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.
 MEANING AND DEFINITION
● Sir William Beveridge defines Social Security as, "The security of an income to take
place of the earnings when they are interrupted by unemployment, by sickness or
accident to provide for retirement through age, to provide against the loss of support by
the death of another person and meet exceptional expenditure, such as those connected
with birth, death and marriage.
● The International Labour Organization defines social security as 'security that society
furnishes through appropriate organizations against certain risks to which its members
are exposed", i.e., the security si furnished by society, to the members of the society.
● According to the National Commission on Labour, the concept of social security is based on the ideas of
human dignity and social justice. According to the Commission the underlying idea behind social security
measures is that a citizen who has contributed or is likely to contribute to his country's welfare, should be
given protection against certain hazards.
● According to the National Council on Labour also, social security envisages that the members of the
community shall be protected by collective action against social risks causing undue hardships and
privation to individuals whose private resources can seldom be adequate to meet them. Individuals
working in various fields and in different capacities contribute towards the enrichment of society and ni
turn 'deserve to be taken care of, in times, when calamity befalls them'.
 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
 EVOLUTION ON SOCIAL SECURITY LAWS

The Indian Social Security Schemes for organized sector have been influenced by these factors:

● British policy to raise labour cost in the established industries.

● A policy of corporate paternalism leading to a variety of benefits like promoting loyalty of employees
● nI the post-independence era, the emergence of the welfare state concept which has led to a series of
welfare and protective legislations based on relevant international labour standards.
● Many of the social security and welfare measures became statutory obligation of employers.
● Due to rapid industrialization there was a need to promote the commitment to work force for
industrial and urban life.

In India due to rapid industrialization anew class of Industrial proletariat was created, having a rural
background and with very little social and material resources. For them there was a great need of
systematized help through social security agencies. The non-industrial classes were also ni urgent need of
social security due to industrialization in 19th Century.
 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.