Section 1 Short title extent, commencement and application.
(1) This Act may be called the Code onSocial Security, 2020.
(2) It extends to the whole of India.
(3) It shall come into force on such date1as the Central Government may, by notification in the OfficialGazette, appoint; and different dates may be appointed for different provisions of this Code and anyreference in any such provision to the commencement of this Code shall be construed as a reference to thecoming into force of that provision.
(4) The applicability of the Chapters specified in columns (1) and (2) of the First Schedule shall, withoutprejudice to the applicability of the other provisions of this Code, be such as is specified in correspondingentry in column (3) of that Schedule.
(5) Notwithstanding anything contained in sub-section (4), where it appears to the Central ProvidentFund Commissioner, whether on an application made to him by the employer of an establishment orotherwise, that the employer and majority of employees of that establishment have agreed that theprovisions of Chapter III should be made applicable to that establishment, the Central Provident FundCommissioner, may, by notification, apply the provisions of the said Chapter to that establishment on andfrom 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 III appliedunder this sub-section desires to come out of such applicability, he may make an application to the CentralProvident Fund Commissioner and the Central Provident Fund Commissioner shall, if satisfied that thereis an agreement between the employer and majority of the employees to this effect, make the provisions ofthat Chapter inapplicable to such establishment, in such manner and subject to such conditions as may beprescribed 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 numberof persons as may be specified in the notification.
(7) Notwithstanding anything contained in sub-section (4), where it appears to the Director General ofthe 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 ofChapter IV should be made applicable to that establishment, the Director General of the Corporation, may,by notification, apply the provisions of the said Chapter to that establishment on and from the date of suchagreement or from any subsequent date specified in the agreement:
Provided that where the employer of an establishment to which the provisions of Chapter IV appliedunder this sub-section desires to come out of such applicability, he may make an application to the DirectorGeneral of the Corporation and Director General 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 thatChapter inapplicable to such establishment, in such manner and subject to such conditions as may beprescribed by the Central Government.
(8) Notwithstanding anything contained in sub-section (4), an establishment to which any Chapterapplies at the first instance shall continue to be applied thereafter even if the number of employees thereinat any subsequent time falls below the threshold specified in the First Schedule in respect of that Chapter.
Section 2 Definitions.
In this Code, unless the context otherwise requires,
(1) agent when used in relation to an establishment, means every person, whether appointed as suchor 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 toconnect with the seller or the service provider;
(3) appropriate Government means
(a) in relation to, an establishment carried on by or under the authority of the Central Governmentor concerning any such controlled industry as may be specified by notification in this behalf, by theCentral Government or the establishment of railways including metro railways, mines, oil field, majorports, air transport service, telecommunication, banking and insurance company or a corporation orother authority established by a Central Act or the central public sector undertaking or subsidiarycompanies set up by the central public sector undertakings, subsidiary companies set up by the principalundertakings or autonomous bodies owned or controlled by the Central Government, includingestablishment of contractors for the purposes of such establishment, corporation or other authority,central public sector undertakings, subsidiary companies or autonomous bodies or any company inwhich not less than fifty-one per cent. of the paid up share capital is held by the Central Government,as the case may be, or in relation to an establishment having departments or branches in more than oneState, 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 means the metrorailway as defined in sub-clause (i) of clause (1) of section 2 of the Metro Railways (Operation andMaintenance ) Act, 2002 (60 of 2002).
Explanation 2.For the purposes of this clause, the Central Government shall continue to be theappropriate Government for the central public sector undertakings even if the holding of the CentralGovernment reduces to less than fifty per cent. equity in that public sector undertaking after thecommencement 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
(iii) features films, non-feature films, television, web-based serials, talk shows, reality shows andsport shows;
(5) Authorised Officer means such officer of the Central Board, or as the case may be, of theCorporation notified by the Central Government;
(6) building or other construction work means the construction, alteration, repairs, maintenance ordemolition 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 ofwater), oil and gas installations, electric lines, internet towers, wireless, radio, television, telephone,telegraph and overseas communications, dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts,aquaducts, pipelines, towers, cooling towers, transmission towers and such other work as may be specifiedin 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 workemploying less than ten workers in the preceding twelve months or where such work is related to ownresidential purposes of an individual or group of individuals for their own residence and the total cost ofsuch work does not exceed fifty lakhs rupees or such higher amount and employing more than such numberof workers as may be notified by the appropriate Government;
(7) building worker means a person who is employed to do any skilled, semi-skilled or unskilled,manual, technical or clerical work for hire or reward, whether the terms of such employment are express orimplied, in connection with any building or other construction work, but does not include any such personwho is employed mainly in a managerial or supervisory or administrative capacity;
(8) Building Workers' Welfare Board means the State Building and other Construction Workers'Welfare Board constituted under sub-section (1) of section 7;
(9) career centre means any office (including employment exchange, place or portal) established andmaintained 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 orotherwise, manually, digitally, virtually or through any other mode) as may be prescribed by the CentralGovernment, which may, 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 to start selfemployment;
(10) Central Board means the Board of Trustees of the Employees' Provident Fund constituted undersection 4;
(11) Central Provident Fund Commissioner means the Central Provident Fund Commissioner of theCentral Board appointed under sub-section (1) of section 14;
(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 embryoimplanted in any other woman;
(14) company means a company as defined in clause (20) of section 2 of the Companies Act, 2013(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 ChapterV 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 thecase may be;
(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-sixweeks 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 withthe work of an establishment when he is hired in or in connection with such work by or through a contractor,with or without the knowledge of the principal employer and includes inter-State migrant worker but doesnot include an employee (other than part time employee) who is regularly employed by the contractor forany activity of his establishment and his employment is governed by mutually accepted standards of theconditions of employment (including engagement on permanent basis), and gets periodical increment in thepay, social security coverage and other welfare benefits in accordance with the law for the time being inforce 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 orarticles of manufacture to such establishment through contract labour; or
(ii) supplies contract labour for any work of the establishment as mere human resource, and includesa sub-contractor;
(21) contribution means the sum of money payable by the employer, under this Code, to the CentralBoard and to the Corporation, as the case may be, and includes any amount payable by or on behalf of theemployee 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, namely:
(a) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted daughter or awidowed mother:
Provided that for the purposes of Chapter IV, a legitimate adopted son, who has not attained the age oftwenty-five years, shall be dependant of the deceased employee;
(b) if wholly dependant on the earnings of the employee at the time of his death, a legitimate or adoptedson or a daughter who has attained the age of eighteen years and who is infirm; except for the purposes ofChapter IV wherein the word eighteen occurring in this sub-clause shall be deemed to have beensubstituted by the word 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;
(iii) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate orillegitimate 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;
(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 sub-clause (c), referencesto 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 requiredfor, or incidental to, the loading, unloading, movement or storage of cargoes into or from ship or othervessel, port, dock, storage place or landing place, and includes
(i) work in connection with the preparation of ships or other vessels for receipt or discharge ofcargoes or leaving port;
(ii) all repairing and maintenance processes connected with any hold, tank structure or liftingmachinery 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 otherstorage area in board the ship or in the docks;
(26) employee means any person (other than an apprentice engaged under the Apprentices Act, 1961)(52 of 1961) employed on wages by an establishment, either directly or through a contractor, to do anyskilled, 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 aperson declared to be an employee by the appropriate Government, but does not include any member of theArmed Forces of the Union:
Provided that for the purposes of Chapter III, except in case of the Employees Provident Fund Schemeand Chapter IV, the term employee shall mean such employee drawing wages less than or equal to thewage ceiling notified by the Central Government and includes such other persons or class of persons as theCentral 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 an establishmentunder Chapter III and Chapter IV, as the case may be, the employees, whose wages are more than the wageceiling 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 personsas specified in the Second Schedule and such other persons or class of persons as the Central Government,or as the case may be, the State Government may add to the said Schedule, by notification, for the purposesof 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 iscarried on by any department of the Central Government or 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 thedepartment and in relation to an establishment carried on by a local authority, the chief executive of thatauthority, and includes,
(a) in relation to an establishment which is a factory, the occupier of the factory;
(b) in relation to mine, the owner of the mine or agent or manager having requisite qualificationunder 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 ultimatecontrol over the affairs of the establishment and where the said affairs are entrusted to a manager ormanaging 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 or anoccupational 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 section28 whether such accident occurs or the occupational disease is contracted within or outside theterritorial limits of India; and
(ii) for the purposes of Chapter VII, whether such accident occurs or the occupational disease iscontracted 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
(b) a factory, motor transport undertaking, newspaper establishment, audiovisual 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 differentdepartments or has branches, whether situate in the same place or in different places, all such departmentsor branches shall be treated as parts of the same establishment;
(30) executive officer means such officer of the appropriate Government as may be notified by thatGovernment for the purposes of Chapter XIII or an officer authorised in writing by such executive officerto discharge his duties under that Chapter;
(31) exempted employee for the purposes of Chapter III, means an employee to whom any of theschemes referred to in section 15, but for the exemption granted under this Code, would have applied andfor the purposes of Chapter IV, means an employee, whose wage is specified in the notification by theCentral 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 precedingtwelve months, and in any part of which a manufacturing process is being carried on with the aid ofpower, or is ordinarily so carried on, or
(b) whereon twenty or more employees are working, or were working on any day of the precedingtwelve months, and in any part of which a manufacturing process is being carried on without the aid ofpower, or is ordinarily so carried on, but does not include a mine, or a mobile unit belonging to theArmed Forces of the Union, 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 theemployees 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 Unitor a Computer Unit is installed in any premises or part thereof, shall not be construed as factory if nomanufacturing 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, asthe case may be, namely:
(a) a spouse;
(b) a minor legitimate or adopted child dependent upon the employee or an unorganised worker, asthe case may be;
(c) a child who is wholly dependent on the earnings of the employee or an unorganised worker, asthe case may be, and who is
(i) receiving education, till he attains the age of twenty-one years; and
(ii) an unmarried daughter;
(d) a child who is infirm by reason of any physical or mental abnormality or injury and is whollydependent on the earnings of the employee or an unorganized worker, as the case may be, so long asthe infirmity continues;
(e) dependent parents (including father-in-law and mother-in-law of a woman employee), whoseincome 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 parentsare 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 contractof employment for a fixed period:
Provided that
(a) his hours of work, wages, allowances and other benefits shall not be lessthan that of a permanentemployee doing the same work or work of a similar nature; and
(b) he shall be eligible for all benefits, under any law for the time being in force, available to apermanent employee proportionately according to the period of service rendered by him even if hisperiod of employment does not extend to the required qualifying period of employment;
(35) gig worker means a person who performs work or participates in a work arrangement and earnsfrom such activities outside of traditional employer-employee relationship;
(36) home-based worker means a person engaged in, the production of goods or services for anemployer in his home or other premises of his choice other than the workplace of the employer, forremuneration, 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) Insurance Fund means the Deposit-Linked Insurance Fund established under clause (c) ofsub-section (1) of section 16;
(39) Insured Person means the Insured Person referred to in section 28;
(40) Insurance Scheme means the Deposit-Linked Insurance Scheme framed under clause (c) of subsection (1) of section 15;
(41) inter-State migrant worker means a person who is employed in an establishment and who
(i) has been recruited directly by the employer or indirectly through contractor in one State foremployment in such establishment situated in another State; or
(ii) has come on his own from one State and obtained employment in an establishment of anotherState (hereinafter called destination State) or has subsequently changed the establishment within thedestination State, under an agreement or other arrangement for such employment and drawing wagesnot exceeding eighteen thousand rupees per month or such higher amount as may be notified by theCentral Government from time to time;
(42) manufacturing process means any process for
(i) making, altering, repairing, ornamenting,finishing, oiling, washing, cleaning, breaking up, demolishing, refining, or otherwise treating or adaptingany 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
(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 bookbinding; or
(v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or
(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) ofsection 60;
(44) medical practitioner means a person registered under any law for the time being in force, or, anyperson declared by the State Government, by notification, to be qualified as medical practitioner for thepurposes of this Code:
Provided that different class or classes of medical practitioner having specific qualification may benotified by the Central Government for the purposes of Chapter IV and by the appropriate Government forother Chapters of this Code;
(45) medical termination of pregnancy means the termination of pregnancy permissible under theprovisions of the Medical Termination of Pregnancy Act, 1971 (34 of 1971);
(46) mine shall have the meaning assigned to it in clause (j) of sub-section (1) of section 2 of theMines Act, 1952 (35 of 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 duringthe twenty-sixth week of pregnancy, but does not include any miscarriage, the causing of which ispunishable under the Indian Penal Code (45 of 1860);
(49) National Social Security Board means the National Social Security Board for UnorganisedWorkers constituted under sub-section (1) of section 6;
(50) notification means a notification published in the Gazette of India or the Official Gazette of aState, as the case may be, and the expression notify with its grammatical variations and cognateexpressions shall be construed accordingly;
(51) occupational disease means a disease specified in the Third Schedule as a disease peculiar to theemployment of the employee;
(52) occupier in respect of a factory means the person who has ultimate control over the affairs ofthe factory:
Provided that
(a) in the case of a firm or other association of individuals, any one of the individual partners ormembers thereof;
(b) in the case of a company, any one of the directors, except any independent director within themeaning of sub-section (6) of section 149 of the Companies Act, 2013 (18 of 2013);
(c) in the case of a factory owned or controlled by the Central Government or any StateGovernment, or any local authority, the person or persons appointed to manage the affairs of the factoryby the Central Government, the State Government or the local authority or such other authority as maybe 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 isbeing carried out, in a dry dock which is available for hire, the owner of the dock shall be deemed to be theoccupier for all purposes except the matters as may be prescribed by the Central Government which aredirectly 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 (Regulationand Development) Act, 1948 (53 of 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, suchdisablement as reduces the earning capacity of an employee in every employment which he was capable ofundertaking at the time of the accident resulting in the disablement:
Provided that every injury specified in Part II of the Fourth Schedule shall be deemed to result inpermanent partial disablement;
(56) permanent total disablement means such disablement of a permanent nature as incapacitates anemployee for all work which he was capable of performing at the time of the accident resulting in suchdisablement:
Provided that permanent total disablement shall be deemed to result from every injury specified in PartI of the Fourth Schedule or from any combination of injuries specified in Part II thereof where the aggregatepercentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts toone hundred per cent.;
(57) Pension Fund means the Pension Fund established under clause (b) of sub-section (1) of section16;
(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
(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 morepersons are employed or were employed on any day of the preceding twelve months, if, afterobtaining the approval of the Central Government, the State Government, by notification, sodirects.
Explanation.Where any piece of land used for growing any plant referred to in this sub-clauseadmeasures less than five hectares and is contiguous to any other piece of land not being so used, butcapable of being so used, and both such pieces of land are under the management of the same employer,then, for the purposes of this 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 orintended to be used for growing any plant referred to in sub-clause (a), notwithstanding that itadmeasures less than five hectares:
Provided that no such declaration shall be made in respect of such land which admeasures less than fivehectares immediately before the commencement of this Code; and
(c) offices, hospitals, dispensaries, schools and any other premises used for any purpose connected withany plantation within the meaning of sub-clause (a) and sub-clause (b); but does not include factory on thepremises;
(60) platform work means a work arrangement outside of a traditional employer employeerelationship in which organisations or individuals use an online platform to access other organisations orindividuals to solve specific problems or to provide specific services or any such other activities which maybe notified by the Central Government, in exchange for payment;
(61) platform worker means a person engaged in or undertaking platform work;(62) port shall have the meaning assigned to it in clause (4) of section 3 of the Indian Ports Act, 1908(15 of 1908);
(63) Provident Fund means the Employees' Provident Fund established under clause (a) ofsub-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 (24 of 1989);
(67) railway company includes any persons whether incorporated or not, who are owners or lesseesof a railway or parties to an agreement for working a railway;
(68) Recovery Officer means any officer of the Central Government, the State Government, theCentral Board or the Corporation, who may be authorised by the Central Government or the StateGovernment, as the case may be, by notification, to discharge the functions and to exercise the powers of aRecovery 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) ofsection 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976 (11 of 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 masterof the ship;
(74) seasonal factory means a factory which is exclusively engaged in one or more of the followingmanufacturing 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 orconnected with any of the aforesaid processes and includes a factory which is engaged for a period notexceeding seven months in a year in a manufacturing process as the Central Government may, bynotification, specify;
(75) self-employed worker means any person who is not employed by an employer, but engageshimself in any occupation in the unorganised sector subject to a monthly earning of an amount as may benotified by the Central Government or the State Government, as the case may be, from time to time or holdscultivable 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 dealingwith the shop in that State;
(77) sickness means a condition which requires medical treatment and attendance and necessitatesabstention 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 abreadwinner 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 thisCode, 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 section7; and
(f) any other organisation or special purpose vehicle declared to be the social security organisationby 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 239of the Constitution as an administrator thereof;
(81) State Unorganised Workers' Board means the State Unorganised Workers' Social Security Boardconstituted under sub-section (9) of section 6;
(82) superannuation, in relation to an employee, means the attainment by the employee of such ageas is fixed in the contract or conditions of service, as the age on the attainment of which the employee shallvacate 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 requiresmedical treatment and renders an employee, as a result of such injury, temporarily incapable of doing thework 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 section7A of the Industrial Disputes Act, 1947 (14 of 1947);
(85) unorganised sector means an enterprise owned by individuals or self-employed workers andengaged in the production or sale of goods or providing service of any kind whatsoever, and where theenterprise 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 inthe unorganised sector and includes a worker in the organised sector who is not covered by the IndustrialDisputes Act, 1947 or Chapters III to VII of this Code;
(87) vacancy, for the purposes of Chapter XIII, means an unoccupied post (including newly createdpost, post of trainee, post to be filled through apprentice or any unoccupied post created in an establishmentby any other means) in a cadre or occupation for the purpose of employing a person and carryingremuneration;
(88) wages means all remuneration, whether by way of salaries, allowances or otherwise, expressedin terms of money or capable of being so expressed which would, if the terms of employment, express orimplied, were fulfilled, be payable to a person employed in respect of his employment or of work done insuch employment, and includes,
(a) basic pay;
(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 form part of theremuneration payable under the terms of employment;
(b) the value of any house-accommodation, or of the supply of light, water, medical attendance or otheramenity or of any service excluded from the computation of wages by a general or special order of theappropriate Government;
(c) any contribution paid by the employer to any pension or provident fund, and the interest which mayhave 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 ofhis employment;
(f) house rent allowance;
(g) remuneration payable under any award or settlement between the parties or order of a court orTribunal;
(h) any overtime allowance;
(i) any commission payable to the employee;
(j) any gratuity payable on the termination of employment;
(k) any retrenchment compensation or other retirement benefit payable to the employee or anyex gratia payment made to him on the termination of employment, under any law for the time being inforce:
Provided that for calculating the wages under this clause, if payments made by the employer to theemployee under sub-clauses (a) to (i) exceeds one-half, or such other per cent. as may be notified by theCentral Government, of the all remuneration calculated under this clause, the amount which exceeds suchone-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added inwages under this clause:
Provided further that for the purpose of equal wages to all genders and for the purpose of payment ofwages, the emoluments specified in sub-clauses (d), (f), (g) and (h) shall be 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 exceedfifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages of suchemployee;
(89) wage ceiling means such amount of wages as may be notified by the Central Government, forthe purposes of becoming a member under Chapter III and Chapter IV;
(90) wage worker means a person employed for remuneration in the unorganized sector, directly byan employer or through any contractor, irrespective of place of work, whether exclusively for one employeror for one or more employers, whether in cash or in kind, whether as a home-based worker, or as a temporaryor 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, for wages in anyestablishment:
Provided that for the purposes of Chapter IV, a woman who is or was an employee in respect of whomcontribution is or were payable under the said Chapter and who is by reason thereof, entitled to any of thebenefits 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 getembryo implanted in any other woman;
(ii) a woman who legally adopts a child of up to three months of age.
Section 3 Registration and cancellation of an establishment.
(1) Every establishment to which this Codeapplies shall be electronically or otherwise, registered within such time and in such manner as may beprescribed by the Central Government:
Provided that the establishment which is already registered under any other Central labour law for thetime being in force shall not be required to obtain registration again under this Code and such registrationshall 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 inthe process of closure, may make an application for cancellation of registration granted under this section.
(3) The manner of making application for cancellation of the registration under sub-section (2), theconditions subject to which the registration shall be cancelled and the procedure of cancellation and othermatters relating thereto, shall be such as may be prescribed by the Central Government.
Section 4 Constitution of Board of Trustees of Employees’ Provident Fund.
(1) The Central Governmentmay, by notification, constitute, with effect from such date as may be specified therein, a Board of Trusteesof the Employees' Provident Fund to be called the Central Board, for the purposes of Chapter III and theprovisions of this Code relating to that Chapter, for the administration of the funds vested in it in suchmanner as 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;
(c) not more than fifteen persons representing Governments of such States asthe Central Governmentmay 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 subsection (1) of section 15 applies, to be appointed by the Central Government after consultation with suchorganisations 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 subsection (1) of section 15 applies, who shall be appointed by the Central Government after consultationwith such organisations of employees as may 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 besued.
(3) The Central Government may, by notification, constitute, with effect from such date as may bespecified therein, an Executive Committee from amongst the members of the Central Board to assist theCentral Board in performance of its functions in such manner as may be prescribed by the CentralGovernment.
(4) The Central Board may, by order, constitute one or more committees of such composition as may bespecified 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 toany of its officers and a State Board constituted under section 12 may, by order, delegate to its Chairpersonor 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 ofthe schemes referred to in sub-section (1) of section 15.
(6) The terms and conditions, including tenure of office, subject to which a member of the Central Boardand Executive Committee shall discharge their respective duties may be such as may be prescribed by theCentral 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 perform such otherfunctions in such manner as may be prescribed by the Central Government.
Section 5 Constitution of Employees’ State Insurance Corporation.
The Central Government may, bynotification, constitute with effect from such date as may be specified therein, the Employees' StateInsurance Corporation to be called the Corporation, for the purposes of Chapter IV and the provisions ofthis Code relating to that Chapter and the administration thereof, in such manner as may be prescribed bythe 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 from amongst its officials;
(d) one person representing each of such States in such manner, as may be prescribed by the CentralGovernment;
(e) one person to be appointed by the Central Government to represent the Union territories;
(f) ten persons representing employers to be appointed by the Central Government in consultationwith 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 consultationwith such organisations of employees as may be recognised for the purpose by the Central Government;
(h) two persons representing the medical profession to be appointed by the Central Government inconsultation with such organisations of medical practitioners as may be recognised for the purpose bythe Central Government;
(i) three members of Parliament of whom two shall be members of the House of the People (LokSabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by themembers 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 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 bespecified therein, a Standing Committee from amongst the members of the Corporation, in such manneras may be prescribed by the Central Government.
(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 performany of the functions of the Corporation in such manner as may be prescribed by the Central Government;
(b) shall submit for the consideration and decision of the Corporation all such cases and matters asmay 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 such date as may bespecified therein, a Medical Benefit Committee of such composition as may be specified therein, to assistthe Corporation and the Standing Committee in performance of its functions relating to administration ofmedical benefits.
(b) the Medical Benefit Committee shall perform such duties and exercise such powers as may beprescribed by the Central Government.
(6) The Corporation may, by order, constitute one or more committees of such composition as may bespecified 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 Corporationand Standing Committee shall discharge their respective duties may be such as may be prescribed by theCentral Government:
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.
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