"Employee" means any person (other than an apprentice under the Apprentices Act, 1961) employed on wages by an establishment — directly or through a contractor — to do any of the following for hire or reward (whether terms are express or implied):

• Skilled, semi-skilled, or unskilled work
• Manual or operational work
• Supervisory, managerial, or administrative work
• Technical or clerical work
• Any other work as may be prescribed

Also includes: persons declared to be employees by the appropriate Government.

"Employer" means any person who employs, whether directly or through any person, one or more employees in an establishment. It specifically includes:

"Wages" means all remuneration (whether by salary, allowances, or otherwise) expressed in money or capable of being so expressed, which would be payable to a person if the terms of employment were fulfilled.

Includes: (i) Basic pay   (ii) Dearness allowance   (iii) Retaining allowance

Excludes:

• Bonus not forming part of terms of employment
• Value of house accommodation, supply of light/water/medical attendance
• Employer's PF/pension contributions and interest thereon
• Conveyance allowance or travelling concession
• Sum paid to defray special expenses of the employee
• House Rent Allowance (HRA)
• Overtime allowance
• Commission payable to the employee
• Gratuity on termination; retrenchment compensation; ex gratia payments

"Establishment" means any place where any industry, trade, business, manufacture or occupation is carried on, and includes:

• A factory, motor transport undertaking, newspaper establishment, audio-visual production, building and other construction work, or plantation
• A mine, port, or any vicinity of a port where dock work is carried out
• Government establishments (any office or department of the Government or a local authority)

"Gig Worker" [S. 2(35)]: A person who performs work or participates in a work arrangement and earns from such activities outside of the traditional employer-employee relationship.

"Platform Worker" [S. 2(61)]: A person engaged or hired to provide services or do work through an online platform — where the platform intermediates between the service provider and customer using digital or electronic networks.

"Aggregator" [S. 2(1)]: A digital intermediary or marketplace that connects buyers and sellers of goods or services using internet or digital/electronic networks — and is classified in the Seventh Schedule.

"Unorganised Worker" means a home-based worker, self-employed worker or a daily-wage worker in the unorganised sector and includes a worker in the organised sector who is not covered by any of Chapters III to VII of this Code (i.e., not covered by EPF, ESIC, Gratuity, Maternity Benefit, or Employee Compensation).

The unorganised sector comprises establishments owned by individuals or self-employed persons where the number of workers is below the applicable threshold, or otherwise not covered by the aforesaid chapters.

"Fixed Term Employment" means the engagement of an employee on the basis of a written contract of employment for a fixed period, subject to these conditions:

• Hours of work, wages, and other service conditions are the same as a permanent employee doing the same or similar work
• The fixed-term employee is entitled to all statutory benefits proportionally applicable to permanent employees
• No bar on renewal of the fixed-term contract

"Continuous Service" means an uninterrupted period of service. An employee is deemed to be in continuous service for one year if they worked: Days counted as "worked" include:

• Actual working days
• Days of authorised leave with or without wages
• Lay-off days (authorised under contract or law)
• Maternity leave for women employees
• Absence due to accident or disease arising out of and in the course of employment

"Appropriate Government" determines which Government — Central or State — has regulatory jurisdiction over a particular establishment:

"Inter-State Migrant Worker" means any person who goes from one State and obtains employment in another State, and earns wages not exceeding ₹18,000 per month (or as notified by the Central Government), and was recruited directly or through a contractor.

Key protections for inter-state migrant workers under the Code:

• Portability of benefits: PF, ESIC, and other entitlements can be accessed from any State
• Aadhaar-based registration: Portable registration across States via self-declaration
• State Governments must maintain a database of inter-state migrant workers in their State
• Entitled to same welfare and safety provisions as local workers in the State of employment

"Dependant" for compensation purposes means the following relatives of a deceased employee who are entitled to receive dependants' benefit:

"Inspector-cum-Facilitator" is an officer appointed by the appropriate Government who combines enforcement powers with a facilitation mandate — a fundamental shift from the old "Inspector" role which was purely enforcement-focused.

Powers include:

• Advise employers and workers on compliance with the Code
• Inspect establishments as assigned under a randomised web-based scheme
• Examine any person reasonably believed to be an employee
• Require production of registers, records, books, and wage slips
• Search and seize records relevant to any offence under the Code
• Bring to Government's notice any defects or abuses not covered by existing law

Key rules on contributions:

• The employer pays both the employee's share (deducted from wages) and the employer's share
• The employer cannot deduct the employer's contribution from the employee's wages — doing so is a criminal offence
• EPF dues are a first charge on the assets of the establishment — prioritised even in insolvency
• Employees earning above the wage ceiling (₹15,000/month basic) may still contribute voluntarily

Yes — called an exempted establishment. Conditions:

• Establishment has 100 or more employees
• No default in PF payments in the last 3 years
• Benefits provided are not less favourable than the EPF scheme
• Prior approval granted by the Central Government
• Trust is registered and accounts are audited annually

• Original order passed by the EPF authority (e.g., demand notice for contributions or damages)
• Employer files appeal to the EPF Appellate Tribunal within 60 days of the order
• Mandatory pre-deposit: Employer must deposit 25% of the disputed amount before the appeal is admitted
• Tribunal hears both sides — has civil court powers (summon witnesses, compel documents)
• Further appeal on questions of law to the High Court

• Employee suffers an injury or illness while unregistered
• ESIC Corporation pays the benefit directly to the employee as if they were registered
• ESIC then recovers the capitalised value of the benefit from the defaulting employer
• Additional damages and interest are also levied on the employer
• The employer may also face criminal prosecution

Disputes are decided by the Employees' Insurance Court (EIC):

• Employers contesting an ESIC demand must deposit 50% of the disputed amount as a precondition for the EIC to hear the case
• The EIC has powers of a civil court — it can examine witnesses, compel documents, etc.
• Appeals from EIC orders go to the High Court on substantial questions of law
• EIC proceedings are not subject to civil courts — matters that can go to EIC cannot be filed in civil courts

Gratuity is payable to every employee in an establishment with 10 or more employees on these events:

Rounding rules:

• 6 months or more in the last year of service = counted as a full year
• Less than 6 months in the last year = ignored
• Seasonal establishments: 7 days' wages per season (not 15 days)

"Continuous service" — an employee is deemed to have completed one year if they actually worked:

• Gratuity must be paid within 30 days from the date it falls due
• If delayed beyond 30 days, employer is liable to pay simple interest at the prescribed rate from the due date
• No interest payable if delay is solely due to the employee's fault (e.g., not submitting required documents)
• On death of employee — gratuity is paid to the nominated person; if no nomination, to legal heirs

Medical Bonus (S. 61):

• Every woman entitled to maternity benefit is also entitled to a medical bonus of ₹3,500 (or as notified)
• Payable if the employer does NOT provide free pre-natal and post-natal care

Crèche Facility (S. 65):

• Mandatory for establishments with 50 or more employees
• May be provided individually or jointly with other establishments
• Must be suitably located, adequately lit and ventilated, clean and sanitary
• Women workers allowed 4 visits per day to the crèche (including rest intervals)

Nursing Breaks (S. 66):

• Two nursing breaks per day in addition to normal rest intervals
• Continue until the child is 15 months old

An employer is liable when a personal injury is caused to an employee by an accident arising out of and in the course of employment.

Occupational diseases listed in the Third Schedule are treated as if they were accidents — no specific incident needs to be proven.

• Compensation must be paid within one month from the date it falls due
• If delayed without sufficient cause: the Competent Authority orders payment of interest at the prescribed rate
• If delay is unreasonable: the Authority may impose an additional penalty of up to 50% of the compensation amount as damages

Eligibility to register:

• Age between 18 and 60 years
• Worked in building/construction for at least 90 days in the preceding 12 months

Benefits available from the Welfare Fund:

• Financial assistance for medical expenses and hospitalisation
• Housing loans at concessional rates
• Accident insurance and disability benefit
• Pension after age 60 (subject to scheme)
• Education scholarships for workers' children
• Maternity benefit for women building workers
• Funeral assistance on death of worker
• Group insurance cover

Benefits available (to be notified by schemes):

• Life and disability cover
• Accident insurance
• Health and maternity benefits
• Old age protection / pension
• Crèche facilities
• Education assistance for children

• Any person aged 16 years and above who is a gig or platform worker may register
• Registration is done by self-declaration along with Aadhaar number (or Aadhaar-eligible identity)
• On successful registration, a unique ID is assigned to the worker
• The worker's ID is linked to the National Social Security Board database
• Worker can then access scheme benefits through the online portal or helpline

An unorganised worker is a home-based, self-employed, or daily-wage worker in the unorganised sector not covered by Chapters III to VII.

The Code replaces traditional "Inspectors" with Inspector-cum-Facilitators who have a dual mandate:

Yes. Minor offences (not punishable with imprisonment only) may be compounded before a notified Gazetted Officer:

• Compounding sum = 50% of the maximum fine for that offence
• Available for first-time offences only — not for second or subsequent offences within 5 years
• If compounded before prosecution — no prosecution may be instituted for that offence
• If compounded after prosecution — the court is notified; accused is discharged
• Failing to pay the compounding sum attracts an additional 20% penalty