Code on Social Security for platform-based gig workers
Context:
- The labour codes passed in 2020 acknowledge gig workers as new occupational categories in the making, in a bid to keep India’s workforce secure as it embraces ‘new kinds of work’.
About the code on social security:
- With the intent of simplifying and consolidating labour laws, the 2ndNational Commission on Labour recommended the rationalisation of existing labour laws into 4 to 5 groups.
- In pursuance of the recommendation, the Code on Social Security, 2020 (“Social Security Code” or “Code“) received the assent of the President on 28 September 2020.
- The Code aims to regulate the organised / unorganised (or any other) sectors and extend social security benefits, during sickness, maternity, disablement, etc. to all employees and workers across different organisations.
- The Code undertakes to integrate nine existing labour laws relating to social security into one integrated Code.
COVERAGE AND APPLICABILITY:
- The Code applies to everyone on wages in an establishment, irrespective of occupation.
- Under the Social Security Code, the term “wages” includes all kinds of remunerations capable of being expressed in monetary terms including basic pay, dearness allowance, and retaining allowance.
- However, it does not include any overtime compensation, house rent, conveyance allowance, gratuity upon termination, or any retrenchment compensation.
- The Code shall have an overriding effect over anything inconsistent in any other law or the terms of any award, agreement, or contract of service, whether it was made before or after this Code came into force.
CODE ON SOCIAL SECURITY: STRUCTURE AND PROCEDURE
- The Code deals with social security organisations, employees’ compensation, provident fund, gratuity, Employees’ State Insurance Corporation, social security for construction workers, unorganised workers, gig workers, and platform workers.
- Every establishment shall mandatorily obtain registration under this Code, including the establishments already registered under any Central Act.
- Workers under different categories shall be required to register under applicable Chapters in the Code.
- Further, any business in the process of closure shall apply for registration cancellation under this Code.
- With the intent to increase the authenticity of the Code, any employee or worker employed in the unorganised sector must establish their identity through aadhar numbers for seeking benefits available under the Code.
- The Code has also included provisions for the establishment of several boards that would administer and enforce different schemes, such as State Building Workers Welfare Boards, National Social Security Board, State Unorganised Workers’ Social Security Board, etc.
UNORGANISED, GIGS AND PLATFORM WORKERS:
- The Code has distinguished itself from the Unorganised Workers Social Security Act, 2008 (“UWSSA“) by creating a distinction between ‘unorganised workers’, ‘gigs’, and ‘platform workers’.
- To that end, the Code elaborates on the framing of schemes which includes ‘education’ for unorganised workers and ‘creche’ for gigs and platform workers under its coverage, unlike the UWSSA.
- Such schemes may be ‘wholly’ or ‘partially’ funded by the State Government and other sources, including corporate social responsibility funds.
- Proper records of the Schemes under this Chapter shall be maintained by the authority notified by the appropriate Government.
- To be eligible under the Code, a worker must satisfy two requirements:
(a) completion of 16 years of age; and
(b) submit a self-declaration certificate in the manner prescribed by the Central Government.
- Additionally, the State Government may provide a helpline facility for unorganised workers, gigs, and platform workers to assist them in registration and avail information relating to the social security schemes.
Syllabus: Prelims + Mains; GS III – Economy
