Section 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The OSH Code uses two different words for people at work: employee (a wide term) and worker (a narrower term with exclusions). It also decides who is the employer and, in a factory, the occupier, and it adds mine-specific terms ("owner" and "agent"). Getting these right decides who owes which duty and who gets which right.
An employee (section 2(1)(t)) is anyone employed on wages to do skilled, unskilled, managerial, administrative or other work, except an apprentice under the Apprentices Act, 1961 and members of the Armed Forces. A worker (2(1)(zzl)) is narrower: it excludes persons employed mainly in a managerial or administrative capacity and a supervisor drawing wages above Rs 18,000 a month (or an amount notified), but it adds working journalists and sales promotion employees. The employer includes the occupier of a factory, the owner, agent or manager of a mine, and the contractor.
Employee: section 2(1)(t)
An employee is, in respect of an establishment, a person (other than an apprentice engaged under the Apprentices Act, 1961) employed on wages to do any skilled, semi-skilled, unskilled, manual, operational, supervisory, managerial, administrative, technical, clerical or any other work, whether the terms are express or implied. It also includes a person declared to be an employee by the appropriate Government. Members of the Armed Forces of the Union are out.
Mines. The proviso widens "employed" for a mine. A person is employed in a mine who works as the manager or under appointment by the owner, agent or manager, or with the manager's knowledge, whether for wages or not, in mining operations, mine development services, servicing or repairing machinery, loading for dispatch, any office of the mine, welfare, health, sanitary or conservancy services or watch and ward within the mine premises (excluding the residential area), or any work preparatory or incidental to mining operations.
Worker: section 2(1)(zzl)
A worker is any person employed in an establishment to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms are express or implied. The definition includes working journalists and sales promotion employees, but excludes a person:
- subject to the Air Force Act, 1950, the Army Act, 1950 or the Navy Act, 1957;
- employed in the police service or as an officer or employee of a prison;
- employed mainly in a managerial or administrative capacity; or
- employed in a supervisory capacity drawing wages exceeding eighteen thousand rupees per month or an amount notified by the Central Government from time to time.
| Feature | Employee (2(1)(t)) | Worker (2(1)(zzl)) |
|---|---|---|
| Managerial or administrative staff | Included | Excluded if mainly managerial or administrative |
| Supervisor above Rs 18,000 a month | Included | Excluded (or notified higher amount) |
| Apprentice under the Apprentices Act, 1961 | Excluded | Not named in the exclusions |
| Armed forces, police, prison staff | Armed Forces excluded | Air Force, Army, Navy Act persons, police and prison staff excluded |
| Declared by the appropriate Government | Included | Not a feature of the definition |
| Working journalists, sales promotion employees | Covered as employees if employed on wages | Expressly included |
Duties and rights in the Code are allocated to one term or the other. For example, working hours, leave and overtime in Chapter VII speak of "worker", while the employer's duty to issue an appointment letter (section 6) speaks of "employee". Always read the section's own word.
If you are classifying staff for the first time, our employment and labour law advisory team can map each role to the right definition.
Sales promotion employees: section 2(1)(zze)
A sales promotion employee is a person, by whatever name called, employed or engaged for hire or reward to do work relating to promotion of sales or business (or both). The definition excludes a person who is employed in a supervisory capacity and draws wages exceeding Rs 18,000 a month (or an amount notified) or is employed mainly in a managerial or administrative capacity.
Working journalist: section 2(1)(zzm)
A working journalist is a person whose principal avocation is journalism and who is employed as such, whole-time or part-time, in or in relation to one or more newspaper establishments or other establishments relating to electronic media or digital media (such as newspaper or radio or other like media). The definition lists an editor, leader-writer, news editor, sub-editor, feature-writer, copy-tester, reporter, correspondent, cartoonist, news-photographer and proof-reader, and excludes a person employed mainly in a managerial, supervisory or administrative capacity.
Employer and occupier: sections 2(1)(u) and (zs)
An employer is a person who employs, directly or through any person, or on his behalf or on behalf of any person, one or more employees in his establishment. For government departments, it is the authority specified by the head of the department (or the head of the department if none is specified), and for a local authority, its Chief Executive. The definition includes:
- in a factory, the occupier;
- in a mine, the owner of the mine, the agent or the manager referred to in section 67;
- in any other establishment, the person or authority with ultimate control over its affairs, and where affairs are entrusted to a manager or managing director, that manager or managing director;
- the contractor; and
- the legal representative of a deceased employer.
The occupier of a factory is the person who has ultimate control over the affairs of the factory. By the first proviso, the occupier is deemed to be: in a firm or association of individuals, any one of the individual partners or members; in a company, any one of the directors, except an independent director within section 149(6) of the Companies Act, 2013; and in a government-owned or controlled factory, the person or persons appointed to manage its affairs. For a ship under repair in a dry dock available for hire, the owner of the dock is the occupier for all purposes, except the matters prescribed by the Central Government that relate directly to the condition of the ship, for which the ship owner is the occupier.
Example. A private limited company runs a chemical factory with five directors, one an independent director. Any one of the four other directors is deemed to be the occupier; the independent director cannot be. Because the occupier is the "employer" for the factory, the Code's duties can fall on the director treated as occupier. For the old Act position, see occupier responsibilities under the Factories Act.
Mine terms: "owner" and "agent"
- Agent (2(1)(c)), in relation to a mine, is every person, appointed or not, who acts or purports to act for the owner and takes part in the management, control, supervision or direction of the mine or any part of it.
- Owner (2(1)(zw)) is the immediate proprietor, lessee or occupier of the mine or any part of it, or the liquidator or receiver if one is running the business. A person who merely receives royalty, rent or fine, or is merely the proprietor subject to a lease, or merely owns the soil, is not an owner. A contractor or sub-lessee working a mine is subject to the Code as if an owner.
For the joint duties of owner, agent and manager see section 7.
Need help with classifying your workforce?
Who is an employee, a worker or a supervisor above the wage ceiling affects notices, leave, hours and penalties. Our employment and labour law advisory team can review your designations and contracts against these definitions. Share a sample of your role list and pay bands.
Key takeaways
- "Employee" is wide: wages, any type of work, excluding apprentices under the Apprentices Act, 1961 and Armed Forces members; the appropriate Government can declare a person an employee.
- "Worker" excludes mainly managerial or administrative staff and supervisors drawing above Rs 18,000 a month (or a notified amount), but includes working journalists and sales promotion employees.
- The employer includes the factory occupier, the mine owner, agent or manager, the person with ultimate control of any other establishment, and the contractor.
- In a company, the occupier is a director other than an independent director.
- In a mine, "employed" covers work whether or not wages are paid, if under the manager's appointment or knowledge.
Read next
- Section 2: contract labour, contractor and principal employer
- Section 6: duties of the employer
- Section 13: duties of the employee
- Key definitions under the Factories Act: factory, occupier, worker
Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.