The Code On Social Security, 2020

Introduction

 

The Code on Social Security, 2020 is a code to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors. 

The Social Security Code, 2020 brings unorganised sector, gig workers and platform workers under the ambit of social security schemes, including life insurance and disability insurance, health and maternity benefits, provident fund, etc. The Act amalgamates nine central labour enactments relating to social security. 

Key Highlights

  • New Category of workers have been included under this code ( i.e. Gig workers, Platform work and Unorganized worker) and discussed on their social security benefits.
  • The Code on Social Security Bill extends social security funds to workers for app-based firms.
  • Renamed the designation of Inspector as Inspector cum Facilitator who is expected to supply information and give advice to employers and  workers concerning the most effective means of complying with the provisions of the proposed Code.
  • Modified the definition of ‘wages’ and divided definition in three parts for easy calculation.
  • Effort have been made to provide right to health security under ESIC to maximum possible workers.
  • Establishments working in hazardous sectors would mandatorily be linked with ESIC, even if there is only one worker working in it.
  • If any employer fails to pay ESI contributions, even then ESI has to pass on the benefits to the employee which ESIC can recover it from the employer to the extent of the capitalised value of the benefit net of any payment of contribution amount, interest and damages payable by the employer.
  • No Exemption under EPFO and the coverage would be applicable on ALL establishments having 20 and above number of workers.
  • Increase in penalty and term of imprisonment under EPFO.
  • Provision for Gratuity has been made for ‘Fixed Term Employee’ and there would not be any condition for minimum service period to avail the benefits.
  • The threshold Gratuity period for working journalists reduces from five years to three years.
  • it has been made mandatory for all establishments with 20 or more workers to report the vacancy position in their establishments. This information would be given on online portal.
  • Every woman is entitled for Medical Bonus of up to Rs 3,500/- where pre-natal confinement and post-natal care is not provided by employer whose upper limit can be amend by the Central government upto Rs 20000/-, this upper limit of Rs 20000/- has been removed under the code.

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