Introduction– The term Social Security is defined under Section 2(78) of the Code on Social Security, 2020[1] as measures of protection adopted in order to protect workers that may be unorganised, gig workers, and platform workers by providing them with different benefits during old age, unemployment, sickness, the maternity period, medical care, etc. Further, if we look internationally, then the International Labour Organisation (ILO) has made many conventions and recommendations relating to the same, for example, the Social Security (Minimum Standards) Convention, 1952 (No. 102), wherein the nine principal branches of Social Security are covered, namely medical care, sickness, unemployment, old age, employment injury, family, maternity, invalidity, and survivors’ benefits.[2]
Importance of Social Security for Workers: Social Security is also a universal and human right that ensures that the basic dignity and standard of living of workers are maintained. Further, having effective social security laws for employees would help in ensuring guaranteed income security and health protection, thereby contributing to the prevention and reduction of poverty.[3] It provides them with supplemental benefits apart from their wages in case of any contingencies.
It is important to provide social security to workers as it helps maintain peace in the establishment or organisation as there is harmony between the management and the employees. Moreover, it helps in developing an ambient and stable environment wherein the workers can work effectively, thereby increasing the production and profit of the establishment. Such conditions and benefits also motivate the workers to continue their work, thereby ensuring decent and fair living conditions for them. However, when the same is not fulfilled, then the industrial relations of the establishment get affected.
Condition of Unorganised Workers in India: The problem is worse in the case of unorganised sector workers, e.g., our domestic help, cleaners, gardeners, etc., who do not have Social Security benefits and therefore cannot avail of any benefits arising during their employment like maternity leaves, medical care, etc. Earlier, the workers of the unorganised sector were also not able to claim employment injury benefits, nor were they provided safety gear while working in dangerous or hazardous places like construction sites, chemical industries, etc. Further, the meaning of “unorganised workers” is provided under Section 2(m) of the Unorganised Worker Social Security Act, 2008, as a home-based worker, whether a self-employed worker or a wage worker in the unorganised sector, and also includes a worker in the organised sector who is not covered under any other act.[4]
Further, as per the Periodic Labour Force Survey (PLFS) of 2017–18, out of 47 crore workers both in the unorganised and organised sectors, 38 crores are in the unorganised sector.[5] Therefore, it becomes essential to ensure that these workers are protected and get social security benefits since most of the establishments where these unorganised sector workers work are not regulated or don’t comply with the law, which increases the probability of exploitation of these workers. Further, merely providing them with minimum wages won’t improve their standard of living or help them in their long-term growth, which is why, in order to protect the rights and dignity of such workers, laws are required to be implemented effectively.
Moreover, if we look at the COVID-19 period, the condition of such workers became worse as, during the lockdown, many of them were not able to avail themselves of the benefits of social security. Currently, 94 percent of the 27.69 crore workers who are registered on the eShram portal have a monthly income below ten-thousand.[6] Therefore, the government and state have also enacted and formulated various schemes through which workers in the unorganised sector could get benefits. In 2020, the government also passed the Code on Social Security, which amalgamates nine existing laws relating to the social security of workers in order to avoid any confusion arising from multiple legislations.
Provisions provided under law: Presently, the Code on Social Security governs all types of workers. Further, under Section 113 of the Code[7], every unorganised worker, gig worker, or platform worker would have to mandatorily register themselves in order to take advantage of schemes passed by the government. The code also provides medical benefits under Section 39, wherein the insured person or his family member who requires medical care would be provided in the form of out-patient treatment, i.e., providing service under a hospital, clinic, etc., or in the form of in-patient treatment, i.e., by providing treatment at the home of such a person. Further, an employee may also avail of the sickness benefit under Section 32 of the Code of Social Security[8], which provides that a person who provides proof of his sickness through a medical leave certificate shall be entitled to periodic payment of his wages accordingly.
The Employee Provident Fund Scheme under Section 15[9] could be framed by the Central Government for the purpose of providing the employees with a superannuation pension, a retirement pension, an insurance scheme, and many other schemes, including those for people who are self-employed or any other class of workers. Apart from this, the code also provides for maternity benefits under Section 59 of the Code[10], wherein the employer cannot deduct the salary or wages of the women availing of the maternity benefit. Further, a pregnant woman can take a leave of a maximum of 26 weeks’ duration. The benefit could be availed of by women during their time of delivery, miscarriage, or medical termination of pregnancy. Moreover, Chapter 5 of the Code provides provisions regarding gratuity. Under Section 53 of the Code[11], an employee is entitled to payment of a gratuity if he has completed at least five years of continuous service on termination of his employment, superannuation, retirement, resignation, death or disablement, termination of a contract of employment, or any other reason as notified by the Central Government.
Conclusion: The Code on Social Security, 2020, provides for the amalgamation of previous existing laws, which created a multiplicity of laws and thereby caused confusion. However, the code merges all such laws into one and also widens its ambit by including not only organised workers but also unorganised, gig, and platform workers. The code aims to ensure that the condition of the labour force in the country gets better by providing them with other social benefits apart from their basic wages. The code has also incorporated many provisions relating to different benefits and schemes, which could provide a huge benefit to the workers, as earlier most of these benefits were not mandated by the law. Further, by seeing the condition of the unorganised workers, it is necessary to ensure that they are not exploited and are provided with basic social security during their course of employment. It is also important to ensure that the code is properly implemented and that the workers, especially the unorganised ones, who were earlier neglected, get the benefit of it. Hence, the government should take adequate steps in order to sensitise the workers about their rights since most of them are not aware of their rights and remedies in case of breach.
[1] The Code on Social Security, 2020, Section 2(78), No. 36, Act of Parliament, 2020 (India)
[2] Social Security (Minimum Standards) Convention, June 4, 1952, No. 102, ILO
[3] INTERNATIONAL LABOUR ORGANISATION, https://www.ilo.org/global/standards/subjects-covered-by-international-labour-standards/social-security/lang–en/index.htm. (last visited April 12, 2023)
[4] Unorganised Worker Social Security Act, 2008, Section 2(m), No. 33, Act of Parliament, 2008 (India)
[5] PRESS INFORMATION BUREAU, https://pib.gov.in/Pressreleaseshare.aspx?PRID=1707228., (last visited April 12, 2023)
[6] Social Security for Unorganised Workers, DRISHTI IAS (July 22, 2022), https://www.drishtiias.com/daily-updates/daily-news-analysis/social-security-for-unorganized-workers.
[7] The Code on Social Security, 2020, Section 113, No. 36, Act of Parliament, 2020 (India)
[8] The Code on Social Security, 2020, Section 32, No. 36, Act of Parliament, 2020 (India)
[9] The Code on Social Security, 2020, Section 15, No. 36, Act of Parliament, 2020 (India)
[10] The Code on Social Security, 2020, Section 59, No. 36, Act of Parliament, 2020 (India)
[11] The Code on Social Security, 2020, Section 53, No. 36, Act of Parliament, 2020 (India)
Author Bio
