Social security

PROJECT ON LAW AND POVERTY

WORKSHOP

LEGAL RESEARCH METHODOLOGY

Submitted to: Asst. Prof. Anirban Chakraborty

WBNUJS
By: Daffne Tamang
Roll no: PG 21018 LLM 1st Sem.
2010

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Social security

CONTENTS

Introduction

Object of the paper

Hypothesis

Research question

Methodology

Chapters
1. Social security and its need.
2. The ‘unorganised workers.
3. Issues.
4. Schemes prior to the act.
5. Salient features of the Act.
6. Criticism.
7. Suggestion.

Conclusion

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Social security

SOCIAL SECURITY OF THE UNORGANIZED

WORKERS WITH SPECIAL REFERENCE TO THE
UNORGANISED WORKERS SOCIAL SECURITY ACT
2008

INTRODUCTION:
India is a country consisting of a large number of populations. Most of the people are
engaged in works in unorganised sector. Nearly 92% of the total population are the
unorganised workers.1 These workers are those who do not have the sufficient means to
ensure their security themselves. Therefore, they must be provided with certain securities in
order to support their living condition. Social security is not only for the well-being of these
workers but is equally important for their families and the entire community. It is a
fundamental means for creating social organization, and helping to ensure social peace and
social inclusion. It is an indispensable part of Government‟s social policy. It an important
means which can be used to prevent and alleviate poverty. Social security is an outcome of
the realization that the „Unorganised Sector‟ is growing at an alarming rate day by day. With
the growth of „Unorganised Sector‟ the need for ensuring social security is being a challenge
for the Government .The Government of India has made various efforts to frame social
security schemes and policies in order to bring social security of „unorganised workers‟
within its purview.2

OBJECT OF THE PAPER

The object of study in this paper is to analyse what has been provided by the Government so
far and the shortcoming of the “Unorganised Social Security Act 2008”.

HYPOTHESIS

The enactment of the „Unorganised Worker‟s Social Security Act 2008‟ has brought a new
hope for the „unorganised workers‟ for their wellbeing. But the Act has not been much
effective to provide social security to meet the thrust of these people.

Research question

1. What is social security and why it is needed?

2. Who are the „Unorganised Workers‟?
3. What are the issues?
4. What are the schemes provided by the Government prior to the enactment
of the Act?
5. Salient features of the Act of 2008?
6. criticism?
1
Eleventh Five Year Plan(2007–2012) Social Sector Volume II Planning Commission pg 149
2
the recent enactment of the “The Unorganised Workers social Security” Act 2008

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Social security

METHODOLOGY

The method used in writing up this paper is completely doctrinal.

Chapters
There are total seven parts in this paper. The First part deals with the meaning of social
security and its need. The second part deals as to who are the „unorganised workers‟. The
third part deals with certain issues as in relation to the „unorganised workers‟. The fourth part
is about the schemes that were prior to the act. The fifth part deals as to the salient features of
the Act. The sixth part deals with the criticism of the Act. The seventh part deals with
suggestion, and finally conclusion.

I.SOCIAL SECURITY AND ITS NEED

The word „social security‟ does not have a precise definition. It is a dynamic concept that
keeps on changing as per the condition that prevails in the society. Literally it means, “Public
provision for the economic security and social welfare of all individuals and their families,
especially in the case of income losses due to unemployment, work injury, maternity,
sickness, old age, and death. The term includes not only social insurance but also health and
welfare services and various income maintenance programs designed to improve the
recipient's welfare through public service.3 Many authors has defined social security by many
ways. “It is an attack on five giants, namely want, disease, ignorance, squalor and idleness.”4
It is “the security that society furnishes, through appropriate organisation, against certain
risks to which its member are exposed”.5 The main goal of social security is to provide
protection and uplift the life style of the people who are engaged in employment especially in
unorganised sector. The living condition of the unorganised worker‟s seems to be very
miserable. They live mostly in the slum areas. Most of them even do not have a proper place
for shelter which leads them to push up down to sleep wherever they find place to sleep. It is
so difficult for them to even manage their daily foods. In this way they too neglect their
health because they are forced to do so as there is no such thing so called „security‟ for their
tomorrow. Social security has a wide scope apart from prevention or relief of poverty with
the aim in three folds namely- “Compensation, Restoration and Prevention”.6Therefore, it can
be said that „social security‟ means the continuous economic support to human being for his
or her social well-being.

“Access to social security has become a fundamental human right to which every individual
is entitled as a member of the society.”7 The need to provide „social security‟ has been felt for
„arrangements for workers and their families to enable them to deal with transiting poverty
and vulnerability caused by shock or misfortune‟. Thus, social security is undeniably a part of

3
According to the dictionary of Britannica encyclopedia.
4
A.M. Sharma, Aspects of labour welfare and social security; defined by Lord Beveridge pg 183
5
ibid defined by International Labour Organisation
6
ibid pg184
7
ibid

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Social security

subject that needs to be acknowledged by the Government. It is to be available so as to

combat the problems faces by the „Unorganised Workers‟. Although “social security is not
viewed as a fundamental right, Article 42 requires that the State should make provision for
securing just and humane conditions of work and for maternity relief.”8 Similarly, States has to
make an effort to secure to all workers engaged in agricultural, industrial etc. such conditions of work
that ensure a decent standard of life.9

II.THE UNORGANISED WORKERS

The term „unorganised labour‟ has not been defined precisely anywhere. However, they are
defined as those workers who have not been able to organise themselves to pursuit of their
common interests due to certain constraints like casual nature of employment, ignorance and
illiteracy, small and scattered size of establishments, etc.10 Ministry of Labour has
categorised the unorganised labour force under four groups:11
1. in terms of occupation
2. nature of employment
3. Specially distressed categories and service categories.
In terms of occupation, it included small and marginal farmers, landless agricultural
labourers, share croppers, fishermen and those engaged in animal husbandry, beedi rolling,
labelling and packing, building and construction workers, leather workers, weavers, artisans,
salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc.,. In
terms of nature of employment, they are attached agricultural labourers, bonded labourers,
migrant workers, contract and casual labourers. The "unorganised worker" means a home-
based worker, self-employed worker or a wage worker in the unorganised sector and includes
a worker in the organised sector who is not covered by any of the Acts mentioned in
Schedule II.12

II.ISSUES IN RELATION TO THE UNORGANISED

WORKERS
The major issues of the Unorganised Workers may be enumerated as the followings:
1. No précised definition of the term Social security.
2. Most workers are causal and manual workers.
3. Collective bargaining power is less.
4. Migration.
5. Exploitation of workers in work place.
6. Problems faced especially by Women.
7. Housing facilities not adequate.
8
Supra notes 1pg 149
9
Supra notes 1pg 150
10
http://labour.nic.in/dglw/otherunorg.html defined by the First National Law Commission on Labour
(1966-69)
defined by the First Law Commission.
11
ibid
12
http://labour.nic.in/act/acts/Unorganised-workers-social-security-act-2008.pdf As per Section2(m) of “The
Unorganized Workers Social Security Act 2008.” Schedule II includes The Workmen's Compensation Act,
1923 (8 of 1923). 2. The Industrial Disputes Act, 1947 (14 of 1947). 3. The Employees' State Insurance Act,
1948 (34 of 1948). 4. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952). 5.
The Maternity Benefit Act, 1961 (53 of 1961). 6. The Payment of Gratuity Act, 1972 (39 of 1972).

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Social security

8. Health issues.
9. Forced child labour.
10. Deprivation of elementary education of children.etc.
This issue has been discussed as a criticism in this paper.

III.SCHEMES AND POLICIES PRIOR TO THE

UNORGANISED WORKER’S SECURITY ACT 2008
In India, there was no specific legislation on social security at „National level‟ which was
exclusively for unorganized workers. However, the social security legislations for primarily
urban and for the organized workers were covered by Labour Laws such as13
1. The Minimum Wages Act, 1948
2. Bonded Labour System (Abolition) Act, 1976.
3. Payment of Wages Act, 1948.
4. Maternity Benefit Act, 1961.
5. Insurance Act, 1948.
6. Personal Injuries Act (compensation Insurance) Act, 1963.
7. Payment of Gratuity Act, 1972.
8. Workmen‟s Compensation Act, 1923.
9. Plantation Labour Act, 1948.
10.Employees Provident Fund and Miscellaneous Provision Act, 1976.
11.Child Labour Act (Prohibition and Regulation) Act, 1986.
So far the legislation is concerned it has failed adequately to address the social security
concerns of the workers in the informal sector or to provide specific welfare measures.
Also, the workers in the unorganized sector are not protected in terms of security of
employment, better working conditions and effective machineries for identification of
eligible beneficiaries, dispute resolution etc.

Besides the legislation, the Government and other social institutions have launched certain
social security programs so to meet certain basic needs of the poor and informal sector
workers. The first initiative at national level for the social security was the „Community
Development program‟ in 1950. With the community development programme the other
schemes are the „Social Assistance Programmes‟, „Social Insurance Schemes‟, „Welfare
Funds‟. Aam Admi Bima Yojana, Rashtriya Swasthaya Bima Yojana, National Old Age
Pension Scheme.14 Beside the implementation of all these schemes the life of unorganised
sector workers has not improved. These workers still face lots of hardships to maintain their
livelihood. Although Government is constantly trying to resolve the issues on social security
of „Unorganised Workers‟ but has failed so far as the matter is concerned. However, the bill
was prepared for an „Umbrella Legislation‟ for the „Unorganised sector Workers‟ in order to
enable legislation for the growth and development of these workers by the Second National
Commission on Labour. 15 Later again a bill was proposed in the year 2007 for „social

13
Supra notes 1pg 150
14
Supra notes pg 150-154
15
http://www.socialsecuritynow.org/Resource/Umbrella%20legislation.pdf

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Social security

security‟ as ‘Unorganized Sector Workers Social Security Bill, 2007‟.16 It provided the
proposal legislation for social security schemes of the Central government which was related to
(i) life and disability cover, (ii) health and maternitybenefits, (iii) old age protection, and (iv) any
other benefits to be determined by the Central government. The State Governments may formulate
schemes for :(i) provident fund, (ii) employment injury benefits,(iii) housing, (iv) educational
schemes for children. (v) skill upgradation of workers, (vi) funeral assistance, and (vii) old age homes,
and other schemes as laid their under17 Thus, the Government enacted the Act in the year 2008.

IV.SALIENT FEATURES OF THE SOCIAL SECURITY ACT

2008
The object of the Act was to provide „social security‟ and welfare of the „Unorganised
Workers‟ and all matters that liked and connected with it. The Act is to be applicable to
whole of India to the entire Unorganised Workers‟.18 As per the Act „Unorganised Worker‟
means a home-based worker, self-employed worker or a wage worker in the unorganised
sector and includes a worker in the organised sector who is not covered by any of the Acts
mentioned in Schedule II to this Act.19
Social security benefits:20
The Central Government is to formulate schemes for the welfare of the unorganised workers
which covers (a) provident fund; (b) employment injury benefit; (c) housing; (d) educational
schemes for children; (e) skill up gradation of workers; (f) funeral assistance; and (g) old age
homes. These schemes are to be funded by the Central Government wholly or partly funded
either by the Central or State Government21
.
Establishment of National Security Board22
The Act provides for the establishment of National Security Board for the unorganised
workers at national level. The board shall consist of Union Minister as a chair-person , the
Director General of (Labour Welfare) as Secretary and thirty-four members to be nominated
by the Central Government, who shall be representing the Unorganised workers .
Establishment of State Social Security Board.23
The Act provides the State to establish social security board in each State for the welfare of
unorganised workers to exercise their powers and functions assigned to them. The Board
shall consist of Minister of Labour and Employment of the concerned State as a Chairperson
.The Principal Secretary or Secretary (Labour)-Member as Secretary. Twenty-eight members
to be nominated by the State Government representing the unorganised workers respectively.
Registration:24
All the unorganised workers is needed to register themselves as an unorganised worker as to
get benefited from the schemes. A child who has attained the age of 14years is also entitled

16
Supra notes 1 pg 152
17
Supra notes 1 pg 152
18
Section 1 of the unorganized social security act 2008
19
Supra notes 12
20
ibid chapter II section 3
21
ibid section 4
22
ibid chapter III section 5
23
ibid chapter IV section 6
24
ibid chapter V section 10

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Social security

for registration. The registration is made by the State Governments at district levels providing
them “smart card” with identification number so that they will be eligible for suitable security
schemes. Other than all the mentioned above the Act has provided various provision in
relation to the powers of the Central and State Government to deal with the matters linked to
meet the object of the enactment of the Act.25

V.CRITICISM OF THE ACT

Although the Government has enacted the said Act for the purpose of providing „social
security‟ to the „unorganized workers‟ yet it has not been much effective and suffers from
some pitfalls. The act has not provided a proper definition of the term „Social security‟ as to
what it means or indicates. Since „social security‟ does not merely mean providing schemes
but is to be addressed as a privilege from the outlook of rights derived from constitutional
rights and principles.26 The Act even fails to cover those workers who are depended on the
livelihood systems within its definition and lacks from providing an „Umbrella Legislation‟
which was proposed in the Bill of 2005 and simultaneously again in 2007.27 The Act just
provides the benefit of registration and does not give any other „social security‟. It has
referred nothing for security apart from establishment of the Social Security Board at the
National and the State Level. There is no recommendation of any method through which of
„social security‟ shall be ensured to the workers apart from the provided scheme. Welfare
Fund is one of the measures to provide social security but no such provision has been
incorporated in the Act for the establishment of such Funds. Problems‟ relating to migrated
workers is not covered by the Act.28 Since it is one of the major problem that increases the
number of the workers in unorganized sector for economic incentive. Problems faced by the
women workers like sexual harassment; gender wage gap, non-payment of wages etc has
been completely ignored. In case of any disputes no means has been provided to resolve such
disputes. There is no such recommendation of the establishment of „Trade Union‟ in the Act
which strengthens the power of collective bargaining. Trade Union is one of the means
through which workers are basically represented. The Act does not recommend ensuring
„right to livelihood as a part of the social security‟. 29Therefore with all the aspects discussed
above it can be said that, the Act is not so efficacious in providing „social security‟ to the
„unorganised workers‟. Thus in the light of these pitfall the need of its amendment is
necessary.

VI.SUGGESTED AMMENDMENT TO THE UNORGANISED

WORKERS SOCIAL SECURITY ACT 2008
The basic purpose of the definition of the term "Unorganised worker" must be to ensure that
atleast for the limited purpose of social security and welfare, no worker is left out. Along with
that, the term "Social Security" and "Family" must be defined so that the benefits that are
covered by the ILO Convention on minimum standards of social security accrue to the
worker and his family.30The Act has not provided any provision which ensures welfare for

25
ibid chapter VI section11
26
http://www.labourfile.org/ArticleMore.aspx?id=1050
27
supra 15
28
supra notes 26
29
ibid
30
supra notes

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Social security

the women especially. The „National Commission on self- Employed Women and Women
Worker‟s‟ has made recommendation that there is need for legislation to protect these women
workers.31 On the basis of their report they observed that women were exploited in terms of
wages. Thus the need for fixing the minimum wage for women is recommended.32 Since
definition as defined in the Act has not covered most of the workers which fall under the
category of „unorganised workers‟. The definition of unorganized workers needs to include
workers who are dependent on traditional livelihood system. The inclusion of unpaid women
workers and unpaid family members to the term „self-employed‟ and „home-based‟ workers
engaged in work done by their family for livelihood. Creation of welfare funds by the
Government for Social Security. The establishment of a dispute resolution mechanism for
resolving the disputes is to be made. The powers of the Social Security Board are not
effective to exercise their function as they act as an advisor to the Government. Inclusion of
livelihood right as a part of Social Security. The benefits mentioned in the Act are not
sufficient and needs incorporate scheme which can meet the needs of the workers. Therefore
it needs to look at the recommendation proposed by the National Convention on Social
Security for Unorganised Workers.

Conclusion
Certain sections of society are the most vulnerable with regard to poverty among these
„unorganised workers‟ are one of them. Since, they are most likely to be exposed for
exploitation. Therefore, it can be said the need for bringing changes to the „Unorganised
Workers Social Security Act‟ is necessary. Social security is one of the most necessary
subjects which need to be acknowledged by the Government in order to combat poverty
problem.

31
http://books.google.co.in/books?id=KiL-
6fmKPfQC&pg=PA1967&dq=social+security+of+women+in+unorganised+workers+report+The+„National+C
ommission+on+self-+
32
ibid

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BIBLIOGRAPHY

Book references

Planning Commission Government of India, Eleventh Five Year Plan(2007–2012)Social

Sector, Volume II

Web source
http://labour.nic.in/dglw/otherunorg.html

http://labour.nic.in/act/acts/Unorganised-workers-social-security-act-2008.pdf

http://www.socialsecuritynow.org/Resource/Umbrella%20legislation.pdf

http://www.labourfile.org/ArticleMore.aspx?id=1050

http://books.google.co.in/books?id=KiL-
6fmKPfQC&pg=PA1967&dq=social+security+of+women+in+unorganised+workers+report
+The+„National+Commission+on+self-+

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