Section 43: Liability of owner or occupier of factories, etc., for excessive sickness benefit
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 43 — Governs liability of owner or occupier of factories, etc., for excessive sickness benefit and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (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…
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (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…
- (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…
- (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.
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Appropriate Government, Corporation / EPFO / Board
Full statutory text — Section 43
43. Liability of owner or occupier of factories, etc., for excessive sickness benefit.— (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.How to apply this provision
- Primary statutory test — (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…
- Additional operative limb — (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).
- Evidence file — retain facts and records proving the role/status of: Appropriate Government, Corporation / EPFO / Board.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
For a worker/member seeking a benefit connected with liability of owner or occupier of factories, etc., for excessive sickness benefit, the file should show coverage, service/contribution facts, the rule/scheme and prescribed form, and the calculation/payment. One statutory point to test is: “(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 h”
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 43
What does Section 43 of the Social Security Code cover?
Section 43 — Governs liability of owner or occupier of factories, etc., for excessive sickness benefit and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (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…
What is the main legal requirement or power in Section 43?
The first operative clause identified from the official text is: “(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…” Read it with the remaining subsections and any proviso below.
Does Section 43 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 43?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 43?
No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.
Is Section 43 currently operative?
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Source & verification trail
Act: Code on Social Security, 2020 — official India Code PDF ↗
Central Rules: Social Security (Central) Rules, 2026 — G.S.R. 344(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.