Vivekananda Institute of

Professional Studies, Delhi

LABOUR LAW PSDA

TOPIC: PROTECTION OF RIGHTS OF WOMEN

WORKERS IN UNORGANISED SECTOR IN INDIA

Submitted to:
Ms. Kusum Lata Bawalia

Submitted by:
Sugam Agrawal
7M
40717703518
Email Id.: agrawal123sug1@gmail.com
 Introduction
The unorganised sector forms a huge proportion of the workforce in India. In India, around
44 crore people work as unorganized workers in the unorganized sector.1 The economy is
highly dependent on this sector for its growth and development. But it has been seen that due
to the unregulated nature of this sector, there is a lack of effective legal and institutional
framework which makes the workers susceptible to exploitation. In this sector, more than 90
percent of the workforce is comprised of women2. Even though the number of women
employed in this sector is huge, they are not included in the official statistics as their work is
considered to fall within the category of disguised work or unskilled work. This is a major
cause for such women being left out from benefits that are awarded to other workers. These
women are faced with situations where they have to work long hours for less pay and are met
with other challenges which make it difficult for them to find a stable footing in the
workforce. The lack of education, skill or any formal training also inhibit such women
workers from seeking better job prospects in the formal sector. The unorganized sector faces
many difficulties like employment opportunities, employer- employee relationship, low
wages etc. Many unorganized workers live in slum areas and their living condition is very
poor in terms of hygiene, etc. The unorganized sector faces many difficulties like
employment opportunities, employer- employee relationship, low wages etc. Many
unorganized workers live in slum areas and their living condition is very poor in terms of
hygiene, etc3. There are many statutes and laws for the unorganized workers, but they are still
not provided with social security benefits. Social security provides protection for the
unorganized sector. The need for social security is a fundamental human right and it should
be provided to all citizens. Social security provided to the unorganized sector is not
recognized and efforts should be taken by the government. The Unorganized Workers Social
Security Act, 2008 aims in providing a framework for welfare schemes for the unorganized
sector.

1
PTI (Press Trust of India)
2
Senagupta, Prantika, Condition of Women Working in the Unorganized Sector available at http://
www.legalservicesindia.com/article/1432 (2010).
3
International Labour Conference-Forty Eighth Session, 1964: Women Workers In A Changing World (ILO,
Geneva, 1963).
Social Security
In India the term social security is generally used in its broadest sense, it may consist of all
types of measures preventive, promotional and protective as the case may be. The measures
may be statutory, public or private. The term encompasses social insurance, social assistance,
social protection, social safety net and other steps involved. There are number of models of
providing social security to the workers in the unorganised sector. These may be classified as
under:

 centrally funded social assistance programmes,

 Social insurance scheme.
 Social assistance through welfare funds of Central and State Governments, and
 Public initiatives.

As per the Periodic Labour Force Survey (PLFS) carried out by the National Sample Survey
Organisation of the Ministry of Statistics & Programme Implementation, in the year 2017-
18, the total employment in both organized and unorganised sector in the country was around
47 crores. Out of this, around 9 crores are engaged in the organized sector and the balance of
38 crores are in the unorganized sector4. The categories of the workers have been divided into
three categories i.e.

1. Establishments with 10 or more workers;

2. Establishments with 20 or more workers;
3. Workers engaged in unorganised sector

The ESI Act, 1948 is Social Security legislation applicable to all factories & notified
establishments employing ten or more persons, which are located in ESI notified areas and as
such it does not apply to the unorganised sector. Employees earning wages up to Rs 21,000
per month (Rs 25,000/- in the case of persons with disability) are coverable under ESI
Scheme and are entitled to all benefits available under ESI Act, 1948. At present the ESI
Scheme stands extended to 575 districts in 35 States/ Union territories. The total number of
Insured Persons covered under ESI Scheme as on 31.03.2020 are 3.41 crore and the total

4
https://pib.gov.in/Pressreleaseshare.aspx?PRID=1707228
beneficiaries are 13.24 crore. ESI contributions @ 4% are paid by employers, of which the
employees or workers contribute to the extent of 0.75% of their wages and the employers
contribute to the extent of 3.25% of their wages. Such contributions entitle them to all
benefits available under the ESI Act5.

UNORGANISED LABOUR

Although, it is difficult to give a concise and holistic definition of unorganized labour.

Unorganized labour stands for scattered and fragmented workforces working individually
sometimes loosely associated, in various occupations. Unorganized labour is not formally
cohesive in any recognized association and union with defined ideology, goals and areas of
specialization. It consists of agriculture and such related activities as forestry, livestock and
fishing as well as non – agriculture. The bill if National Commission for Enterprises in the
unorganized sector, 2006 presented by the government of India, broadly divided the works of
unorganized sector into self- employment and wage workers. According to the report of
the National Commission on Labour in 1969.

According to the Unorganized Workers Social Security Act,2008:

“Unorganized sector means an enterprise which is engaged in the production or sale of

the food or in providing services of any kind owned by individuals or self-employed
workers and where the number of worker working is less than 10 in number.

Unorganised Workers: “unorganised workers” means as follows.

 A home-based worker.
 Self-employed worker.

In fact a comprehensive Act, catering to the security needs of the unorganized sector such as
Food, Nutrition, Health, Housing, Employment, Income, Life and accident, and old age

5
https://pib.gov.in/Pressreleaseshare.aspx?PRID=1707228
remains a dream in India. Still the cries of the unorganized sector goes unattended with the
governments laying red carpets for the corporate and so called investors at the expense and
sacrifice of the working class.

Existing Legislations and their drawbacks

There are various legislations that have been put into place for the protection of women
working in the unorganised sector. These provisions aim to protect the rights of the women
workers as well as prevent their exploitation6. But these legislations seldom accord any
protection to the women workforce in the unorganised sector because of ineffective
implementation. One of the greatest drawbacks of the current social security legislations is
that the welfare schemes have been made available largely to the organised workers as these
legislations require a certain number of workers to be employed in the establishment. This is
not a fair expectation from the unorganised workers because they are largely scattered and
quite often fail to meet the criteria to avail the benefits provided by these legislations. The
unorganised women workers do not have the advantages of maternity benefit and child care
facilities in spite of existing legislations. A large proportion of the unorganised women
workers are employed as domestic workers and these women work with no job security and
harsh working conditions. They are left without any benefits relating to conditions of work,
wages, health etc.

The Code on Social Security Bill, 2019:

• For the first time, provides the benefits and welfare schemes that were earlier
available only to organised sector workers to the workers in the unorganised sector,
under Section 109.

• These schemes are to be formulated by the Central and the State Governments on
various areas such as health and maternity benefit, education, provident fund,
employment injury benefit, housing, skill upgradation etc.

The lack of welfare legislations regulating the unorganised sector makes it increasingly easier
to absorb new workers into the unorganised sector. The increase in the flow of new workers
into the workforce adversely affects the employment security as well as the income security
of the workers and a corresponding reduction in the social security and welfare programmes.

6
Singh Mohinder, Women and Development Process in India, KHADI GRAMODYOG, .XXXV, No.4, 200-2001
(January 1989).
Women, making up a huge part of this sector, are faced with a lot of challenges, the primary
of them being, low wages. These women often put in long hours and the wages that they are
paid are not reflective of the work that they put in. They also have to face discrimination at
the workplace because the wages that they receive are usually lower than that received by
their male counterparts for performing the same work.

The Code on Wages, 2019:

• The Code on Wages, 2019 has been introduced with the aim to consolidate four
previous legislations namely-the Payment of Wages Act, 1936, the Minimum
Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration
Act, 1976.

• Its main purpose is to provide for national minimum wages for all workers and this
minimum wage is to include basic rate of wage, cost of living allowance etc. while
also taking into account the skills, arduousness of work, geographical locations and
other necessary aspects.

This is advantageous to the unorganised women workers because this will ensure that the
wages are fixed keeping in mind the interests of the works. In relation to the payment of
wages, the Code provides a wide definition for ‘employee’, ‘employer’ and ‘establishment’
which will ensure a broad applicability of the provisions and bring unorganised women
workers under its ambit. While giving such advice under Section 42, the State Advisory
Board has the duty to give regard to the number of women employed, nature of work,
duration of work etc. This will enable the governments at both the Central and State level to
make such provisions regarding wage which cater to the needs and further the interests of
unorganised women workers.
 CONCLUSION

At the end of this Research Paper, I would like to conclude that notwithstanding the
legislations and legal provisions for protection and empowerment of women in unorganised
sector the representation of women is not apt. Even though the number of women employed
in this sector is huge, they are not included in the official statistics as their work is considered
to fall within the category of disguised work or unskilled work. This is a major cause for such
women being left out from benefits that are awarded to other workers. These women are
faced with situations where they have to work long hours for less pay and are met with other
challenges which make it difficult for them to find a stable footing in the workforce. One of
the greatest drawbacks of the current social security legislations is that the welfare schemes
have been made available largely to the organised workers as these legislations require a
certain number of workers to be employed in the establishment. This is not a fair expectation
from the unorganised workers because they are largely scattered and quite often fail to meet
the criteria to avail the benefits provided by these legislations. The unorganised women
workers do not have the advantages of maternity benefit and child care facilities in spite of
existing legislations. One of the most essential steps that need to be taken is to make women
aware of their rights. The women employed in this sector should also have the provision to be
a part of a trade union because a union’s primary purpose is to work for the enhancement of
the rights and conditions of its members and it also gives them collective bargaining powers.
Hence, an effective implementation mechanism should be put in place to ensure that all
women workers can reap the benefits. It is also the need of the hour to provide training to the
women workers in the unorganised sector so that they can actively participate in the formal
labour economy.