Rule 2: Definitions

Finin2min analysis — operative rule mechanics

Full notified text — Rule 2

2. Definitions.– (1) In these rules, unless the context otherwise requires, —

(a) ―agency‖ means any corporation, body or institution, established under an Act of Parliament or
central public sector undertaking or special purpose vehicle as notified by the Central Government;

(b) ―appeal‖ means an appeal preferred under the Code;

(c) "Appellate authority" means in Central sphere, the Central Government or the authority specified
by the Central Government under sub-section (8) of section 56 or in State sphere, an officer, senior in
rank to the Assessing Officer for the purposes of section 105, appointed by the State Government, as
the case may be;

(d) ―Assessing Officer‖ means a gazetted officer of a State Government or an officer of a local
authority holding an equivalent post to a gazetted officer of the State Government appointed by such
State Government for assessment of cess under Chapter VIII of the Code;

(e) ―Authorised Officer for Employees‘ Compensation‖ means any officer whom the State
Government may designate either generally or in respect of any area or class of areas, for the purpose
of performing the functions assigned by these rules to the Authorised Officers;

(f) ―authority‖ means the Central Government or the authority specified by the Central Government
for the purpose of sub-section (3) of section 72;

(g) ―average daily wages during a contribution period‖ under Chapter IV of the Code in respect of an
employee, means the aggregate amount of wages payable to him during that period divided by the
number of days for which such wages were payable;

(h) ―average daily wages during a wage period‖ under Chapter IV of the Code means —

     (i) in respect of an employee who is employed on time-rate basis, the amount of wage which
would have been payable to him for the complete wage period had he worked on all the working days
in that wage period, divided by 26 if he is monthly rated, 13 if he is fortnightly rated, 6 if he is weekly
rated and 1 if he is daily rated;

  (ii) in respect of an employee employed on any other basis, the amount of wages earned during the
complete wage period in the contribution period divided by the number of days in full or part for
which he has worked for wages in that wage period:

        Provided that where an employee receives wages without working on any day during such
wage period, he shall be deemed to have worked for 26, 13, 6 or 1 day or days if the wage period be a
month, a fortnight, a week or a day respectively.

Explanation. — Where any night shift continues beyond midnight, the period of the night shift after
midnight shall be counted for reckoning the day worked as part of the day preceding;

(i) ―benefit period‖ means the period not exceeding six consecutive months corresponding to the
contribution period, as specified in the regulations made under section 157;

(j) ―career centre (central)‖ means that career centre as notified by the Central Government;

(k) ―career centre (regional)‖, throughout India, except the Union territory of Chandigarh, means the
career centre as notified by the respective State Government or the Administration of the Union
territory as having jurisdiction –

        (i) over the area in which the establishments concerned are situated; or

        (ii) over specified classes or categories of establishments concerned or vacancies;

(l) ―career centre (regional) in the Union territory of Chandigarh‖ means the career centre established
either by the Union territory Administration of Chandigarh or by the State Government of Punjab or
Haryana, as the case may be, notified by the respective States as having jurisdiction over specified
classes or categories of establishments or vacancies:

     Provided that the career centres established by the State Government of Punjab or Haryana shall
not have jurisdiction over—

        (i) the public sector offices or establishments other than those belonging to the respective
      States; and

       (ii) private sector establishments;

(m) ―cess collector‖ means an officer appointed by the State Government for collection of cess under
Chapter VIII of the Code;

(n) ―chairperson‖ means the chairperson of the Corporation, the Central Board, the National Social
Security Board, the State Unorganised Workers‘ Social Security Board, the Standing Committee, the
Medical Benefit Committee or the Executive Committee, as the case may be;

(o) ―chartered engineer‖ means a person having an engineering degree and the corporate membership
of the Institution of Engineers (India);

(p) ―Code‖ means the Code on Social Security, 2020 (36 of 2020);

(q) ―contribution period‖ means the period not exceeding six consecutive months, as specified in the
regulations made under section 157;

(r) ―electronically‖ means any information submitted by email or uploading on the designated Portal
or digital payment in any mode for the purpose of the Code;

(s) ―excluded vacancies‖ means those vacancies which have been excluded from the purview of the
section 139 under the provisions of sub-sections (1) and (2) of section 140;

(t) ―Form‖ means a form appended to these rules;

(u) ―fund‖ means the Employees‘ State Insurance Fund referred to in section 25, the Provident Fund,
the Pension Fund and the Employees‘ Deposit-Linked Insurance Fund referred to in section 16 or the
Social Security Fund referred to in section 141, as the case may be;

(v) ―Government Securities‖ means Government Securities as defined in the Government Securities
Act, 2006 (38 of 2006);

(w) ―immovable property‖ includes land, benefits to arise out of land, things attached to the earth, or
permanently fastened to anything attached to the earth;

(x) ―movable property‖ means property of every description except immovable property;

(y) ―nodal officer‖ means a person designated by the Building Workers‘ Welfare Board or the State
Government to facilitate the registration, renewal and updation electronically or otherwise or to
perform any other function relating to building workers from the private sector, State Government,
Central Government and public sector undertakings or local authority including supervising and
monitoring the functions of the beneficiary registering officers designated by the appropriate
Government;

(z) ―nomination" means nomination made under section 55;

(za) ―register of women employees‖ means a register of women employees maintained under rule 53;

(zb) ―Schedule‖ means the Schedule to the Code;

(zc) ―section‖ means a section of the Code;

(zd) ―ShramSuvidha Portal‖ means the portal of the Ministry of Labour and Employment with such
name;

(ze)―specified‖ means specified by an order of the Central Government or any State Government or
any officer so authorised by such Government;

(zf) ―standard benefit rate‖ means average daily wages obtained by dividing the total wages paid
during the contribution period by the number of days for which these wages were paid;

(zg) ―transferring authority‖ means any authority in any country which transfers or causes to be
transferred any lump sum awarded under the law relating to employees compensation in such country
and applicable for the benefit of any person residing or about to reside in India; and

(zh) ―year‖ means the financial year, beginning from the 1st day of April and ending with the 31 st day
of March of the following year.

(2) The words and expressions used in these rules which are not defined therein, but are defined in the
Code, shall have their respective meaning as assigned to them in the Code.

Application and evidence

1. Primary statutory test — (c) "Appellate authority" means in Central sphere, the Central Government or the authority specified by the Central Government under sub-section (8) of section 56 or in State sphere, an officer, senior in rank to the Assessing Officer for the purposes of section 105, appointed by the State Government, as the case may be;
2. Additional operative limb — (e) ―Authorised Officer for Employees‘ Compensation‖ means any officer whom the State Government may designate either generally or in respect of any area or class of areas, for the purpose of performing the functions assigned by these rules to the Authorised Officers;
3. Qualification / exception to test — Provided that where an employee receives wages without working on any day during such wage period, he shall be deemed to have worked for 26, 13, 6 or 1 day or days if the wage period be a month, a fortnight, a week or a day respectively.
4. Numerical or timing control — (g) ―average daily wages during a contribution period‖ under Chapter IV of the Code in respect of an employee, means the aggregate amount of wages payable to him during that period divided by the number of days for which such wages were payable;
5. Code Section mapping — 2. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
6. Evidence file — retain facts and records proving the role/status of: Employee / worker, Worker, Central Government, State Government, Authority / officer, Corporation / EPFO / Board.

Cross-references & prescribed forms

Worked example

Q&A — Rule 2

Primary sources