CODE ON
SOCIAL SECURITY, 2020 THE
CODE ON SOCIAL SECURITY, 2020 [Act
No. 36 of 2020] [28th
September, 2020] An Act 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:-- (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
commencement of this Code shall be construed as a reference to the coming into
force of that provision. (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
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: 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 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. (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 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: (8) 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
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. (9) Notwithstanding
anything contained in sub-section (4), an establishment to which 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. In this Code, unless the context
otherwise requires,-- (1) "agent"
when used in relation to an establishment, means every person, 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; (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 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 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 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" means the metro railway
as defined in sub-clause (i) of clause (1) of of the Metro Railways
(Operation and Maintenance) Act, 2002 (60 of 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
public sector undertaking after the commencement of this Code; (4) "audio-visual
production" means audio-visual produced wholly or partly in India and
includes? (1) animation, cartoon
depiction, audio-visual advertisement; (2) digital production or
any of the activities in respect of making thereof; and (3) 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,
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
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 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 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
Workers' Welfare Board constituted under sub-section (1) of section 7; (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, 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
self-employment; (10) "Central
Board" means the Board of Trustees of the Employees' Provident Fund
constituted under "Central Provident Fund Commissioner" means
the Central Provident Fund Commissioner of the Central Board appointed under
sub-section (1) of (11) "child",
for the purposes of Chapter VI, includes a stillborn child; (12) "Commissioning
mother" means a biological mother who uses her egg to create an embryo
implanted in any other woman; (13) "company"
means a company as defined in clause (20) of the Companies Act, 2013 (18 of
2013); (14) "compensation"
means compensation as provided under Chapter VII; (15) "competent
authority" means any authority appointed under for the purposes of
Chapter V or notified for the purposes of Chapter VI or appointed
under 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; (16) "completed year
of service" means continuous service for twelve months; (17) "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; (18) "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 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 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; (19) "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 labour; or (ii) supplies contract
labour for any work of the establishment as mere human resource, and
includes a sub-contractor; (20) "contribution"
means the sum of money payable by the employer, under this 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; (21) "Corporation"
means the Employees' State Insurance Corporation constituted under (22) "delivery"
means the birth of a child; (23) "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 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 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 "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 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; (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), references to a son,
daughter or child include an adopted son, daughter or child, respectively; (24) "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 includes? (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; (25) "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 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 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 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 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; (26) "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 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; (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 affairs are
entrusted to a manager or managing director, such manager or managing director;
(d) contractor; and (e) legal representative
of a deceased employer; (27) "employment
injury" means a personal injury to an employee, caused by accident 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 whether such accident occurs or the occupational disease is
contracted within or outside the territorial limits of India; and (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; (28) "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, 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; (29) "executive
officer" means such officer of the appropriate Government as may be
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; (30) "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 I V, means an
employee, whose wage is specified in the notification by the Central Government
and who is not liable to pay employee's contribution; (31) "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 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,
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 not be
construed as factory if no manufacturing process is being carried on in such
premises or part thereof; (32) "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; (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 (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) ?of a woman 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; (33) "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; 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; (34) "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; (35) "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 of the employer, for remuneration, irrespective of whether or not the
employer provides the equipment, materials or other inputs; (36) "Inspector-cum-Facilitator"
means an Inspector-cum-Facilitator appointed under (37) "Insurance
Fund" means the Deposit-Linked Insurance Fund established under clause (c)
of sub-section (1) of (38) "Insured
Person" means the Insured Person referred to is (39) "Insurance
Scheme" means the Deposit-Linked Insurance Scheme framed under clause (c)
of sub-section (1) of (40) "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 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 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; (41) "manufacturing
process" means any process for? (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 (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 (vi) preserving or storing
any article in cold storage; or (vii) such other activities
as the Central Government may notify; (42) "maternity
benefit", in respect of Chapter VI, means the payment referred to in
sub-section (1) of "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; (43) "medical
termination of pregnancy" means the termination of pregnancy permissible
under the provisions of the Medical Termination of Pregnancy Act, 1971 (34 of
1971); (44) "mine"
shall have the meaning assigned to it in clause (j) of sub-section (1) of the
Mines Act, 1952 (35 of 1952); (45) "minor"
means a person who has not attained the age of eighteen years; (46) "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 (45
of 1860); (47) "National Social
Security Board" means the National Social Security Board for Unorganised
Workers constituted under sub-section (1) of ? (48) "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; (49) "occupational
disease" means a disease specified in the Third Schedule as a disease
peculiar to the employment of the employee; (50) "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 the Companies Act, 2013 (18 of 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; (51) "oilfield"
shall have the meaning assigned to it in clause (e) of the Oilfields
(Regulation and Development) Act, 1948 (53 of 1948); (52) "organised
sector" means an enterprise which is not an unorganised sector; (53) "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: Provided that every injury specified in
Part II of the Fourth Schedule shall be deemed to result in permanent partial
disablement; (54) "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: 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.; (55) "Pension Fund"
means the Pension Fund established under clause (b) of sub-section (1) of
(56) "Pension
Scheme" means the Employees' Pension Scheme framed under clause (b) of
sub-section (1) of (57) "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 more persons
are employed or were employed on any day of the preceding twelve months, if,
after obtaining the approval of the Central 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 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: 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 sub-clause (b);
but does not include factory on the premises; (58) "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 exchange for payment; (59) "platform
worker" means a person engaged in or undertaking platform work; (60) "port"
shall have the meaning assigned to it in clause (4) of the Indian Ports
Act, 1908 (15 of 1908); (61) "Provident
Fund" means the Employees' Provident Fund established under clause (a) of
sub-section (1) of (62) "Provident Fund
Scheme" means the Employees' Provident Fund Scheme framed under clause (a)
of sub-section (1) of (63) "prescribed"
means prescribed by rules made under this Code; (64) "railway"
shall have the meaning assigned to it in clause (31) of the Railways Act,
1989 (24 of 1989); (65) "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; (66) "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; (67) "regulations"
means regulations made by the Corporation under this Code; (68) "retirement"
means termination of the service of an employee otherwise than on
superannuation; (69) "sales promotion
employees" means the sales promotion employees as defined in clause
(d)? of the Sales Promotion Employees
(Conditions of Service) Act, 1976 (11 of 1976); (70) "Schedule"
means a Schedule to this Code; (71) "seamen"
means any person forming part of the crew of any ship, but does not include the
master of the ship; (72) "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; (73) "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; (74) "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; ? (75) "sickness"
means a condition which requires medical treatment and attendance and
necessitates abstention from work on medical ground; (76) "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; (77) "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 (b) the Employees' State
Insurance Corporation constituted under ? (c) the National Social
Security Board for Unorganised Workers constituted under ? (d) the State Unorganised
Workers' Social Security Board constituted under ? (e) the State Building
and other Construction Workers' Welfare Boards constituted under and (f) any other
organisation or special purpose vehicle declared to be the social security
organisation by the Central Government; (78) "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; (79) "State
Unorganised Workers' Board" means the State Unorganised Workers' Social
Security Board constituted under sub-section (9) of ? (80) "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; (81) "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; (82) "Tribunal"
means the Industrial Tribunal constituted by the appropriate Government
under of the Industrial Disputes Act, 1947 (14 of 1947); (83) "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; (84) "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 (14 of 1947) or Chapters III
to VII of this Code; (85) "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; (86) "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; (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 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, 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;
(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; (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 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 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; (87) "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; (88) "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 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; (89) "woman"
means a woman employed, whether directly or through any contractor, 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 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. (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 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, 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), 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. (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 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 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 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 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. (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
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 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 perform such other
functions in such manner as may be prescribed by the Central Government. (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 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 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; (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 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 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 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. (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; (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 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. (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: 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. (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 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; (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 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 (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 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 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 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; (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 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 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:-- (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; (d) thirty-one members to
be nominated by the State Government, out of whom? (i) seven representing
the unorganised workers; (ii) seven representing
employers of unorganised workers; (iii) two members
representing the Legislative Assembly of the concerned State; (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. (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 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. (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:-- ? (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 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 (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
unorganised workers and such other matters as the State Government may refer to
it for advice. (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 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 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 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. (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 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, 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 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; (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 (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 and such other matters as the State Government may refer to it for advice. (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 (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 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 Legislative Assembly; or (iii) Deputy Chairman of
the Council of States. 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. (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 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 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: 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 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 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 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 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, 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. (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. (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 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 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. The Central Provident Fund Commissioner
and the Director General shall be the 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. (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
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 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 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. (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 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 from the date of the notification of supersession issued under
sub-section (1). (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 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. (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. Notwithstanding anything contained in
this Code, the Central Government may, by notification,-- (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 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 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; (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 (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. (1) The Central Government
may appoint a Central Provident Fund Commissioner 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. (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 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. (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: 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,-- (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 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 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 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 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. (1) The Central
Government may, by notification? (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 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 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; (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 (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. (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. (1) The Central
Government may, for the purposes of? (a) the Provident Fund
Scheme, establish a Provident Fund where the 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
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 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; (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 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 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 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 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. (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. (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. 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 ?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. 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 (31 of 2016). (1) This Chapter shall
not apply? (a) to any establishment
registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any
other law for the time being in force in any State relating to co-operative
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. (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 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. (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. (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 the employer a reasonable
opportunity of being heard. 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 (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 Fund Scheme or the Pension Scheme, as the
case may be. (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 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 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. (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. (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 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 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 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: 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 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: 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 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: 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. (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. (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: 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' posts under the
Central Government, the question shall be referred to that Government whose
decision thereon shall be final. (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 to as the
Employees' State Insurance Fund) which shall be held and administered by the
Corporation 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 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 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 (hereinafter referred to as the Standing Committee) with the approval
of the Corporation. 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 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 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 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 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; (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; (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 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
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. (1) The Corporation may,
subject to such conditions as may be prescribed by the 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 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 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. (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
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". (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) 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 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. 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 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. (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. (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: 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 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 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 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 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. (1) Subject to the
provisions of this Code, the Insured Persons, their dependants 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 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 (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); (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 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 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
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 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. 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. (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 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 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 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 (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. Explanation.--In this section,
"vehicle" includes a vessel and an aircraft. 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-- (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. (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 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. (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. (1) Any question? (a) whether the relevant
accident has resulted in permanent disablement; or (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 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 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 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 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 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 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 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 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 (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 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 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. (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 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
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
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 under
sub-section (3), direct that the dependants' benefit be continued, increased,
reduced or discontinued. (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. (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
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: 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: 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. (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, 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). (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. (1) The State Government
shall provide for Insured Persons and (where such 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. (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 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 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 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 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. (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 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. (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. (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 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 located in the
States where medical benefit is provided by the Corporation, the Central
Government shall be the appropriate Government. (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 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)? (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; (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 (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. (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. (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. (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 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. (1) If any employer,-- (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 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 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, 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: 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. (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
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, then, the Corporation may send to
the owner or occupier of the factory or other establishment or to the owner of
the tenements 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. (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
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. (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 lodgings 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. 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. 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 (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. (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.
Preamble - CODE ON SOCIAL SECURITY, 2020PREAMBLE