1

Define unorganised workers and discuss the administrative mechanism, its

composition and power under the Unorganised Workers Social Security Act 2008.

Explain the various Central government Schemes provided under the Unorganised
Workers Social Security Act, 2008 to strengthen the unorganised workers.

ABOUT UNORGANIZED WORKERS

➢ There is no scientific definition of the unorganised sector. No attempt was made to define the
word or phrase. However, it had been used to describe what rights or benefits were available or
unavailable to the working class outside the unorganized sector. Alternatively, it was called the
informal sector.

➢ “It was defined as “the group of workers, who cannot be defined by definition but could be
described as those who haven’t been able to organize in pursuit of a common objective because
of constraints.

➢ The Indian economy is characterized by the existence of a vast majority of informal or

unorganised labour employment. As per a survey carried out by the National Sample Survey
Organisation in 2009-10, the total employment in the country was of 46.5cr comprising around
2.8cr in the organised and the remaining 43.7cr workers in the unorganized sector. Out of these
workers in the unorganised sector, there are 24.6cr workers employed in the agricultural sector,
about 4.4cr in construction work and remaining in manufacturing and service.

○ As per the National Sample Survey Organization (NSSO), 30 million workers in India
are constantly on the move (migrant labour) and 25.94 million women workforce has
been added to the labour market from the year 2000 onwards.

➢ The Ministry of Labour, govt of India, has categorised the unorganised labour force into four
groups in terms of occupation, nature of employment, specifically distressed categories and
service categories.

➢ In addition to these 4 categories, there exists a large section of unorganised workers force as
cobblers, hamals, handicrafts artisans, handloom weavers, lady tailors, physically handicapped
self employed persons, rickshaw pullers, auto-drivers, sericulture workers, carpenters, tannery
workers, power loom workers and urban poor.

CHARATERISTICS OF UNORGANISED WORKERS

❖ Due to their large number, unorganized labor is omnipresent throughout India.

❖ Since they work in marginally favourable circumstances, small and marginal farmers,
sharecroppers, and agricultural labourers have no formal employer-employee relationship.

❖ Workplaces are scattered and fragmented.

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❖ The unorganized labor force in rural areas benefits greatly from caste and community
considerations. Although such considerations are considerably less in urban areas, one cannot
say that they are entirely absent, since most of the unorganized workers there come from rural
areas.

❖ Unorganized workers do not receive enough attention from the trade unions.

IMPORTANCE OF SOCIAL SECURITY

➔ A social security development agenda is as crucial as a physical security agenda in improving

human security and ensuring wellbeing. Despite being a socialistic democratic state, India is
committed to providing its citizens with social and economic justice so that democracy can
survive.

◆ Furthermore, the welfare state is to implement the instruments that are provided by the
DPSP that serve as a roadmap into social, economic, and welfare programs intended to
improve working conditions.

➔ Through appropriate organizations, society provides security against certain risks to which its
members are exposed. The risks are essentially contingencies that can't be adequately
addressed by those of low means, even in private partnerships, by their own abilities or
foresight.

➔ The vision is to ensure that members of the community are protected from social risks that
lead to hardships and exploitation of those whose primary resources can rarely support them.

UNORGANISED WORKERS SOCIAL SECURITY ACT, 2008

● In India, almost all social security legislation and schemes fail to cover unorganized workers,
excluding them from the system. As almost 90% of all work force falls into the unorganized
sector, this is a harsh truth for the nation. Despite having meager incomes, these workers are
forced to spend out of their meager earnings on all their needs. In their old age they remain
helpless.

● This led to the need for specific legislation on social security for unorganised workers who are
poor and vulnerable and are in dire need of welfare programs. In light of this, the Unorganised
Workers’ Social Security Act 2008 was enacted to provide social security and welfare to the
unorganised sector.

● For India, this act is important since it defines unorganized workers for the first time, thus
allowing them to be recognized legally. As part of the Act, various welfare schemes provide
workers with some protection and unorganized workers can be registered, as well as the
government is empowered to formulate rules at the state and federal levels.

● The prime objective behind the Act was to provide social security and welfare for unorganized
workers and all matters that are in connection with it. It defines unorganised worker as –self-
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employed worker , home- based worker, or a wage worker in the unorganized sector and also
includes a worker in the organized sector who is not covered by any of the Acts mentioned in
Schedule II to this Act.

ADMINISTRATIVE MECHANISM UNDER ACT

National Social Security Board

The Central Government shall, by notification, constitute a National Board to be known as the
National Social Security Board to exercise the powers conferred on, and to perform the functions
assigned to it under this Act.

Number of nominees for each category, term of office, conditions of service, process to be followed in
the discharge of their duties by, and the process of filling vacancies on, the National Board shall be as
prescribed, while providing that the minority and women sections of the community shall be
adequately represented.

National Board meetings are held at least three times a year, at a prescribed time and place, and
according to its bylaws.

★ Terms

The term of the National Board shall be three years.

★ Composition

The Union Government constitutes the National Social Security Board with-

a. The Union Minister for Labour and Employment as its Chairperson (ex-officio).
b. The Director General as the member secretary, and
c. Members nominated by the Union Government consisting of seven each representing
i. Workers and employers from the unorganized sector,
ii. An eminent person from civil society,
iii. Two members from the House of the People, one member from the Rajya Sabha and
iv. Five each members representing Ministries from the Central and the State
Governments.

★ Functions
○ They give a recommendation to the Union Government about suitable schemes for the
unorganised workers.
○ Advise the Union Government on matters arising out of the administration of the act.
○ To monitor the social security schemes which are formulated for unorganised workers.
○ Review the registration and issue identity cards to the unorganised workers.
○ Review the record of functions performed by the State Government at the state level.
○ Review the expenditure from the funds under various schemes.
○ Undertake another work as assigned by the central government.
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State Social Security Board

The State Government at the state level is empowered to constitute the Social Security Board with the
objective of proper implementation of the Act. Function and Composition of the State Social Security
are the same as the National Social Security Board.

The Social Security Boards, which are entrusted with the responsibility of implementation of the act,
are just advisory in nature and are not empowered to perform many functions except monitoring and
review.

The Boards are not empowered to take decisions on their own. It is up to the Government to accept the
recommendations of the board or not. For effective Implementation of any Act and consistent delivery
of social security rights to the workers, a well-defined administrative mechanism is very essential,
which is missing in the Unorganized Social Security Act itself.

➢ Terms

The term of the State Board shall be three years.

➢ Composition

The State Board shall consist of the following members, namely:—

a. Minister of Labour and Employment of the concerned State- Chairperson, ex-officio;

b. The principal Secretary or Secretary (labour)- Secretary
c. 28 members to be nominated by the state govt, out of whom-
i. 7 representing the unorganized workers and employers each;
ii. 7 representing state govt dept concerned;
iii. 2 representing members from the Legislative Assembly state; and
iv. 5 representing eminent persons from civil society,

➢ Functions
○ Recommend the State Government in formulating suitable schemes for different
sections of the unorganised sector workers;

○ Advise the State Government on such matters arising out of the administration of this
Act as may be referred to it;

○ Monitor such social welfare schemes for unorganised workers as are administered by
the State Government;

○ Review the record keeping functions performed at the District level;

○ Review the progress of registration and issue of cards to unorganised sector workers;

○ Review the expenditure from the funds under various schemes; and
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○ Undertake such other functions as are assigned to it by the State Government from time
to time.

VARIOUS SCHEMES UNDER CENTRAL GOVERNMENT

Section 3- The Central Government shall formulate and notify, from time to time, suitable welfare
schemes for unorganised workers on matters relating to—

(a) Life and disability cover;

(b) Health and maternity benefits;
(c) Old age protection; and
(d) Any other benefit as may be determined by the Central Government.

The schemes included in Schedule 1 to this Act shall be deemed to be welfare schemes.

1. Indira Gandhi National Old Age Pension Scheme.

2. National Family Benefit Scheme.
3. Janani Suraksha Yojana.
4. Handloom Weavers' Comprehensive Welfare Scheme.
5. Handicraft Artisans' Comprehensive Welfare Scheme.
6. Pensions for Master craft persons.
7. National Scheme for Welfare of Fishermen and Training and Extension.
8. Janshree Bima Yojana.
9. Aam Admi Bima Yojana.
10. Rashtriya Swasthya Bima Yojana.

Funding of Central Schemes

Any scheme notified by the Central Government may be—

● Wholly funded by the Central Government; or

● Partly funded by the Central Government and partly funded by the State Government; or
● A portion of the scheme is funded by the Central Government, a portion by the State
Government, and a portion is funded by employers, as determined by the Central Government
in the scheme.
 6

Explain the registration procedure and authorities under the Karnataka Shops and
Commercial Establishment Act, 1961 (+1+1)

Write a note on hours of work and annual leave with wages under the Karnataka Shops
and Commercial Establishment Act, 1961

The Karnataka Shops And Commercial Establishments Act, 1961 is one of the state labour laws
enforced by the Department of Labour. This act is valid all over the state of Karnataka from the date
notified by the state government. The Act is enacted for the purpose of protecting the rights of
employees.

The Act provides regulations on the payment of wages, terms of services, work hours, rest intervals,
overtime work, opening and closing hours, closed days, holidays, leaves, maternity leave and benefits,
work conditions, rules for employment of children, records maintenance, etc.

DEFINITIONS

According to this act, the “Commercial Establishment” means

1. Commercial
2. Trading
3. Banking
4. Insurance Company
5. An Establishment or Administrative services.
6. The State government can also declare a specific space as a commercial establishment
under this Act.
A ‘Shop’ is defined by the Act as any premises or location where a business is conducted where
consumers are served. The term includes offices, storerooms, godowns, warehouses, etc. It can take
place on the same premises or elsewhere. An employee who works in a factory attached to a
commercial or shop does not fall under the scope of 1948's Factories Act.

SALIENT FEATURES OF THE ACT

1. Hours of operation

According to this act, each state employee must work nine hours per day or 48 hours per week. It
mandates employees to pay overtime wages twice as much as normal wages to those who work
overtime.

2. Employment of women and children

The Act prohibits companies from employing children under 14 years of age. It also prohibits night
shift for women employees or young persons between the age of 14 and 18 years. Information
technology (IT) or biotech companies that require women employees to work at night are required to
obtain special permission from authorities.
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3. Weekly holidays

Establishments are required to close for a minimum of one day a week to provide employees with a
day off. However, the provision does not apply to medical shops, general stores, theaters, petrol bunks,
lodges, hotels, clubs, hostels, and companies providing IT or biotechnology services.

4. Annual leave with wages

In Karnataka, every employee is entitled to a leave with wages of one day for every twenty days
worked. There is a more relaxed provision for young workers, who are provided with a day of leave
with wages for every fifteen days they have worked.

REGISTARTION

1. Each owner, within 30 days of starting the business shall submit an application form in ‘Form
A’ to register the establishment.

2. Registration certificate must be displayed in a visible place inside the office premises.

3. Registration certificate is valid for a period of five (05) years. Before the expiry of the period,
renewal applications to be submitted for the next period.

4. It shall be the duty of an employer to notify the registration authority, in the prescribed form,
any change with respect to any information contained in his statement during
registration/renewal within 15 days after the change. Ex. Change in address, change in
ownership, change in number of employees, etc.

5. After closing the business of the establishment, the owner should surrender the registration
certificate to the registration authority.

Documents required for registration

For registration, the applicant must fill up details of the company in form-A, and submit it along with
the following supporting documents:
1. Commercial address proof;
2. Identity proof and permanent account number (PAN) card copy of proprietor, partners or
directors;
3. PAN copy of the entity;
4. Registration documents such as a partnership deed or memorandum of association (MOA) of
the company; and
5. Fee payment challans.
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BENEFITS OF REGISTRATION

The establishment -

➔ Will have a legal identity to conduct business in the territory.

➔ Can avail benefits under various Government schemes.
➔ Can operate business bank accounts.

EXEMPTIONS FROM REGISTARTION

The organizations that are exempted from registration under this Act are:

➔ Offices of, or under the central or state Government, or local authorities, except commercial
undertakings.
➔ Any railway service, water transport service, postal, telegraph or telephone service, any system
of public conservation or sanitation or any industry, or services like water, power, light to the
public.
➔ Railway dining cars .
➔ Establishments for the treatment or care of the handicapped or mentally unfit.
➔ Establishments of the food corporation of India.
➔ Offices of legal practitioners and medical practitioners in which not more than 3 persons are
employed.
➔ Offices of the bank.
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Write a note on the objectives of the Special Economic Zones Act, 2005. (SHORT NOTE)

INTRODUCTION

➔ Special Economic Zones (SEZs) are specially earmarked geographical zones, which can be
developed by a private sector or public sector developer or in a public private partnership
(PPP) model.

➔ The rules and regulations governing operations in these zones differ from those governing
others in the country. Neither pre-determined value addition nor export performance standards
apply to the units in the SEZs. Among the approved industrial units are banks, insurance
companies, etc.

➔ In India, SEZs are modified versions of earlier export processing zones. SEZs became legal in
2005 after the SEZ Act was passed, which formalized the policy introduced in April 2005. On
February 9, 2006, the Act became effective.

➔ It is possible for a state to have more than one special economic zone, and the manufacturing
unit has the freedom to establish in any SEZ in any state. State governments must frame bold
policies and build world-class infrastructure to attract industry to the zone.

➔ The SEZ Act includes "India specific" rules, allowing for dramatic simplification of
procedures and single window clearances on matters involving the Central and State
governments along with 15-year income tax exemptions. In addition, they make provisions for
multi-product and product-specific zones, as well as services sector SEZs.

Objectives of SEZ

In an era of intense competition for markets and investment, SEZs attract export-oriented foreign
direct investment and develop industrial skills and resources to successfully compete in the
international economy.

Special Economic Zones aim to promote export-led growth by providing goods and services free from
taxes and duties, providing an integrated infrastructure for export production, expediting the approval
process for foreign investments, and offering incentives to attract international and domestic
investments.

THE ACT IN A NUTSHELL

The Special Economic Zones Act consists of 58 sections divided into VIII chapters and Three
Schedules.

1. Chapter I enlists the definitions of the several terms used in the Act including the term special
economic zone. In a nutshell, the SEZ Act, 2005 has three defining features.
a. Firstly it outlines the process of setting up a SEZ in Chapter II and III;
b. Secondly it deals with the functioning of SEZs and
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c. Thirdly it outlines the benefits enjoyed by the developers and functioning units of
SEZs.
2. Chapter II deals with setting up a special economic zone.

3. Chapter III deals with the Constitution of the board of approval.

4. Chapter IV explains the functions of the Development Commissioner.

5. Chapter V deals with special benefits for developers like Single Window Clearance. Special
Fiscal Provisions for Special Economic Zones are laid down in

6. Chapter VI and Chapter VII deals with the Special Economic Zone Authority and the
concluding

7. Chapter VIII is titled Miscellaneous.

OBJECTIVES OF THE ACT

➔ The Special Economic Zones Act, 2005, provides the legal framework for establishment of
Special Economic Zones and also for units operating in such zones.

➔ The Special Economic Zones Act, 2005 has been enacted with the major objective of
generation of additional economic activity, promotion of export of goods and services,
investment from domestic and foreign sources and creation of employment opportunities.

➔ This Act is unique as it helps in ‘backward and forward’ linkages of the economy.

➔ Following are the prominent features of the Act-

◆ Matters relating to establishment of Special Economic Zone and for setting up of units
therein, including requirements, obligations and entitlements;

◆ Matters relating to requirements for setting up of off-shore banking units and units in
International Financial Service Center in Special Economic Zone, including fiscal
regime governing the operation of such units;

◆ The fiscal regime for developers of Special Economic Zones and units set up therein;

◆ Sigle window clearance mechanism at the zone level

◆ Establishment of an Authority for each Special Economic Zone set up by the Central
Government to impart greater administrative autonomy; and

◆ Designation of special courts and a single enforcement agency to ensure speedy trial
and investigation of notified offences committed in Special Economic Zones.

Explain implications of the new ease of doing business with Indian Policy upon Labour
matters. Not so important ref guide