CONTENTS
CODE ON WAGES, 2019
Table showing sections of Code on Wages, 2019 & corresponding provisions of repealed laws 1.3
Table showing sections of Equal Remuneration Act, 1976 & corresponding provisions of Code on Wages, 2019 1.11
Table showing sections of Minimum Wages Act, 1948 & corresponding provisions of Code on Wages, 2019 1.13
Table showing sections of Payment of Bonus Act, 1965 & corresponding provisions of Code on Wages, 2019 1.16
Table showing sections of Payment of Wages Act, 1936 & corresponding provisions of Code on Wages, 2019 1.20
Comparative study of Code on Wages, 2019 & Equal Remuneration Act, 1976/Minimum Wages Act, 1948/ Payment of Wages Act, 1936/Payment of Bonus Act, 1965 (Repealed Acts)
INDUSTRIAL RELATIONS CODE, 2020
Table showing sections of Industrial Relations Code, 2020 & corresponding provisions of repealed laws 2.3
Table showing sections of Industrial Disputes Act, 1947 & corresponding provisions of Industrial Relations Code, 2020 2.13
Table showing sections of Industrial Employment (Standing Orders) Act, 1946 & corresponding provisions of Industrial Relations Code, 2020 2.20
Table showing sections of Trade Unions Act, 1926 & corresponding provisions of Industrial Relations Code, 2020
Comparative study of Industrial Relations Code, 2020 & Trade Unions Act, 1926/Industrial Employment (Standing Orders) Act, 1946/Industrial Disputes Act, 1947 (Repealed Acts)
2.207
CODE ON SOCIAL SECURITY, 2020
Table showing sections of Code on Social Security, 2020 & corresponding provisions of repealed laws 3.3
Table showing sections of Building and Other Construction Workers’ Welfare Cess Act, 1996 & corresponding provisions of Code on Social Security, 2020 3.26
Table showing sections of Cine-Workers Welfare Fund Act, 1981 & corresponding provisions of Code on Social Security, 2020 3.28
Table showing sections of Employee’s Compensation Act, 1923 & corresponding provisions of Code on Social Security, 2020 3.29
Table showing sections of Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 & corresponding provisions of Code on Social Security, 2020 3.33
Table showing sections of Employees’ State Insurance Act, 1948 & corresponding provisions of Code on Social Security, 2020 3.39
Table showing sections of Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 & corresponding provisions of Code on Social Security, 2020 3.49
Table showing sections of Maternity Benefit Act, 1961 & corresponding provisions of Code on Social Security, 2020 3.51
Table showing sections of Payment of Gratuity Act, 1972 & corresponding provisions of Code on Social Security, 2020 3.54
Table showing sections of Unorganised Workers’ Social Security Act, 2008 & corresponding provisions of Code on Social Security, 2020 3.56
Comparative study of Code on Social Security, 2020 & Employee’s Compensation Act/Employees’ State Insurance Act/Employees’ Provident Funds Act/Employment Exchanges Act/Maternity Benefit Act/Payment of Gratuity Act/Cine-Workers Act/Building and Other Construction Workers Act/Unorganised Workers’ Social Security Act (Hereinafter referred to as ‘the repealed Acts’) 3.58
OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE, 2020
Table showing sections of Occupational Safety, Health and Working Conditions Code, 2020 and corresponding provisions of repealed laws
Table showing sections of Beedi and Cigar Workers (Conditions of Employment) Act, 1966 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.34
Table showing sections of Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.38
Table showing sections of Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.43
Table showing sections of Contract Labour (Regulation and Abolition) Act, 1970 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020
Table showing sections of Dock Workers (Safety, Health and Welfare) Act, 1986 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.49
Table showing sections of Factories Act, 1948 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.52
Table showing sections of Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020
Table showing sections of Mines Act, 1952 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.66
Table showing sections of Motor Transport Workers Act, 1961 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.74
Table showing sections of Plantations Labour Act, 1951 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.78
Table showing sections of Sales Promotion Employees (Conditions of Service) Act, 1976 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.83
Table showing sections of Working Journalists and Other Newspaper Employees (Conditions of service) and Miscellaneous Provisions Act, 1955 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.85
Table showing sections of Working Journalists (Fixation of Rates of Wages) Act, 1958 & corresponding provisions of Occupational Safety, Health and Working Conditions Code, 2020 4.89
Comparative study of Occupational Safety, Health and Working Conditions Code, 2020 & Factories Act/ Plantations Labour Act/Mines Act/Working Journalists Act/Working Journalists Wages Act/Motor Transport Workers Act/Beedi and Cigar Workers Act/Contract Labour Act/Sales Promotion Employees Act/Inter-State Migrant workmen Act/Cine Workers Act/Dock Workers Act/Building Workers Act (Hereinafter Referred to as ‘the repealed Acts’)
INDUSTRIAL RELATIONS CODE
, 2020*
[35 OF 2020]
An Act to consolidate and amend the laws relating to Trade Unions, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes and for matters connected therewith or incidental thereto.
Be i t e nact e d by Parli a me nt i n t he Se ve nt y- first Ye ar of t he Re p ubli c of I ndi a as f oll o ws:
CHAPTER I
PRELIMINARY
Short title, extent and commencement.
1 1. ( 1) Thi s Act may be c all e d t he I nd ust ri al Rel ati o ns Co de, 2020
( 2) It s hall e xt e nd t o t he whol e of I ndi a
( 3) It s hall c o me i nt o f or ce o n s uc h dat e† as t he Ce nt r al Gover n me nt may, by noti ficati oni nt he Of fici al Gaz ett e appoi nt; a nd di ff er e nt dat es may be appoi nt e d f or di ff er e nt pr ovi si o ns of t hi s Co de a nd a ny r ef er e nce i n a ny s uc h pr ovi si o n t o t he c o mme nce me nt of t hi s Co de s hall be c o nst r ue d as a r ef er e nce t o t he c o m i ng i nt o f or ce of t hat pr ovi si o n
Corresponding Provision : Secti on 1 of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946/ s ecti on 1 of I ndust ri al Di s p ut es Act, 1947/s ecti on 1 of Tr a de Uni ons Act, 1926
Definitions.
1 2. I n t hi s Co de, unl ess t he c o nt e xt ot her w i s e r e q ui r es, ( a ) “ a ppell at e a ut hori t y ” me a ns a n a ut hori t y a ppoi nt e d by t he a ppr opri at e Gover n me nt t o e xer ci s e s uc h f uncti o ns i n s uc h ar e a as may be s peci fi e d by t hat Gover n me nt by noti fi c ati o n i n t he Offi ci al Gaz ett e;
Corresponding Provision : Secti on 2( a ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946
* Dat e d 28- 9- 2020
1 Enf or ce d w i t h eff ect f r o m 21-11-2025
†See Noti fi cati on No S O 5320( E), dat e d 21- 11- 2025 ( see Notifications )
2.49
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I NDUST RI AL RELATI ONS C ODE , 2020 2.50
(b ) “ a ppr opri at e Gover n me nt” me a ns,
(i ) i n r el ati o n t o a ny i nd ust ri al est a bli s h me nt or undert a ki ng c ar - ri e d o n by or under t he a ut hori t y of t he Ce nt r al Gover n me nt or c o ncer ni ng a ny s uc h c o nt r oll e d i nd ust r y as may be s peci fi e d i n t hi s be hal f by t he Ce nt r al Gover n me nt or t he est a bli s h me nt of r ail ways i ncl udi ng met r o r ail ways, m i nes, oil fi el ds, maj or port s, ai r t r a ns port s er vi ce, t el ec o mmuni c ati o n, ba nki ng a nd i ns ur a nce c o mpa ny or a c or por ati o n or ot her a ut hori t y est a bli s he d by a Ce nt r al Act or a ce nt r al p ubli c s ect or undert a ki ng, s ubsi di ar y c o mpa ni es s et up by t he pri nci pal undert a ki ngs or a ut o no mo us bo di es o wne d or c o nt r oll e d by t he Ce nt r al Gover n me nt i ncl ud - i ng est a bli s h me nt s of t he c o nt r act ors f or t he p ur pos es of s uc h est a bli s h me nt, c or por ati o n, ot her a ut hori t y, p ubli c s ect or under - t a ki ngs or a ny c o mpa ny i n whi c h not l ess t ha n fi ft y- o ne per ce nt of t he pai d- up s har e c a pi t al i s hel d by t he Ce nt r al Gover n me nt, as t he c as e may be, t he Ce nt r al Gover n me nt.
Explanation.
For t he p ur pos es of t hi s cl a us e, t he Ce nt r al Gover n me nt s hall c o nti n ue t o be t he a ppr opri at e Gover n me nt f or ce nt r al p ubli c s ect or undert a ki ngs e ve n i f t he hol di ng of t he Ce nt r al Gover n me nt r e d uces t o l ess t ha n fift y per ce nt e q ui t y i n t hat p ubli c s ect or undert a ki ng aft er t he c o mme nce me nt of t hi s Co de;
(ii ) i n r el ati o n t o a ny ot her i nd ust ri al est a bli s h me nt, i ncl udi ng St at e p ubli c s ect or undert a ki ngs, s ubsi di ar y c o mpa ni es s et up by t he pri nci pal undert aki ng a nd a ut ono mo us bodi es o wne d or c ont r oll e d by t he St at e Gover n me nt, t he St at e Gover n me nt:
Provided t hat i n c as e of a di s p ut e bet wee n a c o nt r act or a nd t he c o nt r act l a bo ur e mpl oye d t hr o ug h t he c o nt r act or i n a ny i nd ust ri al est a bli s h me nt wher e s uc h di s p ut e fi rst ar os e, t he a ppr opri at e Gover n me nt s hall be t he Ce nt r al Gover n me nt or t he St at e Gover n me nt, as t he c as e may be, whi c h has c o nt r ol over s uc h i nd ust ri al est a bli s h me nt;
Corresponding Provision : Secti on 2( a ) of I ndust ri al Di s p ut es Act, 1947/s ecti on 2(b ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946
( c ) “ ar bi t r at or” i ncl udes a n u mpi r e;
Corresponding Provision : Secti on 2( aa ) of I ndust ri al Di s p ut es Act, 1947 (d ) “ aver age pay” me a ns t he aver age of t he wages paya bl e t o a wor ker, (i ) i n t he c as e of mo nt hl y pai d wor ker, i n t hr ee c o mpl et e c al e ndar mo nt hs;
(ii ) i n t he c as e of wee kl y pai d wor ker, i n f o ur c o mpl et e wee ks; (iii ) i n t he c as e of dail y pai d wor ker, i n t wel ve f ull wor ki ng days, pr ece di ng t he dat e o n whi c h t he aver age pay bec o mes paya bl e, i f t he wor ker ha d wor ke d f or t hr ee c o mpl et e cal e ndar mont hs or f o ur c o mpl et e
C H I : P RELI MI NA RY
2.51
S. 2
wee ks or t wel ve f ull wor ki ng days, as t he c as e may be, a nd wher e s uc h
c al c ul ati o n c a nnot be ma de, t he aver age pay s hall be c al c ul at e d as t he aver age of t he wages paya bl e t o a wor ker d uri ng t he peri o d he act uall y wor ke d;
Corresponding Provision : Secti on 2( aaa ) of I ndust ri al Di s p ut es Act, 1947 ( e ) “ a war d” me a ns a n i nt eri m or a final det er m i nati o n of a ny i nd ust ri al di s p ut e or of a ny q uesti o n r el ati ng t her et o by a ny I nd ust ri al Tri b unal r ef err e d t o i n s ecti o n 44 or Nati o nal I nd ust ri al Tri b unal r ef err e d t o i n s ecti o n 46 a nd i ncl udes a n ar bi t r ati o n a war d ma de under s ecti o n 42;
Corresponding Provision : Secti on 2(b ) of I ndust ri al Di s p ut es Act, 1947 (f ) “ ba nki ng c o mpa ny” me a ns a ba nki ng c o mpa ny as de fine d i n s ecti o n 5 of t he Ba nki ng Re g ul ati o n Act, 1949* ( 10 of 1949) a nd i ncl udes t he
Ex port- I mport Ba nk of I ndi a, t he I nd ust ri al Rec o nst r ucti o n Ba nk of I ndi a, t he S mall I nd ust ri es De vel op me nt Ba nk of I ndi a est a bli s he d un - der s ecti o n 3 of t he S mall I nd ust ri es De vel op me nt Ba nk of I ndi a Act, 1989** ( 39 of 1989), t he Res er ve Ba nk of I ndi a, t he St at e Ba nk of I ndi a, a c orr es po ndi ng ne w ba nk c o nsti t ut e d under s ecti o n 3 of t he Ba nk - i ng Co mpa ni es ( Ac q ui si ti o n a nd Tr a nsf er of Undert a ki ngs) Act, 1970† ( 5 of 1970), a c orr es po ndi ng ne w ba nk c o nsti t ut e d under s ecti o n 3 of t he Ba nki ng Co mpa ni es ( Ac q ui si ti o n a nd Tr a nsf er of Undert a ki ngs) Act, 1980# ( 40 of 1980);
Corresponding Provision : Secti on 2(bb ) of I ndust ri al Di s p ut es Act, 1947
( g ) “ certi f yi ng of ficer” me a ns a ny of ficer a ppoi nt e d by t he a ppr opri at e Gover n me nt, by noti fic ati o n, t o perf or mt he f uncti o ns of a certi f yi ng of ficer under t he pr ovi si o ns of Cha pt er I V ;
Corresponding Provision : Secti on 2( c ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946
(h ) “ cl os ur e” me a ns t he per ma ne nt cl osi ng do wn of a pl ace of e mpl oy me nt or part t her e of;
Corresponding Provision : Secti on 2( cc ) of I ndust ri al Di s p ut es Act, 1947
(i ) “ c oncili ati on of ficer” mea ns a c oncili ati on of ficer appoi nt e d under s ecti on 43;
Corresponding Provision : Secti on 2(d ) of I ndust ri al Di s p ut es Act, 1947
(j ) “ c o ncili ati o n pr ocee di ng” me a ns a ny pr ocee di ng hel d by a c o ncili ati o n of ficer under t hi s Co de;
Corresponding Provision : Secti on 2( e ) of I ndust ri al Di s p ut es Act, 1947
* See s ecti on 5 of t he Ba nki ng Reg ul ati on Act, 1949, see Appendix ** See s ecti on 3 of t he S mall I ndust ri es Devel op me nt Ba nk of I ndi a Act, 1989, see Appendix †See s ecti on 3 of t he Ba nki ng Co mpa ni es ( Ac q ui si ti on a nd Tr a nsf er of Undert aki ngs) Act, 1970, see Appendix # See s ecti on 3 of t he Ba nki ng Co mpa ni es ( Ac q ui si ti on a nd Tr a nsf er of Undert aki ngs) Act, 1980, see Appendix
S. 2
I NDUST RI AL RELATI ONS C ODE , 2020 2.52
(k ) “ c o nt r oll e d i nd ust r y ” me a ns a ny i nd ust r y t he c o nt r ol of whi c h by t he Uni o n has bee n decl ar e d by a ny Ce nt r al Act t o be e x pe di e nt i n t he p ubli c i nt er est;
Corresponding Provision : Secti on 2( ee ) of I ndust ri al Di s p ut es Act, 1947
(l ) “ e mpl oyee” me a ns a ny pers o n ( ot her t ha n a n a ppr e nti ce e ngage d under t he Appr e nti ces Act, 1961 ( 52 of 1961)) e mpl oye d by a n i nd ust ri al est a b - li s h me nt t o do a ny s kill e d, s e m i - s kill e d or uns kill e d, ma n ual, oper ati o nal, s uper vi s or y, ma nageri al, a d m i ni st r ati ve, t ec hni c al or cl eri c al wor k f or hi r e or r e war d, whet her t he t er ms of e mpl oy me nt be e x pr ess or i mpli e d, a nd al s oi ncl udes a pers o n decl ar e d t o be a n e mpl oyee by t he a ppr opri at e Gover n me nt, b ut does not i ncl ude a ny me mber of t he Ar me d For ces of t he Uni o n;
Corresponding Provision : Secti on 2(5 ) of I ndust ri al Di s p ut es Act, 1947 ( m ) “ e mpl oyer” me a ns a pers o n who e mpl oys, whet her di r ectl y or t hr o ug h a ny pers o n, or o n hi s be hal f or o n be hal f of a ny pers o n, o ne or mor e e mpl oyee or wor ker i n hi s est a bli s h me nt a nd wher e t he est a bli s h me nt i s c arri e d o n by a ny de part me nt of t he Ce nt r al Gover n me nt or t he St at e Gover n me nt, t he a ut hori t y s peci fie d by t he hea d of t he de part me nt i nt hi s be hal f or wher e no a ut hori t y i s s o s peci fie d, t he he a d of t he de part me nt, a nd i n r el ati o n t o a n est a bli s h me nt c arri e d o n by a l oc al a ut hori t y, t he c hi ef e xec uti ve of t hat a ut hori t y, a nd i ncl udes,
(i ) i n r el ati o n t o a n est a bli s h me nt whi c h i s a f act or y, t he occ upi er of t he f act or y as defi ne d i n cl a us e ( n ) of s ecti o n 2 of t he Fact ori es Act, 1948* ( 63 of 1948) a nd, wher e a pers o n has bee n na me d as a ma nager of t he f act or y under cl a us e (f ) of s ub- s ecti o n ( 1) of s ecti o n 7* of t he s ai d Act, t he pers o n s o na me d;
(ii ) i n r el ati o n t o a ny ot her est a bli s h me nt, t he pers o n who, or t he a ut hori t y whi c h has ul ti mat e c o nt r ol over t he aff ai rs of t he est a b - li s h me nt a nd wher e t he s ai d aff ai rs ar e e nt r ust e d t o a ma nager or ma nagi ng di r ect or, s uc h ma nager or ma nagi ng di r ect or;
(iii ) c o nt r act or; a nd
(iv ) l e gal r e pr es e nt ati ve of a dece as e d e mpl oyer;
Corresponding Provision : Secti on 2( g ) of I ndust ri al Di s p ut es Act, 1947/s ecti on 2(d ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946
( n ) “ e xec uti ve”, i n r el ati o n t o a Tr a de Uni o n, me a ns t he bo dy by what e ver na me c all e d, t o whi c h t he ma nage me nt of t he aff ai rs of a Tr a de Uni o n i s e nt r ust e d;
Corresponding Provision : Secti on 2( gg ) of I ndust ri al Di s p ut es Act, 1947/s ecti on 2( a ) of Tr a de Uni ons Act, 1926.
* See s ecti ons 2( n ) a nd 7( 1)(f ) of t he Fact ori es Act, 1948, see Appendix
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C H I : P RELI MI NA RY S. 2
( o ) “ fi xe d t er m e mpl oy me nt” me a ns t he e ngage me nt of a wor ker o n t he basi s of a wri tt e n c o nt r act of e mpl oy me nt f or a fi xe d peri o d:
Provided t hat
( a ) hi s ho urs of wor k, wages, all o wa nces a nd ot her be nefi t s s hall not be l ess t ha n t hat of a per ma ne nt wor ker doi ng t he s a me wor k or wor k of si mil ar nat ur e;
(b ) he s hall be eli gi bl e f or all st at ut or y be nefi t s avail a bl e t o a per mane nt wor ker pr oporti o nat el y acc or di ng t o t he peri o d of s er vi ce r e nder e d by hi me ve ni f hi s peri o d of e mpl oy me nt does not e xt e nd t o t he q uali f yi ng peri o d of e mpl oy me nt r e q ui r e d i n t he st at ut e; a nd
( c ) he s hall be eli gi bl e f or gr at ui t y i f he r e nders s er vi ce under t he c o nt r act f or a peri o d of o ne ye ar;
( p ) “i nd ust r y ” me a ns a ny s yst e mati c acti vi t y c arri e d o n by c o- oper ati o n bet wee n a n e mpl oyer a nd wor ker ( whet her s uc h wor ker i s e mpl oye d by s uc h e mpl oyer di r ectl y or by or t hr o ug h a ny age nc y, i ncl udi ng a c o n - t r act or) f or t he pr o d ucti o n, s uppl y or di st ri b uti o n of g oo ds or s er vi ces w i t h a vi e wt o s ati sf y h u ma n wa nt s or w i s hes ( not bei ng wa nt s or w i s hes whi c h ar e mer el y s pi ri t ual or r eli gi o us i n nat ur e), whet her or not,
(i ) a ny c a pi t al has bee n i nvest e d f or t he p ur pos e of c arr yi ng o n s uc h acti vi t y; or
(ii ) s uc h acti vi t y i s c arri e d o n w i t h a moti ve t o ma ke a ny gai n or pr ofi t, b ut does not i ncl ude
(i ) i nsti t uti o ns o wne d or ma nage d by or ga ni s ati o ns wholl y or s ubst a nti all y e ngage d i n a ny c hari t a bl e, s oci al or p hil a n - t hr opi c s er vi ce; or
(ii ) a ny acti vi t y of t he a ppr opri at e Gover n me nt r el at a bl e t o t he s over ei g n f uncti o ns of t he a ppr opri at e Gover n me nt i ncl udi ng all t he acti vi ti es c arri e d o n by t he de part me nt s of t he Ce nt r al Gover n me nt de ali ng w i t h def e nce r es e ar c h, at o m i c e ner gy a nd s pace; or
(iii ) a ny do mesti c s er vi ce; or
(iv ) a ny ot her acti vi t y as may be noti fi e d by t he Ce nt r al Gover n me nt;
Corresponding Provision : Secti on 2(j ) of I ndust ri al Di s p ut es Act, 1947 ( q ) “i nd ust ri al di s p ut e” me a ns a ny di s p ut e or di ff er e nce bet wee n e mpl oyers a nd e mpl oyers or bet wee n e mpl oyers a nd wor kers or bet wee n wor kers a nd wor kers whi c h i s c o nnect e d w i t h t he e mpl oy me nt or no n- e mpl oyme nt or t he t er ms of e mpl oy me nt or w i t h t he c o ndi ti o ns of l a bo ur, of a ny pers o n a ndi ncl udes a ny di s p ut e or di ff er e nce bet wee n a ni ndi vi d ual
S. 2
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wor ker a nd a n e mpl oyer c o nnect e d w i t h, or ari si ng o ut of di s c har ge, di s m i ss al, r et r e nc h me nt or t er m i nati o n of s uc h wor ker;
Corresponding Provision : Secti ons 2(k ) a nd 2 A of I ndust ri al Di s p ut es Act, 1947
( r ) “i nd ust ri al est a bli s h me nt or undert a ki ng” me a ns a n est a bli s h me nt or undert a ki ng i n whi c h a ny i nd ust r y i s c arri e d o n:
Provided t hat wher e s e ver al acti vi ti es ar e c arri e d o ni n a n est a bli s h me nt or undert a ki ng a nd o nl y o ne or s o me of s uc h acti vi ti es i s or ar e a n i nd ust r y or i nd ust ri es, t he n, (i ) i f a ny uni t of s uc h est a bli s h me nt or undert a ki ng c arr yi ng o n a ny acti vi t y, bei ng a ni nd ust r y, i s s e ver a bl e f r o mt he ot her uni t or uni t s of s uc h est a bli s h me nt or undert a ki ng whi c h i s not c arr yi ng o n or ai di ng t he c arr yi ng o n of a ny s uc h acti vi t y, s uc h uni t s hall be dee me d t o be a s e par at e i nd ust ri al est a bli s h me nt or undert a ki ng; (ii ) i f t he pr e do m i na nt acti vi t y or e ac h of t he pr e do m i na nt acti vi ti es carri e d oni n s uc h est a bli s h me nt or undert aki ng or a ny uni t t her e of i s a n i nd ust r y a nd t he ot her acti vi t y or e ac h of t he ot her acti vi ti es c arri e d o n i n s uc h est a bli s h me nt or undert a ki ng or uni t t her e of i s not s e ver a bl e f r o m a nd i s, f or t he p ur pos e of c arr yi ng o n, or ai di ng t he c arr yi ng o n of, s uc h pr e do m i na nt acti vi t y or acti vi ti es, t he e nti r e est a bli s h me nt or undert a ki ng or, as t he c as e may be, uni t t her e of s hall be dee me d t o be a n i nd ust ri al est a bli s h me nt or undert a ki ng;
Corresponding Provision : Secti on 2( e ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946/s ecti on 2(ka ) of I ndust ri al Di s p ut es Act, 1947 ( s ) “i ns ur a nce c o mpa ny” me a ns a c o mpa ny as defi ne d i n s ecti o n 2 of t he I ns ur a nce Act, 1938* ( 4 of 1938);
Corresponding Provision : Secti on 2(kk ) of I ndust ri al Di s p ut es Act, 1947 ( t ) “l ay- off” ( w i t h i t s gr a mmati c al vari ati o ns a nd c og nat e e x pr essi o ns) me a ns t he f ail ur e, r ef us al or i na bili t y of a n e mpl oyer o n acc o unt of s hort age of c oal, po wer or r a w mat eri al s or t he acc u mul ati o n of st oc ks or t he br e a k- do wn of mac hi ner y or nat ur al c al a m i t y or f or a ny ot her c o nnect e d r e as o n, t o gi ve e mpl oy me nt t o a wor ker whos e na me i s bor ne o n t he must er r oll s of hi s i nd ust ri al est a bli s h me nt a nd who has not bee n r et r e nc he d
Explanation.
Ever y wor ker whos e na me i s bor ne o n t he must er r oll s of t he i nd ust ri al est a bli s h me nt a nd who pr es e nt s hi ms el f f or wor k at t he est a bli s h me nt at t he ti me a ppoi nt e d f or t he p ur pos e d uri ng nor mal wor ki ng ho urs o n a ny day a nd i s not gi ve n e mpl oy me nt by t he e mpl oyer w i t hi n t wo ho urs of hi s s o pr es e nti ng hi ms el f s hall be dee me d t o have bee n l ai d- off f or t hat day w i t hi n t he me a ni ng of t hi s cl a us e:
* See s ecti on 2 of t he I ns ur a nce Act, 1938, see Appendix .
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2.55
S. 2
Provided t hat i f t he wor ker, i nst e a d of bei ng gi ve n e mpl oy me nt at t he
c o mme nce me nt of a ny s hi ft f or a ny day i s as ke d t o pr es e nt hi ms el f f or
t he p ur pos e d uri ng t he s ec o nd hal f of t he s hi ft f or t he day a nd i s gi ve n
e mpl oy me nt t he n, he s hall be dee me d t o have bee n l ai d- off o nl y f or o ne- hal f of t hat day:
Provided further t hat i f he i s not gi ve n a ny s uc h e mpl oy me nt e ve n aft er s o pr es e nti ng hi ms el f, he s hall not be dee me d t o have bee n l ai d- off f or t he s ec o nd hal f of t he s hi ft f or t he day a nd s hall be e nti tl e d t o f ull basi c wages a nd de ar ness all o wa nce f or t hat part of t he day;
Corresponding Provision : Secti on 2(kkk ) of I ndust ri al Di s p ut es Act, 1947 ( u ) “l oc k- o ut” me a ns t he t e mpor ar y cl osi ng of a pl ace of e mpl oy me nt, or t he s us pe nsi o n of wor k, or t he r ef us al by a n e mpl oyer t o c o nti n ue t o e mpl oy a ny n u mber of pers o ns e mpl oye d by hi m ;
Corresponding Provision : Secti on 2(l ) of I ndust ri al Di s p ut es Act, 1947 ( v ) “ maj or port” me a ns a maj or port as defi ne d i n cl a us e (8 ) of s ecti o n 3 of t he I ndi a n Port s Act, 1908* ( 15 of 1908);
Corresponding Provision : Secti on 2(la ) of I ndust ri al Di s p ut es Act, 1947
( w ) “ met r o r ail way” me a ns t he met r o r ail way as defi ne d i n s ub- cl a us e (i ) of cl a us e (1 ) of s ecti on 2 of t he Met r o Rail ways ( Oper ati on a nd Mai nt e na nce) Act, 2002** ( 60 of 2002);
( x ) “ m i ne” me a ns a m i ne as defi ne d i n cl a us e (j ) of s ub- s ecti o n ( 1) of s ecti o n 2 of t he M i nes Act, 1952† ( 35 of 1952);
Corresponding Provision : Secti on 2(lb ) of I ndust ri al Di s p ut es Act, 1947 ( y ) “ Nati o nal I nd ust ri al Tri b unal ” me a ns a Nati o nal I nd ust ri al Tri b unal c o nsti t ut e d under s ecti o n 46;
Corresponding Provision : Secti on 2(ll ) of I ndust ri al Di s p ut es Act, 1947
( z ) “ ne g oti ati ng uni o n or ne g oti ati ng c o uncil ” me a ns t he ne g oti ati ng uni o n or ne g oti ati ng c o uncil r ef err e d t o i n s ecti o n 14;
( za ) “ noti fi c ati o n” me a ns a noti fi c ati o n p ubli s he d i n t he Offi ci al Gaz ett e of I ndi a or t he Offi ci al Gaz ett e of a St at e, as t he c as e may be, a nd t he e xpr essi o n “ noti f y ” w i t hi t s gr a mmati c al vari ati o n a nd c og nat e e x pr essi o ns s hall be c o nst r ue d acc or di ngl y;
(zb ) “ offi ce- be ar er”, i n r el ati o n t o a Tr a de Uni o n, i ncl udes a ny me mber of t he e xec uti ve t her e of, b ut does not i ncl ude a n a udi t or;
Corresponding Provision : Secti on 2(lll ) of I ndust ri al Di s p ut es Act, 1947/s ecti on 2(b ) of Tr a de Uni ons Act, 1926
* See s ecti on 3( 8) of I ndi a n Port s Act, 1908, see Appendix
** See s ecti on 2( 1)(i ) of t he Met r o Rail ways ( Oper ati on a nd Mai nt e na nce) Act, 2002, see Appendix
†See s ecti on 2( 1)(j ) of t he M i nes Act, 1952, see Appendix .
S. 2
( zc ) “ pr es cri be d” me a ns pr es cri be d by r ul es ma de under t hi s Co de;
Corresponding Provision : Secti on 2( m ) of I ndust ri al Di s p ut es Act, 1947/s ecti on 2( c ) of Tr a de Uni ons Act, 1926/s ecti on 2(f ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or der) Act, 1946.
(zd ) “ r ail way” me a ns t he r ail way as defi ne d i n cl a us e (31 ) of s ecti o n 2 of t he Rail ways Act, 1989# ( 24 of 1989);
Corresponding Provision : Secti on 2( n ) of t he I ndust ri al Di s p ut es Act, 1947.
( ze ) “ r e gi st er e d offi ce” me a ns t hat offi ce of a Tr a de Uni o n whi c hi s r e gi st er e d under t hi s Co de as t he he a d offi ce t her e of;
Corresponding Provision : Secti on 2(d ) of Tr a de Uni ons Act, 1926 (zf ) “ r e gi st er e d Tr a de Uni o n” me a ns a Tr a de Uni o n r e gi st er e d under t hi s Co de;
Corresponding Provision : Secti on 2( e ) of Tr a de Uni ons Act, 1926
( zg ) “ Re gi st r ar” me a ns a Re gi st r ar of Tr a de Uni o ns a ppoi nt e d by t he St at e Gover n me nt under s ecti o n 5;
Corresponding Provision : Secti on 2(f ) of Tr a de Uni ons Act, 1926
(zh ) “ r et r e nc h me nt” me a ns t he t er m i nati o n by t he e mpl oyer of t he s er vi ce of a wor ker f or a ny r e as o n what s oe ver, ot her w i s e t ha n as a p uni s h me nt i nfli ct e d by way of di s ci pli nar y acti o n, b ut does not i ncl ude
(i ) v ol unt ar y r eti r e me nt of t he wor ker; or
(ii ) r eti r e me nt of t he wor ker o n r e ac hi ng t he age of s uper a nn uati o n; or
(iii ) t er m i nati o n of t he s er vi ce of t he wor ker as a r es ul t of t he no n- r ene wal of t he c o nt r act of e mpl oy me nt bet wee n t he e mpl oyer a nd t he wor ker c o ncer ne d o n i t s e x pi r y or of s uc h c o nt r act bei ng t er m i nat e d under a sti p ul ati o n i n t hat be hal f c o nt ai ne d t her ei n; or
(iv ) t er m i nati o n of s er vi ce of t he wor ker as a r es ul t of c o mpl eti o n of t e n ur e of fi xe d t er m e mpl oy me nt; or
( v ) t er m i nati o n of t he s er vi ce of a wor ker o n t he gr o und of c o nti n ue d ill - he al t h;
Corresponding Provision : Secti on 2( oo ) of I ndust ri al Di s p ut es Act, 1947 (zi ) “ s ettl e me nt” me a ns a s ettl e me nt arri ve d at i n t he c o urs e of c o ncili ati o n pr ocee di ng a ndi ncl udes a wri tt e n agr ee me nt bet wee n t he e mpl oyer a nd wor ker arri ve d at ot her w i s e t ha ni n t he c o urs e of c o ncili ati o n pr ocee di ng wher e s uc h agr ee me nt has bee n si g ne d by t he parti es t her et o i n s uc h ma nner as may be pr es cri be d a nd a c opy t her e of has bee n s e nt t o a n offi cer a ut hori s e d i n t hi s be hal f by t he a ppr opri at e Gover n me nt a nd t o t he c o ncili ati o n offi cer;
Corresponding Provision : Secti on 2( p ) of I ndust ri al Di s p ut es Act, 1947
# See s ecti on 2( 31) of t he Rail ways Act, 1989, see Appendix
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2.57
(zj ) “ st a ndi ng or ders” me a ns or ders r el ati ng t o matt ers s et- o ut i n t he Fi rst Sc he d ul e;
Corresponding Provision : Secti on 2( g ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946
(zk ) “ st ri ke” me a ns a cess ati o n of wor k by a bo dy of pers o ns e mpl oye d i n a ny i nd ust r y acti ng i n c o mbi nati o n, or a c o ncert e d r ef us al, or a r ef us al, under a c o mmo n underst a ndi ng, of a ny n u mber of pers o ns who ar e or have bee n s o e mpl oye d t o c o nti n ue t o wor k or t o acce pt e mpl oy me nt a nd i ncl udes t he c o ncert e d c as ual l e ave o n a gi ve n day by fi ft y per ce nt or mor e wor kers e mpl oye d i n a n i nd ust r y;
Corresponding Provision : Secti on 2( q ) of I ndust ri al Di s p ut es Act, 1947
(zl ) “ Tr a de Uni on” mea ns a ny c o mbi nati on , whet her t e mpor ar y or per ma ne nt, f or me d pri maril y f or t he p ur pos e of r e g ul ati ng t he r el ati o ns bet wee n wor kers a nd e mpl oyers or bet wee n wor kers a nd wor kers, or bet wee n e mpl oyers a nd e mpl oyers, or f or i mposi ng r est ri cti ve c o ndi ti o ns o n t he c o nd uct of a ny t r a de or b usi ness, a nd i ncl udes a ny f e der ati o n of t wo or mor e Tr a de Uni o ns:
Provided t hat t he pr ovi si o ns of Cha pt er III of t hi s Co de s hall not aff ect
(i ) a ny agr ee me nt bet wee n part ners as t o t hei r o wn b usi ness; or
(ii ) a ny agr ee me nt bet wee n a n e mpl oyer a nd t hos e e mpl oye d by hi m as t o s uc h e mpl oy me nt; or
(iii ) a ny agr ee me nt i n c o nsi der ati o n of t he s al e of t he g oo d will of a b usi ness or of i nst r ucti o n i n a ny pr of essi o n, t r a de or ha ndi cr aft;
Corresponding Provision : Secti on 2( qq ) of I ndust ri al Di s p ut es Act, 1947/s ecti on 2(h ) of Tr a de Uni ons Act, 1926/s ecti on 2(h ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946
( zm ) “ Tr a de Uni o n di s p ut e” me a ns a ny di s p ut e r el ati ng t o Tr a de Uni o n ari si ng bet wee n t wo or mor e Tr a de Uni o ns or bet wee n t he me mbers of a Tr a de Uni o n inter se ;
Corresponding Provision : Secti on 2( g ) of Tr a de Uni ons Act, 1926 ( zn ) “ Tri b unal ” me a ns a n I nd ust ri al Tri b unal c o nsti t ut e d under s ecti o n 44;
Corresponding Provision : Secti on 2( r ) of I ndust ri al Di s p ut es Act, 1947 ( zo ) “ unf ai r l a bo ur pr acti ce” me a ns a ny of t he pr acti ces s peci fi e d i n t he Sec o nd Sc he d ul e;
Corresponding Provision : Secti on 2( ra ) of I ndust ri al Di s p ut es Act, 1947 ( zp ) “ unor ga ni s e d s ect or” s hall have t he s a me me a ni ng as assi g ne d t o i t i n cl a us e (l ) of s ecti o n 2 of t he Unor ga ni s e d Wor kers’ Soci al Sec uri t y Act, 2008* ( 33 of 2008);
* See s ecti on 2(l ) of Unor ga ni s e d Wor kers’ Soci al Sec uri t y Act, 2008, see Appendix
S. 2
S. 2
I NDUST RI AL RELATI ONS C ODE , 2020 2.58
( zq ) “ wages” mea ns all r e muner ati on, whet her by way of s al ar y, all o wa nces or ot her w i s e, e x pr ess e di n t er ms of mo ne y or c a pa bl e of bei ng s o e x pr ess e d whi c h wo ul d, i f t he t er ms of e mpl oy me nt, e x pr ess or i mpli e d, wer e f ul - fill e d, be paya bl e t o a pers o n e mpl oye d i n r es pect of hi s e mpl oy me nt or of wor k do ne i n s uc h e mpl oy me nt, a nd i ncl udes,
(i ) basi c pay;
(ii ) de ar ness all o wa nce;
(iii ) r et ai ni ng all o wa nce, i f a ny, b ut does not i ncl ude
( a ) a ny bo n us paya bl e under a ny l a w f or t he ti me bei ng i n f or ce, whi c h does not f or m part of t he r e muner ati o n paya bl e under t he t er ms of e mpl oy me nt;
(b ) t he val ue of a ny ho us e- acc o mmo dati o n, or of t he s uppl y of li g ht, wat er, me di c al att e nda nce or ot her a me ni t y or of a ny s er vi ce e xcl ude d f r o mt he c o mp ut ati o n of wages by a ge ner al or s peci al or der of t he a ppr opri at e Gover n me nt;
( c ) a ny c o nt ri b uti o n pai d by t he e mpl oyer t o a ny pe nsi o n or pr ovi de nt f und, a nd t he i nt er est whi c h may have accr ue d t her e o n;
(d ) a ny c o nve ya nce all o wa nce or t he val ue of a ny t r avelli ng c o nces - si o n;
( e ) a ny s u m pai d t o t he e mpl oye d pers o n t o def r ay s peci al e x pe ns es e nt ail e d o n hi m by t he nat ur e of hi s e mpl oy me nt;
(f ) ho us e r e nt all o wa nce;
( g ) r e muner ati o n paya bl e under a ny a war d or s ettl e me nt bet wee n t he parti es or or der of a c o urt or Tri b unal;
(h ) a ny overti me all o wa nce;
(i ) a ny c o mm i ssi o n paya bl e t o t he e mpl oyee;
(j ) a ny gr at ui t y paya bl e o n t he t er m i nati o n of e mpl oy me nt; or
(k ) a ny r et r e nc h me nt c o mpe ns ati o n or ot her r eti r e me nt be nefi t paya bl e t o t he e mpl oyee or a ny ex gratia pay me nt ma de t o hi m o n t he t er m i nati o n of e mpl oy me nt:
Provided t hat, f or c al c ul ati ng t he wage under t hi s cl a us e, i f a ny pay - me nt s ma de by t he e mpl oyer t o t he e mpl oyee under s ub- cl a us es ( a ) t o (i ) e xcee ds o ne- hal f, or s uc h ot her per ce nt as may be noti fi e d by t he Ce nt r al Gover n me nt, of all r e muner ati o n c al c ul at e d under t hi s cl a us e, t he a mo unt whi c h e xcee ds s uc h o ne- hal f, or t he per ce nt s o noti fi e d, s hall be dee me d t o be r e muner ati o n a nd s hall be acc or di ngl y a dde d i n wages under t hi s cl a us e:
Provided further t hat f or t he p ur pos e of e q ual wages t o all ge nders a nd f or t he p ur pos e of pay me nt of wages t he e mol u me nt s s peci fi e d i n s ub- cl a us es (d ), (f ), ( g ) a nd (h ) s hall be t a ke n f or c o mp ut ati o n of wage
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2.59
Explanation.
S. 2
Wher e a n e mpl oyee i s gi ve n i n li e u of t he whol e or part of t he wages paya bl e t o hi m , a ny r e muner ati o n i n ki nd by hi s e mpl oyer, t he val ue of s uc h r e muner ati o n i n ki nd whi c h does not e xcee d fi ft ee n per ce nt of t he t ot al wages paya bl e t o hi m , s hall be dee me d t o f or m part of t he wages of s uc h e mpl oyee;
Corresponding Provision : Secti on 2( rr ) of I ndust ri al Di s p ut es Act, 1947/s ecti on 2(i ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946 ( zr ) “ wor ker” mea ns a ny pers on( exce pt a n appr e nti ce as de fine d under cl a us e ( aa ) of s ecti o n 2 of t he Appr e nti ces Act, 1961* ( 52 of 1961)) e mpl oye d i n a ny i nd ust r y t o do a ny ma n ual, uns kill e d, s kill e d, t ec hni c al, oper ati o nal, cl eri c al or s uper vi s or y wor k f or hi r e or r e war d, whet her t he t er ms of e mpl oy me nt be e x pr ess or i mpli e d, a nd i ncl udes wor ki ng j o ur nali st s as de fine d i n cl a us e (f ) of s ecti o n 2 of t he Wor ki ng J o ur nali st s a nd ot her
Ne ws pa per E mpl oyees ( Co ndi ti o ns of Ser vi ce) a nd M i s cell a ne o us Pr ovi - si o ns Act, 1955** ( 45 of 1955) a nd s al es pr o moti o n e mpl oyees as de fine d i n cl a us e (d ) of s ecti o n 2 of t he Sal es Pr o moti o n E mpl oyees ( Co ndi ti o ns of Ser vi ce) Act, 1976† ( 11 of 1976), a nd f or t he p ur pos es of a ny pr ocee di ng under t hi s Co de i n r el ati o n t o a n i nd ust ri al di s p ut e, i ncl udes a ny s uc h pers o n who has bee n di s m i ss e d, di s c har ge d or r et r e nc he d or ot her w i s e t er m i nat e d i n c o nnecti o n w i t h, or as a c o ns e q ue nce of, t hat di s p ut e, or whos e di s m i ss al, di s c har ge or r et r e nc h me nt has l e d t o t hat di s p ut e, b ut does not i ncl ude a ny s uc h pers o n
(i ) who i s s ubj ect t o t he Ai r For ce Act, 1950 ( 45 of 1950), or t he Ar my Act, 1950 ( 46 of 1950), or t he Navy Act, 1957 ( 62 of 1957); or
(ii ) who i s e mpl oye d i n t he poli ce s er vi ce or as a n offi cer or ot her e mpl oyee of a pri s o n; or
(iii ) whoi s e mpl oye d mai nl yi n a ma nageri al or a d m i ni st r ati ve capaci t y; or
(iv ) whoi s e mpl oye di n a s uper vi s or y c a paci t y dr a w i ng wages e xcee d - i ng ei g ht ee n t ho us a nd r upees per mo nt h or a n a mo unt as may be noti fi e d by t he Ce nt r al Gover n me nt f r o mti me t o ti me:
Provided t hat f or t he p ur pos es of Cha pt er III , “ wor ker”
( a ) me a ns all pers o ns e mpl oye d i n t r a de or i nd ust r y; a nd
(b ) i ncl udes t he wor ker as defi ne d i n cl a us e ( m ) of s ecti o n 2 of t he Unor ga ni s e d Wor kers’ Soci al Sec uri t y Act, 2008‡ ( 33 of 2008).
Corresponding Provision : Secti on 2(i ) of I ndust ri al E mpl oy me nt ( St a ndi ng Or ders) Act, 1946/s ecti on 2( s ) of I ndust ri al Di s p ut es Act, 1947
* See s ecti on 2( aa ) of Appr e nti ces Act, 1961, see Appendix .
** See s ecti on 2(f ) of Wor ki ng J o ur nali st s a nd ot her Ne ws paper E mpl oyees ( Condi ti ons of Ser vi ce) a nd M i s cell a ne o us Pr ovi si ons Act, 1955, see Appendix
†See s ecti on 2(d ) of Sal es Pr o moti on E mpl oyees ( Condi ti ons of Ser vi ce) Act, 1976, see Appendix .
‡See s ecti on 2( m ) of t he Unor ga ni s e d Wor kers’ Soci al Sec uri t y Act, 2008, see Appendix
COMMENTS
AVERAGE PAY [SEC. 2(d)]
SECTION NOTES
Definition of “average pay”
u Cl a us e (d ) of s ecti on 2 of t he Code defi nes t he t er m“ aver age pay” w i t h r ef er e nce t o :
n “ Aver age wage” of Mont hl y pai d wor kers
n “ Aver age wage” of Wee kl y pai d wor kers a nd
n “ Aver age wage” of Dail y pai d wor kers.
Average pay in the case of a monthly paid workers
u The t er m“ aver age pay”, i n t he cas e of a mont hl y pai d wor ker, mea ns t he aver age of t he wages paya bl e t o hi mi n t hr ee c o mpl et e cal e ndar mont hs pr ece di ng t he dat e on whi c h t he aver age pay bec o mes paya bl e i f t he wor ker ha d wor ke d f or 3 c o mpl et e cal e ndar mont hs
u Wher e s uc h cal c ul ati on ca nnot be ma de, t he aver age pay s hall be cal c ul at e d as t he aver age wages paya bl e t o a wor ker duri ng t he peri od he act uall y wor ke d
Average pay in the case of weekly paid workers
u The t er m“ aver age pay”, i n t he cas e of a wee kl y pai d wor ker, mea ns t he aver age of t he wages paya bl e t o hi mi n f o ur c o mpl et e wee ks pr ece di ng t he dat e on whi c h t he aver age pay bec o mes paya bl e i f t he wor ker ha d wor ke d f or 4 c o mpl et e wee ks
u Wher e s uc h cal c ul ati on ca nnot be ma de, t he aver age pay s hall be cal c ul at e d as t he aver age wages paya bl e t o a wor ker duri ng t he peri od he act uall y wor ke d
Average pay in the case of daily paid workers
u The t er m “ aver age pay”, i n t he cas e of a dail y pai d wor ker, mea ns t he aver age of t he wages paya bl e t o hi mi n 12 f ull wor ki ng days pr ece di ng t he dat e on whi c h t he aver age pay bec o mes paya bl e i f t he wor ker ha d wor ke d f or 12 f ull wor ki ng days.
u Wher e s uc h cal c ul ati on ca nnot be ma de, t he aver age pay s hall be cal c ul at e d as t he aver age wages paya bl e t o a wor ker duri ng t he peri od he act uall y wor ke d.
EMPLOYEE [SEC. 2(l)]
SECTION NOTES
Definition of “employee”
u Cl a us e (l ) of s ecti on 2 of t he Code defi nes t he t er m“ e mpl oyee” as under :
n The t er m “ e mpl oyee” mea ns a ny pers on e mpl oye d by a n est a bli s h me nt t o wor k f or hi r e or r e war d.
n Wor k done may be:
l s kill e d, s e m i - s kill e d or uns kill e d,
l ma nual,
l oper ati onal,
l s uper vi s or y,
l ma nageri al,
l a d m i ni st r ati ve,
l t ec hni cal, or l cl eri cal wor k
n The t er ms of e mpl oy me nt may be expr ess or i mpli e d.
n The t er m “ e mpl oyee” s hall not c over a n appr e nti ce e ngage d under t he Appr e nti ces hi p Act, 1961.
n The t er m“ e mpl oyee s hall i ncl ude a ny pers on decl ar e d t o be a n e mpl oyee by t he appr opri at e Gover n me nt.
n The t er m “ e mpl oyee s hall not i ncl ude a ny me mber of t he Ar me d For ces of t he Uni on.
RELEVANT CASE LAWS
Partner is not employee - A pers on ca nnot hol d duel capaci t y as e mpl oyer as e mpl oyee
Thus, a part ner i s not ‘ e mpl oyee ’ eve n i f he i s dr a w i ng r e muner ati on –S G Tin Printers v RPFC 2000 ( 1) La b LJ 628 ( Cal HC DB) – [ a si ngl e me mber deci si on i n Tin Printers v RPFC 2000 LL R 1175 = 2000 ( 1) La b LJ 628 ( Cal HC) r evers e d] – q uot e d a nd f oll o we d i n Om Roller Flour Mills v UOI 2002 LL R 683 ( Cal HC) – s a me vi e wi n Prakash D Shah v UOI 2004 LL R 218 ( Bo m HC)
Part ner i s not a n ‘ e mpl oyee ’ , eve n i f he i s dr a w i ng r eg ul ar wagesESIC v Ramaiya Match Industries AI R 1985 S C 278 = 1985 ( 1) S CC 218; ESIC v Apex Engineering Ltd. 1997 LL R 1097 = ( 1998) 1 Co mp LJ 10 = 1998( 1) S CC 86; ESIC v. Arun Granites 2007 LL R 1045 ( Ker HC).
Director can be employeeDi r ect or of a c o mpa ny r ecei vi ng r e muner ati on i s a n e mpl oyee a nd c o ul d carr y s uc h dual capaci t y. He i s c over e d under ESI pr ovi si onsESIC v .Venus Alloy Pvt. Ltd. 2019 LL R 237 ( S C).
If a di r ect or i s dr a w i ng s al ar y, he i s ‘ e mpl oyee ’ a nd has t o be c over e d under PF pr ovi si ons. –Tin Printers v. RPFC 2000 LL R 1175 = 2000 ( 1) La b LJ 628 ( Cal HC).
If a di r ect or i s perf or m i ng duti es a ndi s wor ki ng f or t he c o mpa ny, he will c o me w i t hi n p ur vi e w of a n ‘ e mpl oyee ’ –Monitron Securities v. Mukundlal Khushalchand 2001 LL R 339 ( Guj HC). Ma nagi ng Di r ect or a nd Di r ect or dr a w i ng s al ar y ar e ‘ e mpl oyees ’ f or PF Act –Speed Sales v. UOI 2009 LL R 1007 ( Guj HC).
If Ma nagi ng Di r ect or of a c o mpa ny i s l ooki ng aft er wor k of t he est a bli s h me nt, he will be ‘ e mpl oyee ’ , i f hi s wages ar e l o wer t ha n t he pr es cri be d li m i t f or appli ca bili t y of ESI ActESIC v. Apex Engineering Ltd. 1997 LL R 1097 = ( 1998) 1 Co mp LJ 10 = 1998 ( 1) S CC 86; ESIC v. Sarathi Lines ( 1996) 26 CLA 67 ( Ker HC DB); ESIC v Haryana Biological 2010 LL R 38 ( P &H HC) * ESIC v Padma Bhawan Engineers 2011 LL R 433 ( P &H HC)
Apprentice is not ‘employee’ or ‘workman’If pr ovi si ons of Appr e nti ce Act appli es, pr ovi si ons of l a bo ur l a ws will not appl y, as he i s not a ‘ wor k ma n ’ –Dhampur Sugar Mills Ltd. v Bhola Singh AI R 2005 S C 1790 = ( 2005) 2 S CC 470 = 2005 LL R 320 ( S C) – r el yi ng on Mukesh K
Tripathi v Senior Divisional Manager, LIC ( 2004) 8 S CC 387 = 2004 LL R 993 ( S C 3 me mber be nc h) – s a me vi e wi n National Small Industries Corporation v V Lakshminarayanan 2007 LL R 154 ( S C)
Home workers can be coveredI n PM Patel v UOI ( 1986) 1 S CC 32 = 1986 S CC ( L &S) 155 = 1986 I LLJ 88 = AI R 1987 S C 447, i t was hel d t hat Bee di ho me wor kers ar e ‘ e mpl oyees ’ as s uper vi si on li es i n ri g ht of r ej ecti on.
