SOCIAL SECURITY PLAN FOR WORKERS: GOVERNANCE

SOCIAL SECURITY PLAN FOR WORKERS: GOVERNANCE

NEWS: States-led panels to draft comprehensive social security plan for workers

WHAT’S IN THE NEWS?

The two-day Chintan Shivir of Labour Ministers and Secretaries focused on the implementation of four new Labour Codes, discussing key issues such as social security for workers, utilization of labour cess, welfare of gig and platform workers, and the transition to a labour inspector-cum-facilitator model. Three State-level committees were formed to design a sustainable model for social security, with reports due in March 2025.

1. Formation of Committees for Social Security

  • Three committees comprising five States each were set up.
  • The main objective is to design a sustainable model for comprehensive social security for workers.
  • These committees will submit their reports by March 2025.
  • Focus areas include:
  • Extending social security coverage to gig and platform workers.
  • Ensuring efficient utilization of labour welfare funds.
  • Strengthening the registration of unorganised workers on the eShram portal.

2. Key Reforms Discussed

(a) Transition to the Labour Inspector-cum-Facilitator Model

  • The shift from a labour inspector to a labour inspector-cum-facilitator model was a major reform discussed.
  • Objectives:
  • Reduce compliance burden on businesses.
  • Promote ease of doing business.
  • Ensure better working conditions and improved employee-employer relationships.
  • This change falls under the Industrial Relations Code, 2020.

(b) Welfare of Construction Workers

  • Concerns were raised over ₹70,744.16 crore collected as labour cess but not being fully utilized by State Welfare Boards.
  • States presented their progress in using these funds for:
  • Social security schemes.
  • Educational support and scholarships for workers’ children.
  • Skill development initiatives to enhance employability.
  • Discussions included innovative ways to provide pension benefits to construction workers.

(c) Social Security for Gig and Platform Workers

  • The Ministry of Labour is formulating a dedicated Social Security and Welfare Scheme for gig and platform workers.
  • Key discussions revolved around:
  • Funding mechanisms for the scheme.
  • Data collection and administration.
  • Integration of gig and platform workers into existing social security schemes.
  • States were urged to:
  • Share real-time data of unorganised workers.
  • Register these workers on the eShram portal on a mission mode.

 

3. Overview of the Four Labour Codes

The Government of India consolidated 29 existing labour laws into four simplified Labour Codes to modernize and streamline labour regulations.

(a) Code on Wages, 2019

  • Merges four wage-related laws:
  • Payment of Wages Act, 1936
  • Minimum Wages Act, 1948
  • Payment of Bonus Act, 1965
  • Equal Remuneration Act, 1976
  • Key Features:
  • Introduces a universal minimum wage, covering even unorganised sector workers.
  • Ensures uniform wage provisions across industries and States.
  • Mandates equal pay for equal work, regardless of gender.
  • Empowers the central government to set a national floor wage.

(b) Code on Social Security, 2020

  • Merges nine laws related to social security, including:
  • Employees’ Provident Fund (EPF)
  • Employees’ State Insurance (ESI)
  • Maternity Benefits
  • Gratuity provisions
  • Key Features:
  • Extends social security benefits to gig and platform workers.
  • Establishes a National Social Security Board to frame schemes for unorganised workers.
  • Allows fixed-term employees to be eligible for gratuity.
  • Introduces welfare funds for specific sectors, such as construction and unorganised workers.

(c) Industrial Relations Code, 2020

  • Merges three laws:
  • Industrial Disputes Act, 1947
  • Trade Unions Act, 1926
  • Industrial Employment (Standing Orders) Act, 1946
  • Key Features:
  • Introduces the Labour Inspector-cum-Facilitator Model to simplify compliance.
  • Allows companies with up to 300 workers to lay off employees without government approval (earlier limit was 100).
  • Simplifies procedures for trade union recognition.
  • Encourages negotiation mechanisms for dispute resolution.

(d) Code on Occupational Safety, Health, and Working Conditions (OSH), 2020

  • Merges 13 laws related to occupational safety and working conditions, including:
  • Factories Act, 1948
  • Mines Act, 1952
  • Contract Labour Act, 1970
  • Key Features:
  • Covers all establishments with 10+ workers and all mines and docks.
  • Ensures free health check-ups, proper ventilation, clean drinking water, and first aid.
  • Regulates working hours, leave policies, and night shifts for different worker categories.
  • Mandates appointment of safety officers in hazardous industries.

Source: https://www.thehindu.com/news/national/states-led-panels-to-draft-comprehensive-social-security-plan-for-workers/article69159941.ece