In order to extend social security to all employees and workers, whether in the organised,

unorganised, or any other sector, the Code on Social Security, 2020 was introduced by
withdrawing the earlier Code of 2019. It has amended and consolidated the laws relating to
employees' social security.

The Code on social security, 2020 amalgamates, simplifies & rationalises the relevant
provisions of the following central labour enactments relating to social security

 The Employees’ Compensation Act, 1923

 The Employees’ State Insurance Act, 1948
 The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
 The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
 The Maternity Benefit Act, 1961
 The Payment of Gratuity Act, 1972
 The Cine Workers Welfare Fund Act, 1981
 The Building and Other Construction Workers Welfare Cess Act, 1996
 The Unorganised Workers’ Social Security Act, 2008.

BASIS BEFORE CODE ON SOCIAL AFTER CODE ON SOCIAL SECURITY

SECURITY

DEFINITION The previous legislations did not New definitions have been
define Employee, Fixed-term introduced which are applicable on
employment, Aggregator, Career all the laws that are covered under
Centre, Home-Based Worker, the code of social security.
Unorganised Workers, Gig "employee" means any person (other
Worker & Platform Workers. than an apprentice engaged under the
Apprentices Act, 1961) employed on
wages by an establishment, either
directly 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 a fixed period.
"gig worker" means a person who
performs work or participates in a
work arrangement and earns from
such activities outside of traditional
employer-employee relationship;
"home-based worker" means a
person engaged in, the production of
goods or services for an employer in
his home or other premises of his
choice other than the workplace of
the employer, for remuneration,
irrespective of whether or not the
employer provides the equipment,
materials or other inputs;
"aggregator" means a digital
intermediary or a market place for a
buyer or user of a service to connect
with the seller or the service
provider;
“career centre" means any office
(including employment exchange,
place or portal) established and
maintained in the manner prescribed
by the Central Government for
providing such career services
(including registration, collection
and furnishing of information, either
by the keeping of registers or
otherwise, manually, digitally,
virtually or through any other mode)
as may be prescribed by the Central
Government, which may, inter alia,
relate generally or specifically to—
(i) persons who seek to employ
employees; (ii) persons who seek
employment; (iii) occurrence of
vacancies; and (iv) persons who seek
vocational guidance and career
counselling or guidance to start self-
employment;
"unorganised sector" means an
enterprise owned by individuals or
self-employed workers and engaged
in the production or sale of goods or
providing service of any kind
whatsoever, and where the enterprise
employs workers, the number of
such workers is less than ten;
"platform work" means a work
arrangement outside of a traditional
employer employee relationship in
which organisations or individuals
use an online platform to access
other organisations or individuals to
solve specific problems or to provide
specific services or any such other
activities which may be notified by
the Central Government, in exchange
for payment;
REGISTRATION Registration and Cancellation of As per the new code on Social
an establishment was made security, if an establishment has been
mandatory under previous registered under any existing labour
legislations. laws, then such an establishment is
not mandated or required to obtain
registeration under Section 3 of the
code of Social Security.
SOCIAL There existed no provision for As per Section 4 of the new code, in
SECURITY creation of Social Security order to administer funds for
ORGANISATION Organisation under the previous different types of workers which
legislations. have been included in the new code,
the constitution of Social Security
Organisation has been enforced in
the new code.
NATIONAL There existed no provision for Section 6 of the new code mandates
SOCIAL creation of National Social that the National Social Security
SECURITY Security Board and the (State) Board and the (State) Unorganized
BOARD AND Unorganized Workers' Board Workers' Board be comprised of
THE (STATE) under the previous legislations. eminent professionals in the
UNORGANIZED administration, management,
WORKERS' finance, and labour welfare
BOARD industries. Additionally, it will
oversee programmes for platform
and gig workers' wellbeing.
CONSIDERATIO According to Rule 7 of the EPF Section 24 of the new code on Social
N OF Appellate Tribunal (Procedure) Security states that the Tribunal will
EMPLOYEE’S Rules, the Tribunal will not not consider an employer's appeal
APPEAL consider an employer's appeal until 25% of the outstanding amount
unless the employer has paid a has been deposited with the relevant
Demand Draft payable to the Social Security Organization.
Fund and containing 75% of the
sum owed by him.
 SICKNESS Previous labour regulations did Section 43 of the new code offers
BENEFIT not include an excessive sickness additional costs as a sickness benefit
PROVISION. benefit provision. for unhygienic working conditions in
the plant or in the lodgings arising
due to the owner's negligence.
PROVISIONS Previous labour regulations did Unorganized workers, gig workers,
FOR not include any provisions for platform workers, and their families
UNORGANISED unorganised workers, gig are provided Employees State
WORKERS, GIG workers, or platform workers. Insurance benefits under Section 45
WORKERS, OR of the new code.
PLATFORM

WORKERS

PAYMENT OF According to the Payment of The term for gratuity payment has
GRATUITY Gratuity Act, a working been shortened to three years for
journalist was entitled to working journalists under Section 53
gratuities for a period of five of the new code.
years.
WELFARE Funded Schemes for unorganised Sections 109 and 114 of the new
SCHEMES workers, gig workers and code, established welfare schemes
platform workers were never for these employees at the federal
provided for under the previous and state levels for issues such as the
legislations. protection of life, health, and
accident, education, skill
development, and the supply of old
age homes, among other things.
FACILITATION Previous legislations didn’t Section 112 of the new code outlines
CENTRES provide for helplines, facilitation how to set up a toll-free call centre or
centres, gig workers, or platform helpline to disseminate information
workers. on the social security programmes
that are available, process
registration applications, and support
gig workers, platform workers, and
unorganised workers in obtaining
 registration etc.
INSPECTOR- Under the previous legislation, Section 122 of the new code
CUM- inspectors were responsible for introduced and provided for the
FACILITATORS inspecting where the appointment of Inspector-cum-
establishment is adhering to the Facilitators for the inspection and
compliance. offering recommendations to
employers and employees on how to
comply with this Code.
MAINTENANCE Previous legislations did not Section 123 of the new code
OF RECORDS have extensive provision on mandates the keeping of registers
REGISTERS AND Maintenance of records registers and records for the number of
RETURNS. and returns. days/hours worked by employees,
wages paid, leave paid, wages for
overtime work and attendance,
employees identification number,
number of dangerous occurrences,
accidents, and injuries for which
compensation, statutory deductions
made by an employer from an
employee's wages, information
regarding cess paid in relation to
building and other construction
work, and the overall number of
employees.
LIMITATION Under the EPF Act, there was no As per Section 125 of the new code,
PERIOD provision of a limitation period the limitation period of processes
for determining the sum of and inquiries was set at five years, in
money due from an employer. the event of any dispute or
proceedings for determining
employer dues.
DEFERING OR No provision existed foe In the event of a pandemic, endemic
REDUCTION OF defering or reduction of disease, or a major calamity, Section
CONTRIBUTION Contribution in the previous 144 of the new code allows the
 legislations. Central Government to suspend or
cut employer contributions,
employee contributions, or both for a
period of up to three months at a
time.
MISUSE OF The labour laws did not contain According to Section 148 of the new
BENEFIT any specific provisions for code, if a person misuses a benefit,
misuse of benefits. they will lose that benefit, and the
Provident Fund Scheme, the Pension
Scheme, or the Insurance Scheme
will aid in ascertaining the manner in
which the benefit was misused.

PENALTY
Code on Social Before After
Security, 2020 Fine Imprisonment Fine Imprisonment
Employee’s INR 5,000 INR 50,000
Compensation Act, (max) (max)
1923
Employees’ State INR 4,000 (min) 1-3 years INR 50,000 1-3 years
Insurance Act, INR 10,000 (min)
1948 (max) INR 1,00,000
(max)
The Employees’ INR 4,000 Upto 1 year INR 50,000 1-3 years
provident Funds (max) (min)
and Miscellaneous INR 1,00,000
provisions Act, (max)
1952
The Maternity INR 5,000 Upto 1 year INR 50,000 Upto 6 months
Benefit Act ,1961 (max) (max)
The Payment of INR 10,000 3 months – 1 INR 50,000 Upto 1 year
Gratuity Act, 1972 (min) year (max)
INR 20,000
(max)
The Building and INR 50,000 1-3 years
Other Construction (min)
Workers Welfare INR 1,00,000
Cess Act, 1996 (max)
The Employment INR 5000 (min) INR 50,000
Exchanges INR 1,000 (max)
(Compulsory (max)
Notification of
Vacancies) Act,
1959