in a suit by a Civil Court.
51. (1) The manner of commencement of proceedings before the Employees’ Insurance Court, fees and procedure thereof shall be such as may be prescribed by the appropriate Government:
Provided that the limitation for initiating the proceedings by the aggrieved person in the Employees' Insurance Court shall be three years from the date on which the cause of action arises:
Provided further that the "arising of cause of action" in respect of a claim by the Insured Person or dependants; by the Corporation for recovering contribution (including interests and damages) from the employer; and the claim by the employer for recovering contributions from a Contractor and the time within which such claims, recovery or contribution, from employer by the Corporation and recovery of contribution by the employer from the Contractor, shall be as specified in the regulations.
10
15
20
25
2 of 1974.
30
35
40
45
5
10
36 of 1963. 15
20
25
30
45 of 1955.
35
40
45
(2) Any application, appearance or act required to be made or done by any person to, or before, an Employees' Insurance Court (other than appearance of a person required for the purpose of his examination as a witness) may be made or done by a legal practitioner or by an officer of a registered trade union authorised in writing by such person or with the permission of that Court, by any other person so authorised.
(3) An Employees' Insurance Court may submit any question of law for the decision of the High Court and if it does so shall decide the question pending before it in accordance with such decision.
52. (1) Save as expressly provided in this section, no appeal shall lie from an order of an Employees' Insurance Court.
(2) An appeal shall lie to the High Court from an order of an Employees' Insurance Court, if it involves a substantial question of law.
(3) The appeal shall be filed under this section within a period of sixty days from the date of the order made by the Employees' Insurance Court.
(4) The provisions of sections 5 and 12 of the Limitation Act, 1963 shall apply to appeals under this section.
(5) Where the Corporation has presented an appeal against an order of the Employees' Insurance Court, that Court may, and if so directed by the High Court, shall, pending the decision of the appeal, withhold the payment of any sum directed to be paid by the order appealed against.
CHAPTER V GRATUITY
53. (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,—
(a) on his superannuation; or
(b) on his retirement or resignation; or
(c) on his death or disablement due to accident or disease; or
(d) on termination of his contract period under fixed term employment; or
(e) on happening of any such event as may be notified by the Central Government: Provided that in case of working journalist as defined in clause (f) of section 2 of the
Working Journalists and Other Newspaper Employees (Condition of Service) and Miscellaneous Provisions Act, 1955, the expression "five years" occurring in this sub-section shall be deemed to be three years:
Provided further that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement or expiration of fixed term employment or happening of any such event as may be notified by the Central Government:
Provided also that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the competent authority as may be notified by the appropriate Government who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed by the appropriate Government, until such minor attains majority.
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages or such number of days as may be notified by the Central Government, based on the rate of wages last drawn by the employee concerned:
Appeal to High Court.
Payment of gratuity.
Continuous service.
Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account:
Provided further that in the case of an employee who is employed in a seasonal 5 establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days' wages for each season:
Provided also that in the case of an employee employed on fixed term employment or a deceased employee, the employer shall pay gratuity on pro rata basis.
(3) The amount of gratuity payable to an employee shall not exceed such amount as 10
may be notified by the Central Government.
(4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced. 15
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.
(6) Notwithstanding anything contained in sub-section (1),—
(a) the gratuity of an employee, whose services have been terminated for any
act, wilful omission or negligence causing any damage or loss to, or destruction of, 20
property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused;
(b) the gratuity payable to an employee may be wholly or partially forfeited—
(i) if the services of such employee have been terminated for his riotous
or disorderly conduct or any other act of violence on his part, or 25
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided such offence is committed by him in the course of his employment.
Explanation 1.— For the purposes of this Chapter, employee does not include any such person who holds a post under the Central Government or a State Government and is 30
governed by any other Act or by any rules providing for payment of gratuity.
Explanation 2.— For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease, resulting in such disablement.
Explanation 3.— For the purposes of this section, it is clarified that in the case of a 35
monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.
54. For the purposes of this Chapter,—
(A) an employee shall be said to be in continuous service for a period if he has,
for that period, been in uninterrupted service, including service which may be 40
interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lock-out or cessation
of work not due to any fault of the employee, whether such uninterrupted or interrupted 45
service was rendered before or after the commencement of this Code;
(B) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (A), for any period of one year or six months, he shall be deemed to be in continuous service under the employer—
5 (a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than—
(i) one hundred and ninety days, in the case of any employee employed below the ground in a mine or in an establishment which works
10 for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than—
15 (i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case.
Explanation.— For the purposes of this clause, the number of days on
20 which an employee has actually worked under an employer shall include the days on which—
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946, or under the Industrial Disputes Act, 1947, or under any other
25 law applicable to the establishment;
(ii) he has been on leave with full wages, earned in the previous
20 of 1946.
14 of 1947.
year;
(iii) he has been absent due to temporary disablement caused by
accident arising out of and in the course of his employment; and
30 (iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twenty-six weeks;
(C) where an employee, employed in a seasonal establishment, is not in continuous service within the meaning of clause (A), for any period of one year or six
35 months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent. of the number of days on which the establishment was in operation during such period.
55. (1) Each employee, who has completed one year of service, shall make, a nomination within such time, in such form and in such manner, as may be prescribed by the appropriate
40 Government.
(2) An employee may, in his nomination, distribute the amount of gratuity payable to him under this Chapter amongst more than one nominee.
(3) If an employee has a family at the time of making a nomination, the nomination shall be made in favour of one or more members of his family, and any nomination made
45 by such employee in favour of a person who is not a member of his family shall be void.
(4) If at the time of making a nomination the employee has no family, the nomination may be made in favour of any person or persons but if the employee subsequently acquires
Nomination.
Determination of amount of gratuity.
a family, such nomination shall forthwith become invalid and the employee shall make, within such time as may be prescribed by the appropriate Government, a fresh nomination in favour of one or more members of his family.
(5) A nomination may, subject to the provisions of sub-sections (3) and (4), be modified
by an employee at any time, after giving to his employer a written intimation in such form 5
and in such manner as may be prescribed by the appropriate Government, of his intention to do so.
(6) If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a fresh nomination, in the form prescribed by the appropriate
Government, in respect of such interest. 10
(7) Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the same in his safe custody.
56. (1) A person who is eligible for payment of gratuity under this Chapter or any person authorised, in writing, to act on his behalf shall send a written application to the 15
employer, within such time and in such form, as may be prescribed by the appropriate Government, for payment of such gratuity.
(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the competent 20
authority specifying the amount of gratuity so determined.
(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.
(4) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on 25
which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long term deposits:
Provided that no such interest shall be payable if the delay in the payment is due to
the fault of the employee and the employer has obtained permission in writing from the 30
competent authority for the delayed payment on this ground.
(5) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Chapter or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer
shall deposit with the competent authority such amount as he admits to be payable by him 35
as gratuity.
(b) Where there is a dispute with regard to any matter or matters specified in clause (a), the employer or employee or any other person raising the dispute may make an application to the competent authority in the form prescribed by the appropriate Government
for deciding the dispute. 40
(c) The competent authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, determine the matter or matters in dispute and if, as a result of such inquiry any amount is found to be payable to the employee, the competent authority shall direct the employer to pay such amount or, as the case may be,
such amount as reduced by the amount already deposited by the employer. 45
(d) The competent authority shall pay the amount deposited, including the excess amount, if any, deposited by the employer, to the person entitled thereto.
(e) As soon as may be after a deposit is made under clause (a), the competent authority shall pay the amount of the deposit—
5
5 of 1908.
10
45 of 1860.
15
20
25
30
35
41 of 1999.
40
45
(i) to the applicant where he is the employee; or
(ii) where the applicant is not the employee, to the nominee or, as the case may be, the guardian of such nominee or heir of the employee if the competent authority is satisfied that there is no dispute as to the right of the applicant to receive the amount of gratuity.
(6) For the purpose of conducting an inquiry under sub-section (5), the competent authority shall have the same powers as are vested in a court, while trying a suit, under the Code of Civil Procedure, 1908, in respect of the following matters, namely:—
(a) enforcing the attendance of any person or examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) issuing commissions for the examination of witnesses.
(7) Any inquiry under this section shall be a judicial proceeding within the meaning of section 193, section 228 and for the purpose of section 196 of the Indian Penal Code.
(8) Any person aggrieved by an order under sub-section (5) may, within sixty days from the date of the receipt of the order, prefer an appeal to the appropriate Government or such other authority as may be specified by the appropriate Government in this behalf:
Provided that the appropriate Government or the appellate authority, as the case may be, may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of sixty days, extend the said period by a further period of sixty days:
Provided further that no appeal by an employer shall be admitted unless at the time of preferring the appeal, the appellant either produces a certificate of the competent authority to the effect that the appellant has deposited with him an amount equal to the amount of gratuity required to be deposited under sub-section (5), or deposits with the appellate authority such amount.
(9) The appropriate Government or the appellate authority, as the case may be, may, after giving the parties to the appeal a reasonable opportunity of being heard, confirm, modify, or reverse the decision of the competent authority.
57. (1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-section (2), obtain an insurance in the manner prescribed by the Central Government, for his liability for payment towards the gratuity under this Chapter, from any insurance company regulated by the Authority as defined under clause (b) of sub-section (1) of section 2 of the Insurance Regulatory and Development Authority Act, 1999:
Provided that different dates may be appointed for different establishments or class of establishments or for different areas.
(2) The appropriate Government may, subject to such conditions as may be prescribed by the Central Government, exempt any employer who had already established an approved gratuity fund in respect of his employees and who desires to continue such arrangement, and every employer employing five hundred or more persons who establishes an approved gratuity fund in the manner prescribed by the Central Government from the provisions of sub-section (1).
(3) For the purposes of effectively implementing the provisions of this section, every employer shall within such time as may be prescribed by the Central Government get his establishment registered with the competent authority in the manner prescribed by the appropriate Government and no employer shall be registered under the provisions of this
Compulsory insurance.
Competent authority.
Employment of, or work by, women
prohibited during certain period.
section unless he has taken an insurance referred to in sub-section (1) or has established an approved gratuity fund referred to in sub-section (2).
(4) The appropriate Government may provide for the composition of the Board of Trustees of the approved gratuity fund and for the recovery by the competent authority of the amount of the gratuity payable to an employee from the insurer with whom an insurance has been taken under sub-section (1), or as the case may be, the Board of Trustees of the approved gratuity fund, in such manner as may be prescribed.
(5) Where an employer fails to make any payment by way of premium in respect of the insurance referred to in sub-section (1) or by way of contribution to an approved gratuity fund referred to in sub-section (2), he shall be liable to pay the amount of gratuity due under this Chapter (including interest, if any, for delayed payments) forthwith to the competent authority.
Explanation.— In this section, "approved gratuity fund" shall have the same meaning as assigned to it in sub-section (5) of section 2 of the Income-tax Act, 1961.
58. (1) The appropriate Government may, by notification, appoint any officer of that Government having such qualifications and experience as may be prescribed by that Government to be a competent authority for implementation of any provision of this Chapter for such area as may be specified in the notification.
(2) Where more than one competent authority has been appointed for any area, the appropriate Government may, by general or special order, regulate the distribution of business among them.
(3) Any competent authority may, for the purpose of deciding any matter referred to him for decision under this Chapter, choose one or more persons possessing special knowledge of any matter relevant to the matter under reference to assist him in holding the inquiry relating thereto.
CHAPTER VI MATERNITY BENEFIT
59. (1) No employer shall knowingly employ a woman in any establishment during the six weeks immediately following the day of her delivery, miscarriage or medical termination of pregnancy.
(2) No woman shall work in any establishment during the six weeks immediately following the day of her delivery, miscarriage or medical termination of pregnancy.
(3) Without prejudice to the provisions of section 62, no pregnant woman shall, on a request being made by her in this behalf, be required by her employer to do, during the period specified in sub-section (4), any work which is of an arduous nature or which involves long hours of standing or which in any way is likely to interfere with her pregnancy or the normal development of the foetus or is likely to cause her miscarriage or otherwise to adversely affect her health.
(4) The period referred to in sub-section (3) shall be—
(a) the period of one month immediately preceding the period of six weeks, before the date of her expected delivery;
(b) any period during the said period of six weeks for which the pregnant woman does not avail of leave of absence under section 62.
Explanation.— For the purposes of this section, the expression "any work of arduous nature" shall mean any work which involve or require strenuous effort or is difficult and tiring in nature.
5
10
43 of 1961.
15
20
25
30
35
40
45
5
29 of 2019.
10
15
20
25
30
60. (1) Subject to the other provisions of this Code, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence, that is to say, the period immediately preceding the day of her delivery, and any period immediately following that day.
Explanation.—For the purposes of this sub-section, "the average daily wage" means the average of the woman's wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity, subject to the minimum rate of wage fixed or revised under the Code on Wages, 2019.
(2) No woman shall be entitled to maternity benefit unless she has actually worked in an establishment of the employer from whom she claims maternity benefit, for a period of not less than eighty days in the twelve months immediately preceding the date of her expected delivery.
Explanation.— For the purposes of calculating the period under this sub-section, the days on which a woman has actually worked in the establishment, the days for which she has been laid off or was on holidays declared under any law for the time being in force to be holidays with wages, during the period of twelve months immediately preceding the expected date of her delivery shall be taken into account.
(3) The maximum period for which any woman shall be entitled to maternity benefit shall be twenty-six weeks of which not more than eight weeks shall precede the expected date of her delivery:
Provided that the maximum period entitled to maternity benefit by a woman having two or more surviving children shall be twelve weeks of which not more than six weeks shall precede the date of her expected delivery:
Provided further that where a woman dies during this period, the maternity benefit shall be payable only for the days up to and including the day of her death:
Provided also that where a woman, having been delivered of a child, dies during her delivery or during the period immediately following the date of her delivery for which she is entitled for the maternity benefit, leaving behind in either case the child, the employer shall be liable for the maternity benefit for that entire period but if the child also dies during the said period, then, for the days up to and including the date of the death of the child.
Right to
payment of maternity benefit.
child.
35
Explanation.— For the purposes of this sub-section, "child" includes a stillborn
(4) A woman who legally adopts a child below the age of three months or a
commissioning mother shall be entitled to maternity benefit for a period of twelve weeks from the date the child is handed over to the adopting mother or the commissioning mother, as the case may be.
(5) In case the work assigned to a woman is of such nature that she may work from
40 home, the employer may allow her to do so after availing of the maternity benefit for such period and on such conditions as the employer and the woman may mutually agree.
61. Every woman entitled to the payment of maternity benefit under this Chapter, shall, notwithstanding the application of Chapter IV to the factory or other establishment in which she is employed, continue to be so entitled until she becomes qualified to claim
45 maternity benefit under section 32.
62. (1) Any woman employed in an establishment and entitled to maternity benefit under the provisions of this Chapter may give notice in writing in such form as may be prescribed by the Central Government, to her employer, stating that her maternity benefit and any other amount to which she may be entitled under this Chapter may be paid to her
Continuance
of payment of maternity benefit in certain cases.
Notice of claim for maternity benefit and payment
thereof.
Payment of maternity benefit in case of death of a woman.
Payment of medical bonus.
Leave for miscarriage, etc.
Nursing breaks.
Creche facility.
or to such person as she may nominate in the notice and that she will not work in any establishment during the period for which she receives maternity benefit.
(2) In the case of a woman who is pregnant, such notice shall state the date from which she will be absent from work, not being a date earlier than eight weeks from the date
of her expected delivery. 5
(3) Any woman who has not given the notice when she was pregnant may give such notice as soon as possible after her delivery.
(4) On receipt of the notice, the employer shall permit such woman to absent herself from the establishment during the period for which she receives the maternity benefit.
(5) The amount of maternity benefit for the period preceding the date of her expected 10
delivery shall be paid in advance by the employer to the woman on production of such proof as may be prescribed by the Central Government that the woman is pregnant, and the amount due for the subsequent period shall be paid by the employer to the woman within forty-eight hours of production of such proof as may be prescribed by the Central
Government that the woman has been delivered of a child. 15
(6) The failure to give notice under this section shall not disentitle a woman to maternity benefit or any other amount under this Chapter if she is otherwise entitled to such benefit or amount and in any such case an Inspector-cum-Facilitator may either of his own motion or on an application made to him by the woman, order the payment of such benefit or amount within such period as may be specified in the order. 20
63. If a woman entitled to maternity benefit or any other amount under this Chapter, dies before receiving such maternity benefit or amount, or where the employer is liable for maternity benefit under the second proviso to sub-section (3) of section 60, the employer shall pay such benefit or amount to the person nominated by the woman in the notice given under section 62 and in case there is no such nominee, to her legal representative. 25
64. Every woman entitled to maternity benefit under this Chapter shall also be entitled to receive from her employer a medical bonus of three thousand five hundred rupees or such amount as may be notified by the Central Government, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.
65. (1) In case of miscarriage, or medical termination of pregnancy, a woman shall, on 30
production of such proof as may be prescribed by the Central Government, be entitled to leave with wages at the rate of maternity benefit, for a period of six weeks immediately following the day of her miscarriage or, as the case may be, her medical termination of pregnancy.
(2) In case of tubectomy operation, a woman shall, on production of such proof as 35
may be prescribed by the Central Government, be entitled to leave with wages at the rate of maternity benefit for a period of two weeks immediately following the day of her tubectomy operation.
(3) A woman suffering from illness arising out of pregnancy, delivery, premature birth of child, miscarriage or medical termination of pregnancy shall, on production of 40
such proof as may be prescribed by the Central Government, be entitled, in addition to the period of absence allowed to her under section 62, or, as the case may be, under sub-section (1), to leave with wages at the rate of maternity benefit for a maximum period of one month.
66. Every woman delivered of a child who returns to duty after such delivery shall, in 45
addition to the interval for rest allowed to her, be allowed in the course of her daily work two breaks of such duration as may be prescribed by the Central Government, for nursing the child until the child attains the age of fifteen months.
67. (1) Every establishment to which this Chapter applies, in which fifty employees or such number of employees as may be prescribed by the Central Government, are employed 50
shall have the facility of crèche within such distance as may be prescribed by the Central Government, either separately or along with common facilities:
Provided that the employer shall allow four visits a day to the crèche by the woman, which shall also include the intervals of rest allowed to her:
5 Provided further that an establishment may avail common crèche facility of the Central Government, State Government, municipality or private entity or provided by non- Governmental organisation or by any other organisation or group of establishments who may pool their resources for setting up of common crèche in the manner as they may agree for such purpose.
10 (2) Every establishment to which this Chapter applies shall intimate in writing and electronically to every woman at the time of her initial appointment in such establishment regarding every benefit available under this Chapter.
68. (1) When a woman absents herself from work in accordance with the provisions of this Chapter, it shall be unlawful for her employer to discharge or dismiss her during or
15 on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service:
Provided that the discharge or dismissal of a woman at any time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity
20 benefit or medical bonus under this Chapter, shall not have the effect of depriving her of the maternity benefit or medical bonus:
Provided further that where the dismissal is for any gross misconduct as may be prescribed by the Central Government, the employer may, by order in writing, communicated to the woman, deprive her of the maternity benefit or medical bonus, or
25 both.
(2) Any woman deprived of maternity benefit or medical bonus, or both, or discharged or dismissed under sub-section (1), may, within sixty days from the date on which order of such deprivation or discharge or dismissal is communicated to her, appeal to the competent authority, and the decision of that authority on such appeal, whether the woman should or
30 should not be deprived of maternity benefit or medical bonus or both, or discharged or dismissed, shall be final.
69. No deduction from the normal and usual daily wages of a woman entitled to maternity benefit under the provisions of this Chapter shall be made by reason only of—
(a) the nature of work assigned to her by virtue of the provisions contained in
35 section 59; or
(b) breaks for nursing the child allowed to her under the provisions of section 66.
70. A woman who works for remuneration during the period she has been permitted by an employer to absent herself for availing the maternity benefits provided under this
40 Chapter shall not be entitled to receive maternity benefit for such period.
71. An abstract of the provisions of this Chapter and the rules relating thereto in the language or languages of the locality shall be exhibited in a conspicuous place by the employer in every part of the establishment in which women are employed.
72. (1) Any woman claiming that,—
45 (a) maternity benefit or any other amount to which she is entitled under this Chapter and any person claiming that payment due under this Chapter has been improperly withheld;
Dismissal for absence during pregnancy.
No deduction of wages in certain cases.
Forfeiture of maternity
benefit.
Duties of employer.
Power of Inspector- cum-
Facilitator to direct
payments to be made.
(b) her employer has discharged or dismissed her during or on account of her absence from work in accordance with the provisions of this Chapter,
may make a complaint to the Inspector-cum-Facilitator.
(2) The Inspector-cum-Facilitator may, on receipt of a complaint referred to in sub-section (1), make an inquiry or cause an inquiry to be made and if satisfied that— 5
(a) payment has been wrongfully withheld, may direct the payment to be made in accordance with his order in writing;
(b) she has been discharged or dismissed during or on account of her absence from work in accordance with the provisions of this Chapter,
may pass such orders as he deems just and proper according to the circumstances of the 10
case.
Reports of fatal
accidents and serious bodily injuries.
Employer’s liability for
compensation.
(3) Any person aggrieved by the order of the Inspector-cum-Facilitator under sub-section (2) may, within thirty days from the date on which such order is communicated to such person, appeal to the authority prescribed by the appropriate Government.
(4) The decision of the authority referred to in sub-section (3), where an appeal has 15 been preferred to it under that sub-section or of the Inspector-cum-Facilitator where no such appeal has been preferred, shall be final.
CHAPTER VII EMPLOYEE'S COMPENSATION
73. (1) Where, by any law for the time being in force, notice is required to be given to 20 any authority, by or on behalf of an employer, of any accident occurring in his premises which results in death or serious bodily injury, the person required to give the notice shall, within seven days of the death or serious bodily injury, send a report to the competent authority giving the circumstances attending the death or serious bodily injury:
Provided that where the State Government has so specified, the person required to 25 give the notice may instead of sending such report to the competent authority send it to the authority to whom he is required to give the notice.
Explanation.— For the purposes of this sub-section, "serious bodily injury" means an injury which involves, or in all probability will involve the permanent loss of the use of,
or permanent injury to, any limb, or the permanent loss of or injury to the sight or hearing, 30 or the fracture of any limb, or the enforced absence of the injured person from work for a period exceeding twenty days.
(2) The State Government may, by notification, extend the provisions of sub-section (1) to any class of premises other than those coming within the scope of that
sub-section, and may, by such notification, specify the persons who shall send the report 35
to the competent authority.
(3) Nothing in this section shall apply to establishments to which Chapter IV, relating to Employees' State Insurance Corporation, applies.
74. (1) If personal injury is caused to an employee by accident or an occupational disease listed in the Third Schedule arising out of and in the course of his employment, his 40 employer shall be liable to pay compensation in accordance with the provisions of this Chapter:
Provided that the employer shall not be so liable—
(a) in respect of such injury which does not result in the total or partial disablement of the employee for a period exceeding three days; and 45
(b) in respect of such injury, not resulting in death or permanent total disablement caused by an accident which is directly attributable to—
(i) the employee having been at the time thereof under the influence of drink or drugs, or
(ii) the wilful disobedience of the employee to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of employees,
5 or
(iii) the wilful removal or disregard by the employee of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of employee.
(2) An accident or an occupational disease referred to in sub-section (1) shall be
10 deemed to arise out of and in the course of an employee's employment notwithstanding that he is at the time of the accident or at the time of contracting the occupational disease, referred to in that sub-section, acting in contravention of the provisions of any law applicable to him, or of any orders given by or on behalf of his employer or that he is acting without instructions from his employer, if—
15 (a) such accident or contracting of such occupational disease would have been deemed so to have arisen had the act not been done in contravention as aforesaid or without instructions from his employer, as the case may be; and
(b) the act is done for the purpose of, and in connection with, the employer's trade or business.
20 (3) If an employee employed in any employment specified in the Second Schedule contracts any disease specified in the Third Schedule, being an occupational disease peculiar to that employment whilst in the service of an employer in whose service he has been employed for a continuous period of not less than six months, then, such disease shall be deemed to be an injury by accident within the meaning of this section and unless the
25 contrary is proved, the accident shall be deemed to have arisen out of and in the course of the employment.
(4) An accident occurring to an employee while commuting from his residence to the place of employment for duty or from the place of employment to his residence after performing duty, shall be deemed to have arisen out of and in the course of employment if
30 nexus between the circumstances, time and place in which the accident occurred and his employment is established.
(5) The Central Government or the State Government, after giving, by notification, not less than three months' notice of its intention so to do, may, by a like notification, modify or add any description of employment to the employments specified in the Second
35 Schedule, and occupational diseases specified in the Third Schedule and shall specify in the case of employments so modified or added, the diseases which shall be deemed for the purposes of this section to be occupational diseases peculiar to those employments respectively, and thereupon the provisions of sub-section (2) shall apply, in the case of a notification by the Central Government, within the territories to which this Code extends
40 or, in case of a notification by the State Government, within that State as if such diseases had been declared by this Code to be occupational diseases peculiar to those employments.
(6) Save as provided by sub-sections (2), (3) and (4), no compensation shall be payable to an employee in respect of any accident or disease unless the accident or disease is directly attributable to a specific injury by accident or disease arising out of and in the
45 course of his employment.
(7) Nothing herein contained shall be deemed to confer any right to compensation on an employee in respect of any accident or disease if he has instituted in a civil court a suit for damages in respect of the accident or disease against the employer or any other person; and no suit for damages shall be maintainable by an employee in any Court of law in respect of such accident or disease—
Compensation in case of death of or injury in
plantation.
(a) if he has instituted a claim to compensation in respect of the accident or disease before a competent authority; or
(b) if an agreement has been made between the employee and his employer providing for the payment of compensation in respect of the accident or disease in accordance with the provisions of this Chapter. 5
75. If death or injury is caused to any worker or a member of his family as a result of the collapse of a house provided by the employer in a plantation, and the collapse is not solely and directly attributable to a fault on the part of any occupant of the house or to a natural calamity, the employer shall be liable to pay compensation under section 76 and the
Sixth Schedule, so far as may be applicable. 10
Explanation.— For the purposes of this section, the expression "worker" means a person employed in a plantation for hire or reward, whether directly or through any agency, to do any work, skilled, unskilled, manual or clerical, and includes a person employed on contract for more than sixty days in a year, but does not include—
(i) a medical officer employed in the plantation; 15
(ii) any person employed in the plantation (including any member of the medical staff) whose monthly wages exceed the amount as determined by the appropriate Government, by notification, from time to time;
(iii) any person employed in the plantation primarily in a managerial or administrative capacity, notwithstanding that his monthly wages do not exceed the 20
amount as determined by the appropriate Government, by notification, from time to time;
Amount of
compensation.
be,—
(iv) any person temporarily employed in the plantation in any work relating to the construction, development or maintenance of buildings, roads, bridges, drains or
canals. 25
76. (1) Subject to the provisions of this Chapter, the amount of compensation shall
(a) where death results from the injury, an amount equal to fifty per cent. of the monthly wages of the deceased employee multiplied by the relevant factor or an amount as may be notified by the Central Government from time to time, whichever is 30
more;
(b) where permanent total disablement results from the injury, an amount equal to sixty per cent. of the monthly wages of the injured employee multiplied by the relevant factor or an amount as may be notified by the Central Government from time
to time, whichever is more: 35
Provided that the Central Government may, by notification, from time to time, enhance the amount of compensation specified in clauses (a) and (b).
Explanation.— For the purposes of clauses (a) and (b), "relevant factor", in relation to an employee means the factor specified in column (3) of the Sixth Schedule relating to
factors against the corresponding entry in column (2) thereof, specifying the number of 40
years which are the same as the completed years of the age of the employee on his last birthday immediately preceding the date on which the compensation fell due;
(c) where permanent partial disablement results from the injury,—
(i) in the case of an injury specified in Part II of the Fourth Schedule, such percentage of the compensation which would have been payable in the case of 45
permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury; and
(ii) in the case of an injury not specified in the Fourth Schedule, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the medical practitioner) permanently caused by the injury.
5 Explanation 1.— For the purposes of this clause, where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries.
Explanation 2.— In assessing the loss of earning capacity under sub-clause (ii), the
10 medical practitioner shall have due regard to the percentage of loss of earning capacity in relation to different injuries specified in the Fourth Schedule;
(d) where temporary disablement, whether total or partial, results from the injury, a half-monthly payment of the sum equivalent to twenty-five per cent. of monthly wages of the employee, to be paid in accordance with the provisions of
15 sub-section (4).
(2) Notwithstanding anything contained in sub-section (1), while fixing the amount of compensation payable to an employee in respect of an accident which occurred outside India, the competent authority shall take into account the amount of compensation, if any, awarded to such employee in accordance with the law of the country in which the accident
20 occurred and shall reduce the amount fixed by him by the amount of compensation awarded to the employee in accordance with the law of that country.
(3) The Central Government may, by notification, specify for the purposes of sub-section (1), such monthly wages in relation to an employee as it may consider necessary.
(4) The half-monthly payment referred to in clause (d) of sub-section (1) shall be
25 payable on the sixteenth day—
(i) from the date of disablement where such disablement lasts for a period of twenty-eight days or more; or
(ii) after the expiry of a waiting period of three days from the date of disablement, where such disablement lasts for a period of less than twenty-eight days; and thereafter
30 half-monthly during the disablement or during a period of five years, whichever is shorter:
Provided that—
(a) there shall be deducted from any lump sum or half-monthly payments to which the employee is entitled, the amount of any payment or allowance
35 which the employee has received from the employer by way of compensation during the period of disablement prior to the receipt of such lump sum or of the first half-monthly payment, as the case may be, and such payment or allowance which the employee has received from the employer towards his medical treatment shall not be deemed to be a payment or allowance received by him by
40 way of compensation;
(b) no half-monthly payment shall in any case exceed the amount, if any, by which half the amount of the monthly wages of the employee before the accident exceeds half the amount of such wages which he is earning after the accident.
45 (5) The employee shall be reimbursed, the actual medical expenditure incurred by him for treatment of injuries caused during the course of employment, by his employer.
(6) On the ceasing of the disablement before the date on which any half-monthly payment falls due, there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement in that half-month.
Compensation to be paid when due and damages for default.
Method of calculating monthly wages for purposes of
compensation.
(7) If the injury of the employee results in his death, the employer shall, in addition to the compensation under sub-section (1), deposit with the competent authority a sum of not less than fifteen thousand rupees or such amount as may be prescribed by the State Government, for payment of the same to the eldest surviving dependant of the employee towards the expenditure of the funeral of such employee or where the employee did not 5 have a dependant or was not living with his dependant at the time of his death, to the person who actually incurred such expenditure:
Provided that the Central Government may, by notification from time to time, enhance the amount specified in this sub-section.
77. (1) Compensation under section 76 shall be paid as soon as it falls due. 10
(2) In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and, such payment shall be deposited with the competent authority or made to the employee, as the case may be, without prejudice to the right of the employee
to make any further claim. 15
(3) Where any employer is in default in paying the compensation due under this Chapter within one month from the date it fell due, the competent authority shall,—
(a) direct that the employer shall, in addition to the amount of the arrears, pay interest at such rate as may be prescribed by the Central Government, on the amount due; and 20
(b) if in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent. of such amount of arrears by way of damages:
Provided that an order for the payment of damages shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show cause as 25
to why it should not be passed.
(4) The interest and the damages payable under sub-section (3) shall be paid to the employee or his dependant, as the case may be.
78. For the purposes of this Chapter, the expression "monthly wages" means the amount of wages deemed to be payable for a month's service (whether the wages are 30
payable by the month or by whatever other period or at piece rates), and calculated as follows, namely:—
(a) where the employee has, during a continuous period of not less than twelve months immediately preceding the accident, been in the service of the employer who
is liable to pay compensation, the monthly wages of the employee shall be one- 35
twelfth of the total wages which have fallen due for payment to him by the employer in the last twelve months of that period;
(b) where the whole of the continuous period of service immediately preceding the accident during which the employee was in the service of the employer who is
liable to pay the compensation was less than one month, the monthly wages of the 40
employee shall be the average monthly amount which, during the twelve months immediately preceding the accident, was being earned by an employee employed on the same work by the same employer, or, if there was no employee so employed, by an employee employed on similar work in the same locality;
(c) in other cases including cases in which it is not possible for want of necessary 45
information to calculate the monthly wages under clause (b), the monthly wages shall be thirty times the total wages earned in respect of the last continuous period of service immediately preceding the accident from the employer who is liable to pay compensation, divided by the number of days comprising such period.
Explanation.—For the purposes of this section, "a period of service" shall be deemed to be continuous which has not been interrupted by a period of absence from work exceeding fourteen days.
79. (1) Any half-monthly payment payable under this Chapter, either under an
5 agreement between the parties or under the order of a competent authority, may be reviewed by the competent authority, on the application either of the employer or of the employee accompanied by the certificate of a medical practitioner that there has been a change in the condition of the employee or, subject to such conditions as may be prescribed by the State Government, on application made without such certificate.
10 (2) Any half-monthly payment may, on review under this section, subject to the provisions of this Chapter, be continued, increased, decreased or ended, or if the accident is found to have resulted in permanent disablement, be converted to the lump sum to which the employee is entitled less any amount which he has already received by way of half- monthly payments.
15 80. Any right to receive half-monthly payments may, by agreement between the parties or, if the parties cannot agree and the payments have been continued for not less than six months, on the application of either party to the competent authority be redeemed by the payment of a lump sum of such amount as may be agreed to by the parties or determined by the competent authority, as the case may be.
20 81. (1) No payment of compensation in respect of an employee whose injury has resulted in death, and no payment of a lump sum as compensation to a woman or a person under a legal disability, shall be made otherwise than by deposit with the competent authority, and no such payment made directly by an employer shall be deemed to be a payment of compensation:
25 Provided that, in the case of a deceased employee, an employer may make to any dependant, advances on account of compensation of an amount equal to three months' wages of such employee and so much of such amount as does not exceed the compensation payable to that dependant shall be deducted by the competent authority from such compensation and repaid to the employer.
30 (2) Any other sum amounting to not less than five thousand rupees which is payable as compensation may be deposited with the competent authority on behalf of the person entitled thereto.
(3) The receipt of the competent authority shall be a sufficient discharge in respect of any compensation deposited with him.
35 (4) (a) On the deposit of any money under sub-section (1) as compensation in respect of a deceased employee, the competent authority shall, if he thinks necessary, cause notice to be published or to be served on each dependant in such manner as he thinks fit, calling upon the dependants to appear before him on such date as he may fix for determining the distribution of the compensation.
40 (b) If the competent authority is satisfied after any inquiry which he may deem necessary, that no dependant exists, he shall repay the balance of the money to the employer by whom it was paid.
(c) The competent authority shall, on an application by the employer, furnish a statement showing in detail all disbursements made.
45 (5) The compensation deposited in respect of a deceased employee shall, subject to any deduction made under sub-section (1), be apportioned by order by the competent authority among the dependants of the deceased employee or any of them in such proportion as the competent authority thinks fit, or may, in the discretion of the competent authority, be allotted to any one dependant:
Review.
Commutation of half-
monthly payments.
Distribution of
compensation.
Provided that the competent authority shall not make any order under this sub-section without hearing the dependants and shall record reasons in the order for the apportionment of such compensation among dependants or any of them, as the case may be.
Notice and claim.
(6) Where any compensation deposited with the competent authority is payable to any person, other than a woman or a person under legal disability, the competent authority may pay the compensation to the person entitled thereto.
(7) Where any lump sum deposited with the competent authority is payable to a woman or a person under a legal disability, such sum may be invested, applied or otherwise dealt with for the benefit of the woman, or of such person during his disability, in such manner as the competent authority may direct; and where a half-monthly payment is payable to any person under a legal disability, the competent authority may, of his own motion or on an application made to him in this behalf, order that the payment be made during the disability to any dependant of the employee or to any other person, whom the competent authority thinks fit to provide for the welfare of the employee.
(8) Where, on application made to him in this behalf or otherwise, the competent authority is satisfied that, on account of neglect of children on the part of a parent or on account of the variation of the circumstances of any dependant or for any other sufficient cause, an order of the competent authority as to the distribution of any sum paid as compensation or as to the manner in which any sum payable to any such dependant is to be invested, applied or otherwise dealt with, ought to be varied, the competent authority may make such orders for the variation of the former order as he thinks just in the circumstances of the case:
Provided that no such order prejudicial to any person shall be made unless such person has been given an opportunity of showing cause as to why the order should not be made, or shall be made in any case in which it would involve the repayment by a dependant of any sum already paid to him.
(9) Where the competent authority varies any order under sub-section (8) by reason of the fact that payment of compensation to any person has been obtained by fraud, impersonation or other improper means, any amount so paid to or on behalf of such person may be recovered in the manner as specified in sub-section (10).
(10) The competent authority may recover as an arrear of land revenue any amount referred to in sub-section (9), and for such purpose the competent authority shall be deemed to be a public officer within the meaning of section 5 of the Revenue Recovery Act, 1890.
82. (1) No claim for compensation shall be entertained by a competent authority unless notice of the accident has been given in the manner hereinafter provided as soon as practicable after the happening thereof and unless the claim is preferred before him within two years of the occurrence of the accident or, in case of death, within two years from the date of death:
Provided that where the accident is the contracting of a disease in respect of which the provisions of sub-section (3) of section 74 are applicable, the accident shall be deemed to have occurred on the first of the days during which the employee was continuously absent from work in consequence of the disablement caused by the disease:
Provided further that in case of partial disablement due to the contracting of any such disease and which does not force the employee to absent himself from work, the period of two years shall be counted from the day the employee gives notice of the disablement to his employer:
Provided also that if an employee who, having been employed in an employment for a continuous period specified under sub-section (3) of section 74 in respect of that employment, ceases to be so employed and develops symptoms of an occupational disease
5
10
15
20
25
30
1 of 1890.
35
40
45
50
5
10
15
20
25
30
35
40
59 of 1988.
45
peculiar to that employment within two years of the cessation of employment, the accident shall be deemed to have occurred on the day on which the symptoms were first detected.
(2) The want of or any defect or irregularity, in a notice given under sub-section (1), shall not be a bar to the entertainment of a claim—
(a) if the claim is preferred in respect of the death of an employee resulting from an accident which occurred on the premises of the employer, or at any place where the employee at the time of the accident was working under the control of the employer or of any person employed by him, and the employee died on such premises or at such place, or on any premises belonging to the employer, or died without having left the vicinity of the premises or place where the accident occurred, or
(b) if the employer or any one of several employers or any person responsible to the employer for the management of any branch of the trade or business in which the injured employee was employed had knowledge of the accident from any other source at or about the time when it occurred:
Provided that the competent authority may entertain and decide any claim to compensation in any case notwithstanding that the notice has not been given, or the claim has not been preferred in due time as provided under sub-section (1), if he is satisfied that the failure so to give the notice or prefer the claim, as the case may be, was due to sufficient cause.
(3) Every such notice shall give the name and address of the person injured and shall state the cause of the injury and the date on which the accident happened, and shall be served on the employer or upon any one of several employers, or upon any person responsible to the employer for the management of any branch of the trade or business in which the injured employee was employed.
(4) The appropriate Government may require that any class of employers as may be prescribed by that Government shall maintain, at their premises at which employees are employed, a notice-book, in such form as may be prescribed by that Government, which shall be readily accessible at all reasonable times to any injured employee employed on the premises and to any person acting bona fide on his behalf.
(5) A notice under this section may be served by delivering it at, or sending it by registered post addressed to, the residence or any office or place of business of the person on whom it is to be served, or where possible, electronically or, where a notice-book is maintained, by entry in the notice-book.
83. (1) The provisions of this section shall, subject to the modifications specified in this section, apply in case of employees who are—
(a) masters of ships or seamen; or
(b) captain and other members of crew of aircraft;
(c) persons recruited by companies registered in India and working as such abroad;
(d) persons sent for work abroad along with motor vehicles registered under the Motor Vehicles Act, 1988 as drivers, helpers, mechanics, cleaners or other employees.
(2) The notice of the accident and the claim for compensation by a person injured may be served on the following persons, as if they were the employer—
(a) in case of accident where the person injured is a seamen, but not the master of the ship, on the master of the ship;
(b) in case of accident where the person injured is a member of crew of an aircraft, but not the captain of the aircraft, on the captain of the aircraft;
Special
provisions relating to accidents occurring outside Indian territory.
Medical
examination.
(c) in case of persons recruited by companies registered in India and working as such abroad, on the local agent of the company;
(d) in case of persons sent for work abroad along with motor vehicles as drivers, helpers, mechanics, cleaners or other employees, on the local agent of the owner of the motor vehicle, in the country of the accident: 5
Provided that where the accident happened and the disablement commenced on board, the ship or aircraft, as the case may be, then, it shall not be necessary for any seaman or members of the crew of aircraft to give any notice of the accident.
(3) The claim of compensation shall be made —
(a) in the case of the death of an employee referred to in sub-section (1), one 10
year after the news of the death has been received by the claimant;
(b) in the case where the ship or the aircraft as the case may be, has been or is deemed to have been lost with all hands, eighteen months of the date on which the ship or the aircraft was, or is deemed to have been, so lost:
Provided that the competent authority may entertain any claim to compensation 15
in any case notwithstanding that the claim has not been preferred in due time as provided in this sub-section, if he is satisfied that the failure so to prefer the claim was due to sufficient cause.
(4) Where an injured employee referred to in sub-section (1) is discharged or left behind in any part of India or in any foreign country, then, any depositions taken by any 20
Judge or Magistrate in that part or by any Consular Officer in the foreign country and transmitted by the person by whom they are taken to the Central Government or any State Government shall, in any proceedings for enforcing the claim, be admissible in evidence —
(a) if the deposition is authenticated by the signature of the Judge, Magistrate 25
or Consular Officer before whom it is made;
(b) if the defendant or the person accused, as the case may be, had an opportunity by himself or his agent to cross-examine the witness; and
(c) if the deposition was made in the course of a criminal proceeding, on proof
that the deposition was made in the presence of the person accused, 30
and it shall not be necessary in any case to prove the signature or official character of the person appearing to have signed any such deposition and a certificate by such person that the defendant or the person accused had an opportunity of cross-examining the witness and that the deposition if made in a criminal proceeding was made in the presence of the
person accused shall, unless the contrary is proved, be sufficient evidence that he had that 35
opportunity and that it was so made.
(5) No half-monthly payment shall be payable in respect of the period during which the owner of the ship is, under any law for the time being in force relating to merchant shipping, liable to defray the expenses of maintenance of the injured master or seaman.
(6) Failure to give a notice or make a claim or commence proceedings within the time 40
required by this section shall not be a bar to the maintenance of proceedings under this Chapter in respect of any personal injury, if such proceedings under this Chapter are commenced within one month from the date on which the certificate of the State to that effect Government was furnished to the person commencing the proceedings.
84. (1) Where an employee has given notice of an accident, he, shall, if the employer, 45
before the expiry of three days from the time at which service of the notice has been effected, offers to have him examined free of charge by a medical practitioner, submit himself for such examination, and any employee who is in receipt of a half-monthly payment
under this Chapter shall, if so required, submit himself for such examination from time to time:
Provided that an employee shall not be required to submit himself for examination by a medical practitioner at more than such frequent interval as may be prescribed by the State
5 Government.
(2) If an employee, on being required to do so by the employer under sub-section (1) or by the competent authority at any time, refuses to submit himself for examination by a medical practitioner or in any way obstructs the same, his right to compensation shall be suspended during the continuance of such refusal or obstruction unless in the case of
10 refusal, he was prevented by any sufficient cause from so submitting himself.
(3) If an employee, before the expiry of the period within which he is liable under sub-section (1) to be required to submit himself for medical examination, voluntarily leaves the vicinity of the place in which he was employed without having been so examined, his right to compensation shall be suspended until he returns and offers himself for such examination:
15 Provided that where such employee proves before the medical practitioner that he could not so submit himself for medical examination due to the circumstances beyond his control and he was also handicapped to communicate such information in writing, the medical practitioner may after recording such reasons in writing, condone the delay and his right to compensation shall be revived as if no such suspension was made.
20 (4) Where an employee, whose right to compensation has been suspended under sub-section (2) or sub-section (3), dies without having submitted himself for medical examination as required by either of those sub-sections, the competent authority may, if he thinks fit, direct the payment of compensation to the dependants of the deceased employee.
(5) Where under sub-section (2) or sub-section (3), a right to compensation is
25 suspended, no compensation shall be payable in respect of the period of suspension, and, if the period of suspension commences before the expiry of the waiting period referred to in clause (ii) of sub-section (4) of section 76, the waiting period shall be increased by the period during which the suspension continues.
(6) Where an injured employee has refused to be attended by a medical practitioner
30 whose services have been offered to him by the employer free of charge or having accepted such offer has deliberately disregarded the instructions of such medical practitioner, then, if it is proved that the employee has not thereafter been regularly attended by a medical practitioner or having been so attended has deliberately failed to follow his instructions and that such refusal, disregard or failure was unreasonable in the circumstances of the
35 case and that the injury has been aggravated thereby, the injury and resulting disablement shall be deemed to be of the same nature and duration as they might reasonably have been expected to be if the employee had been regularly attended by a medical practitioner, whose instructions he had followed, and compensation, if any, shall be payable accordingly.
85. (1) Where any employer in the course of or for the purposes of his trade or
40 business contracts with a contractor for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the employer, the employer shall be liable to pay to any employee employed in the execution of the work any compensation, which he would have been liable to pay if that employee had been immediately employed by him; and that the amount of compensation shall be calculated
45 with reference to the wages of the employee under the employer by whom he is immediately employed.
(2) Where the employer is liable to pay compensation under this section, he shall be entitled to be indemnified by the contractor, or any other person from whom the employee could have recovered the compensation and where a contractor who is himself an employer is liable to pay compensation or to indemnify an employer under this section, he shall be
50 entitled to be indemnified by any person standing to him in relation of a contractor from
Contracting.
Remedies of employer against stranger.
Insolvency of employer.
whom the employee could have recovered the compensation, and all questions as to the right to and the amount of any such indemnity shall, in default of agreement, be settled by the competent authority.
(3) Nothing in this section shall be construed as preventing an employee from recovering compensation referred to in sub-section (2) from the contractor instead of the employer.
(4) The provisions of this section shall not apply in any case where the accident occurred elsewhere than on, in or about the premises on which the employer has undertaken or usually undertakes, as the case may be, to execute the work or which are otherwise under his control or management.
86. Where an employee has recovered compensation in respect of any injury caused under circumstances creating a legal liability of some person other than the person by whom the compensation was paid to pay damages in respect thereof, the person by whom the compensation was paid and any person who has been called on to pay an indemnity under section 85 shall be entitled to be indemnified by the person so liable to pay damages as aforesaid.
87. (1) Where any employer has entered into a contract with any insurers in respect of any liability under this Chapter to any employee, then, in the event of the employer becoming insolvent or making a composition or scheme of arrangement with his creditors or, if the employer is a company, in the event of the company having commenced to be wound up, the rights of the employer against the insurers as respects that liability shall, notwithstanding anything in any law for the time being in force relating to insolvency or the winding up of companies, be transferred to and vest in the employee, and upon any such transfer the insurers shall have the same rights and remedies and be subject to the same liabilities as if they were the employer, so, however, that the insurers shall not be under any greater liability to the employee than they would have been under the employer.
(2) If the liability of the insurers to the employee is less than the liability of the employer to the employee, the burden of proof shall lie on the employee for the balance in the insolvency proceedings or liquidation.
(3) Where in any case such as is referred to in sub-section (1), the contract of the employer with the insurers is void or voidable by reason of non-compliance on the part of the employer with any terms or conditions of the contract (other than a stipulation for the payment of premium), the provisions of that sub-section shall apply as if the contract were not void or voidable, and the insurers shall be entitled to prove in the insolvency proceedings or liquidation for the amount paid to the employee:
Provided that the provisions of this sub-section shall not apply in any case in which the employee fails to give notice to the insurers of the happening of the accident and of any resulting disablement as soon as practicable after he becomes aware of the institution of the insolvency or liquidation proceedings.
(4) There shall be deemed to be included among the debts which under the Insolvency and Bankruptcy Code, 2016 or under the provisions of the Companies Act, 2013 are in the distribution of the assets of an insolvent or in the distribution of the assets of a company being wound up to be paid in priority to all other debts, the amount due in respect of any compensation, the liability accrued before the date of the order of adjudication of the insolvent or the date of the commencement of the winding up, as the case may be, and the provisions of that Code and Act shall have effect accordingly.
(5) Where the compensation is a half-monthly payment, the amount due in respect thereof shall, for the purposes of this section, be taken to be the amount of the lump sum for which the half-monthly payment could, if redeemable, be redeemed if applications were made for that purpose under section 80, and a certificate of the competent authority as to the amount of such sum shall be conclusive proof thereof.
5
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18 of 2013.
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(6) The provisions of sub-section (4) shall apply in the case of any amount for which an insurer is entitled to prove under sub-section (3), but otherwise those provisions shall not apply where the insolvent or the company being wound up has entered into such a contract with insurers as is referred to in sub-section (1).
5 (7) The provisions of this section shall not apply where a company is wound up voluntarily merely for the purposes of reconstruction or of amalgamation with another company.
88. (1) Where a competent authority receives information from any source that an employee has died as a result of an accident arising out of and in the course of his employment,
10 he may send by registered post or where possible, electronically a notice to the employee's employer requiring him to submit, within thirty days of the service of the notice, a statement, in such form as may be prescribed by the State Government, giving the circumstances attending the death of the employee, and indicating whether, in the opinion of the employer, he is or is not liable to deposit compensation on account of the death and a copy of such
15 notice shall also be sent by the competent authority in the same manner to the dependants of such employee ascertained by the competent authority.
(2) If the employer is of the opinion that he is liable to deposit compensation, he shall make the deposit within thirty days of the service of the notice.
(3) If the employer is of the opinion that he is not liable to deposit compensation, he
20 shall in his statement indicate the grounds on which he disclaims liability.
(4) Where the employer has so disclaimed liability, the competent authority, after such inquiry as he may think fit, may inform any of the dependants of the deceased employee, that it is open to the dependants to prefer a claim for compensation, and may give them such other further information as he may think fit.
25 (5) Where in the opinion of the competent authority, a dependant of the deceased employee is not in a position to engage an advocate to file a claim for compensation, the competent authority may provide an advocate to such dependant, from the panel of advocates maintained by the State Government.
89. (1) Where the amount of any lump sum payable as compensation has been settled
30 by agreement, whether by way of redemption of a half-monthly payment or otherwise, or where any compensation has been so settled as being payable to a woman, or a person under a legal disability, a memorandum thereof shall be sent by the employer to the competent authority, who shall, on being satisfied as to its genuineness, record the memorandum in a register, electronically or otherwise, in such manner as may be prescribed by the appropriate
35 Government:
Provided that—
(a) no such memorandum shall be recorded before seven days after communication by the competent authority of notice to the parties concerned;
(b) the competent authority may at any time rectify the register;
40 (c) where it appears to the competent authority that an agreement as to the payment of a lump sum whether by way of redemption of a half-monthly payment or otherwise, or an agreement as to the amount of compensation payable, to a woman or a person under a legal disability ought not to be registered by reason of the inadequacy of the sum or amount, or by reason of the agreement having been obtained by fraud
45 or undue influence or other improper means, the competent authority may refuse to record the memorandum of the agreement and may make such order including an order as to any sum already paid under the agreement, as the competent authority thinks just in the circumstances.
Power to require from employers
statements regarding fatal accidents.
Registration of agreements.
Reference to competent
authority.
Appointment of competent authority.
Venue of proceedings and transfer.
(2) An agreement for the payment of compensation which has been registered under sub-section (1) shall be enforceable under this Code notwithstanding anything contained in the Indian Contract Act, 1872, or in any other law for the time being in force.
(3) Where a memorandum of any agreement, the registration of which is required under this section, is not sent to the competent authority as required by this section, the employer shall be liable to pay the full amount of compensation which he is liable to pay under the provisions of this Chapter, and notwithstanding anything contained in the proviso to sub-section (1) of section 76, shall not, unless the competent authority otherwise directs, be entitled to deduct more than half of any amount paid to the employee by way of compensation whether under the agreement or otherwise.
90. (1) If any question arises in any proceedings under this Chapter as to the liability of any person to pay compensation (including any question as to whether a person injured is or is not an employee) or as to the amount or duration of compensation (including any question as to the nature or extent of disablement), the question shall, in default of agreement, be settled by a competent authority.
(2) No Civil Court shall have jurisdiction to settle, decide or deal with any question which is by or under this Chapter required to be settled, decided or dealt with by a competent authority or to enforce any liability incurred under this Chapter.
91. (1) The State Government may, by notification, appoint any person who is or has been a member of a State Judicial Service for a period of not less than five years or is or has been for not less than five years an advocate or is or has been a Gazetted Officer for not less than five years having educational qualifications and experience in personnel management, human resource development, industrial relations and legal affairs or such other experience and qualifications as may be prescribed by the appropriate Government to be a competent authority for the purposes of this Chapter and for such area as may be specified in the notification.
(2) Where more than one competent authority has been appointed for any area, the State Government may, by general or special order, regulate the distribution of business amongst them.
(3) Any competent authority may, for the purpose of deciding any matter referred to him for decision under this Chapter, choose one or more persons possessing special knowledge of any matter relevant to the matter under inquiry to assist him in holding the inquiry.
92. (1) Where any matter under this Chapter is to be done by or before a competent authority, the same shall, subject to the provisions of this Chapter and in the manner prescribed in this behalf by the State Government, be done by or before the competent authority for the area in which—
(a) the accident took place which resulted in the injury; or
(b) the employee or in case of his death, the dependant claiming the compensation ordinarily resides; or
(c) the employer has his registered office:
Provided that no matter shall be processed before or by a competent authority, other than the competent authority having jurisdiction over the area in which the accident took place, without his giving notice electronically or otherwise in the manner prescribed by the Central Government to the competent authority having jurisdiction over the area and the State Government concerned:
Provided further that, where the employee, being the master of a ship or a seaman or the captain or a member of the crew of an aircraft or an employee in a motor vehicle or a company, meets with the accident outside India, any such matter may be done by or before
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a competent authority for the area in which the owner or agent of the ship, aircraft or motor vehicle resides or carries on business or the registered office of the company is situate, as the case may be.
(2) If a competent authority, other than the competent authority with whom any
5 money has been deposited under section 81, proceeds with a matter under this Chapter, the former may for the proper disposal of the matter call for transfer of any records or moneys remaining with the latter and on receipt of such a request, he shall comply with the same.
(3) If a competent authority is satisfied that any matter arising out of any proceedings pending before him can be more conveniently dealt with by any other competent authority,
10 whether in the same State or not, he may, subject to rules made under this Code relating to this Chapter, order such matter to be transferred to such other competent authority either for report or for disposal, and, if he does so, shall forthwith transmit to such other competent authority all documents relevant for the decision of such matter and, where the matter is transferred for disposal, shall also transmit in the manner as may be prescribed by the
15 Central Government any money remaining in his hands or invested by him for the benefit of any party to the proceedings:
Provided that the competent authority shall not, where any party to the proceedings has appeared before him, make any order of transfer relating to the distribution among dependants of a lump sum without giving such party an opportunity of being heard.
20 (4) The competent authority to whom any matter is so transferred shall, subject to rules made under this Code relating to this Chapter, inquire therein to and, if the matter was transferred for report, return his report thereon or, if the matter was transferred for disposal, continue the proceedings as if they had originally commenced before him.
(5) On receipt of a report from a competent authority to whom any matter has been
25 transferred for report under sub-section (3), the competent authority by whom it was referred shall decide the matter referred to in conformity with such report.
(6) The State Government may transfer any matter from any competent authority appointed by it to any other competent authority appointed by it.
93. (1) Where an accident occurs in respect of which liability to pay compensation
30 under this Chapter arises, a claim for such compensation may, subject to the provisions of this Chapter, be made before the competent authority.
(2) Subject to the provisions of sub-section (1), no application for the settlement of any matter by competent authority, other than an application by a dependant or joint application by dependants for compensation, shall be made unless and until some question
35 has arisen between the parties in connection therewith which they have been unable to settle by agreement.
(3) An application to a competent authority for claim under sub-section (1) or settlement under sub-section (2) may be made electronically or otherwise in such form and in such manner accompanied by such fee, if any, as may be prescribed by the Central Government.
40 (4) The time-limit for the disposal of applications under this section and the costs incidental to the proceedings under this section to be imposed by the competent authority shall be such as may be prescribed by the State Government.
94. (1) Where any sum has been deposited by an employer as compensation payable in respect of an employee whose injury has resulted in death, and in the opinion of the
45 competent authority such sum is insufficient, the competent authority may, by notice in writing stating his reasons, call upon the employer to show cause why he should not make a further deposit within such time as may be stated in the notice.
Form of
application.
Power of
competent authority to
require further deposit in cases of fatal
accident.
Powers and procedure of competent authority.
Appearance of parties.
Method of recording evidence.
Power to submit cases.
Appeal against order of competent authority.
(2) If the employer fails to show cause to the satisfaction of the competent authority, the competent authority may make an award determining the total amount payable, and requiring the employer to deposit the deficiency.
95. The competent authority shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908, for the purpose of taking evidence on oath (which such competent authority is hereby empowered to impose) and of enforcing the attendance of witnesses and compelling the production of documents and material objects, and the competent authority shall be deemed to be a Civil Court for all the purposes of section 195 and of Chapter XXVI of the Code of Criminal Procedure, 1973.
96. Any appearance, application or act required to be made or done by any person before or to a competent authority (other than an appearance of a party which is required for the purpose of his examination as a witness) may be made or done on behalf of such person by a legal practitioner or by an official of an Insurance Company or a registered Trade Union or by an Inspector-cum-Facilitator appointed under sub-section (1) of section 122 or by any other officer specified by the State Government in this behalf, authorised in writing by such person, or, with the permission of the competent authority, by any other person so authorised.
97. The competent authority shall make a brief memorandum of the substance of the evidence of every witness as the examination of the witness proceeds, and such memorandum shall be authenticated under the hand of the competent authority or in the manner as may be prescribed by the State Government and shall form part of the record:
Provided that, if the competent authority is prevented from making such memorandum, he shall record the reason of his inability to do so and shall cause such memorandum to be made in writing from his dictation and shall sign the same, and such memorandum shall form part of the record:
Provided further that the evidence of any medical witness shall be taken down as nearly as may be word for word.
98. A competent authority may, if he thinks fit, submit any question of law for the decision of the High Court and, if he does so, shall decide the question in conformity with such decision.
99. (1) An appeal shall lie to the High Court from the following orders of a competent authority under this Chapter, namely:—
(a) an order awarding as compensation a lump sum whether by way of redemption of a half-monthly payment or otherwise or disallowing a claim in full or in part for a lump sum;
(b) an order awarding interest or damages under section 77;
(c) an order refusing to allow redemption of a half-monthly payment;
(d) an order providing for the distribution of compensation among the dependants of a deceased employee, or disallowing any claim of a person alleging himself to be such dependant;
(e) an order allowing or disallowing any claim for the amount of an indemnity under the provisions of sub-section (2) of section 85; or
(f) an order refusing to register a memorandum of agreement or registering the same or providing for the registration of the same subject to conditions:
Provided that no appeal shall lie against any order unless a substantial question of law is involved in the appeal, and in the case of an order other than an order referred to in clause (c), unless the amount in dispute in the appeal is not less than ten thousand rupees or such higher amount as the Central Government may, by notification, specify:
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Provided further that no appeal shall lie in any case in which the parties have agreed to abide by the decision of the competent authority, or in which the order of the competent authority gives effect to an agreement arrived at by the parties:
Provided also that no appeal by an employer under clause (a) shall lie unless the memorandum of appeal is accompanied by a certificate by the competent authority to the effect that the appellant has deposited with him the amount payable under the order appealed against.
(2) The period of limitation for an appeal under this section shall be sixty days from the date of passing of the order.
(3) The provisions of section 5 of the Limitation Act, 1963, shall be applicable to appeal under this section.
CHAPTER VIII
SOCIAL SECURITY AND CESS IN RESPECT OF BUILDING AND OTHER CONSTRUCTION WORKERS
15 100. (1) There shall be levied and collected a cess for the purposes of social security and welfare of building workers at such rate not exceeding two per cent. but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification, from time to time, specify.
Explanation.—For the purposes of this sub-section, the cost of construction shall
20 not include,—
(a) the cost of land; and
(b) any compensation paid or payable to an employee or his kin under Chapter VII.
(2) The cess levied under sub-section (1) shall be collected from every employer
25 undertaking building or other construction work in such manner and at such time, including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking or advance collection through a local authority where an approval of such building or other construction work by such local authority or such other authority notified by the State Government is required, as may be prescribed by the Central
30 Government.
(3) The proceeds of the cess collected under sub-section (2) shall be deposited by the local authority or such other authority notified by the State Government to the Building Workers' Welfare Board in such manner as may be prescribed by the Central Government.
(4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the
35 cess leviable under this Chapter including payment of such cess in advance may, subject to final assessment to be made, be collected at a uniform rate or rates as may be prescribed by the Central Government on the basis of the quantum of the building or other construction work involved.
101. If any employer fails to pay any amount of cess payable under section 100 within
40 such time as may be prescribed by the appropriate Government, such employer shall be liable to pay interest at such rate as may be prescribed by the Central Government, on the amount of cess, to be paid, for the period from the date on which such payment is due till such amount is actually paid.
102. Notwithstanding anything contained in this Chapter, the appropriate Government
45 may, by notification, exempt any employer or class of employers in a State from the payment of cess payable under this Chapter where such cess is already levied and payable under any corresponding law in force in that State.
Levy and collection of cess.
Interest payable on delay in
payment of cess.
Power to
exempt from cess.
Self- assessment of cess.
Penalty for
non-payment of cess within the specified time.
Appeal to appellate authority.
Registration of building workers as beneficiaries.
Cessation as a beneficiary.
103. (1) The employer shall, within sixty days or such period as may be notified by the Central Government of the completion of his each building and other construction work, pay such cess (adjusting the advance cess already paid under section 100) payable under this Chapter on the basis of his self-assessment on the cost of construction worked out on
the basis of the documents and in the manner prescribed by the Central Government and 5
after such payment of cess, he shall file a return under clause (d) of section 123.
(2) If the officer or the authority to whom or to which the return has been filed under sub-section (1) finds any discrepancy in the payment under the self-assessment and the payment required under the return referred to in that sub-section, then, he or it shall, after
making or causing to be made such inquiry as he or it thinks fit and after such inquiry make 10
the appropriate assessment order.
(3) An order of assessment made under sub-section (2) shall specify the date within which the cess shall be paid by the employer, if any.
104. If any amount of cess payable by any employer under section 103 is not paid within the date specified in the order of assessment made under sub-section (2) of that 15 section, it shall be deemed to be in arrears and the authority prescribed by the Central Government in this behalf may, after making such inquiry as it deems fit, impose on such employer a penalty not exceeding the amount of cess:
Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied 20 that the default was for any good and sufficient reason, no penalty shall be imposed under
this section.
105. (1) Any employer aggrieved by an order of assessment made under section 103 or by an order imposing penalty made under section 104 may, within such time as may be
prescribed by the Central Government, appeal to such appellate authority in such form and 25
in such manner as may be prescribed by the Central Government.
(2) Every appeal preferred under sub-section (1) shall be accompanied by such fees as may be prescribed by the appropriate Government.
(3) After the receipt of any appeal under sub-section (1), the appellate authority shall,
after giving the appellant an opportunity of being heard in the matter, dispose of the appeal 30
as expeditiously as possible.
(4) Every order passed in appeal under this section shall be final and shall not be called in question in any court of law.
106. Every building worker who has completed eighteen years of age, but has not completed sixty years of age, and who has been engaged in any building or other construction 35 work for not less than ninety days during the preceding twelve months shall be registered
by the officer authorised by the Building Workers' Welfare Board as a beneficiary under this Chapter in such manner as may be prescribed by the Central Government.
107. (1) A building worker who has been registered as a beneficiary under section 106
shall cease to be as such when he attains the age of sixty years or when he is not engaged 40
in building or other construction work for not less than ninety days in a year:
Provided that in computing the period of ninety days under this sub-section, there shall be excluded any period of absence from the building or other construction work due to any personal injury caused to the building worker by accident arising out of and in the
course of his employment. 45
(2) Notwithstanding anything contained in sub-section (1), if a person had been a beneficiary for at least three years continuously immediately before attaining the age of sixty years, then, he shall be eligible to get such benefits as may be prescribed by the Central Government.
Explanation.—For computing the period of three years under this sub-section as a beneficiary registered with a Building Workers' Welfare Board, there shall be added any period for which a person had been a beneficiary registered with any other such Board immediately before his registration with the Building Workers' Welfare Board.
5 108. (1) There shall be constituted by a Building Workers' Welfare Board a fund to be called the Building and Other Construction Workers' Welfare Fund and there shall be credited thereto—
(a) the amount of any cess levied under sub-section (1) of section 100;
(b) any grants and loans made to the Building Workers' Welfare Board by the
10 Central Government; and
(c) all sums received by the Building Workers' Welfare Board from such other sources as may be decided by the Central Government.
(2) The Building and Other Construction Workers' Welfare Fund shall be applied for meeting—
15 (a) expenses of the Building Workers' Welfare Board in the discharge of its functions under sub-section (6) of section 7;
(b) salaries, allowances and other remuneration of the members, officers and other employees of the Building Workers' Welfare Board; and
(c) expenses on objects and for purposes authorised by this Code.
20 (3) No Building Workers' Welfare Board shall, in any financial year, incur expenses towards salaries, allowances and other remuneration to its members, officers and other employees and for meeting the other administrative expenses exceeding five per cent. of its total expenses during that financial year.
CHAPTER IX
25 SOCIAL SECURITY FOR UNORGANISED WORKERS, GIG WORKERS AND PLATFORM WORKERS
109. (1) The Central Government shall frame and notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to—
(i) life and disability cover;
30 (ii) health and maternity benefits;
(iii) old age protection;
(iv) education; and
(v) any other benefit as may be determined by the Central Government.
(2) The State Government shall frame and notify, from time to time, suitable welfare
35 schemes for unorganised workers, including schemes relating to—
(i) provident fund;
(ii) employment injury benefit;
(iii) housing;
(iv) educational schemes for children;
40 (v) skill upgradation of workers;
(vi) funeral assistance; and
(vii) old age homes.
Building and Other
Construction Workers’ Welfare Fund and its
application.
Framing of schemes for unorganised workers.
Funding of State
Government schemes.
Record keeping.
(3) Any scheme notified by the Central Government under sub-section (1), may be—
(i) wholly funded by the Central Government; or
(ii) partly funded by the Central Government and partly funded by the State Government; or
(iii) partly funded by the Central Government, partly funded by the State Government and partly funded through contributions collected from the beneficiaries of the scheme or the employers as may be specified in the scheme by the Central Government; or
(iv) funded from any source including corporate social responsibility fund within the meaning of the Companies Act, 2013 or any other such source as may be specified in the scheme.
(4) Every scheme notified by the Central Government under sub-section (1) shall provide for such matters that are necessary for the efficient implementation of the scheme including the matters relating to all or any of the following, namely:—
(i) scope of the scheme;
(ii) authority to implement the scheme;
(iii) beneficiaries of the scheme;
(iv) resources of the scheme;
(v) agency or agencies that will implement the scheme;
(vi) redressal of grievances; and
(vii) any other relevant matter,
and a special purpose vehicle may also be constituted by the Central Government for the purpose of implementation of any such scheme.
110. (1) Any scheme notified by the State Government under sub-section (2) of section 109 may be—
(a) wholly funded by the State Government; or
(b) partly funded by the State Government, partly funded through contributions collected from the beneficiaries of the scheme or the employers as may be specified in the scheme by the State Government; or
(c) funded from any source including corporate social responsibility fund referred to in clause (iv) of sub-section (3) of section 109 or any other such source as may be specified in the scheme.
(2) The State Government may seek financial assistance from the Central Government for the schemes framed by it.
(3) The Central Government may provide such financial assistance to the State Governments for the purpose of schemes for such period and on such terms and conditions as it may deem fit.
111. The Government formulating and notifying the scheme under this Chapter shall provide therein the form and manner of keeping the records electronically or otherwise relating to the scheme and the authority by whom such records shall be maintained:
Provided that such records shall, as far as may be possible, bear continuous number for the purpose of proper management of the scheme and for avoiding any duplication and overlapping in records.
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112. The appropriate Government may set up a toll free call centre or helpline or such facilitation centres as may be considered necessary from time to time to perform any or more of the following functions, namely:—
(a) to disseminate information on available social security schemes for the
5 unorganised workers, gig workers and platform workers;
(b) to facilitate filing, processing and forwarding of application forms for registration of unorganised workers, gig workers and platform workers;
(c) to assist unorganised workers, gig workers and platform workers to obtain registration; and
10 (d) to facilitate the enrolment of the registered unorganised workers, gig workers and platform workers in the social security schemes.
113. (1) Every unorganised worker, gig worker or platform worker shall be required to be registered for the purposes of this Chapter, subject to the fulfilment of the following conditions, namely:—
15 (a) he has completed sixteen years of age or such age as may be prescribed by the Central Government;
(b) he has submitted a self-declaration electronically or otherwise in such form and in such manner containing such information as may be prescribed by the Central Government.
20 (2) Every eligible unorganised worker, gig worker or platform worker referred to in sub-section (1) shall make an application for registration in such form along with such documents including Aadhaar number as may be prescribed by the Central Government and such worker shall be assigned a distinguishable number to his application:
Provided that the system of electronic registration maintained by the appropriate
25 Government shall also provide for self registration by any such worker in such manner as may be prescribed by the Central Government.
(3) A registered unorganised worker, gig worker or platform worker shall be eligible to avail the benefit of the concerned scheme framed under this Chapter.
(4) The Central Government, or as the case may be, the State Government shall
30 make such contribution in a scheme as may be specified therein.
Explanation.—For the purposes of this section, the term "Aadhaar" shall have the same meaning as is assigned to it in section 142.
114. (1) The Central Government may frame and notify, from time to time, suitable social security schemes for gig workers and platform workers on matters relating to—
35 (a) life and disability cover;
(b) accident insurance;
(c) health and maternity benefits;
(d) old age protection;
(e) crèche; and
40 (f) any other benefit as may be determined by the Central Government.
(2) Every scheme framed and notified under sub-section (1) may provide for—
(a) the manner of administration of the scheme;
(b) the agency or agencies for implementing the scheme;
(c) the role of aggregators in the scheme;
Helpline,
facilitation centre, etc., for unorganised workers, gig workers and platform workers.
Registration of unorganised workers, gig workers and
platform workers.
Schemes for gig workers
and platform workers.
(d) the sources of funding of the scheme; and
(e) any other matter as the Central Government may consider necessary for the efficient administration of the scheme.
(3) Any scheme notified by the Central Government under sub-section (1), may be—
(a) wholly funded by the Central Government; or
(b) partly funded by the Central Government and partly funded by the State Government; or
(c) wholly funded by the contributions of the aggregators; or
(d) partly funded by the Central Government, partly funded by the State Government and partly funded through contributions collected from the beneficiaries of the scheme or the aggregators, as may be specified in the scheme framed by the Central Government; or
(e) funded from corporate social responsibility fund within the meaning of Companies Act, 2013; or
(f) any other source.
(4) The contribution to be paid by the aggregators for the funding referred to in clause (ii) of sub-section (1) of section 141, shall be at such rate not exceeding two per cent., but not less than one per cent., as may be notified by the Central Government, of the annual turnover of every such aggregator who falls within a category of aggregators, as are specified in the Seventh Schedule:
Provided that the contribution by an aggregator shall not exceed five per cent. of the amount paid or payable by an aggregator to gig workers and platform workers.
Explanation.—For the purposes of this sub-section, the annual turnover of an aggregator shall not include any tax, levy and cess paid or payable to the Central Government.
(5) The date of commencement of contribution from aggregator under this section shall be notified by the Central Government.
(6) The National Social Security Board constituted under sub-section (1) of section 6 shall be the Board for the purposes of the welfare of gig workers and platform workers under the provisions of this Code:
Provided that while such Board serves the purposes of welfare of, or matters relating to, gig workers and platform workers, the following members shall constitute the Board instead of the members specified in clauses (c) and (d) of sub-section (2) of section 6, namely:—
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(a) five representatives of the aggregators as the Central Government may nominate; 35
(b) five representatives of the gig workers and platform workers as the Central Government may nominate;
(c) Director General of the Corporation;
(d) Central Provident Fund Commissioner of the Central Board;
(e) such expert members as the Central Government may consider appropriate; 40
(f) five representatives of the State Governments by such rotation as the Central Government may consider appropriate;
(g) Joint Secretary to the Government of India in the Ministry of Labour and Employment, who shall be the Member Secretary to the Board.
(7) (i) The Central Government may provide that—
(a) the authority to collect and to expend the proceeds of contribution collected;
(b) the rate of interest to be paid by an aggregator in case of delayed payment, less payment or non-payment of contribution;
5 (c) self-assessment of contribution by aggregators;
(d) conditions for cessation of a gig worker or a platform worker; and
(e) any other matter relating to smooth functioning of the social security scheme notified under this section,
shall be such as may be prescribed by that Government.
10 (ii) The Central Government may by notification, exempt such aggregator or class of aggregators from paying of contribution under sub-section (4), subject to such conditions as may be specified in the notification.
Explanation.—For the purposes of this section, an aggregator having more than one business shall be treated as a separate business entity or aggregator.
15 CHAPTER X
FINANCE AND ACCOUNTS
115. Each of the Social Security Organisations shall maintain proper accounts of its income and expenditure in such form and in such manner as the appropriate Government may, after consultation with the Comptroller and Auditor-General of India, specify.
20 116. (1) The accounts of each of the Social Security Organisations shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the respective Social Security Organisation to the Comptroller and Auditor-General of India.
(2) The Comptroller and Auditor-General of India and any person appointed by him
25 in connection with the audit of the accounts of a Social Security Organisation shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has, in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers, documents and papers and to inspect any of the offices of the Social Security
30 Organisation.
(3) The accounts of a Social Security Organisation as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded to the Social Security Organisation which shall along with its comments on the audit report of the Comptroller and Auditor-General
35 of India forward the same to the appropriate Government.
117. (1) Each of the Social Security Organisations shall in each year frame a budget showing the probable receipts and the expenditure which it proposes to incur during the following year and shall submit a copy of the budget for the approval of the appropriate Government before such date as may be fixed by it in that behalf.
40 (2) The budget shall contain provisions adequate in the opinion of the appropriate Government for the discharge of the liabilities incurred by the Social Security Organisation and for the maintenance of a working balance.
118. (1) Each of the Social Security Organisations shall submit to the appropriate Government an annual report of its work and activities and the budget finally adopted by
45 the Social Security Organisation.
(2) The appropriate Government shall cause a copy of the annual report, budget and the audited accounts together with the report of the Comptroller and Auditor-General of
Accounts.
Audit.
Budget
estimates.
Annual report.
Valuation of assets and liabilities.
Holding of
property, etc., by Social Security
organisation.
Writing off of losses.
Appointment of Inspector- cum-
Facilitators and their powers.
India and the comments of the respective Social Security Organisation thereon to be laid before each House of Parliament or the State legislature, as the case may be.
119. Each of the fund maintained by a Social Security Organisation or by an establishment under this Code shall have a valuation of its assets and liabilities made by a valuer or actuary, as the case may be, appointed, with the prior approval of the appropriate 5 Government, by such Social Security Organisation or the establishment, as the case may be, in the following manner, namely:—
(a) in case of Central Board, annually;
(b) in case of Corporation, once in every three years;
(c) in case of any other Social Security Organisation or establishment, as 10
specified by the appropriate Government, by order:
Provided that the appropriate Government, if it considers necessary, may direct such valuation to be made at such intervals other than provided in this section.
120. (1) A Social Security Organisation (except Corporation) may, subject to such conditions as may by Social Security Organisation be prescribed by the appropriate 15 Government, acquire and hold property, both movable and immovable, sell or otherwise transfer any movable or immovable property which may have become vested in or have been acquired by it and do all things necessary for such purposes and for the purposes for which the said Social Security Organisation is established.
(2) Subject to such conditions as may be prescribed by the appropriate Government, 20
a Social Security Organisation may, from time to time invest any moneys vested in it, which are not immediately required for expenses properly defrayable and may, subject to as aforesaid, from time to time re-invest or realise such investments:
Provided that in case of Provident Fund, Pension Fund or Insurance Fund, such investment, re-investment or realisation shall be specified in the Provident Fund Scheme or 25 Pension Scheme or Insurance Scheme, as the case may be.
(3) Each of the Social Security Organisations (except Corporation) may, with the previous sanction of the appropriate Government and on such terms as may be prescribed by such Government, raise loans and take measures for discharging such loans.
(4) Each of the Social Security Organisations (except Corporation) may, with the 30
previous sanction of the appropriate Government and on such terms as may be prescribed by such Government, constitute for the benefit of its officers and staff or any class of them, such provident or other benefit funds as it may think fit:
Provided that in case of officers and staff of the Central Board, such terms shall be specified in the Provident Fund Scheme. 35
121. Subject to the conditions as may be prescribed by the appropriate Government, where any of the Social Security Organisations is of the opinion that the amount of contribution, cess, interest and damages due to it, under this Code, is irrecoverable, the concerned Social Security Organisation may sanction the writing off of the said amount in such manner as may be prescribed by the appropriate Government: 40
Provided that in the case of Provident Fund, Pension Fund or Insurance Fund, such writing off shall be specified in the Provident Fund Scheme or Pension Scheme or Insurance Scheme, as the case may be.
CHAPTER XI
AUTHORITIES, ASSESSMENT, COMPLIANCE AND RECOVERY 45
122. (1) The Central Government for the purposes of Chapter III and Chapter IV and for the provisions in this Code relating to those Chapters, and the appropriate Government for the purposes of other provisions of this Code, may, by notification, appoint Inspector- cum-Facilitators who shall discharge his duties under this Code and exercise the powers
conferred on them under sub-section (6) in accordance with the inspection scheme referred to in sub-section (2).
(2) The Central Government for the purposes of Chapter III and Chapter IV and for the provisions in this Code relating to those Chapters and the appropriate Government in
5 respect of other provisions of this Code, may, by notification, lay down an inspection scheme which may provide for generation of a web-based inspection and calling of information relating to the inspection under this Code electronically and such scheme shall, inter alia, have provisions to cater to special circumstances for assigning inspections and calling for information from the establishment or any other person.
10 (3) Without prejudice to the provisions of sub-section (2), the Central Government for the purposes of Chapter III and Chapter IV and the other provisions in this Code relating to those Chapters and the appropriate Government in relation to other provisions of this Code, may, by notification, confer such jurisdiction of randomised selection of inspection for the purposes of this Code, to the Inspector-cum-Facilitators as may be specified in
15 such notification.
(4) Without prejudice to the powers of the Central Government or the appropriate Government, as the case may be, under this section, the inspection scheme may be designed taking into account, inter alia, the following factors, namely:—
(a) assignment of unique number to each establishment (which will be same as
20 the registration number allotted to that establishment), each Inspector-cum-Facilitator and each inspection in such manner as may be notified for the purposes of Chapter III and Chapter IV and the other provisions of this Code relating to those Chapters, by the Central Government, and in respect of other provisions of this Code, by the appropriate Government;
25 (b) timely uploading of inspection reports in such manner and subject to such conditions as may be notified, for the purposes of Chapter III and Chapter IV and the other provisions of this Code relating to those Chapters, by the Central Government, and in respect of other provisions of this Code, by the appropriate Government;
(c) provisions for special inspections based on such parameters as may be
30 notified, for the purposes of Chapter III and Chapter IV and the other provisions of this Code relating to those Chapters, by the Central Government, and in respect of other provisions of this Code, by the appropriate Government; and
(d) the characteristics of employment relationships, the nature of work and characteristics of the workplaces based on such parameters as may be notified, for
35 the purposes of Chapter III and Chapter IV and the other provisions of this Code relating to those Chapters, by the Central Government, and in respect of other provisions of this Code, by the appropriate Government.
(5) The Inspector-cum-Facilitator may—
(a) advice the employers and employees relating to compliance with the
40 provisions of this Code; and
(b) inspect the establishments as assigned to him under the provisions of this
Code,
subject to the instructions or guidelines issued by the appropriate Government from time to time.
45 (6) Subject to the provisions of sub-section (4), the Inspector-cum-Facilitator may,—
(a) examine any person who is found in any premises of the establishment, whom the Inspector-cum-Facilitator has reasonable cause to believe, is an employee of the establishment;
(b) require any person whom the Inspector-cum-Facilitator has reasonable cause to believe, is an employer of the establishment, to produce any document or to give any information, which is in his power with respect to any of the purposes for which the inspection is made;
(c) search, seize or take copies of such register, record of wages or notices or portions thereof as the Inspector-cum-Facilitator may consider relevant in respect of an offence under this Code and which the Inspector-cum-Facilitator has reason to believe has been committed by the employer;
(d) bring to the notice of the appropriate Government defects or abuses not covered by any law for the time being in force; and
(e) exercise such other powers as may be prescribed by the appropriate Government.
(7) Any person required to produce any document or to give any information required by an Inspector-cum-Facilitator for the purposes of sub-section (6) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code.
5
10
15 45 of 1860.
Maintenance of records, registers, returns, etc.
(8) The provisions of the Code of Criminal Procedure, 1973 shall, so far as may be, apply to the search or seizure for the purposes of sub-section (6), as they apply to the search or seizure made under the authority of a warrant issued under section 94 of the said Code.
123. An employer of an establishment shall—
(a) maintain records and registers in the form prescribed by the appropriate Government, electronically or otherwise, containing such particulars and details with regard to persons employed, muster roll, wages and such other particulars and details, in such manner, as may be prescribed by the appropriate Government including—
(i) number of days for which work performed by employees;
(ii) number of hours of work performed by the employees;
(iii) wage paid;
(iv) leave, leave wages, wages for overtime work and attendance;
(v) employees identification number, by whatever nomenclature it may be called;
(vi) number of dangerous occurrences, accidents, injuries in respect of which compensation has been paid by the employer and the amount of such compensation relating to Chapter IV and Chapter VII, respectively;
(vii) statutory deductions made by employer from the wages of an employee in respect of Chapter III and Chapter IV;
(viii) details as to cess paid in respect of building and other construction
2 of 1974.
20
25
30
35
work;
(ix) total number of employees (regular, contractual or fixed term
employment) on the day specified; 40
(x) persons recruited during a particular period;
(xi) occupational details of the employees; and
(xii) vacancies for which suitable candidates were not available during the specified period.
(b) display notices at the workplaces of the employees in such manner and form 45
as may be prescribed by the appropriate Government;
(c) issue wage slips to the employees, in electronic forms or otherwise; and
(d) file such return electronically or otherwise to such officer or authority in such manner and during such periods as may be prescribed by the appropriate Government:
5 Provided that matters to be provided under the rules required to be made under this section relating to Chapter III shall, instead of providing them in rules to be made by the Central Government, be provided in the Provident Fund Scheme or the Pension Scheme or the Insurance Scheme, as the case may be:
Provided further that the forms of records and registers and that of the returns
10 to be filed under Chapter IV shall be specified in the regulations instead of providing them in the rules.
124. No employer in relation to an establishment to which this Code or any scheme framed thereunder applies shall, by reason only of his liability for the payment of any contribution under this Code, or any charges thereunder reduce whether directly or indirectly,
15 the wages of any employee to whom the provisions of this Code or any scheme framed thereunder applies or the total quantum of benefits to which such employee is entitled under the terms of his employment, express or implied.
125. (1) The Central Government may, by notification, authorise, such officers of the Central Board or the Corporation, as the case may be, not below the rank of Group 'A' officer
20 of that Government, to function as the Authorised Officers for the purposes of Chapter III or Chapter IV, as the case may be, who may, by order—
(a) in a case where a dispute arises regarding the applicability of Chapter III or Chapter IV, as the case may be, to an establishment, decide such dispute; and
(b) determine the amount due from any employer under any provision of
25 Chapter III or Chapter IV, as the case may be, or the schemes, or rules, regulations made under such Chapter; and
(c) for any of the purposes relating to clause (a) and clause (b), conduct such inquiry, as he may deem necessary for such purposes:
Provided that no proceeding under this sub-section shall be initiated after the
30 expiry of the period of five years from the date on which the dispute referred to in clause (a) is alleged to have been arisen or, as the case may be, the amount referred to in clause (b) is alleged to have been due from an employer.
(2) Notwithstanding anything contained in the Code of Civil Procedure, 1908, the inquiry under sub-section (1), as far as practicable, shall be held on day-to-day basis and
35 endeavour shall be made to ensure that the inquiry is concluded within a period of two years:
Provided that where the inquiry is not concluded within the said period of two years, the Authorised Officer conducting such inquiry shall record the circumstances and reasons for not having concluded so and submit the circumstances and reasons so recorded to the
40 Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or such other officer authorised by him in this behalf:
Provided further that the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, after considering the circumstances and the reasons which have been submitted by the Authorised Officer may grant an extension
45 for a period up to one year to conclude the said inquiry:
Provided also that the inquiries which are pending immediately before the date of commencement of this Code shall be concluded by the Authorised Officer within a period not exceeding two years from the date of such commencement.
Employer not to reduce wages, etc.
Assessment and
determination of dues from employer.
5 of 1908.
Appeal against order of Authorised Officer relating to Chapter IV.
(3) The Authorised Officer conducting the inquiry under sub-section (1) shall, for the purposes of such inquiry have the same powers as are vested in a court under the Code of Civil Procedure, 1908, for trying a suit in respect of the following matters, namely:—
(a) enforcing the attendance of any person or examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavit; and
(d) issuing commissions for the examination of witnesses,
and any such inquiry shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code.
(4) No order shall be made under sub-section (1), unless the employer concerned is given a reasonable opportunity of representing his case.
(5) Where the employer, employee or any other person required to attend the inquiry under sub-section (1) fails to attend such inquiry without assigning any valid reason or fails to produce any document or to file any report or return when called upon to do so by the Authorised Officer conducting the inquiry, such inquiry officer may decide the applicability of the relevant provisions of this Code or determine the amount due from any employer, as the case may be, on the basis of the evidence adduced during such inquiry and other documents available on record.
(6) Where an order under sub-section (1) is passed against an employer ex parte, he may, within three months from the date of communication of such order, apply to the Authorised Officer for setting aside such order and if the Authorised Officer is satisfied that the show cause notice was not duly served or that such employer was prevented by any sufficient cause from appearing when the inquiry was held, the Authorised Officer shall make an order setting aside his earlier order and shall appoint a date for proceeding with the inquiry:
Provided that no such order shall be set aside merely on the ground that there has been an irregularity in the service of the show cause notice if the Authorised Officer is satisfied that the employer had notice of the date of hearing and had sufficient time to appear before the Authorised Officer.
Explanation.— Where an appeal has been preferred under this Code against an order passed ex parte and such appeal has been disposed of otherwise than on the ground that the appellant has withdrawn the appeal, no application shall lie under this sub-section for setting aside the ex parte order.
(7) No order passed under this section shall be set aside on any application under sub-section (6) unless notice thereof has been served on the opposite party.
126. If an employer is not satisfied with the order referred to in section 125 and relates to Chapter IV, he may prefer an appeal to the appellate authority not below the rank of the Joint Director of the Corporation as may be provided by regulations, within sixty days from the date of such order after depositing twenty-five per cent. of the contribution so ordered or the contribution as per his own calculation, whichever is higher, with the Corporation:
Provided that the appellate authority shall decide the appeal within a period of six months from the date of preferring the appeal:
Provided further that if the employer finally succeeds in the appeal, the Corporation shall refund such deposit to the employer together with such interest as may be specified in the regulations.
5 of 1908.
5
45 of 1860.
10
15
20
25
30
35
40
45
5
10
15
20
31 of 2016.
25
30
35
40
45
127. Except where expressly provided otherwise in this Code, the employer shall be liable to pay simple interest at such rate as may be notified from time to time by the Central Government, from the date on which any amount has become due under this Code till the date of its actual payment.
128. Where an employer makes default in the payment of any contribution which he is liable to pay in accordance with the provisions of Chapter III or Chapter IV, as the case may be, or any scheme framed thereunder or in the transfer of accumulations under Chapter III, or in the payment of any charges payable under any other provision of this Code, the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or such other officer as may be authorised, by notification, by the appropriate Government, may levy on, and recover from, the employer by way of damages, an amount not exceeding the amount of arrears, in such manner as may be specified in the regulations for the purposes of Chapter IV and in respect of Provident Fund Scheme, Pension Scheme and Insurance Scheme, such levy and recovery shall be in the manner as may be specified in the respective schemes framed by the Central Government:
Provided that before levying and recovering such damages, the employer shall be given an opportunity of being heard:
Provided further that the Central Board or the Corporation as the case may be, may reduce or waive the damages levied under this section in relation to an establishment for which a resolution plan or repayment plan recommending such waiver has been approved by the adjudicating authority established under the Insolvency and Bankruptcy Code, 2016 subject to the terms and conditions as may be specified by notification, by the Central Government.
129. (1) Any amount due from an employer or any other person in relation to an establishment including any contribution or cess payable, charges, interest, damages, or benefit or any other amount may, if the amount is in arrear, be recovered in the manner specified in this section and sections 130 to 132.
(2) Where any amount is in arrear under this Code, the Authorised Officer, or the competent authority, as the case may be, shall issue to the Recovery Officer referred to in sub-section (4), a certificate electronically or otherwise, specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the establishment or, as the case may be, the employer by one or more of the modes mentioned below, namely:—
(a) attachment and sale of the movable or immovable property of the establishment or, as the case may be, of the employer;
(b) arrest of the employer and his detention in prison;
(c) appointing a receiver for the management of the movable or immovable properties of the defaulter:
Provided that the attachment and sale of any property under this section shall first be effected against the properties of the establishment and where such attachment and sale is insufficient for recovering the whole of the amount or arrears specified in the certificate, the Recovery Officer may move such proceeding against the property of the employer for recovery of the whole or any part of such arrears.
(3) The Authorised Officer or the competent authority, as the case may be, may issue a certificate under sub-section (2), notwithstanding that proceeding for recovery of the arrears by any other mode has been taken.
Interest on amount due.
Power to recover damages.
Recovery of amount due.
Validity of certificate and amendment
thereof.
(4) The Authorised Officer or the competent authority, as the case may be, may forward the certificate issued under this section, to the Recovery Officer within whose jurisdiction the employer—
(a) carries on his business or profession or within whose jurisdiction the principal place of his establishment is situate; or 5
(b) resides or any movable or immovable property of, the establishment or, the employer is situated.
(5) Where an establishment or the employer has property within the jurisdiction of more than one Recovery Officer and the Recovery Officer to whom a certificate is sent by
the Authorised Officer or the competent authority, as the case may be — 10
(a) is not able to recover the entire amount by the sale of the property, movable or immovable, within his jurisdiction, or
(b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or any part of the amount, it is necessary so to do,
he may send the certificate or, where only a part of the amount is to be recovered, a copy of 15
the certificate certified by him, specifying the amount to be recovered, to the Recovery Officer within whose jurisdiction the establishment or the employer has property or the employer resides, and thereupon that Recovery Officer shall proceed to recover the amount due under this section as if the certificate or the copy thereof had been the certificate sent
to him by the Authorised Officer or the competent authority, as the case may be. 20
130. (1) When the Authorised Officer or the competent authority, as the case may be, issues a certificate to a Recovery Officer under section 129, it shall not be open to the employer to dispute before the Recovery Officer the correctness of the amount, and no objection to the certificate on any other ground shall be entertained by the Recovery Officer. 25
(2) Notwithstanding the issue of a certificate to a Recovery Officer, the Authorised Officer or the competent authority, as the case may be, shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending intimation to the Recovery Officer.
(3) The Authorised Officer or the competent authority, as the case may be, shall 30
intimate to the Recovery Officer any orders of withdrawing or cancelling a certificate or any correction made by him in respect of the said certificate under sub-section (2).
(4) Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount, the Authorised Officer or the competent authority, as the case may
be, may grant time to the employer for payment of the amount recoverable under the certificate 35
and thereupon the Recovery Officer shall stay the proceedings until the expiry of the time so granted.
(5) Where a certificate for the recovery of amount has been issued, the Authorised Officer or the competent authority, as the case may be, shall keep the Recovery Officer informed of any
amount paid or time granted for payment, subsequent to the issue of such certificate. 40
(6) Where the order giving rise to a demand of amount for which a certificate for recovery has been issued under section 129 has been modified in appeal or other proceeding under this Code, resulting in reduction of the demand but the order is the subject matter of further proceeding under this Code, the Authorised Officer or the competent
authority, as the case may be, shall stay the recovery of such part of the amount of the 45
certificate as pertains to the said reduction for the period for which the appeal or other proceeding remains pending.
5
10
15
20
5 of 1908.
25
30
35
40
45
50
(7) Where a certificate for the recovery of amount has been issued and subsequently the amount of the outstanding demand is reduced as a result of an appeal or other proceeding under this Code, the Authorised Officer or the competent authority, as the case may be, shall, when the order being the subject matter of such appeal or other proceeding becomes final and conclusive, amend the certificate or withdraw it, as the case may be in consonance with such finality or conclusion.
131. (1) Notwithstanding the issue of a certificate to the Recovery Officer under section 129, the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation so authorised by it in this behalf, may, recover the amount by any one or more of the modes provided in this section.
(2) If any amount is due from any person to any employer who is in arrears, the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf, may, require such person to deduct from the said amount the arrears so due, and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation so authorised by it in this behalf:
Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908.
(3) (a) The Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf may, at any time or from time to time, by notice in writing, require any person from whom money is due or may become due to the employer or, as the case may be, the establishment or any person who holds or may subsequently hold money for or on account of the employer or, as the case may be, the establishment, to pay to the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer authorised by it in this behalf either forthwith upon the money becoming due or being held at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due from the employer in respect of arrears or the whole of the money when it is equal to or less than that amount.
(b) A notice under this sub-section may be issued to any person who holds or may subsequently hold any money for or on account of the employer jointly with any other person and for the purposes of this sub-section, the shares of the joint holders in such account shall be presumed, until the contrary is proved, to be equal.
(c) A copy of the notice shall be forwarded to the employer at his last address known to the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf and in the case of a joint account to all the joint holders at their last addresses so known.
(d) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, bank or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like being made before payment is made notwithstanding any rule, practice or requirement to the contrary.
(e) Any claim respecting any property in relation to which a notice under this sub-section has been issued arising after the date of the notice shall be void as against any demand contained in the notice.
Other modes of recovery.
Application of certain provisions of
Income-tax Act.
(f) Where a person to whom a notice under this sub-section is sent objects to it by statement on oath that the sum demanded or any part thereof is not due to the employer or that he does not hold any money for or on account of the employer, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf, to the extent of his own liability to the employer on the date of the notice, or to the extent of the employer's liability for any sum due under this Code, whichever is less.
(g) The Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf, may, at any time or from time to time, amend or revoke any notice issued under this sub-section or extend the time for making any payment in pursuance of such notice.
(h) The Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf, shall grant a receipt for any amount paid in compliance with a notice issued under this sub-section, and the person so paying shall be fully discharged from his liability to the employer to the extent of the amount so paid.
(i) Any person discharging any liability to the employer after the receipt of a notice under this sub-section shall be personally liable to the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf, to the extent of his own liability to the employer so discharged or to the extent of the employer's liability for any sum due under this Code, whichever is less.
(j) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance thereof to the Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf, he shall be deemed to be an employer in default in respect of the amount specified in the notice and further proceeding may be moved against him for the realisation of the amount as if it were an arrear due from him, in the manner provided in sections 129 to 132 and the notice shall have the same effect as an attachment of amount in arrears by the Recovery Officer in exercise of his powers under section 129.
(4) The Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf may apply to the court in whose custody there is money belonging to the employer for payment to him of the entire amount of such money, or if it is more than the amount due, an amount sufficient to discharge the amount due.
(5) The Central Provident Fund Commissioner or the Director General of the Corporation, as the case may be, or any other officer of such Social Security Organisation authorised by it in this behalf, if so authorised by the Central Government by general or special order, recover any arrears of amount due from an employer or, as the case may be, from the establishment by distraint and sale of his or its movable property in the manner laid down in the Third Schedule to the Income-tax Act, 1961.
132. The provisions of the Second Schedule and the Third Schedule to the Income- tax Act, 1961 and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and the rules referred to the amount in arrears of the amount mentioned in section 129 of this Code instead of to the income-tax:
Provided that any reference in the said provisions and the rules to the "assessees"
5
10
15
20
25
30
35
40
45 43 of 1961.
50
shall be construed as a reference to an employer or establishment, as the case may be.
CHAPTER XII OFFENCES AND PENALTIES
133. If any person,—
5 (a) being an employer, fails to pay any contribution which he is liable to pay under this Code or rules, regulations or schemes made thereunder; or
(b) deducts or attempts to deduct from the wages of an employee, the whole or any part of employer's contribution; or
(c) in contravention of the provisions of this Code, reduces the wages or any
10 privilege or benefits admissible to an employee; or
(d) in contravention of the provisions of Chapter IV or Chapter VI or rules, regulations or schemes made or framed under this Code respectively, relating to such Chapters, dismisses, discharges, reduces in rank or otherwise penalises a woman employee; or
15 (e) fails or refuses to submit any return, report, statement or any other information required under this Code or any rules, regulations or schemes made or framed thereunder; or
(f) obstructs any Inspector-cum-Facilitator or other officer or staff of the Central Board or the Corporation or other Social Security Organisation or a competent authority
20 in the discharge of his duties; or
(g) fails to pay any amount of gratuity to which an employee is entitled under this Code; or
(h) fails to pay any amount of compensation to which an employee is entitled under this Code; or
25 (i) fails to provide any maternity benefit to which a woman is entitled under this Code; or
(j) fails to send to a competent authority a statement which he is required to send under Chapter VII; or
(k) fails to produce on demand by the Inspector-cum-Facilitator any register or
30 document in his custody kept in pursuance of this Code or the rules, regulations or schemes made or framed thereunder; or
(l) fails to pay the cess for building workers which he is liable to pay under this Code; or
(m) is guilty of any contravention of or non-compliance with any of the
35 requirements of this Code or the rules or the regulations or schemes made or framed thereunder in respect of which no special penalty is provided in this Chapter; or
(n) obstructs executive officer in exercising his functions under Chapter XIII; or
(o) dishonestly makes a false return, report, statement or information to be submitted thereunder; or
40 (p) fails or makes default in complying with any condition subject to which exemption under section 143 was granted; or
(q) fails to pay any administrative or inspection charges payable under any of the schemes framed under Chapter III,
he shall be punishable,—
Penalty for failure to pay contributions, etc.
Enhanced punishment in certain cases after previous conviction.
Offences by companies.
Cognizance of offences.
(i) where he commits an offence under clause (a), with imprisonment for a term which may extend to three years, but—
(a) which shall not be less than one year, in case of failure to pay the employee's contribution which has been deducted by him from the employee's wages and shall also be liable to fine of one lakh rupees; 5
(b) which shall not be less than two months but may be extended to six months, in any other case and shall also be liable to fine of fifty thousand rupees:
Provided that the court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of imprisonment for a lesser term; 10
(ii) where he commits an offence under clause (g), with imprisonment for a term which may extend to one year or with fine which may extend to fifty thousand rupees, or with both;
(iii) where he commits an offence under any of the clauses (d), (f), (i), (k), (l) or
(o), with imprisonment for a term which may extend to six months or with a fine which 15
may extend to fifty thousand rupees, or with both;
(iv) where he commits an offence under any of the clauses (b), (c), (e), (h), (j), (m), (n), (p) or (q), with fine which may extend to fifty thousand rupees.
134. Whoever, having been convicted by a court of an offence punishable under this Code, commits the same offence shall, for second, or every subsequent such offence, be 20
punishable with imprisonment for a term which may extend to two years and with fine of two lakh rupees:
Provided that where such second or subsequent offence is for failure by the employer to pay any contribution, charges, cess, maternity benefit, gratuity or compensation which
under this Code he is liable to pay, he shall, for such second or subsequent offence, be 25
punishable with imprisonment for a term which may extend to three years but which shall not be less than two years and shall also be liable to fine of three lakh rupees.
135. (1) Where an offence under this Chapter has been committed by a company, every person who, at the time the offence was committed, was directly in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the 30
company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge
or that he exercised all due diligence to prevent the commission of such offence. 35
(2) Notwithstanding anything contained in sub-section (1), where an offence has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, secretary or other officer of the company, such director, secretary or other officer shall also
be deemed to be guilty of that offence and shall be liable to be proceeded against and 40
punished accordingly.
Explanation.—For the purposes of this section,—
(a) "company" means any body corporate, and includes a firm or other association of individuals; and
(b) "Director", in relation to a firm, means a partner in the firm. 45
136. (1) No court shall take cognizance of an offence punishable under this Code, except on a complaint made by an aggrieved person or such officer as may be notified by the Central Government for the purposes of offences relating to Chapter III and Chapter IV
5
10
15
20
25
30
2 of 1974.
35
and the rules, regulations or schemes made or framed under this Code relating to those Chapters, and for the purposes of offences relating to other provisions of this Code and the rules, regulations or schemes made or framed thereunder, by the officer notified by the appropriate Government.
(2) Notwithstanding anything contained in sub-section (1), no prosecution under this Code shall be instituted, except by or with the previous sanction of the authority notified by the Central Government for the purposes of offences relating to Chapter III and Chapter IV and the rules, regulations or schemes made or framed under this Code relating to those Chapters; and for the purposes of offences relating to other provisions of this Code and the rules, regulations or schemes made or framed thereunder, the authority notified by the appropriate Government.
(3) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Chapter.
(4) Notwithstanding anything contained in sub-section (1), a single complaint may be filed under that sub-section by more than one aggrieved persons if they are aggrieved by the same or similar offence committed at a place or different places within the jurisdiction of the court.
137. Notwithstanding anything contained in this Chapter, the Inspector-cum-Facilitator or any other officer notified for the purposes of offences relating to Chapter III and Chapter IV and the rules, regulations or schemes made or framed under this Code relating to those Chapters, by the Central Government; and for the purposes of offences relating to other provisions of this Code and the rules, regulations or schemes made or framed under this Code relating thereto, by the appropriate Government, shall, before initiation of prosecution proceeding against an employer for any offence under this Chapter, give an opportunity to the employer to comply with the aforesaid relevant provisions by way of a written direction, which shall lay down a time period for such compliance, and, if the employer complies with the direction within such period, then, no such proceeding shall be initiated against the employer; but no such opportunity shall be accorded to an employer, if the violation of the same nature of such provisions is repeated within a period of three years from the date on which such first violation was committed and in such case the prosecution shall be initiated in accordance with the provisions of this Chapter.
138. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence committed for the first time, punishable under this Chapter, being an offence—
(i) punishable with fine only; or
(ii) punishable with imprisonment for a term which is not more than one year and also with fine,
may, on an application made, either before or after the institution of any prosecution, be compounded by an officer authorised by the Central Government for the purposes of
Prior
opportunity before
prosecution.
Compounding of offences.
40 offences relating to Chapter III and Chapter IV and the rules, regulations or schemes made or framed under this Code relating to those Chapters, by the Central Government; and for the purposes of offences relating to other provisions of this Code and the rules, regulations or schemes made or framed under this Code relating thereto, by the appropriate Government, in such manner as may be prescribed by the Central Government on payment by the offender
45 to the appropriate Government the amount—
(i) in the case of an offence punishable with fine only, the half of the maximum fine provided for that offence; and
(ii) in the case of an offence punishable with imprisonment for a term which is not more than one year and also with fine, the three-fourth of the maximum fine
50 provided for that offence.
Reporting of vacancies to career centres.
(2) Nothing contained in sub-section (1) shall apply to an offence committed by a person for the second time or thereafter within a period of three years from the date—
(i) of commission of a similar offence which was earlier compounded; or
(ii) of commission of similar offence for which such person was earlier convicted.
(3) Every officer referred to in sub-section (1) shall exercise the powers to compound 5
an offence, subject to the direction, control and supervision of the Central Government for the purposes of offences relating to Chapter III and Chapter IV and the rules, regulations or schemes made or framed under this Code relating to those Chapters; and for the purposes of offences relating to other provisions of this Code and the rules, regulations or schemes
made or framed under this Code relating thereto, by the appropriate Government. 10
(4) Every application for the compounding of an offence shall be made in such form and in such manner as may be prescribed by the appropriate Government.
(5) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, against the offender in relation to whom the offence is so compounded. 15
(6) Where the compounding of any offence is made after the institution of any prosecution, such compounding shall be brought to the notice of the court in which the prosecution is pending in writing by the officer referred to in sub-section (1), and on such notice of the compounding of the offence being given to the court, the person against whom the offence is so compounded shall be discharged. 20
(7) Any person who fails to comply with the order made by the officer referred to in sub-section (1), shall be liable to pay a sum equivalent to twenty per cent. of the maximum fine provided for the offence, in addition to such fine.
CHAPTER XIII
EMPLOYMENT INFORMATION AND MONITORING 25
139. (1) The appropriate Government may, by notification, require that from such date as may be specified in the notification, the employer in every establishment or any class or category of establishments, before filling up any vacancy in any employment in that establishment or such class or category of establishments, as the case may be, shall report
or cause to be reported, that vacancy to such career centre as may be specified in the 30
notification, and the employer shall thereupon comply with such requisition.
(2) For the purposes of sub-section (1), the appropriate Government may prescribe the following, namely:—
(i) the manner in which the vacancies, referred to in sub-section (1), shall be reported to the career centres electronically or otherwise; 35
(ii) the form in which such vacancies shall be reported to the career centres; and
(iii) the manner and form of filing the return by the employer, to the concerned career centre.
(3) Nothing in sub-sections (1) and (2) shall be deemed to impose any obligation upon any employer to recruit any person through the career centre to fill any vacancy 40 merely because such vacancy has been reported.
(4) The executive officer shall have access to any record or document in the possession of any employer required to furnish any information or returns for the purposes of this Chapter and may enter, at any reasonable time, any premises where he believes such record
or document to be and inspect or take copies of such records or documents or ask any 45
question necessary for obtaining any information required.
140. (1) The provisions of section 139 shall not apply in relation to vacancies,—
(a) in any employment in agriculture (including horticulture) in any establishment in private sector other than employment in plantation; or
(b) in any employment in domestic service; or
5 (c) in any employment connected with the staff of Parliament or any State Legislature; or
(d) in any employment the total duration of which is less than ninety days; or
(e) in any class or category of establishments as may be notified by the Central Government; or
10 (f) in any establishment (other than Government establishment) with less than twenty or such number of employees as may be notified by the Central Government; and
(g) in any other employment as may be notified by the Central Government.
(2) Unless the Central Government, by notification direct, the provisions of this
15 Chapter shall not apply in relation to—
(a) vacancies which are proposed to be filled through promotion or by absorption of surplus staff of any branch or department of the same establishment or through independent recruitment agencies such as Union Public Service Commission, Staff Selection Commission or a State Public Service Commission or any other agencies as
20 may be notified by the Central Government; or
(b) vacancies in an employment which carries a monthly remuneration of less than an amount notified by the appropriate Government.
CHAPTER XIV MISCELLANEOUS
25 141. (1) There shall be established by the Central Government a Social Security Fund for social security and welfare of the unorganised workers, gig workers and platform workers and the sources of the fund shall comprise of funding received—
(i) under sub-section (3) of section 109;
(ii) under sub-section (3) of section 114;
30 (iii) from the composition of the offences under this Code relating to Central Government and from any other Social Security Fund established under any other central labour law.
(2) A separate account shall be established and maintained for the funding mentioned under each of the clauses (i), (ii) and (iii).
35 (3) Social Security Fund referred to in sub-section (1) shall be expended for the purposes for which each separate account has been established and maintained under sub-section (2).
(4) The Social Security Fund shall be established and administered in the manner prescribed by the Central Government.
40 (5) There shall be established by the State Government a Social Security Fund for the welfare of the unorganised workers in which there shall be credited the amount received from—
Exclusions from
application of this Chapter.
Social Security Fund.
(i) the composition of offences under this Code relating to the State Government; and
Application of Aadhaar.
Power to exempt
establishment.
(ii) such other sources as may be prescribed by the State Government,
and the fund shall be administered and expended for the welfare of the unorganised workers in such manner as may be prescribed by the State Government.
142. (1) An employee or unorganised worker or any other person, as the case may be,
for—
(a) registration as member or beneficiary; or
(b) seeking benefit whether in kind, cash or medical sickness benefit or pension, gratuity or maternity benefit or any other benefit or for withdrawal of fund; or
(c) availing services of career centre; or
(d) receiving any payment or medical attendance as Insured Person himself or for his dependants,
under this Code or rules, regulations or schemes made or framed thereunder, shall establish his identity or, as the case may be, the identity of his family members or dependants through Aadhaar number and for such purpose the expression "Aadhaar" shall have the meaning as defined in clause (a) of section 2 of the Aadhaar (The Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016:
Provided that any foreigner employee shall obtain and submit Aadhaar number for establishing his identity, as soon as possible, on becoming resident within the meaning of clause (v) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.
(2) For the purposes of sub-section (1), the Aadhaar number issued to an individual shall be in accordance with the provisions of section 3 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.
143. (1) Notwithstanding anything contained in this Code, the appropriate Government may, by notification, and subject to the conditions which may include the eligibility conditions to be fulfilled prior to grant of exemption and the conditions to be complied with after exemption, as may be prescribed by the Central Government in this behalf, grant exemption to an establishment or class of establishments (including factory or other establishments under the control of Central Government or State Government or local bodies) or employees or class of employees, from any or all of the provisions of this Code or the scheme framed thereunder as may be specified in the notification and may renew for further period such exemption by like notification:
Provided that no such exemption,—
(i) in respect of Provident Fund Scheme, Pension Scheme and Insurance Scheme, without prior consultation with the Central Board; and
(ii) in respect of Chapter IV, without prior consultation with the Corporation,
shall be granted or renewed and the Central Board or the Corporation, as the case may be, shall on such consultation forward its view to the appropriate Government within such time as may be prescribed by that Government.
(2) The appropriate Government may, in the notification referred to in sub-section (1), specify therein conditions as may be prescribed by that Government, which the exempted establishment or the class of establishment or an employee or class of employees, as the case may be, shall comply with after such exemption:
Provided that for the purpose of grant of exemption in respect of Provident Fund Scheme, Pension Scheme and Insurance Scheme, the terms and conditions of exemption shall be specified in such respective schemes.
5
10
15
18 of 2016.
20 18 of 2016.
18 of 2016.
25
30
35
40
45
(3) The exemption granted under sub-section (1) to an establishment or class of establishment or an employee or class of employees, as the case may be, shall be initially for a period of three years from the date of publication of such notification and may be extended by the appropriate Government to the extent of such period as may be prescribed by the
5 Central Government:
Provided that for the purpose of grant of exemption in respect of Provident Fund Scheme, Pension Scheme and Insurance Scheme, exemption may be extended for such period as may be specified in such respective schemes.
(4) The exemption granted under sub-section (1) shall only be granted if the employees
10 in the establishment or class of establishments or an employee or the class of employees so exempted are otherwise in receipt of benefits substantially similar or superior to the benefits provided in the provisions of the Code or the scheme framed thereunder.
(5) For the purposes of administering the fund, managing the investments, maintaining accounts of the contributions, withdrawals, credit of interest in respect of each employee of
15 the fund created, and any other matter specified in the scheme for any exempted establishment or class of establishment or employees or class of employees, a board of trustees shall be constituted by the employer which will be a legal entity which can sue and can be sued and the conditions for management of the trust shall be prescribed by the appropriate Government as part of the conditions for exemption:
20 Provided that conditions for administering the fund, managing the investments, maintaining accounts of the contributions, withdrawals, credit of interest in respect of each employee of the fund created, in respect of exemption from Provident Fund Scheme, Pension Scheme and Insurance Scheme shall be specified in such respective schemes.
(6) Where an exemption is granted under this section from operation of any or all the
25 provisions of the Code or any of the scheme under Chapter III, to any establishment, class of establishment, employee or class of employees, the employer in relation to such establishment shall furnish such returns electronically in respect of persons employed, accounts maintained in respect of employees, investments made from the fund, provide facilities for inspection and pay such inspection charges as the Central Government may
30 direct.
(7) If employer in relation to any establishment or class of establishments or employee or class of employees in respect of whom the exemption has been granted under sub-section (1), fails to comply with any of the conditions specified under this section, then, the appropriate Government may on such failure, cancel the exemption so granted.
35 (8) Where any exemption granted under sub-section (1) is cancelled, the entire amount of surplus and reserves, if any, and accumulations to the credit of every employee, to whom such exemption applied, in the exempted fund of the establishment in which he is employed, shall be transferred to the respective statutory fund created under this Code within such time and manner as specified in the conditions for grant of exemption:
40 Provided that in respect of any cancellation of exemption from the Provident Fund Scheme, Pension Scheme and Insurance Scheme, the time limit, form and manner of transfer of accumulations of exempted employees from the exempted funds to such respective funds shall be specified in such respective schemes.
(9) Notwithstanding anything contained in this section, the employer of an
45 establishment exempted under sub-section (1), after the resolution of the board of trustees of the establishment to that effect may make an application to the appropriate Government for surrender of the exemption granted under that sub-section from the date specified in the application and the appropriate Government may on receipt of that application, allow the employer to remit the contribution in the statutory funds under this Code from the date
50 specified in the application and process the application for cancellation of exemption and on such cancellation, the employer and the board of trustees shall transfer accumulation of
Power to defer or reduce.
Liability in case of
transfer of
establishment.
The members, officers and staff to be public
servants.
Protection of action taken in good faith.
Misuse of benefits.
each employee and surplus and reserves from the fund referred to in sub-section (5), to the concerned statutory funds under this Code within such time and in such manner as may be notified by the appropriate Government:
Provided that in respect of any surrender of exemption from the Provident Fund Scheme, the Pension Scheme and the Insurance Scheme, the time limit, form and manner of transfer of accumulation of exempted employees and surplus and reserves from the fund referred to in sub-section (5), to the concerned statutory funds under this Code shall be such as may be specified in the concerned schemes framed under Chapter III.
144. Notwithstanding anything contained in Chapter III or Chapter IV, the Central Government may by order, defer or reduce employer's contribution, or employee's contribution, or both, payable under Chapter III or Chapter IV, as the case may be, for a period up to three months at a time, in respect of establishment to which Chapter III or Chapter IV, as the case may be, applies, for whole of India or part thereof in the event of pandemic, endemic or national disaster.
145. Where an employer transfers his establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the establishment is so transferred shall jointly and severally be liable to pay the amount due in respect of any liabilities, cess or any other amount payable under this Code in respect of the periods up to the date of such transfer:
Provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.
146. Every member of a Social Security Organisation and the officers and staff thereof, any Inspector-cum-Facilitator, competent authority, Authorised Officer, Recovery Officer and any other person discharging any function under this Code, shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
147. No suit, prosecution or other legal proceeding shall lie against —
(i) the Central Government;
(ii) a State Government;
(iii) a Social Security Organisation;
(iv) a competent authority;
(v) any officer or staff of a Social Security Organisation; or
(vi) any other person or authority,
discharging the functions or exercising the powers under this Code, for anything which is in good faith done or intended to be done in pursuance of this Code or of any rules, regulations or schemes made or framed thereunder.
148. If the appropriate Government is satisfied in the manner prescribed by it that any establishment or any other person has misused any benefit provided to him under this Code or rules, regulations or schemes made or framed thereunder, then, such Government may, by notification, deprive such establishment or other person, as the case may be, from such benefit for such time as may be specified in the notification:
Provided that no such order shall be passed unless an opportunity of being heard is given to such establishment or other person, as the case may be:
Provided further that the manner to ascertain misuse of any benefit under this section relating to Chapter III, shall be specified in the Provident Fund Scheme or the Pension Scheme or the Insurance Scheme, as the case may be.
5
10
15
20
25 45 of 1860.
30
35
40
45
5
10
15
20
25
31 of 2016.
30
35
19 of 1952.
40
19 of 1952.
34 of 1948.
34 of 1948. 45
34 of 1948.
149. The Central Government may give directions to—
(i) any State Government or a State Board constituted under section 12 to execute in that State, of any of the provisions of this Code; or
(ii) any of the Social Security Organisations in respect of the matters relating to the implementation of the provisions of this Code.
150. The appropriate Government may, subject to the condition of previous publication, frame schemes not inconsistent with this Code, for the purposes of giving effect to the provisions thereof.
151. (1) Notwithstanding anything contained in any other law for the time being in force, the amount standing to be credited in favour of the employee under Chapters III, IV, V, VI or VII of any member of any fund under this Code, or of any exempted employee in a provident fund maintained by his employer, shall not in any way be capable of being assigned or charged and shall not be liable to attachment under any decree or order of any Court in respect of any debt or liability incurred by such employee or member or the exempted employee, as the case may be.
(2) Any amount standing to the credit of a member in the fund or of an exempted employee in a provident fund maintained by his employer at the time of the death of such member or the exempted employee, as the case may be, and payable to his nominee or in case of failure of nomination, to his family under the scheme or the rules of the fund shall, subject to any deduction authorised by the said scheme or rules, as the case may be, vest in the nominee or such family and shall be free from any debt or other liability incurred by the deceased or the nominee before his death and shall also not be liable to attachment under any decree or order of any court.
(3) Notwithstanding anything contained in any other law for the time being in force, any amount due under the Chapters referred to in sub-section (1) shall be the charge on the assets of the establishment to which it relates and shall be paid in priority in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.
152. (1) If the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification amend the First Schedule, Fourth Schedule, Fifth Schedule, Sixth Schedule and Seventh Schedule by way of addition or deletion therein and upon such addition or deletion, the Schedules shall stand to have been amended accordingly.
(2) If the appropriate Government is satisfied that it is necessary or expedient so to do, it may, by notification amend the Second Schedule and Third Schedule by way of addition therein and not otherwise, and upon such addition, the Schedules shall stand to have been amended accordingly.
153. Notwithstanding anything contained in this Code, the following organisations constituted or established under the enactments repealed under section 164, namely:—
(i) the Central Board constituted under section 5A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952;
(ii) Executive Committee constituted under section 5AA of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952;
(iii) the Corporation established under section 3 of the Employees' State Insurance Act, 1948;
(iv) the Medical Benefit Council constituted under section 10 of the Employees' State Insurance Act, 1948;
(v) the Standing Committee of the Corporation constituted under section 8 of the Employees' State Insurance Act, 1948; and
Power of Central
Government to give directions to State
Government and Social Security Organisations.
Power to frame schemes.
Protection against
attachment, etc.
Power to amend Schedule.
Transitional provisions.
Power of
appropriate Government to make rules.
(vi) the Board constituted under sub-section (1) of section 18 of the Building and Other Construction Workers (Regulation of Employment and Condition of Service) Act, 1996,
shall, after the commencement of this Code, continue to exercise the powers and discharge the functions of the corresponding organisations under this Code, respectively, the Central Board of Trustees for Employees Provident Fund constituted under section 4, the Executive Committee constituted under sub-section (3) of section 4, the Employees State Insurance Corporation, constituted under section 5, the Medical Benefit Committee constituted under sub-section (5) of section 5, the Standing Committee constituted under sub-section (3) of section 5, Building Workers' Welfare Board constituted under sub-section (1) of section 7, as if such organisations constituted or, as the case may be, established under such repealed enactments, had been constituted under the respective provisions of this Code, till such corresponding organisations are constituted under this Code or till their respective time period under the repealed enactments expire, whichever is earlier.
154. (1) The appropriate Government may, by notification, and subject to the condition of previous publication, make rules not inconsistent with this Code for the purpose of giving effect to the provisions thereof.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
(a) the amount in connection with premium for Group Insurance Scheme of the beneficiaries under clause (c), the educational schemes for the benefit of children of the beneficiaries under clause (d) and the medical expenses for treatment of major ailments of a beneficiary or, such dependant under clause (e) of sub-section (6) of section 7;
(b) manner and time within which second appeal may be filed to the Employees' Insurance Court by the Insured Person or the Corporation under clause (b) of sub-section (7) of section 37;
(c) the manner of commencement of proceedings before the Employees' Insurance Court, fees and procedure thereof under sub-section (1) of section 51;
(d) bank or other financial institution in which the gratuity shall be invested for the benefit of minor under the third proviso to sub-section (1) of section 53;
(e) the time, form and manner of nomination by an employee under sub-section (1), the time to make fresh nomination under sub-section (4), the form and manner of modification of a nomination under sub-section (5) and the form for fresh nomination under sub-section (6) of section 55;
(f) time within which and the form in which a written application shall be made under sub-section (1) and the form of application to the competent authority under clause (b) of sub-section (5) of section 56;
(g) the manner of registration of an establishment by the employer under sub-section (3) and the manner of composition of the Board of Trustees of the approved gratuity fund and the manner in which the competent authority may recover the amount of the gratuity payable to an employee from the insurer under sub-section (4) of section 57;
(h) the qualifications and experience of the officer appointed as the competent authority under sub-section (1) of section 58;
(i) authority to whom an appeal may be preferred under sub-section (3) of section 72;
(j) class of employers and the form of notice-book under sub-section (4) of section 82;
(k) the manner of recording the memorandum in a register by the competnet authority under sub-section (1) of section 89;
27 of 1996.
5
10
15
20
25
30
35
40
45
50
(l) such other experience and qualifications for appointment as a competent authority under sub-section (1) of section 91;
(m) time limit to pay the amount of cess under section 101;
(n) fees for appeal under sub-section (2) of section 105;
5 (o) conditions to acquire, hold, sell or otherwise transfer any movable or immovable property under sub-section (1), conditions to invest moneys, re-invest or realise investments under sub-section (2) terms to raise loans and take measures for discharging such loans under sub-section (3) and terms to constitute for the benefit of officers and staff or any class of them, provident or other benefit funds under
10 sub-section (4) of section 120;
(p) conditions and manner of writing off irrecoverable dues under section 121;
(q) other powers of Inspector-cum-Facilitator under clause (e) of sub-section (6) of section 122;
(r) form and manner for maintenance of records and registers and other particulars
15 and details under clause (a), manner and form for display of notices at the work places of the employees under clause (b) and the manner and period of filing returns to the officers or authority under clause (d) of section 123;
(s) the form and manner of application for compounding of an offence under sub-section (4) of section 138;
20 (t) the manner and form for reporting vacancies and form for filing the return by the employer, to the concerned career centre under sub-section (2) of section 139;
(u) the time within which the Central Board or the Corporation, as the case may be, shall forward its view to the appropriate Government under sub-section (1), conditions which the exempted establishment or the class of establishment or an
25 employee or class of employees, as the case may be, shall comply with after such exemption under sub-section (2) and conditions for management of the trust under sub-section (5) of section 143;
(v) manner of determining the misuse of any benefit by an establishment or by any other person under section 148; and
30 (w) any other matter which is required to be, or may be, prescribed by the appropriate Government under the provisions of this Code.
155. (1) The Central Government may, by notification, and subject to the condition of previous publication, make rules not inconsistent with this Code, for the purpose of giving effect to the provisions thereof.
35 (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
(a) the manner, and the conditions subject to which, the provisions of Chapter III shall be made inapplicable to an establishment by the Central Provident Fund Commissioner, under sub-section (5) and the manner, and the conditions subject to
40 which the provisions of that Chapter IV shall be made inapplicable to an establishment by the Director General of the Corporation under sub-section (7) of section 1;
(b) manner of establishment and maintenance of career centre and the career services under clause (9), the income of dependant parents (including father-in-law and mother-in-law of a woman employee), under sub-clause (e) of clause (33) and
45 other authority who shall be deemed to be the occupier under sub-clause (c) and the matters which are directly related to the condition of ship, for which the owner of ship shall be deemed to be the occupier under the proviso to the said sub-clause (c) of clause (52), of section 2;
(c) the time and manner of registration of establishment, the manner of making
50 application for cancellation of the registration, the conditions subject to which the
Power of Central
Government to make rules.
registration shall be cancelled and the procedure of cancellation and other matters relating thereto in respect of an establishment to which Chapter III or Chapter IV applies, and whose business activities are in the process of closure, under section 3;
(d) the manner of administration of the funds vested in the Central Board under sub-section (1), the manner to assist the Central Board in performance of its functions 5 by Executive Committee under sub-section (3), the terms and conditions, including tenure of office of members of the Central Board and Executive Committee under sub-section (6) and the other functions and the manner of performing such functions under sub-section (7), of section 4;
(e) the manner of administration of the Corporation and the manner of 10
representation of States under clause (d) of sub-section (1), the manner of constitution of Standing Committee under sub-section (3), the manner of administration of the affairs of the Corporation, exercise of powers and performance of functions by the Standing Committee under clause (a) of sub-section (4), the duties and powers of
Medical Benefit Committee under clause (b) of sub-section (5) and the terms and 15 conditions, including tenure of office, subject to which a member of the Corporation and Standing Committee shall discharge their respective duties under sub-section (7)
of section 5;
(f) the manner of exercising the powers and performance of the functions by the National Social Security Board under sub-section (1), the manner of nomination of 20 members, their term of office and other conditions of service, procedure to be followed
in the discharge of their functions and manner of filling vacancies under sub-section (4) and time, place and rules of procedure relating to the transaction of business under sub-section (6) of section 6;
(g) other welfare measures and facilities under clause (j) of sub-section (6) of 25
section 7;
(h) the intervals at which Social Security Organisation or any Committee thereof shall meet and the procedure in regard to the transaction of business at meetings under sub-section (1), and the fee and allowances of members of such Social Security Organisation or Committee under sub-section (4) of section 9; 30
(i) manner of reconstitution of the Corporation or the Central Board or the National Social Security Board or the State Unorganised Workers' Board or the Building Workers' Welfare Board or any of the Committees under sub-section (1) and the alternate arrangements for the purpose of administration of the relevant provisions of
this Code under sub-section (2) of section 11; 35
(j) the manner of maintenance of a provident fund account in relation to the establishment under sub-section (1) of section 21;
(k) the form, manner, time limits and fees for filing of appeal under sub-section (2) of section 23;
(l) salary and allowances of the Director General or the Financial Commissioner 40
under sub-section (3), their powers and duties under sub-section (4) and maximum monthly salary limit under the proviso to sub-section (7) of section 24;
(m) the manner of investment of Employees' State Insurance Fund or any other money which is held by Corporation under sub-section (4) of section 25;
(n) limits for defraying of expenditure under clause (k) of section 26; 45
(o) conditions to acquire, hold, sell or otherwise transfer any movable or immovable property under sub-section (1), conditions to invest moneys by the Corporation under sub-section (2) and the terms to raise loans and taking measures for discharging such loans under sub-section (3) of section 27;
(p) manner of insurance of employees under sub-section (1) of section 28; (q ) the rate of contributions under sub-section (2) of section 29;
(r) the type of administrative expenses and percentage of income which may be spent on expenses and the limits for such expenses under section 30;
5 (s) the limit for the amount of payment under the proviso to clause (f) of sub-section (1), and the qualifications to claim benefits, conditions, rate and period thereof under sub-section (3) of section 32;
(t) the limits within which the Corporation may incur expenditure from the Employees' State Insurance Fund under section 33;
10 (u) the manner and time within which the Insured person or the Corporation may file appeal under clause (a) of sub-section (7) of section 37;
(v) the rates, periods and conditions for payment of dependants' benefit under sub-section (1) and to other dependants under sub-section (2), of section 38;
(w) the qualification of an Insured Person and his family to claim medical benefit
15 and the conditions subject to which such benefit may be given and the scale and period thereof, under sub-section (3) of section 39, and the payment of contribution and other conditions under the third proviso thereof;
(x) the structure, functions, powers and activities of the organisation for providing certain benefits to employees in case of sickness, maternity and employment
20 injury, under sub-section (6) of section 40;
(y) extended period for insurance, the manner of satisfaction and the manner of calculation of capitalised value of benefit payable to the employee under sub-section (1) of section 42;
(z) terms and conditions subject to which the scheme may be operated under
25 section 44;
(za) the manner of obtaining an insurance by every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government under sub-section (1) and conditions to exempt and manner of establishing an approved gratuity fund under sub-section (2) and the time
30 limit to get establishment registered by the employer under sub-section (3), of section 57;
(zb) the form of notice under sub-section (1) and the proof of pregnancy and proof of delivery under sub-section (5) of section 62;
(zc) the proof of miscarriage or medical termination of pregnancy under sub-section (1), the proof of tubectomy operation under sub-section (2) and the
35 proof of illness under sub-section (3) of section 65; (zd) the duration of breaks under section 66;
(ze) the number of employees and distance for crèche facility under sub-section (1) of section 67;
(zf) gross misconduct under the second proviso to sub-section (1) of section 68;
40 (zg) rate of interest to be paid by the employer under clause (a) of sub-section (3) of section 77;
(zh) the manner of notice under sub-section (1) and the manner of transmitting money under sub-section (3), of section 92;
(zi) the form, manner and fee for application for claim or settlement under
45 sub-section (3) of section 93;
(zj) the manner and time of collection of cess under sub-section (2), manner of deposit of the cess so collected under sub-section (3), and the uniform rate or rates of advance cess under sub-section (4) of section 100;
Power of State Government to make rules.
(zk) the rate of interest in case of delayed payment of cess under section 101; (zl) the manner of self-assessment of cess under sub-section (1) of section 103; (zm) the authority to inquire and impose penalty under section 104;
(zn) time limit to prefer appeal, appellate authority, form and manner of appeal under sub-section (1) of section 105; 5
(zo) manner of registration as beneficiary under section 106;
(zp) benefits of a beneficiary under sub-section (2) of section 107;
(zq) eligible age for registration under clause (a) and form and manner of information under clause (b) of sub-section (1) and the form of application, documents
for registration and manner of self registration under sub-section (2), of section 113; 10
(zr) carrying out the matters specified in clause (i) of sub-section (7) of section 114;
(zs) manner of compounding of offences under sub-section (1) of section 138; (zt) the manner of establishment and administration of the Social Security Fund
under sub-section (4) of section 141; 15
(zu) eligibility conditions to be fulfilled prior to grant of exemption and the conditions to be complied with after exemption under sub-section (1); and extension period of exemption under sub-section (3) of section 143; and
(zv) any other matter which is required to be, or may be, prescribed by the Central Government under the provisions of this Code. 20
156. (1) The State Government may, by notification, and subject to the condition of previous publication, make rules not inconsistent with this Code, for the purpose of giving effect to the provisions thereof.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 25
(a) the manner of exercising the powers and performance of functions by State Unorganised Workers' Board under sub-section (9), the manner of nomination of members of the Board, their term of office and other conditions of service, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies
among the members of, the Board under sub-section (12), and the time, place and 30
rules of procedure relating to the transaction of business at its meetings under sub-section (14) of section 6;
(b) the terms and conditions of appointment and the salaries and other allowances payable to the chairperson and the other members of the Building Workers' Welfare Board and the manner of filling of casual vacancies of such members, under 35
sub-section (4), the terms and conditions of appointment and the salary and allowances payable to the Secretary and the other officers and employees of the said Board under clause (c) of sub-section (5) of section 7;
(c) procedure to be followed by the Employees' Insurance Court under
sub-section (2) and the rules under sub-section (3) of section 50; 40
(d) the amount to be deposited towards the expenditure of the funeral of the employee with the competent authority by the employer under sub-section (7) of section 76;
(e) conditions when application for review is made without certificate of a medical practitioner under sub-section (1) of section 79; 45
(f) the frequent interval for medical examination under the proviso to sub-section (1) of section 84;
(g) the form of statement to be submitted by the employer under sub-section (1) of section 88;
5 (h) manner in which matters may be dealt with by or before a competent authority under sub-section (1) of section 92;
(i) time-limit for disposal of application and costs incidental to the proceedings under sub-section (4) of section 93;
(j) the manner of authentication of memorandum under section 97;
10 (k) such other sources of funding and the manner of administering and expending of the fund under sub-section (5) of section 141; and
(l) any other matter which is required to be, or may be, prescribed by the State Government under the provisions of this Code.
157. (1) The Corporation may, by notification, and subject to the condition of previous
15 publication, make regulations, not inconsistent with this Code and the rules and schemes made or framed thereunder, for the administration of the affairs of the Corporation and for carrying into effect the provisions of Chapter IV and the provisions of this Code relating to that Chapter.
(2) In particular and without prejudice to the generality of the foregoing power, such
20 regulations may provide for all or any of the following matters, namely:—
(a) the cases and matters to be submitted for the decision of the Corporation under clause (b) of sub-section (4) and the composition of committees under sub-section (6) of section 5;
(b) the areas in respect of which the Corporation may appoint Regional Boards
25 and local committees and the manner in which such Boards and committees shall perform the functions and exercise the powers under sub-section (2) of section 12;
(c) such other functions of the Director General and the Financial Commissioner under sub-section (4), the method of recruitment, salary and allowances, discipline and other conditions of service of the officers and employees under clause (a) of
30 sub-section (8) and minimum qualifying service for promotion to next higher grade under the second proviso to sub-section (9) of section 24;
(d) the unit in respect of which all contribution shall be payable under sub-section (3), and the days on which the contributions shall fall due under sub-section (4) of section 29;
35 (e) maintenance of register of employees by or through the contractor under sub-section (7), and any matter relating or incidental to the payment and collection of contribution under sub-section (9) of section 31;
(f) qualifications and experience of other person to certify sickness under clause (a), authority to certify eligibility of a woman under clause (b), authority to certify
40 eligibility for payment under clause (c) of sub-section (1), the conditions for extension of medical benefits under sub-section (2) and any matter relating or incidental to the accrual and payment of benefits under sub-section (4) of section 32;
Power of
Corporation to make regulations.
Prior publication of rules, regulations,
etc.
(g) continuous period in which the employee contracts occupational disease under sub-section (1) of section 36;
(h) constitution of medical board under sub-section (1) and constitution of medical appeal tribunal under sub-section (5) of section 37;
(i) the period and the nature of medical benefit which may be allowed to a 5 person under the first proviso, conditions for voluntary retirement scheme under the second proviso, payment of contribution and other conditions for eligibility to receive medical benefits under the second proviso and the conditions for grant of medical benefits to the Insured Person during employment injury under the fourth proviso, to
sub-section (3), the time for which students of medical education institutions shall 10
serve the Corporation and the manner in which the bond shall be furnished under clause (b) of sub-section (4) and manner of carrying out occupational and epidemiological surveys and studies for assessment of health and working conditions of Insured Persons under sub-section (6) of section 39;
(j) other authority for providing permission to leave the area in which medical 15
treatment provided under clause (c) of sub-section (3), form of nomination under sub-section (6) and the authority to determine benefits under sub-section (9) of section 41;
(k) user charges to be paid by other beneficiaries for medical facilities under clause (c) of the Explanation to section 44; 20
(l) time within which the claims, recovery or contribution, from employer by the Corporation and recovery of contribution by the employer from the Contractor, shall be made under the second proviso to sub-section (1) of section 51;
(m) the forms of records and registers and of returns to be filed under the second proviso to clause (d) of section 123; 25
(n) the appellate authority not below the rank of the Joint Director of the Corporation before whom appeal shall be preferred and the interest to be refunded to the employer by the Corporation under section 126;
(o) manner of levy and recovery of damages from the employer who makes default in the payment of any contribution which he is liable to pay under section 128; 30
(p) the circumstances in which and the condition subject to which any regulation may be relaxed, the extent of such relaxation, and the authority by whom such relaxation may be granted; and
(q) any matter in respect of which regulations are required or permitted to be made by this Code. 35
158. The power to make rules, regulations and schemes under this Code (except the schemes to be framed under Chapter III), shall be subject to the condition of the previous publication of the same being made, in the following manner, namely:—
(a) the date to be specified after a draft of such rules, regulations and schemes under consideration, shall not be less than forty-five days from the date on which the 40
draft of the proposed rules, regulations and schemes is published for general information in the Official Gazette;
(b) such rules, regulations and schemes shall finally be published in the Official Gazette and, on such publication, shall have effect as if enacted in this Code:
Provided that the Central Government may, in the circumstances of epidemic, 45
pandemic or disaster, dispense with the condition of previous publication under this section.
159. (1) The Central Government may, by notification, make rules for the transfer to any foreign country of money deposited with a competent authority under Chapter VII which has been awarded to or may be due to, any person residing or about to reside in such foreign country and for the receipt, distribution and administration in any State of any
5 money deposited under the law relating to employees' compensation in any foreign country, which has been awarded to, or may be due to any person residing or about to reside in any State:
Provided that no sum deposited under Chapter VII in respect of fatal accidents shall be so transferred without the consent of the employer concerned after the competent
10 authority receiving the sum has passed orders determining its distribution and apportionment under section 81.
(2) Where money deposited with a competent authority has been so transferred in accordance with the rules made under this section, the provisions elsewhere contained in this Code regarding distribution by the competent authority of compensation deposited
15 with him shall cease to apply in respect of any such money.
160. (1) Every rule, regulation, notification and scheme made or framed by the Central Government or the Corporation, as the case may be, under this Code shall be laid, as soon as may be after it is made or framed, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more
20 successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, regulation, notification or scheme, as the case may be, or both Houses agree that the rule, regulation, notification or scheme, as the case may be, should not be made, such rule, regulation, notification or scheme shall thereafter have effect only in such modified
25 form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule, regulation, notification or scheme, as the case may be.
(2) Every rule and scheme made or framed, and every notification issued by, the State Government under this Code, shall be laid as soon as may be after it is made or framed,
30 before the State Legislatures, where it consists of two Houses, or where such legislature consists of one House, before that House.
161. (1) The provisions of this Code shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force, or in the terms of any award, agreement or contract of service, whether made before or after the coming
35 into force of this Code:
Provided that where under any such award, agreement, contract of service or otherwise, a person is entitled to benefits in respect of any matter which are more favourable to him than those to which he would be entitled under this Code, the person shall continue to be entitled to the more favourable benefits in respect of that matter, notwithstanding that he is
40 entitled to receive benefits in respect of other matters under this Code.
(2) Nothing contained in this Code shall be construed to preclude a person from entering into an agreement with his employer for granting him rights or privileges in respect of any matter which are more favourable to him than those to which he would be entitled under this Code.
45 162. The appropriate Government may, by notification, direct that all or any of the powers and functions which may be exercised or performed by that Government may, in relation to such matters and subject to such conditions, if any, as may be specified, be also exercisable by the Central Board, the Corporation, the National Social Security Board, the State Unorganised Workers' Board, Building Workers, Welfare Board or any officer or
50 authority subordinate to the Central Board, the Corporation, the National Social Security Board, the State Unorganised Workers' Board, Building Workers' Welfare Board.
Rules to give effect to
arrangements with other countries for the transfer of money paid as compensation.
Laying of rules, regulations and schemes, etc.
Effect of laws and
agreements inconsistent with this Code.
Delegation of powers.
Power to remove
difficulties.
Repeal and savings.
163. (1) If any difficulty arises in giving effect to the provisions of this Code, the Central Government may, by order, published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Code, as may be necessary or expedient for removing the difficulty:
Provided that no such order shall be made under this section after the expiry of a period of two years from the commencement of this Code.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
164. (1) The following enactments are hereby repealed, namely:—
1. The Employee's Compensation Act, 1923;
2. The Employees' State Insurance Act, 1948;
3. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952;
4. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959;
5. The Maternity Benefit Act, 1961;
6. The Payment of Gratuity Act, 1972;
7. The Cine-Workers Welfare Fund Act, 1981;
8. The Building and Other Construction Workers' Welfare Cess Act, 1996;
9. The Unorganised Workers' Social Security Act, 2008.
(2) Notwithstanding such repeal,—
(a) anything done or any action taken under the enactments so repealed including any rule, regulation, notification (including the notifications issued by the States), scheme, appointment, order or direction made thereunder or any benefit provided or given under any provision of such enactments, rules, regulations, notifications or schemes made thereunder for any purpose shall be deemed to have been done or taken or provided for such purpose under the corresponding provisions of this Code including any rule, regulation, notification, scheme, appointment, order or direction made thereunder and shall be in force to the extent they are not contrary to the provisions of this Code including any rule, regulation, notification, scheme, appointment, order or direction made thereunder till they are repealed under the corresponding provisions of this Code including any rule, regulation, notification, scheme, appointment, order or direction made thereunder by the appropriate Government;
(b) the Employees' Provident Funds Scheme, 1952, the Employees' Deposit Linked Insurance Scheme, 1976, the Employees' Pension Scheme, 1995 and the Tribunal (Procedure) Rules, 1997 framed or made under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and the rules, regulations and schemes made or framed under the Employees' State Insurance Act, 1948, shall remain in force, to the extent they are not inconsistent with the provisions of this Code for a period of one year from the date of commencement of this Code;
(c) any exemption given under any enactments so repealed shall continue to be in force till its validity expires or it ceases to be in operation under the provisions of this Code or till any direction is made thereunder for such purpose.
(3) Without prejudice to the provisions of sub-section (2), the provisions of
5
10 8 of 1923.
34 of 1948.
19 of 1952.
31 of 1959.
53 of 1961.
15 39 of 1972.
33 of 1981.
28 of 1996.
33 of 2008.
20
25
30
35
19 of 1952.
34 of 1948.
40
section 6 of the General Clauses Act, 1897 shall apply to the repeal of such enactments.
45 10 of 1897.
THE FIRST SCHEDULE
[See sections 1(4), (8) and 152 (1)]
APPLICABILITY
Chapter Chapter Heading Applicability No.
(1) (2) (3)
III Employees' Provident Fund Every establishment in which twenty or more
employees are employed.
IV Employees’ State Insurance Every establishment in which ten or more persons are Corporation employed other than a seasonal factory:
Provided that Chapter IV shall also be applicable to an establishment, which carries on such hazardous or life threatening occupation as notified by the Central Government, in which even a single employee is employed:
Provided further that an employer of a plantation, may opt the application of Chapter IV in respect of the plantation by giving willingness to the corporation, where the benefits available to the employees under that Chapter are better than what the employer is providing to them:
Provided also that the contribution from the employers and employees of an establishment shall be payable under section 29 on and from the date on which any benefits under Chapter IV relating to the Employees State Insurance Corporation are provided by the Corporation to the employees of the establishment and such date shall be notified by the Central Government.
V Gratuity (a) every factory, mine, oilfield, plantation, port and railway company; and
(b) every shop or establishment in which ten or more employees are employed, or were employed, on any day of the preceding twelve months; and such shops or establishments as may be notified by the appropriate Government from time to time.
VI Maternity Benefit (a) to every establishment being a factory, mine or
plantation including any such establishment belonging to Government; and
(b) to every shop or establishment in which ten or more employees are employed, or were employed, on any day of the preceding twelve months; and such other shops or establishments notified by the appropriate Government.
VII Employee's Compensation Subject to the provisions of the Second Schedule, it
applies to the employers and employees to whom Chapter IV does not apply.
99
100
(1) (2) (3)
VIII Social Security and Cess in Every establishment which falls under the building and respect of Building and other construction work.
Other Construction Workers
IX Social Security for Unorganised sector, unorganised workers', gig worker, Unorganised Workers, platform worker.
XIII Employment Information Career centres, vacancies, persons seeking services of and Monitoring career centres and employers.
THE SECOND SCHEDULE
[See sections 2(26), 74(3), (5), 132 and 152(2)]
LIST OF PERSONS WHO ARE EMPLOYEES WITHIN THE MEANING OF THE THIRD PROVISO TO CLAUSE (26) OF SECTION 2
The following persons are employees within the meaning of third proviso to clause
(26) of section 2 and subject to the said proviso, any person who is—
(i) employed in railways, in connection with the operation, repair or maintenance of a lift or a vehicle propelled by steam or other mechanical power or by electricity or in connection with the loading or unloading of any such vehicle; or
(ii) employed, in any premises wherein or within the precincts whereof a manufacturing process as defined in clause (k) of section 2 of the Factories Act, 1948 (63 of 1948), is being carried on, or in any kind of work whatsoever incidental to or connected with any such manufacturing process or with the article made whether or not employment in any such work is within such premises or precincts, and steam, water or other mechanical power or electrical power is used; or
(iii) employed for the purpose of making, altering, repairing, ornamenting, finishing or otherwise adapting for use, transport or sale any article or part of an article in any premises; or
Explanation.—For the purposes of this clause, persons employed outside such premises or precincts but in any work incidental to, or connected with, the work relating to making, altering, repairing, ornamenting, finishing or otherwise adapting for use, transport or sale of any article or part of an article shall be deemed to be employed within such premises or precincts; or
(iv) employed in the manufacture or handling of explosives in connection with the employer's trade or business; or
(v) employed, in any mine as defined in clause ( j) of section 2 of the Mines Act, 1952 (35 of 1952), in any mining operation or in any kind of work, incidental to or connected with any mining operation or with the mineral obtained, or in any kind of work whatsoever below ground; or
(vi) employed as the master or as a seaman of—
(a) any ship which is propelled wholly or in part by steam or other mechanical power or by electricity or which is towed or intended to be towed by a ship so propelled; or
(b) any sea going ship not included in sub-clause (a) provided with sufficient area for navigation under sails alone; or
(vii) employed for the purpose of—
(a) loading, unloading, fuelling, constructing, repairing, demolishing, cleaning or painting any ship of which he is not the master or a member of the crew, or handling or transport within the limits of any port subject to the Ports Act, 1908 (15 of 1908), or the Major Port Trusts Act, 1963 (38 of 1963), of goods which have been discharged from or are to be loaded into any vessel; or
(b) warping a ship through the lock; or
(c) mooring and unmooring ships at harbour wall berths or in pier; or
(d) removing or replacing dry dock caissons when vessels are entering or leaving dry docks; or
(e) the docking or undocking of any vessel during an emergency; or
101
(f) preparing splicing coir springs and check wires, painting depth marks on lock-sides, removing or replacing fenders whenever necessary, landing of gangways, maintaining life-buoys up to standard or any other maintenance work of a like nature; or
(g) any work on jolly-boats for bringing a ship's line to the wharf; or
(viii) employed in the construction, maintenance, repair or demolition of—
(a) any building which is designed to be or is or has been more than one storey in height above the ground or twelve feet or more from the ground level to the apex of the roof; or
(b) any dam or embankment which is twelve feet or more in height from its lowest to its highest point; or
(c) any road, bridge, tunnel or canal; or
(d) any wharf, quay, sea-wall or other marine work including any moorings of ships; or
(ix) employed in setting up, maintaining, repairing or taking down any telegraph or telephone line or post or any overhead electric line or cable or post or standard or fittings and fixtures for the same; or
(x) employed, in the construction, working, repair or demolition of any aerial ropeway, canal, pipeline or sewer; or
(xi) employed in the service of any fire brigade; or
(xii) employed upon a railway as defined in clause (31) of section 2 and sub-section (1) of section 197 of the Railways Act, 1989 (24 of 1989), either directly or through a sub-contractor, by a person fulfilling a contract with the railway administration; or
(xiii) employed as an inspector, mail guard, sorter or van peon in the Railway Mail Service or as a telegraphist or as a postal or railway signaller, or employed in any occupation ordinarily involving outdoor work in the Indian Posts and Telegraphs Department; or
(xiv) employed, in connection with operation for winning natural petroleum or natural gas; or
(xv) employed in any occupation involving blasting operations; or
(xvi) employed in the making of any excavation for which explosives have been used, or whose depth from its highest to its lowest point exceeds twelve feet; or
(xvii) employed in the operation of any ferry boat capable of carrying more than ten persons; or
(xviii) employed on any estate which is maintained for the purpose of growing cardamom, cinchona, coffee, rubber or tea; or
(xix) employed, in the generating, transforming transmitting or distribution of electrical energy or in generation or supply of gas; or
(xx) employed in a lighthouse as defined in clause (d) of section 2 of the Indian Lighthouse Act, 1927 (17 of 1927); or
(xxi) employed in producing cinematograph pictures intended for public exhibition or in exhibiting such pictures; or
(xxii) employed in the training, keeping or working of elephants or wild animals; or
(xxiii) employed in the tapping of palm-trees or the felling or logging of trees, or the transport of timber by inland waters, or the control or extinguishing of forests fires; or
(xxiv) employed in operations for the catching or hunting of elephants or other wild animals; or
(xxv) employed as a diver; or
(xxvi) employed in the handling or transport of goods in, or within the precincts
of,—
(a) any warehouse or other place in which goods are stored; or
(b) any market; or
(xxvii) employed in any occupation involving the handling and manipulation of
radium or X-rays apparatus, or contact with radioactive substances; or
(xxviii) employed in or in connection with the construction, erection, dismantling, operation or maintenance of an aircraft as defined in section 2 of the Indian Aircraft Act, 1934 (22 of 1934); or
(xxix) employed in horticultural operations, forestry, bee-keeping or farming by tractors or other contrivances driven by steam or other mechanical power or by electricity; or
(xxx) employed, in the construction, working, repair or maintenance of a tube-well; or
(xxxi) employed in the maintenance, repair or renewal of electric fittings in a building; or
(xxxii) employed in a circus; or
(xxxiii) employed as watchman in any factory or establishment; or
(xxxiv) employed in any operation in the sea for catching fish; or
(xxxv) employed in any employment which requires handling of snakes for the purpose of extraction of venom or for the purpose of looking after snakes or handling any other poisonous animal or insect; or
(xxxvi) employed in handling animals like horses, mules and bulls; or
(xxxvii) employed for the purpose of loading or unloading any mechanically propelled vehicle or in the handling or transport of goods which have been loaded in such vehicles; or
(xxxviii) employed in cleaning of sewer lines or septic tanks within the limits of a local authority; or
(xxxix) employed on surveys and investigation, exploration or gauge or discharge observation of rivers including drilling operations, hydrological observations and flood forecasting activities, ground water surveys and exploration; or
(xl) employed in cleaning of jungles or reclaiming land or ponds; or
(xli) employed in cultivation of land or rearing and maintenance of live-stock or forest operations or fishing; or
(xlii) employed in installation, maintenance or repair of pumping equipment used for lifting of water from wells, tube-wells, ponds, lakes, streams and the like; or
(xliii) employed in the construction, boring or deepening of an open well or dug well, bore well, bore-cum-dug well, filter point and the like; or
(xliv) employed in spraying and dusting or insecticides of pesticides in agricultural operations or plantations; or
(xlv) employed in mechanised harvesting and threshing operations; or
(xlvi) employed in working or repair or maintenance of bulldozers, tractors, power tillers and the like; or
(xlvii) employed as artist for drawing pictures on advertisement boards at a height of 3.66 metres or more from the ground level; or
(xlviii) employed in any newspaper establishment as defined in the Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 (45 of 1955) and engaged in outdoor work; or
(xlix) employed as sales promotion employee; or
(xlx) any other employee or class of employee employed in an establishment or class of establishment to which the Employees' Compensation Act, 1923 (8 of 1923) was applicable in any State immediately before the commencement of this Code.
THE THIRD SCHEDULE
[See sections 2 (51), 36(1), 74 (1), (3), (5), 131(5), 132 and 152(2)] LIST OF OCCUPATIONAL DISEASES
Serial No. Occupational disease Employment (1) (2) (3)
PARTA
1. Infectious and parasitic diseases (a) all work involving exposure to health or contracted in an occupation where laboratory work;
there is a particular risk of (b) all work involving exposure to veterinary contamination. work;
(c) work relating to handling animals, animal carcasses, part of such carcasses, or merchandise which may have been contaminated by animals or animal carcasses;
(d) other work carrying a particular risk of contamination.
2. Diseases caused by work in All work involving exposure to the risk compressed air concerned.
3. Diseases caused by lead or its toxic All work involving exposure to the risk compounds concerned.
4. Poisoning by nitrous fumes All work involving exposure to the risk
concerned.
5. Poisoning by organo phosphorus All work involving exposure to the risk compounds concerned.
PART B
1. Diseases caused by phosphorus or All work involving exposure to the risk its toxic compounds concerned.
2. Diseases caused by mercury or All work involving exposure to the risk its toxic compounds concerned.
3. Diseases caused by benzene or its All work involving exposure to the risk toxic homologues concerned.
4. Diseases caused by nitro and amido All work involving exposure to the risk toxic derivatives of benzene or its concerned.
homologues
5. Diseases caused by chromium or its All work involving exposure to the risk toxic compounds concerned.
6. Diseases caused by arsenic or its All work involving exposure to the risk toxic compounds concerned.
7. Diseases caused by radioactive All work involving exposure to the action of substances and ionising radiations radioactive substances or ionising radiations
8. Primary epitheliomatous cancer of All work involving exposure to the risk the skin caused by tar, pitch, bitumen, concerned.
mineral oil, anthracene, or the compounds, products or residues of these substances
105
9. Diseases caused by the toxic halogen All work involving exposure to the risk derivatives of hydrocarbons (of the concerned.
aliphatic and aromatic series).
10. Diseases caused by carbon All work involving exposure to the risk disulphide concerned.
11. Occupational cataract due to infra-red All work involving exposure to the risk radiations concerned.
12. Diseases caused by manganese or its All work involving exposure to the risk toxic compounds concerned.
13. Skin diseases caused by physical, All work involving exposure to the risk chemical or biological agents not concerned.
included in other items
14. Hearing impairment caused by noise All work involving exposure to the risk
concerned.
15. Poisoning by dinitrophenol or a All work involving exposure to the risk homologue or by substituted concerned.
dinitro-phenol or by the salts of such substances
16. Diseases caused by beryllium or its All work involving exposure to the risk toxic compounds concerned.
17. Diseases caused by cadmium or its All work involving exposure to the risk toxic compounds concerned.
18. Occupational asthma caused by All work involving exposure to the risk recognised sensitising agents concerned.
inherent to the work process
19. Diseases caused by fluorine or its All work involving exposure to the risk toxic compounds concerned.
20. Diseases caused by nitroglycerin or All work involving exposure to the risk other nitroacid esters concerned.
21. Diseases caused by alcohols and All work involving exposure to the risk ketones concerned.
22. Diseases caused by asphyxiants, All work involving exposure to the risk carbon monoxide and its toxic concerned.
derivatives, hydrogen sulphide
23. Lung cancer and mesotheliomas All work involving exposure to the risk caused by asbestos concerned.
24. Primary neoplasm of the epithelial All work involving exposure to the risk lining of the urinary bladder or the concerned.
kidney or the ureter
25. Snow blindness in snow bound areas All work involving exposure to the risk
concerned.
26. Diseases due to effect of heat in All work involving exposure to the risk extreme hot climate concerned.
27. Diseases due to effect of cold in All work involving exposure to the risk extreme cold climate concerned.
PART C
1. Pneumoconioses caused by All work involving exposure to the risk sclerogenic mineral dust (silicoses, concerned.
anthraoosilicosis, asbestosis) and silico-tuberculosis provided that silicosis is an essential factor in causing the resultant incapacity or death
2. Bagassosis All work involving exposure to the risk concerned.
3. Bronchopulmonary diseases caused All work involving exposure to the risk by cotton, flax hemp and sisal concerned.
dust (Byssionsis).
4. Extrinsic allergic alveelitis caused by All work involving exposure to the risk the inhalation of organic dusts concerned.
5. Bronchopulmonary diseases caused All work involving exposure to the risk by hard metals concerned.
6.
Acute Pulmonary oedema of high All work involving exposure to the risk altitude. concerned.
THE FOURTH SCHEDULE
[See sections 2(55), (56), 76(1) and 152(1)]
PART I
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT TOTAL DISABLEMENT
Serial No.
Description of Injury
Percentage of loss of earning capacity
(1)
(2)
(3)
1. Loss of both hands or amputation at higher sites 100
2. Loss of a hand and a foot 100
3. Double amputation through leg or thigh, or amputation through
leg or thigh on one side and loss of other foot 100
4. Loss of sight to such an extent as to render the claimant unable
to perform any work for which eye-sight is essential 100
5. Very severe facial disfigurement 100
6.
Absolute deafness 100
PART II
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT PARTIAL DISABLEMENT
Serial No.
Description of Injury
Percentage of loss of earning capacity
(1)
(2)
(3)
1. Amputation through shoulder joint
90
2. Amputation below shoulder with stump less than [20.32 Cms.] from tip of acromion
80
3. Amputation form [20.32 Cms.] from tip of acromion to less than [11.43 Cms.] below tip of olecranon
70
4. Loss of a hand or of the thumb and four fingers of one hand or amputation from [11.43 Cms.] below tip of olecranon
60
5. Loss of thumb
30
6. Loss of thumb and its metacarpal bone
40
7. Loss of four fingers of one hand
50
8. Loss of three fingers of one hand
30
9. Loss of two fingers of one hand
20
10. Loss of terminal phalanx of thumb
20
11. Guillotine amputation of tip of thumb without loss of bone
10
108
Amputation cases-lower limbs
12. Amputation of both feet resulting in end bearing stumps 90
13. Amputation through both feet proximal to the 80
metatarso-phalangeal joint
14. Loss of all toes of both feet through the metatarso-phalangeal joint 40
15. Loss of all toes of both feet proximal to the proximal 30
inter-phalangeal joint
16. Loss of all toes of both feet distal to the proximal 20
inter-phalangeal joint
17. Amputation at hip 90
18. Amputation below hip with stump not exceeding [12.70 Cms.] 80
in length measured from tip of great trenchanter
19. Amputation below hip with stump exceeding [12.70 Cms.] 70
in length measured from tip of great trenchanter but not beyond middle thigh
20. Amputation below middle thigh to [8.89 Cms.] below knee 60
21. Amputation below knee with stump exceeding [8.89 Cms.]
but not exceeding [12.70 Cms.] 50
22. Amputation below knee with stump exceeding [12.70 Cms.] 50
23. Amputation of one foot resulting in end bearing 50
24. Amputation through one foot proximal to the 50
metatarso-phalangeal joint
25. Loss of all toes of one foot through the metatarso-phalangeal joint 20
Other injuries
26. Loss of one eye, without complications, the other being normal 40
27. Loss of vision of one eye, without complications or disfigurement
of eye-ball, the other being normal 30
28. Loss of partial vision of one eye 10
Loss of—
A-Fingers of right or left hand Index finger
29. Whole 14
30. Two phalanges 11
31. One phalanx 9
32. Guillotine amputation of tip without loss of bone 5
Middle finger
33. Whole 12
34. Two phalanges 9
35. One phalanx 7
36. Guillotine amputation of tip without loss of bone 4
Ring or little finger
37. Whole 7
38. Two phalanges 6
39. One phalanx 5
40. Guillotine amputation of tip without loss of bone 2
B-Toes of right or left foot Great toe
41. Through metatarso-phalangeal joint 14
42. Part, with some loss of bone 3
Any other toe
43. Through metatarso-phalangeal joint 3
44. Part, with some loss of bone 1
Two toes of one foot, excluding great toe
45. Through metatarso-phalangeal joint 5
46. Part, with some loss of bone 2
Three toes of one foot, excluding great toe
47. Through metatarso-phalangeal joint 6
48. Part, with some loss of bone 3
Four toes of one foot, excluding great toe
49. Through metatarso-phalangeal joint 9
50.
Part, with some loss of bone 3
THE FIFTH SCHEDULE
[See sections 15(2) and 152(1)]
MATTERS THAT MAY BE PROVIDED FOR IN THE SCHEMES
Any scheme framed under section 15 may provide for any or all of the matters as specified below, namely:—
PARTA
Serial No. Matters on which the Provident Fund Scheme may make provisions (1) (2)
1.
The employees or class of employees who shall join the Fund, and the conditions under which employees may be exempted from joining the Fund or from making any contribution.
2. The time and manner in which contributions shall be made to the Fund by employers and by, or on behalf of, employees, (whether employed by him directly or by or through a contractor), the contributions which an employee may, if he so desires, make under section 16, and the manner in which such contributions may be recovered.
3. The manner in which employees' contributions may be recovered by contractors from employees employed by or through such contractors.
4. The payment by the employer of such sums of money as may be necessary to meet the cost of administering the Fund and the rate at which and the manner in which the payment shall be made.
5. The constitution of any committee for assisting any board of trustees.
6. The opening of regional and other offices of any board of trustees.
7. The manner in which accounts shall be kept, the investment of moneys belonging to the Fund in accordance with any directions issued or conditions specified by the Central Government, the preparation of the budget, the audit of accounts and the submission of reports to the Central Government, or to any specified State Government.
8. The conditions under which withdrawals from the Fund may be permitted and any deduction or forfeiture may be made and the maximum amount of such deduction or forfeiture.
9. The fixation by the Central Government in consultation with the boards of trustees concerned of the rate of interest payable to members.
10. The form in which an employee shall furnish particulars about himself and his family whenever required.
11. The nomination of a person to receive the amount standing to the credit of a member after his death and the cancellation or variation of such nomination.
12. The registers and records to be maintained with respect to employees and the returns to be furnished by employers or contractors.
13. The form or design of any identity card, token or disc for the purpose of identifying any employee, and for the issue, custody and replacement thereof.
14. The fees to be levied for any of the purposes specified in this Schedule.
111
(1) (2)
15. The contraventions or defaults which shall be punishable under section 135.
16. The further powers, if any, which may be exercised by Inspector-cum-Facilitators.
17. The manner in which accumulations in any existing provident fund shall be transferred to the Fund and the mode of valuation of any assets which may be transferred by the employers in this behalf.
18. The conditions under which a member may be permitted to pay premia on life insurance, from the Fund.
19. Any other matter which is to be provided for in the Scheme or which may be necessary or proper for the purpose of implementing the Scheme.
PART B
MATTERS THAT MAY BE PROVIDED FOR IN THE PENSION SCHEME
1. The employees or class of employees to whom the Pension Scheme shall apply.
2. The portion of employers' contribution to the Provident Fund which shall be credited to the Pension Fund and the manner in which it is credited.
3. The regulation of the manner in which and the period of service for which, no contribution is received.
4. The manner in which employees' interest will be protected against default in payment of contribution by the employer.
5. The manner in which the accounts of the Pension Fund shall be kept and investment of moneys belonging to Pension Fund to be made subject to such pattern of investment as may be determined by the Central Government.
6. The form in which an employee shall furnish particulars about himself and the members of his family whenever required.
7. The forms, registers and records to be maintained in respect of employees, required for the administration of the Pension Scheme.
8. The scale of pension and pensionary benefits and the conditions relating to grant of such benefits to the employees.
9. The manner in which the exempted establishments have to pay contribution towards the Pension Scheme and the submission of returns relating thereto.
10. The mode of disbursement of pension and arrangements to be entered into with such disbursing agencies as may be specified for the purpose.
11. The manner in which the expenses for administering the Pension Scheme will be met from the income of the Pension Fund.
12. Any other matter which is to be provided for in the Pension Scheme or which may be necessary or proper for the purpose of implementation of the Pension Scheme.
PART C
MATTERS THAT MAY BE PROVIDED FOR IN THE EMPLOYEES' DEPOSIT-LINKED INSURANCE SCHEME
1. The employees or class of employees who shall be covered by the Insurance Scheme.
2. The manner in which the accounts of the Insurance Fund shall be kept and the investment of moneys belonging to the Insurance Fund subject to such pattern of investment as may be determined, by order, by the Central Government.
3. The form in which an employee shall furnish particulars about himself and the members of his family whenever required.
4. The nomination of a person to receive the insurance amount due to the employee after his death and the cancellation or variation of such nomination.
5. The registers and records to be maintained in respect of employees; the form or design of any identity card, token or disc for the purpose of identifying any employee or his nominee or member of his family entitled to receive the insurance amount.
6. The scales of insurance benefits and conditions relating to the grant of such benefits to the employees.
7. The manner in which the amount due to the nominee or the member of the family of the employee under the scheme is to be paid including a provision that the amount shall not be paid otherwise than in the form of a deposit in a savings bank account, in the name of such nominee or member of family, in any corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970).
8.
Any other matter which is to be provided for in the Employees' Deposit-linked Insurance Scheme or which may be necessary or proper for the purpose of implementing that Scheme.
THE SIXTH SCHEDULE
[See sections 75, 76(1) and 152(1)]
FACTORS FOR WORKING OUT LUMP SUM EQUIVALENT OF COMPENSATION AMOUNT IN CASE OF PERMANENT DISABLEMENT AND DEATH
Completed years of age on the last birthday of the Factors employee immediately preceding the date on which
the compensation fell due
(1) (2) (3)
Not more than 16 228.54
17 227.49
18 226.38
19 225.22
20 224.00
21 222.71
22 221.37
23 219.95
24 218.47
25 216.91
26 215.28
27 213.57
28 211.79
29 209.92
30 207.98
31 205.95
32 203.85
33 201.66
34 199.40
35 197.06
36 194.64
37 192.14
38 189.56
39 186.90
40 184.17
41 181.37
42 178.49
114
115
(1) (2) (3)
43 175.54
44 172.52
45 169.44
46 166.29
47 163.07
48 159.80
49 156.47
50 153.09
51 149.67
52 146.20
53 142.68
54 139.13
55 135.56
56 131.95
57 128.33
58 124.70
59 121.05
60 117.41
61 113.77
62 110.14
63 106.52
64 102.93
65 or more 99.37
THE SEVENTH SCHEDULE
[See section 114(4)]
CLASSIFICATION OF AGGREGATORS
Sl.No. Classification of Aggregator
1. Ride sharing services
2. Food and grocery delivery services
3. Logistic services
4. e-Market place (both market place and inventory model) for wholesale/ retail sale of goods and/or services (B2B/B2C)
5. Professional services provider
6. Healthcare
7. Travel and hospitality
8. Content and media services
9.
Any other goods and services provider platform
116
LOK SABHA
————
A
BILL
to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors and for matters connected therewith or incidental thereto.
————
(As passed by Lok Sabha)
MGIPMRND—784LS(S3)—22-09-2020.