LABOUR LAW II

PROJECT REPORT
ON
SOCIAL SECURITY AND 2ND NATIONAL COMMISSION
ON LABOUR
SUBMITTED TO:

Mrs. Balwinder kaur

(Asst. Lecturer Labour Law)

SUBMITTED BY:

Aakash Bhatt
Roll no: - 13
Semester V
Sec. - A

Date of Submission:- 20/08/2015

HIDAYATULLAH NATIONAL LAW UNIVERSITY RAIPUR

Acknowledgement
First and foremost I would like to thank Mrs. Balwinder Kaur, faculty Labour Law, Hidayatullah
National Law University Raipur, for creating opportunities to undertake such a valuable project. She helped me
in preparing the project through her aura and granting her precious time for consultation, discussion and giving
suggestions over this project. She had also helped me in improving the perception regarding the study of topic in

its vast resources and in broader way. She had cleared all doubts and uncertainty towards this project. Therefore, I
want to thank her, for all her efforts and cooperation which she conferred to me.
I also owe my gratitude towards University Administration for providing me all kinds of required
facilities with good Library and IT lab. This helps me in making the project and completing it. My special thank
to Library Staff and IT staff for equipping me with the necessary data and websites from the internet.
I would also like to thank my dear colleagues who had helped me a lot creating this project with their
ideas and thoughts over the topic. They act as a motivating and guiding force to me during the making of this
project.

Aakash Bhatt
Roll no: 13
Semester V
Sec. - A

Table of Contents

Abbreviations Used ------------------------------------------------------- Page 1

Objective ------------------------------------------------------------------- Page 2
Methodology -------------------------------------------------------------- Page 2
Scope & Limitation ------------------------------------------------------- Page 2
Research Questions ------------------------------------------------------- Page 3
Synopsis -------------------------------------------------------------------- Page 4
Introduction ----------------------------------------------------------------- Page 5
o Social Security
o 2nd National Commission on Labour
Social Security System in India ----------------------------------------- Page 9
Organized and Unorganized Sectors ------------------------------------ Page 11
Constitutional recognition of Social Security--------------------------- Page 12
o Distribution of legislative powers
Statutory basis of Social Security ---------------------------------------- Page 15
Summary on recommendation by 2nd National Commission
on Labour ------------------------------------------------------------------- Page 16
Social Security and 2nd National Commission on Labour ----------- Page 15
Conclusion ----------------------------------------------------------------- Page 19
References ----------------------------------------------------------------- Page 20
o Bibliography
o Websites referred

Abbreviations Used
acc.
Art.
Dr.
e.g.

Accessed
Article
Doctor
Examples

html
http
i.e.
ILO
p.
Pg.
Vol.
www.

Hyper Text Markup Language

Hyper Text Transfer Protocol
That is
International Labour Organisation
Page
Page
Volume
World Wide Web

Objective
The basic objective behind this project is to study about the concept of Social Security applied in field of
Labour welfare and the role of 2nd National Commission on Labour for strengthening the Labours by making
recommendation on various necessities for them and their different various other proposals which are made to
keep pace with Labour, employers and employees in the shadow of Social Security.

Methodology
The project is descriptive in manner. The notions of the project are completely related to speculative
study. The source of data for this project is secondary in nature i.e. including books, articles, journals and online
resources.

Scope and Limitation

This project has been carried out in an area of social welfare for labours which are effective in India. The
concept of social security had its greater impact on the removal of economic insecurity faced by the worker class,
so this project work is based on the major issues related to labour class and with regard to it what
recommendation had been made by the 2nd National Commission on Labour are discussed briefly here.

Research Questions
This project deals with the topic Social Security and 2nd National Commission on Labour. With
reference to it following research questions had been framed, which are discussed in this project.

Q1. What are the major concerns of Social Security?

Q2. Why Social Security is required?
Q3. What role has been performed by the 2nd National Commission on Labour?
Q4. What recommendations and steps are suggested by the Commission with related to
Social Security?

Synopsis
The Concept of Social Security now days had emerged with a tremendous speed in the field labour
welfare and for the removal of the conflicts regarding economic insecurities. The harmonious relation between
employers and employees can be witnessed from ancient period when civilizations developed, where a group of
class were authorised to supervise and another were the worker class. But nothing in this world can last for long,
conflictions arises between these two classes which was the result of infringements of rights of the worker class,
economic insecurities and improper facilities to labours. The concept of Social Security started to fashion during
1930 because that was the era where much industrial economic depressions are in its height. The labour class
were insecure and were dominated by the higher class. This was the scenario before the commencement of Social
Security. The lack of Social Security also effects the production of an industry and prevents formation of stable
and efficient labour forces. Therefore, Legislature had came up with different various legislations which is related
to the welfare of the labour class and which helps to establish a mutual harmonious relationship between the
labour class and the employer class.
With regard to Social Security, the 2nd National Commission on Labour was set up for further
recommendation on its concept. Indias labour policy is mainly centred towards various Labour Laws. The main
concern for setting up of this commission was to bring labour reform which is one of the developmental steps
taken by the Government for the welfare of the labour class as well as employers class. This commission made
many recommendations for labour welfare, such as introduction of umbrella legislations for workers in
unorganized sectors and agricultural labour, Encouragement of small scale industries, agri-business and rural
sector for higher employment generation, Consolidation of social security legislations and establishment of social
security system. This was some of main motive for which the commission was set up.

Introduction
Social Security
Social Security term was first officially used in the Social Security Act, 1935, passed by the
Roosevelt administration in the U.S.A., though the provisions of the Act were limited 1. Social Security is a kind
1 Goswami, Dr. V. G., LABOUR AND INDUSTRIAL LAWS, Vol. 1, (SOCIAL SECURITY LEGISLATIONS IN INDIA),
CENTRAL LAW AGENCY, Pg. 02

of security given to worker class in form of their rights under some specific circumstances and conditions. It
includes cash as well as medical reliefs to certain specified persons under certain specified conditions. After its
statutory recognition and adoption it becomes a powerful weapon in the hands of worker class. The concept of
social security is based on ideals of human dignity and social justice. The underlying idea behind social security
measures is that a citizen who has contributed or likely to contribute to his countrys welfare should be given
protection against certain hazards.
The concept of social security is dynamic concept and it takes different shapes in different countries and
therefore, various definitions by different authors have been attempted, some of which are worth mentioning.
Cassidy defines social security as a scheme that connotes particularly measures of income maintenance or
income security2. The definition is much narrow and does not cover the whole sum concept of social security.
Broadly speaking the term social security is usually employed to indicate specific government programmes
designed primarily to prevent want by assuring to families the basic means of subsistence 3. But this definition is
also not covers the wider areas of social security. ILO has redefined the term social security in better words as
only such schemes provide the citizens with benefits designed to prevent or cure disease, to support him when
unable to earn and restore him to gainful activity4. But this definition also does not differentiate between
measures of social security and the idea of social security itself.
As a matter of fact, social security is a safety provided by the society against risks; natural calamities, more
particularly due to air, water and environmental pollution, sickness,

2 Social Security and Reconstruction in Canada, p.16;Goswami, Dr. V. G., LABOUR AND INDUSTRIAL LAWS, Vol. 1, (SOCIAL
SECURITY LEGISLATIONS IN INDIA), CENTRAL LAW AGENCY, Pg. 05

3 Encyclopedia Americana, Vol. 25, p.186

4 Goswami, Dr. V. G., LABOUR AND INDUSTRIAL LAWS, Vol. 1, (SOCIAL SECURITY LEGISLATIONS IN INDIA),
CENTRAL LAW AGENCY, Pg. 05

social and economic depression or otherwise.

According to current scenario, social security covers up programmes of protecting the
old and invalid. In the states where the schemes had its birth in modern form, the programmes
includes quite a number of schemes e.g. , survivors insurance, health and maternity
insurance, workmens compensation, unemployment insurance and family allowances.
Thus social security is the benefits paid as of right. It means that the persons who
qualify under the provisions of law to get any sort for relief, they cannot be denied and in the
event of non-payment of relief, they are at liberty to sue in the Court of Law. Really speaking
the traditional moral right of poor to beg for charity has, been converted into the human right
of social security5.
2nd National Commission on Labour
The labour laws were also influenced by important Human Rights and
the conventions and standards that have emerged from the United Nations and the
International Labour organization. These include the Right to: work of ones choice; against
discrimination; prohibition of child labour; just and humane conditions of work; social
security; protection of wages; redressal of grievances; organize and form trade unions;
collective bargaining and participation in management. The country has, therefore, a plethora
of labour laws covering various facets of labour issues such as factories, mines, plantations,
transport, shops and commercial establishments, industrial housing, safety and welfare,
wages, social security, industrial relations, employment and training, emigration,
compensation insurance etc. The labour being in the concurrent list, laws are enacted and
implemented both by the Central and State Governments. As on date, we have about 50
Central and more than 100 State Labour Acts.
In order to bring labour reforms, Government of India constituted the Second National
Commission on Labour under the Chairmanship of Honble Shri Ravindra Varma on
15.10.1999. The Commission was given a two-point terms of reference (i) to suggest
rationalization of existing laws relating to labour in the organized sector; and (ii) to suggest
umbrella legislation for ensuring a minimum level of protection to the workers in the
5 Srivastava, Dr. P. C., Social Security in India, Pg.13 (1964)
6

unorganized sector. In developing the framework for its recommendations, the Commission
was required to take into account the emerging economic environment involving rapid
technological changes, globalization of economy, liberalization of trade and industry and
emphasis on international competitiveness and the need for bringing the existing laws in tune
with the future labour market needs and demands6.
The comprehensive Report was submitted by the Commission to the Govt. on 29th
June 2002. The Report is a voluminous document running into 1751 pages and is brought out
in two volumes. The Report of the Commission was placed in the Parliament Library and the
copies of the Report were distributed to the Members of Parliament. The Report (both in

6 THIRTY-NINTH SESSION OF THE INDIAN LABOUR CONFERENCE (NEW DELHI OCTOBER 1618, 2003)ITEM I: REPORT OF THE SECOND NATIONAL COMMISSION ON LABOUR WITH EMPHASIS
ON RATIONALIZATION OF LABOUR LAWS AND UNORGANIZED LABOURS.
http://www.google.co.in/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0CCcQFjAC&url=http%3A%2F
%2Flabour.gov.in%2Fupload%2Fuploadfiles%2Ffiles%2FDivisions%2FLC%26ILAS
%2F39ilcagenda_1_.pdf&ei=s__cU5DeD5aPuATb44DQBA&usg=AFQjCNHUMPrTkZSvYh9bqvieAoraTYG
Vvg&bvm=bv.72197243,d.c2E [acc. on 21/08/2014 at 17:30]

hindi & English) was also placed on Internet and can be accessed at http://www.labour.nic.in.
The Commission has comprehensively covered various aspects of labour and given
recommendations relating to review of laws, social security, women & child labour, wages,
skill development, labour administration, unorganized sector7.

Social Security System in India

When moved towards Indian scenario, it can be witnessed from very ancient period
that, India was having the Joint Family System and the members live harmoniously with each
other. The members took care of each other and help the others in any way either which
includes economically, socially, or politically. The major concern for this can be relied on the
support given economically. In that era also requirement of labour was there and the people
were hired and paid for their labour which they renders to the Richs or the higher who asks
them for their services. But somehow, the richer dominates them and make them devoid of
their proper and fixed payments of the services which they had rendered under some unlawful
clause and conditions. There were no proper measurements to have check on such injustice
and to insure the welfare of the labours economically. The concept of Social Security was
present then in rudimentary form. Through the Kings Court the aggrieved labourers suffices
their economic security and thus insure themselves from unfair practises done by the richs.
The concept of Social Security has its shadow in History, where one can look, it is
recorded by Kautilya that the government believed in social cooperation and enforced social
duties on its subjects. Any dereliction of such duties was penalised. As such punishments
were inflicted on men forsaking wife and children or husbands refusing to maintain wives or
on brothers with means, refusing to take care of minor brothers and sisters8.
7 THIRTY-NINTH SESSION OF THE INDIAN LABOUR CONFERENCE (NEW DELHI OCTOBER 1618, 2003)ITEM I: REPORT OF THE SECOND NATIONAL COMMISSION ON LABOUR WITH EMPHASIS
ON RATIONALIZATION OF LABOUR LAWS AND UNORGANIZED LABOURS.
http://www.google.co.in/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0CCcQFjAC&url=http%3A%2F
%2Flabour.gov.in%2Fupload%2Fuploadfiles%2Ffiles%2FDivisions%2FLC%26ILAS
%2F39ilcagenda_1_.pdf&ei=s__cU5DeD5aPuATb44DQBA&usg=AFQjCNHUMPrTkZSvYh9bqvieAoraTYG
Vvg&bvm=bv.72197243,d.c2E [acc. on 21/08/2014 at 17:30]

8 Goswami, Dr. V. G., LABOUR AND INDUSTRIAL LAWS, Vol. 1, (SOCIAL SECURITY
LEGISLATIONS IN INDIA), CENTRAL LAW AGENCY, Pg. 14
8

In the Indian context, Social Security is a comprehensive approach designed to

prevent deprivation, assure the individual of a basic minimum income for himself and his
dependents and to protect the individual from any uncertainties. The State bears the primary
responsibility for developing appropriate system for providing protection and assistance to its
workforce. Social Security is increasingly viewed as an integral part of the development
process. It helps to create a more positive attitude to the challenge of globalization and the
consequent structural and technological changes9.
Most social security systems in developed countries are linked to wage employment.
In India our situation is entirely different from that obtaining in developed countries. The key
differences are:

9 Social Security in Indiaworkspace.unpan.org/sites/internet/documents/UNPAN92408.pdf [acc. on 21/08/2014

at 17:45]

i)
ii)

We do not have an existing universal social security system

We do not face the problem of exit rate from the workplace being higher than the
replacement rate. Rather on the contrary lack of employment opportunities is the

iii)

key concern,
90% of the workforce is in the informal sector which is largely unrecorded and the
system of pay roll deduction is difficult to apply.
Even today 1/8th of the worlds older people live in India. The overwhelming

majority of these depend on transfers from their children. Addressing social security concerns
with particular reference to retirement income for workers within the coverage gap has been
exercising policy makers across the world. In India the coverage gap i.e. workers who do not
have access to any formal scheme for old-age income provisioning constitute about 90% of
the estimated workforce of 400 million people. Hence the global debate and evaluation of
options for closing the coverage gap is of special significance to India. The gradual
breakdown of the family system has only underscored the urgency to evolve an appropriate
policy that would help current participants in the labour force to build up a minimum
retirement income for themselves10.
4. The coverage gap in India is broadly categorized under the following groups11:
a) Agricultural sector

160 million.

b) Contract, services, construction

90 million.

c) Trade, Commerce, transport, storage

& Communications

115 million.

d) Others

47 million.

10 Social Security in Indiaworkspace.unpan.org/sites/internet/documents/UNPAN92408.pdf

21/08/2014 at 17:45]

[acc.

on

11 HOWEVER ONE IMPORTANT FACTOR TO BE KEPT IN MIND ON THE COVERAGE

ISSUE IS THAT THIS CLASSIFICATION (is based upon the various schemes run by the Ministry of
Labour & Employment only) AND DOES NOT INCLUDE THE VARIOUS SOCIAL SECURITY
SCHEMES RUN BY OTHER MINISTRIES FOR DIFFERENT TARGET GROUPS. IT ALSO
DOES NOT INCLUDE INDIRECT FUNDING THROUGH SUBSIDIES, PDS, SOCIAL
ASSISTANCE PROGRAMMES, FOOD-FOR-WORK PROGRAMMES, AND TAX CONCESSION
ETC.
10

___________
Total =

412 million

Organized and Unorganized Labours

Organized Sector
The organized sector includes primarily those establishments which are
covered by the Factories Act, 1948, the Shops and Commercial Establishments Acts of State
Governments, the Industrial Employment Standing Orders Act, 1946 etc. This sector already
has a structure through which social security benefits are extended to workers covered under
these legislations.
Unorganized Sector
The unorganized sector on the other hand, is characterized by the lack of
labour law coverage, seasonal and temporary nature of occupations, high labour mobility,
dispersed functioning of operations, casualization of labour, lack of organizational support,
low bargaining power, etc. all of which make it vulnerable to socio-economic hardships. The
nature of work in the unorganized sector varies between regions and also between the rural
areas and the urban areas, which may include the remote rural areas as well as sometimes the
most inhospitable urban concentrations. In the rural areas it comprises of landless agricultural
labourers, small and marginal farmers, share croppers, persons engaged in animal husbandry,
fishing, horticulture, bee-keeping, toddy tapping, forest workers, rural artisans, etc. where as
in the urban areas, it comprises mainly of manual labourers in construction, carpentry, trade,
transport, communication etc. and also includes street vendors, hawkers, head load workers,
cobblers, tin smiths, garment makers, etc.

Constitutional recognition of Social Security

Constitution of India gives authority to the legislature to came up with any legislation
keeping pace with its provisions and which should not affect or hinder any other statutes and
legislations. The legislature should take labour and capital in a same way and thus
accordingly to frame the legislations. The concept of social security gains its resistance from
chapter IV of the Indian Constitution which talks about Directive Principles of State Policy.
10

Under schedule VII distribution of legislative powers with regard to social security has been
enumerated.
The various constitutional provisions are as follow:Art. 38 -

this article ensures that the state shall strive to promote the welfare of the

people by securing and protecting as effectively as it may, a social order in which

justice, social, economic and political shall inform all the institutions of the national
life.
The state shall, in particular, strive to minimise the inequalities in income, facilities
and opportunities, not only amongst individuals but also amongst groups of people
residing in different areas or engaged in different avocations.
Art. 39-

Certain principles of policy to be followed by the State.The State shall, in

particular, direct its policy towards securing

(a) that the citizens, men and women equally, have the right to an adequate means of
livelihood;
(b) that the ownership and control of the material resources of the community are so
distributed as best to subserve the common good;
(c) that the operation of the economic system does not result in the concentration of
wealth and means of production to the common detriment;
(d) that there is equal pay for equal work for both men and women;
(e) that the health and strength of workers, men and women, and the tender age of
children are not abused and that citizens are not forced by economic necessity to enter
avocations unsuited to their age or strength;
(f) that children are given opportunities and facilities to develop in a healthy manner and
in conditions of freedom and dignity and that childhood and youth are protected
against exploitation and against moral and material abandonment.
Art.39A.-

Equal justice and free legal aid.The State shall secure that the operation of

the legal system promotes justice, on a basis of equal opportunity, and shall, in particular,
provide free legal aid, by suitable legislation or schemes or in any other way, to ensure that

10

opportunities for securing justice are not denied to any citizen by reason of economic or other
disabilities.
Art. 41.-

Right to work, to education and to public assistance in certain cases.The

State shall, within the limits of its economic capacity and development, make effective
provision for securing the right to work, to education and to public assistance in cases of
unemployment, old age, sickness and disablement, and in other cases of undeserved want.
Art. 42.-

Provision for just and humane conditions of work and maternity relief.The

State shall make provision for securing just and humane conditions of work and for maternity
relief.
Art. 43.-

Living wage, etc., for workers.The State shall endeavour to secure, by

suitable legislation or economic organisation or in any other way, to all workers, agricultural,
industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of
life and full enjoyment of leisure and social and cultural opportunities and, in particular, the
State shall endeavour to promote cottage industries on an individual or co-operative basis in
rural areas.
Art. 43A.-

Participation of workers in management of industries.The State shall take

steps, by suitable legislation or in any other way, to secure the participation of workers in the
management of undertakings, establishments or other organisations engaged in any industry.
Distribution of Legislative Powers
The Constitution of India in Art. 246 deals with the distribution of legislative powers
as between in the Union and the State legislatures with reference to different lists in the 7 th
schedule. The gist of the article is that the Union Parliament has full and exclusive powers to
legislate with respect to matters enumerated in list I in the 7 th schedule referred to as the
Union List and has also power to make the laws with respect to any of the matters

10

enumerated in list III in the 7th schedule referred to as the Concurrent list. Residuary power of
legislation have been vested in the Union Parliament by Article 248. It would be quiet
relevant to refer Entries as contained in List III, that is, Concurrent List in the seventh
schedule in the Constitution of India:
Entry 22 : Trade Unions; industrial and labour disputes;
Entry 23 : Social Security and Social insurance; employment and unemployment.
Entry 24 : Welfare of labour including conditions of work, provident funds,
employers liability, workmens compensation, invalidity and old age pensions and
maternity benefits.
Entry 36 : Factories.
Entry 37 : Boilers.
Enrty 38 : Electricity.
Enrty 39 : Newspapers, books and printing presses.
Thus, The above mentions are certain articles and entries which recognizes concept of Social
Security in Indian Constitution.

Statutory basis of Social Security

It is clear that Social Security is an obligation under which the Government is
weighted. It is the duty of Government to promote social security. With reference to it the
legislatures had came up with different types of legislations which are related to social
security. Through certain schemes and legislations it is maintained.
The welfare schemes are as under:
1. Indira Gandhi Old Age Pension Scheme.
2. National Family Benefit Scheme.
3. Janani Suraksha Yojna.
4. Handloom Weavers Comprehensive Welfare Scheme.
5. Handicraft Artisans Comprehensive Welfare Scheme.
6. Pension to Master Craft Persons.
7. National Scheme for Welfare of Fisherman and Training and Extension.
8. Janshree Bima Yojna.
9. Aam Admi Bima Yojna.
10. Rashtriya Swasthya Bima Yojna.
The Legislations are:
1. The Workmens Compensation Act, 1923
14

2.
3.
4.
5.
6.

The Industrial Dispute Act, 1947

The Employees State Insurance Act, 1948
The Employees Provident Funds and Misc. Provisions Act, 1952
The Maternity Benefit Act, 1961
The Payment of Gratuity Act, 1972

Summary on recommendation by 2nd National Commission on Labour

The report of 2nd National Commission on Labour can be summarised in point wise
which are as follow
1. Labour laws are not the only cause of our unsatisfactory economic development and
there are other factors that affect the efficiency of the industry.
2. The wages have to be looked upon as incomes that are earned through hard work.
3. In transforming the basis of employment (by meeting the demand of hire and fire), it
is equally necessary to create social acceptability for change and the social institutions
that can take care of the consequences.
4. A fundamental change of this kind has to be preceded by the evolution of socially
accepted consensus on new perceptions of jobs, evolution of a system of constant
upgradation of employability through training and setting up of social security
including unemployment insurance.
5. Whatever be the employment limit, there are certain provisions like maternity benefit,
child care, workmen's compensation, medical benefits and other elements of social
security and safety which must be applicable to all workers, irrespective of the
employment size of that establishment, or the nature of its activity.
6. Supervisors would be kept out of definition of workers and would be clubbed
alongwith managerial and administrative employees.
7. The existing set of labour laws should be broadly grouped into four or five groups of
laws pertaining to (i) industrial relations, (ii) wages, (iii) social security, (iv) safety
and (v) welfare and working conditions and so on.
8. Managerial and other excluded employees too may be provided a minimum level of
protection against unfair dismissal or removals.
9. Term Workmen be changed as workers.
10. Changes in labour laws should be accompanied by well defined social security
package.
11. The law must provide for authorities to identify the negotiating agent in the shape of
labour courts and labour relations commissions to adjudicate the disputes and so on.

Social Security and 2nd National Commission on Labour

14

The Indian social security system provides retirement and insurance benefits to
employees working in factories or other establishments covered by the system, in India. The
system is governed by the Employees Provident Fund and Miscellaneous Provisions Act
1952 (PF Act) and the schemes made there under, namely, the Employees Provident Fund
Scheme (EPF) and the Employees Pension Scheme (EPS). The Employees Provident Fund
Organisation (EPFO), a statutory body established by the government of India, administers
the social security regulations in India.
The 2nd National Commission on Labour had recommended a lot of things which are
today adopted as in the form of legislations. The concept of social security varies from
country to country with different political ideologies. In the socialist countries, the avowed
goal is complete protection to every citizen from the cradle to the grave. In other nations with
less regimented economics, a measure of protection is afforded to all the needy citizens by
means of schemes evolved by democratic processes consistent with the resources of the state.
The following legislative measures have been adopted by the
government of India by way of social security schemes for industrial workers.
I.

Workmen 's Compensation Act 1923 :

Under the Act, compensation is payable by the employer to workmen for all
personal injuries caused to him by accident arising out of and in the course of his
employment which disable him for more than three days. If the workman dies, the

II.

compensation is to be paid to his dependents.

Employee Stale Insurance Act, 1948 :
Under the Act, an insured person is entitled to receive benefits such as medical
benefit, sickness benefit, maternity benefit, disablement benefit, dependents
benefit, funeral benefit etc.

III.

IV.

The Employees Provident Funds and Misce1laneous Provisions Act, l952 :

The Act has made schemes for three types of benefits viz, provident fund, family
person and deposit linked insurance.
The Payment of Gratuity Act, 1962 :
Under the Act gratuity is payable to an employee on the termination of his
employment after he has rendered continuous service for not less than five

14

years. The completion of continuous service of five years is, however, not
necessary where the termination of the employment is due to death or
disablement.
V.

The Industrial Dispute Act, I947 :

Under the Act, a retrenched worker is entitled to compensation at the rate of 15
days average earning for every completed years of service or part thereof When
the closure of the undertaking is due to circumstances beyond the control of the
employer, compensation is limited to the maximum of three months average
earnings.
Maternity Benefits Acts, 1961 :
The Act applies to women in factories, mines and other establishments. This Act

VI.

replaced the Mines Act and it was adopted by most of the states. It does not apply
VII.

to those covered by the ESI schemes.

The Seaman Provident fund Act, 1966 :
Under this workers contribution of 8 percent with an equal contribution from the
employers and are entitled to a full refund on retirement or after 15 years of

VIII.

membership.
Employees Family Pension Scheme, 1971 :
The family pension seeks to provide some monetary relief to the family members
of employees, who die in service, that is, before superannuation. In the event of an
employee's death his family gets pension on a graded scale depending on the
employee's last salary grade.

Conclusion
The basic conclusion derives from this project is that the adoption of concept of
Social Security gets more strength after the commencement of the 2 nd National Commission
on Labour. The legislature came up with certain new legislations which are more concerned
about social security. They through legislations tries to cope up with and adapt the techniques
prevailing in modern society as per the requirement of the time. The welfare of the specified
people under social security had become the major concern for the Government and with
regard to this they derive their authority from our Indian Constitution. The concept of social
security is a welfare concept and state is under obligation to maintain it as it is prescribed
18

under Directive Principles of State Policies. The concept of social security differs from
country to country but all of theirs major concern is welfare of the worker class.

References
Bibliography:
Dr. V. G. Goswami, Labour and Industrial Laws
Report of the Second National Commission on Labour
Websites Referred:
www.google.com
www.labour.gov.in
www.workspace.unpan.org

18