Labour Law - II

Raveena R Nair
Varsha KS
Conceptual Framework on Social Security

INTRODUCTION

● Social security defined as measures providing protection to working class against contingencies like
retirement, resignation, retrenchment, maternity, old age, unemployment, death, disablement and other
similar conditions.
● ILO Convention on Social Security also provide a social security rights to the workers (ratified in India in
1964).
● A social security division has also been set up under the Ministry of Labour and Employment which
mainly focuses on framing policies for social security.
 Concept of Social Security

● There is no any particular definition of social security.

● It follows the different economic policies laid down by the government.
● Social security improves the standard of life of workers.
● Social security is a measure of income maintenance or income security.
● It is a safety provided by the society against risks, natural calamities, social or economic depression.
● To give individuals and families the confidence that their level of living and quality of life will not erode by social or economic
eventuality.
● To provide medical care and income security against the consequences of defined contingencies
● To facilitate the victims physical and vocational rehabilitation
● To prevent or reduce ill health and accidents in the occupations
● To protect against unemployment by maintenance and promotion of job creation
● To provide benefit for the maintenance of any children
 Constitutional Framework on Social Security
The development of social security laws in India traces its roots to the era of Dr. Babasaheb Bhim Rao Ambedkar, India's
inaugural Labour Minister. Dr. Ambedkar spearheaded significant reforms, including reducing working hours from 14 to 8,
introducing worker insurance, establishing the Employees Provident Fund Law, and amending the Workmen’s
Compensation Act, 1923, and the Factories Act, 1934. His enduring efforts continue to illuminate the path for future
advancements.

Article 43 of the Constitution of India talks about the responsibility of the state to provide social security to the citizens of
this country by effective legislation, economic organizations or in any other appropriate way to all workers, industries, a
living wage, a decent standard of living, time for leisure and social and cultural opportunities. Social Security policies
cover various types of social insurance, maternity benefits, pensions, gratuity, disability benefits, etc
The scope of social security for both organised and unorganised workers is very wide. It includes but is not limited to, the
concepts of :

● Medical care is provided by health insurance, sickness benefits, and employment injury benefits under Workmen
Compensation Act of 1923 and Employees State Insurance Act of 1948.
● Older people receive benefits under the National Pension Scheme and National Social Assistance Programme.
● Maternity Benefits Under the Maternity Benefit Act of 1961, providing prenatal and postnatal care and
hospitalisation if required is a legal provision under the Act. A fixed periodical payment for six months of
maternity leave is compulsory and an additional leave can be taken without remuneration if required. Work from
home facilities and opportunities also help pregnant women continue their work with ease
 ● Family benefits, including health insurance and gratuity in case of death of bread earners in the family and
facilities for the wives and children of deceased persons, are provided.
● Survivor’s benefit- refers to the benefits to the affected family in form of periodical payments to a family
following the death of a breadwinner and continues during the entire period of contingency.

Indian legislations on social security

● Workmen Compensation Act of 1923- This Act, later renamed the Employees Compensation Act of 1923,
provides compensation for losses brought on by accidents or occupational diseases occurring during the course of
and arising from employment, including death, permanent total disability, permanent partial disability and
temporary disability. It provides compensation based on the seriousness of the injury suffered while performing
duty.
● The Employees State Insurance Act of 1948- This Act created a fund to provide medical care to employees and families, as
well as cash benefits during sickness and maternity and monthly payments in case of death or disability for those working in
establishments with ten or more employees.
● Maternity Benefit Act of 1961- Article 42 of the Indian Constitution, confers duty on the state to guarantee just and humane
working conditions and maternity leave. This Act was passed to ensure social justice for female workers. The Act was
amended in 2017 and increased some of the key benefits. The amended law provides women in the organised sector with paid
maternity leave of 26 weeks. India now has the third most maternity leave in the world, following Canada and Norway.
● The Payment of Gratuity Act of 1972- Gratuity is a lump sum amount paid by a company. The Act directs establishments with
ten or more employees to provide 15 days of additional wages each to employees who have worked for five years or more.
● The Code on Social Security, 2020- The Code replaces nine existing laws relating to social security, including
the Employees’ Provident Funds and Miscellaneous Provision Act, 1952 and the Employees’ State Insurance Act,
1948. The Act was introduced as a light of good hope towards this unregulated industry as it covers employees in
both organised and unorganised sectors, provides for retirement provision , provident fund, life and disability
insurance, healthcare and unemployment benefits, sick pay and leaves, and paid parental leaves. The Code aims
to improve the portability of social security benefits. It provides creation of a unique portable number for all
workers, which will be linked to their Aadhaar number, helping them to avail of social security benefits from any
part of the country. Furthermore, the Social Security Code also provides discretionary power to the Central
Government and state governments to formulate schemes for the benefit of gig workers, self employed and other
industrial labourers. Some of the existing social security policies in India are EPFO, National Pension Scheme,
National Social Assistance Programme, etc.