Social Security Code, 2020- Highlights

Sonu Mehtha

Social Security Laws in India through the course of time have proven to besignificant to ensure the healthy relationship between Labour & Industry. The Code on Social Security, 2020 (Code) aims to consolidate laws relating to social security with the aim to extend social security to all the sectors. The Code received the President's assent on 28th September, 2020 which seeks to bring nine previously existing legislations relating to social security, retirement and benefit under it. They are:

1. Employees Compensation Act, 1923

2. Employees State Insurance Act, 1948

3. Employees Provident Fund and Miscellaneous Provisions Act, 1952

4. Employees Exchange (Compulsory Notification of Vacancies) Act, 1959

5. The Maternity Benefit Act, 1961

6. The Payment of Gratuity Act, 1972

7. The Cine Workers Welfare Fund Act, 1981

8. The Building and Other Construction Workers Cess Act, 1996

9. The Unorganized Workers’ Social Security Act, 2008.

A very pertinent impact of this Code is enhanced application on unorganized sector, fixed term employees and gig workers, platform workers which was not the case earlier. Another distinguishing feature of the code is an uniformity in definition of wages which has widened under the Code. A striking addition in this Code is in the times of digitization, the inclusion of maintenance of all records electronically. The Code also proposes setting up of career centres to replace the existing employment exchanges. By providing vocational guidance, career counseling and guidance to start self-employment, this Code seeks to bring down the rate of unemployment.

The 2020 Bill changes the definitions of the following terms:

• ‘employees’ to include workers employed through contractors.

• “inter-state migrant workers” to include self-employed workers from another state.

• “platform worker” to additional categories of services or activities as may be notified by the government.

• audio-visual productions to include films, web-based serials, talk shows, reality shows and sports shows and so on.

The Code also provides for the setting up of a ‘National Social Security Board’ which will recommend schemes and advise the government for the different types of workers. It also contains penal provisions in the case of failure to pay gratuity to employees or a failure to pay the contributions. For the very first time, Code also prioritizes employees dues under the Insolvency and Bankruptcy Code, 2016. The Code seems to be very comprehensive and consolidative.