Labour Law

Meaning and Scope of Social Security Code

Topic Overview

Meaning & Constitutional Provisions

Understanding the ILO definition, human rights aspects, and the crucial Constitutional mandates under Article 21 and DPSP.

Consolidation & Key Features

Exploring the need for labour reforms, the nine laws merged into the 2020 Code, and the expanded coverage for gig and unorganized workers.

Detailed Concepts

· Meaning and scope of Social Security code.

  • - According to International Labor Organization, Social Security is the. Protection that a society. Two individual and household to ensure access of healthcare and to guarantee. Income security, particularly in old age, unemployment and sickness, work injury, maternity or loss of breadwinner.
  • - It is right, which is generally guaranteed by some act or legislation to people further economic security in Time of sickness, disability or old age?
  • - The international Labor organization and United Nation are considered as basic human right.
  • - The UDHR recognize right to Social Security.
  • - Social Security Act as umbrella for people during adverse situation.
  • - Social welfare not possible without Social Security code. It helps lifting millions of people out of poverty and thus raises people standard of living.
  • - Need for Social Security Code – Rise in population. Rising poverty, unemployment. Danger and risk at workplace, privatization, aging population and A rise in number of unorganized sector worker.

- Constitutional provision and Social Security:

  • - Preamble of a Constitution of India provide the establishment of socialist state which aims to eliminate income inequality. Inequality of status and standard of living the Constitution of India reveals to provide equality of status and opportunity to all the citizen.
  • - Fundamental right under Article 21 of Indian Constitution, right to life include all right that are essential to human life in civilized society such as food, clothes, house, medicine and education. They advocate for Social Security of Indian citizens.
  • - Under DPSP, various Provision That tried to ensure Social Security for Indians are:
  • - Article 38. Social order and welfare. - The state must create a system where people welfare is main goal. Justice, social, economic and political shows. Guide all instruction. It should reduce inequality in income, status, opportunity and facility among individual and group.
  • - Article 39 Principle of economic justice- The state should ensure equal right to adequate livelihood for all citizen fair distribution of wealth and resources for common goods prevent of concentration of wealth in few hand equal. Pay for equal work and protection of worker and children from exploitation.
  • - Article 41. Right to Work Education and Assistance- The state should provide right to work and education public assistance in cases like unemployment, old age, sickness and disability.
  • - Under Article 42 -providing just and human work condition.

- Need for consolidation and codification

  • - Need for consolidation and codification a major labour reform was. Held while consolidating nine Social Security laws into one code.
  • - Objective Behind this reform was to: Universal social Security coverage including organize worker, unorganized worker, gig and platform worker. It also focusses on simplification, digitalization and wider coverage of the act
- Law merged into this code where:

a. Employment Compensation Act 1923.

b. Employee State Insurance Act 1948.

c. Employee Provident Fund Act

d. Employment Exchange Act.

e. Maternity Benefit Act.

f. Payment of Gratuity Act.

g. Cess worker welfare fund.

h. Building and construction workers act.

i. Unorganized Workers Social Security Act.

- Features of Social Security Code 2020:

  • 1. Expanded Employee State Insurance Code coverage - ESIC extended across India. No need for notified area, even small establishment. More than 10 workers can be covered covers, hazardous and plantation workers.
  • 2. Inclusion of Gig worker and Platform worker for first time. Legal recognition of gig worker, platform worker and aggregator.
  • 3. Social Security fund created for unorganized gig and platform worker covers health, life, disability and old age benefit.
  • 4. Wider definition of dependent. Now material grandparents. Parent in laws are also included in definition of dependent.
  • 5. Uniform definition of wages includes basic play pressure allowance plus retention allowance, ensure uniform calculation per PF, gratuity and pension.
  • 6. Coverage for commuting accident occur during travel. Between home and work will now be treated as employment related, making worker eligible for compensation.
  • 7. Gratuity for fixed term employment employee eligible for graduate after just one year of continuous service, not like earlier requirement of 5 years.
  • 8. Inspector cum Facilitator a web based random inspection inspector act as a guide for compliance of this act.
  • 9. Decriminalization of minor offenses, minor violation fines were instead of imprisonment, 30 day notice to correct the mistake.
  • 10. Compounding offenses, first time offenses can be settled by paying 50 to 75% of maximum fine.
  • 11. Digitalization, mandatory electronic record and filing, reduce paperwork and improve transparency.

- The Code of Social Security 2020 unifies labour welfare laws to ensure universal, inclusive and technologically driven Social Security coverage, especially for unorganized and gig worker.

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