Code on Wages, 2019 • Chapter VI - Payment of Dues, Claims and Audit
Section 43 of the Code on Wages, 2019: Responsibility for Payment of Various Dues
Section 43 fixes the primary responsibility for payment of amounts due under the Code on the employer. It also provides a further layer of responsibility where the employer fails to make the required payment.
Current legal status: Section 43 was brought into force with effect from 21 November 2025 by Central Government notification S.O. 5322(E). The Code on Wages (Central) Rules, 2026 have subsequently been notified for matters governed by the Central Government.
Text of Section 43 - Responsibility for Payment of Various Dues
43. Every employer shall pay all amounts required to be paid under this Code to every employee employed by him:
Provided that where such employer fails to make such payment in accordance with this Code, then, the company or firm or association or any other person who is the proprietor of the establishment, in which the employee is employed, shall be responsible for such payment.
Explanation. For the purposes of this section the expression "firm" shall have the same meaning as assigned to it in the Indian Partnership Act, 1932.
Meaning and Effect of Section 43
The provision creates a clear statutory duty to ensure that every amount required to be paid to an employee under the Code is paid by the employer. Section 43 is therefore not confined to a single category of wage payment; its wording extends to amounts that the Code requires the employer to pay.
The proviso addresses default by the employer. If the employer does not make the payment in accordance with the Code, responsibility can shift to the company, firm, association or other person who is the proprietor of the establishment in which the employee is employed.
Who Is Responsible for Payment?
1. Primary responsibility of the employer
The first part of Section 43 places the direct obligation on the employer to pay all amounts required under the Code to every employee employed by that employer.
2. Responsibility where the employer defaults
If the employer fails to make the required payment in accordance with the Code, the proviso makes the company, firm, association or any other person who is the proprietor of the establishment responsible for the payment. This mechanism is intended to prevent statutory dues from remaining unpaid merely because the immediate employer has defaulted.
Practical point: Section 43 should be read with the other provisions of the Code governing wages, bonus, payment timelines, claims, recovery and penalties. The exact remedy in a particular case depends on the nature of the unpaid amount and the applicable provisions and rules.
Meaning of "Firm" under Section 43
The Explanation to Section 43 expressly adopts the meaning of "firm" assigned by the Indian Partnership Act, 1932. Section 4 of that Act describes persons who have entered into partnership with one another individually as "partners" and collectively as a "firm", with the name under which their business is carried on called the "firm name".
Related Provisions of the Code on Wages
Section 43 appears in Chapter VI, titled Payment of Dues, Claims and Audit. The immediately following provisions deal with undisbursed dues where an employee dies or cannot be located, and with claims and the procedure for enforcing amounts due under the Code.
See also Section 44 - Payment of various undisbursed dues in case of death of employee and Section 45 - Claims under the Code and procedure thereof.
Official Legal Resources
For the authoritative text and commencement material, refer to the Code on Wages, 2019 on India Code, the Ministry of Labour and Employment commencement notification dated 21 November 2025, and the Code on Wages (Central) Rules, 2026.