The Social Security Code
Code on Social Security, 2020
List of Acts amalgamated
in code on Social Security and some definitions:
- 📄 This Code: Contains 14 Chapters, 164 Sections, and 7 Schedules.
- 🏛️ Amalgamation of 9 Existing Laws in this Code:
- 📑 Employees Provident Fund Act, 1952
- ⚖️ The Employee Compensation Act, 1923
- 🎬 The Cine Workers Welfare Fund Act, 1981
- 💼 The Payment of Gratuity Act, 1972
- 🏥 The Employees’ State Insurance Act, 1948
- 📋 The Employment Exchange CNV Act, 1959
- 🤰 The Maternity Benefit Act, 1961
- 👷 The BOCWWC Act, 1996
- 👥 The Unorganized Workers Social Security Act, 2008
- Social security
- Employee
- Fixed Term Employment
- Gig Worker
- Wage Worker
Means the measures of protection afforded to employees, unorganized workers, gig workers and platform workers to ensure access
to healthcare and to provide income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a
bread winner by means of rights conferred on them and schemes framed, under this Code.
: Means, any person (other than an apprentice engaged under the Apprentices Act, 1961) employed on wages by an establishment, eitherdirectly or through a contractor, to do any skilled, semi skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical,clerical or any other work, whether the terms of employment be express or implied, and also includes a person declared to be an employee by the
appropriate Government, but does not include any member of the Armed Forces of the Union.
fixed term employment“ means the engagement of an employee on the basis of a written contract of employment for afixed period: Provided that—a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent workman ding thesame work or work of similar nature; and b) he shall be eligible for all statutory benefits available to a permanent workman proportionatelyaccording to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employmentrequired in the statute;
Gig worker means independent contractors, online platform workers, contract firm workers, on-call workers and temporary workers.
[Gig workers enter in to formal agreements with on-demand companies, for example Uber, Task Rabbit, Zomato, to provide services to the company'sclients.
Means a person employed for remuneration in the unorganized sector, directly by an employer or through any contractor,irrespective of place of work, whether exclusively for one employer for one or more employers, whether in cash or in kind, whether as a home –
based worker, or as a temporary or casual worker, or as a migrant worker, or workers employed by house holds including domestic workers, with amonthly wage of an amount as may be notified by the Central Government and State Government, as the case may be.
Code on Social Security, 2020 : Applicability
| Chapter No. | Chapter Heading | Applicability |
|---|---|---|
| III | Employees Provident Fund | Every establishment in which twenty or more employees are employed. |
| IV | Employees State Insurance Corporation | – Every establishment with ten or more employees employed at any time in the preceding twelve months, except seasonal factories. |
| – Establishments with hazardous or life-threatening occupations, even with one employee. | ||
| V | Gratuity | (a) Every factory, mine, oil field, plantation, port, and railway company. |
| (b) Every shop and establishment with ten or more persons employed, or previously employed. | ||
| VI | Maternity Benefit | (a) Every factory, mine, or plantation, including government establishments. |
| (b) Every shop and establishment with ten or more persons employed, or previously employed. | ||
| VII | Employees Compensation | Applies to employers and employees to whom Chapter IV does not apply, subject to the provisions of the Second Schedule. |
| VIII | Social Security and Cess in Respect of Building and Other Construction Workers | Every establishment involved in building and other construction work. |
| IX | Social Security for Unorganized Workers | Applies to the unorganized sector, unorganized workers, gig workers, and platform workers. |
Navigating New Labor Code Transition Services: A Comprehensive Guide
Chapter VIII of Wage Code Rule 2020 describes manner for enquiry, impose fine and Forms, Registers and Wage Slip to be generated:-
● Need to maintain a register – register for persons employed, muster roll, wages and other details as prescribed;
● Require to display a notice on the notice board – at a prominent place containing abstract of Code, category-wise wage rates,
wage period, day or date and time of payment of wages, & name & address of Inspector-cum-Facilitator; and
● Need to issue wage slips to the employees
● Above provisions shall not apply in respect of employer to the extent he employs not more than five persons for agriculture or domesticpurpose – but if demanded must provide reasonable proof of the payment of wages.
● No fine shall be imposed until such employee has been given an opportunity of showing cause against the fine.
● Total amount of fine shouldn’t exceed 3% of wages for that wage period.
● No fines in installment or after 90 days of offense
● Register for fines and such amount should be used for benefit of employees.
● Recovery of advance shall as may be prescribed
Some Important Points Code on Social Security, 2020
🏠 Home-based Worker: A person engaged in the production of goods or services for an employer in their home or other premises of their choice, for remuneration, regardless of whether the employer provides equipment or not.
👩🔧 Self-employed Worker: A person who is not employed by an employer but works in the unorganized sector, earning a monthly amount as notified by the Central or State Government, or holds cultivable land as per the ceiling notified by the State Government.
📱 Platform Work: A work arrangement outside the traditional employer-employee relationship, where organizations or individuals use non-line platforms to solve specific problems or provide services in exchange for payment, as notified by the Central Government.
🏢 Unorganized Sector: An enterprise owned by individuals or self-employed workers, engaged in the production or sale of goods or providing services, employing fewer than ten workers.
👷 Unorganized Worker: Includes home-based workers, self-employed workers, and wage workers in the unorganized sector, or workers in the organized sector not covered by the Industrial Disputes Act, 1947 or Chapters III to VII.
🚪 Retirement: The termination of an employee’s service, other than by superannuation.
🧓 Superannuation in Relation to an Employee: The attainment by an employee of a fixed age in the contract or service conditions, upon which the employee must vacate the employment.
🏗️ Building or Other Construction Work: Construction, alteration, repair, maintenance, or demolition of buildings, roads, railways, airfields, irrigation works, etc. Excludes work related to factories or mines, or work with fewer than ten workers, or work for individual residences under a specified cost limit.
Some Important Points Code on Social Security, 2020
1️⃣ EPF Act, 1952
Existing Provision: Applicability - Only to scheduled employments as prescribed in the portal. Proposed Change: Applicability - Industry-specific application removed.
2️⃣ EPF Act, 1952
Existing Provision: No threshold prescribed for exemption application. Proposed Change: Condition to Apply for Exemption - 100 or more establishments.
3️⃣ ESI Act, 1948
Existing Provision: No provision on obtaining Voluntary Coverage. Proposed Change: Voluntary Coverage provision added, subject to employer's discretion.
4️⃣ ESI Act, 1948
Existing Provision: ESIC not applicable to Mines. Proposed Change: ESIC applicable to Mines now.
5️⃣ POG Act, 1972
Existing Provision: Fixed Term Workers/Employees - Not entitled to Gratuity. Proposed Change: Fixed Term Workers/Employees - Brought under the purview of Gratuity.
3️⃣ ESI Act, 1948
Existing Provision: No provision on obtaining Voluntary Coverage. Proposed Change: Voluntary Coverage provision added, subject to employer's discretion.
Returns & Records to be updated:
- Maintenance of Records, Registers, and Submission of Returns:
An employer of an establishment shall:- Maintain records and registers in the prescribed manner, electronically or otherwise, containing:
- Particulars and details regarding persons employed.
- Muster roll, wages, and other details as prescribed by the appropriate Government, including:
- Number of days for which work was performed by employees.
- Number of hours worked by the employees.
- Wages paid.
- Leave, leave wages, wages for overtime work, and attendance.
- Employee identification number (by whatever nomenclature it may be called).
- Number of dangerous occurrences, accidents, and injuries, and the compensation paid by the employer (relating to ESI and Employees Compensation).
- Statutory deductions made by the employer for EPF and ESI.
- Details of cess paid for building and other construction work.
- Total number of employees (regular, contractual, or fixed-term) on the specified day.
- Persons recruited during a particular period.
- Occupational details of employees.
- Vacancies for which suitable candidates were not available during the specified period.
- Display notices at the workplace in the prescribed manner.
- Issue wage slips to employees, electronically or otherwise.
- File returns electronically or otherwise to the specified officer or authority in the prescribed manner.
- Maintain records and registers in the prescribed manner, electronically or otherwise, containing:
- Maintenance of Records, Registers, and Submission of Returns:
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