Employee and worker, establishment and factory, and the headcounts at which the main parts of the Codes begin.
Written from the official text · not reviewed by a lawyer · follows the Central Rules
Key points
Under the Code on Wages an “employee” is anyone employed on wages by an establishment to do skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work, other than an apprentice and members of the Armed Forces s. 2(k).
A “worker” is a narrower group: people employed to do manual, unskilled, skilled, technical, operational, clerical or supervisory work s. 2(z). Under the OSH Code, a person employed mainly in a managerial or administrative capacity is not a worker, nor is a supervisor drawing wages above eighteen thousand rupees a month or the amount the Central Government notifies s. 2(1)(zzl).
Under the OSH Code, a place where any industry, trade, business, manufacturing or occupation is carried on is an “establishment” if ten or more workers are employed in it s. 2(1)(v).
A “factory” is premises where twenty or more workers work with the aid of power, or forty or more without it, counting any day of the preceding twelve months s. 2(1)(w).
The Employees’ Provident Fund Chapter applies to every establishment in which twenty or more employees are employed, and the Employees’ State Insurance Chapter to every establishment in which ten or more persons are employed, other than a seasonal factory First Schedule.
Gratuity applies to every factory, mine, oilfield, plantation, port and railway company, and to every shop or establishment in which ten or more employees are employed First Schedule.
Every industrial establishment employing twenty or more workers must have a Grievance Redressal Committee s. 4(1), and the bonus Chapter applies where twenty or more persons are employed on any day of an accounting year s. 41(2).
If you are an employer
Count everyone you employ, and look back over the preceding twelve months: a factory counts the workers who were working on any day in that time s. 2(1)(w).
If you are a worker
The minimum wage protects every employee, whatever their job or grade s. 5.
7 questions. Choose an answer, then open “Show the answer” to check it against the law's own words.
Show the answer
Answer: Ten or more
A place where any industry, trade, business, manufacturing or occupation is carried on is an establishment if ten or more workers are employed s. 2(1)(v).
a place where any industry, trade, business, manufacturing or occupation is carried on in which ten or more workers are employed
With the aid of power, premises are a factory where twenty or more workers are working, or were working on any day of the preceding twelve months s. 2(1)(w).
whereon twenty or more workers 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
The definition of worker leaves out a supervisor drawing wages above eighteen thousand rupees a month or the amount the Central Government notifies s. 2(1)(zzl).
who is employed in a supervisory capacity drawing wage exceeding eighteen thousand rupees per month or an amount as may be notified by the Central Government from time to time
The Employees’ State Insurance Chapter applies to every establishment in which ten or more persons are employed, other than a seasonal factory First Schedule.
Employees’ State Insurance Every establishment in which ten or more persons are
Answer: Managerial and administrative staff as well as manual and clerical workers
An employee is anyone employed on wages to do skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work s. 2(k).
employed on wages by an establishment to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward
Official text reproduced from the Gazette of India, India Code and State Government sources. This is not legal advice; check the source PDF before relying on any provision.