CS Meenakshi Jayaraman
Code on Social Security, 2020
Part I
2
Credits and Acknowledgments
Iswariya BS
3
Legends used in the Presentation
CG Central Government
Code Code on Social Security
CSR Corporate Social Responsibility
Govt. Government
SG State Government
SSO Social Security Organisation
4
Presentation Schema
Framework of Code on Social
Security, 2020
Social Security Organisations
Employees Provident Fund
Employees State Insurance
Corporation
Framework of
Code on Social Security, 2020
5
6
Code on Social Security, 2020 is an Act 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 / unorganised or any other
sectors and for matters connected therewith or incidental thereto
Applicability of the code - To whole of India
Lok Sabha passed
the bill on 22nd
September, 2020
Rajya Sabha passed
the bill on 23rd
September, 2020
Received
President’s assent
on 28th September,
2020
Statutes repealed
7
The Employees Exchange (Compulsory
Notification of Vacancies) Act, 1959
The Employees State Insurance Act, 1948
The Employees Provident Fund and
Miscellaneous Provisions Act, 1952
The Maternity Benefit Act, 1961
The Employees Compensation Act, 1923
The Building and Other Construction
Workers Cess Act, 1996
The Payment of Gratuity Act, 1972
The Cine Workers Welfare Fund Act, 1981
The Unorganized Workers’ Social Security
Act, 2008
8
Chapters of the Act
I- Preliminary
II- Social Security Organisation
III- Employees Pension Fund
IV- Employees State Insurance Corporation
V- Gratuity
VI- Maternity benefit
VII- Employees’ Compensation
VIII- Social security and cess in respect of
building & other construction workers
IX- Social Security for unorganised workers
X- Finance & accounts
XI- Authorities, assessment, compliance &
recovery
XII- Offences & penalties
XIII- Employment information & monitoring
XIV- Miscellaneous
9
Registration & Cancellation of registration
• Establishments that are already registered under any Central labour law shall be
deemed to be registered under the Code
• New establishments can register under the Code either electronically or
otherwise
• Establishments to which Chapter III (Employees’ Provident Fund) / Chapter IV
(Employees’ state Insurance Corporation) applies and its business activities are
in process of closure, can make application for cancellation of registration as per
the procedure laid down in the Code
Definitions
10
Contractor in relation to an establishment means a person, who—
(i) undertakes to produce a given result for the establishment, other than a mere
supply of goods or articles of manufacture to such establishment through contract
labour; or
(ii) supplies contract labour for any work of the establishment as mere human
resource, and includes a sub-contractor
Contribution means the sum of money payable by the employer, under this Code, to
the Central Board and to the Corporation, as the case may be, and includes any
amount payable by or on behalf of the employee in accordance with the provisions
of this Code
Contd.
11
Establishment means—
(a) a place where any industry, trade, business, manufacture or occupation is
carried on; or
(b) a factory, motor transport undertaking, newspaper establishment, audio visual
production, building and other construction work or plantation; or
(c) a mine, port or vicinity of port where dock work is carried out
Gig worker means a person who performs work or participates in a work
arrangement and earns from such activities outside of traditional employer-
employee relationship
Contd.
12
Social security means the measures of protection afforded to employees,
unorganised workers, gig workers and platform workers to ensure access to health
care and to provide income security, particularly in cases of old age, unemployment,
sickness, invalidity, work injury, maternity or loss of a breadwinner by means of
rights conferred on them and schemes framed, under this Code
Unorganised worker means a home-based worker, self-employed worker or a wage
worker in the unorganised sector & includes a worker in organised sector who is not
covered by Industrial Disputes Act, 1947 or Chapters III to VII of this Code.
Platform work means a work arrangement outside of a traditional employer
employee relationship in which organisations or individuals use an online platform
to access other organisations or individuals to solve specific problems or to provide
specific services or such other activities which may be notified by the Central
Government, in exchange for payment
Platform worker means a person engaged in or undertaking platform work
Chapter II-Social Security Organisations (SSO)
13
14
• Board of trustees of Employees’ Provident Fund – known as Central Board
• Function - Administration of fund
• Authority - CG
• Employees State Insurance Corporation – known as Corporation
• Standing Committee shall administer the affairs of the Corporation and submit such cases
and matters for consideration & decision of the Corporation
• Authority- CG
• Medical Benefit Committee
• Function - To assist the Corporation
• Authority - CG
Functions & procedure of SSO
15
All the 5 Social Security Organisations will be collectively referred as Organisations
• “State name” Building & Other Construction Workers’ Welfare Board
• Authority- SG
• Members of the Board – atleast 1 member shall be woman
• Functions: To provide death & disability benefits; pay pension; pay premium for Group
Insurance Scheme; meet medical expenses; pay maternity benefits; provide transit
accommodation / hostile facility; frame skill development and awareness schemes for
beneficiaries and make provision and improvement of such other welfare measures and
facilities as prescribed by CG
• National Social Security Board – CG
• “State name” Unorganised Workers Social Security Board- SG
• Function – for framing suitable schemes & monitoring such social welfare schemes for
unorganised workers, gig workers & platform workers
• Members of the Board – Adequate representation shall be given to persons belonging to
Scheduled Castes, Scheduled Tribes, Minorities & Women
16
Disqualification / Removal – When a member of SSO falls under the criteria as specified in the
Code, he will disqualified to act as a member / removed from the office
Supersession of Organisation- If it is unable to perform its functions / persistently made delay
in discharging its functions / exceeded or abused its powers or jurisdiction then, appropriate
Govt. may by notification after giving an opportunity to show cause as to why it should not be
superseded, supersede and take appropriate action thereon
Additionally, the CG may by notification constitute State Boards for State after consultation
with SG for performing such functions as may be assigned to it by CG from time to time
Procedure – Organisations shall meet at such intervals to observe the transaction of business
for performing their functions as specified by the appropriate Govt.
Chapter III- Employees’ Provident Fund
17
18
Employees’ Provident Fund Organisation- means an organisation consisting of officers and
employees of the Central Board
Concept of deemed wages
Wages - means all remuneration, whether by way of salaries, allowances or otherwise,
expressed in terms of money or capable of being so expressed which would, if the terms of
employment, express or implied, were fulfilled, be payable to a person employed in
respect of his employment or of work done in such employment and includes and excludes
certain payments
Where an employee is given remuneration in kind in lieu of whole or part of the
wages payable to him, value of such remuneration as does not exceed 15% of the
total wages payable to him, shall be deemed to be wages
19
Schemes
Pension Scheme:
Contribution by the Employer: not exceeding 8 and 1/3% of wages or such per
cent of wages as may be notified by CG
Insurance Scheme:
Contribution by the Employer: not more than 1% of wages or such per cent of wages
as may be notified by CG and for meeting all expenses for administration of the
Insurance Scheme not exceeding 1/4th of the contribution made
Provident Fund Scheme:
Contribution by Employer: 10% of wages paid to the employee
Contribution by Employee: equal to the contribution made by the employer / more
amount, if the employee desires
Recovery of amount from Contractor
20
Where any amount is contributed (by the employer / employee)
towards any scheme for an employee who is employed by or
through a contractor, contribution may be recovered by such
employer form the contractor
In turn, the contractor may recover the funds from an employee,
to the extent of employees’ contribution and he shall not deduct
the employer’s contribution from the wages payable to the
employee
Chapter IV – Employees State Insurance
Corporation
21
22
Employees State Insurance Fund shall be administered by Employees State Insurance
Corporation
All contributions and user charges paid under this Chapter and all other moneys
received on behalf of the Corporation shall be paid into the fund
Corporation may accept grants, donations, CSR fund and gift from CG / SG / local
authority / individual / any body corporate whether incorporated or not
23
Utilisation of Fund
payment of benefits and provision of medical treatment and attendance to Insured
Persons
payment of fees and allowances to members of the Corporation, the Standing
Committee, the Medical Benefit Committee or other Committees
payment of salaries, leave and joining time allowances, travelling and compensatory
allowances, gratuities and compassionate allowances, pensions, contributions to
provident or other benefit fund of officers and staff of the Corporation and meeting
the expenditure in respect of offices and other services
The fund can be utilised only for the following purposes-
24
Contd.
establishment and maintenance of hospitals, dispensaries and other institutions and the
provision of medical and other ancillary services for the benefit of Insured Persons
payment of contribution to SG, local authority or any private body or individual,
towards the cost of medical treatment and attendance provided to Insured Persons
defraying the cost (including all expenses) of auditing the accounts of the
Corporation and of the valuation of its assets and liabilities
defraying the cost (including all expenses) of the Employees' Insurance Courts set up
under this Chapter
payment of any sums under any contract entered into for the purposes of this Code by
Corporation or the Standing Committee or by any officer duly authorized by the
Corporation or the Standing Committee in that behalf;
25
Contd.
payment of sums under any decree, order or award of any Court or Tribunal against
the Corporation or any of its officers or staff for any act done in the execution of his
duty or under a compromise or settlement of any suit or other legal proceeding or
claim instituted or made against the Corporation
defraying the cost and other charges of instituting or defending any civil or
criminal proceedings arising out of any action taken under this Code relating to
this Chapter
defraying expenditure, within the limits prescribed by the Central Government after
consultation with the Corporation, on measures for the improvement of the health
and welfare of Insured Persons and for the rehabilitation and re-employment of
Insured Persons who have been disabled or injured and such other purposes with
the prior approval of CG
26
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Code on Social Security, 2020-Part I

  • 1.
    CS Meenakshi Jayaraman Codeon Social Security, 2020 Part I
  • 2.
  • 3.
    3 Legends used inthe Presentation CG Central Government Code Code on Social Security CSR Corporate Social Responsibility Govt. Government SG State Government SSO Social Security Organisation
  • 4.
    4 Presentation Schema Framework ofCode on Social Security, 2020 Social Security Organisations Employees Provident Fund Employees State Insurance Corporation
  • 5.
    Framework of Code onSocial Security, 2020 5
  • 6.
    6 Code on SocialSecurity, 2020 is an Act 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 / unorganised or any other sectors and for matters connected therewith or incidental thereto Applicability of the code - To whole of India Lok Sabha passed the bill on 22nd September, 2020 Rajya Sabha passed the bill on 23rd September, 2020 Received President’s assent on 28th September, 2020
  • 7.
    Statutes repealed 7 The EmployeesExchange (Compulsory Notification of Vacancies) Act, 1959 The Employees State Insurance Act, 1948 The Employees Provident Fund and Miscellaneous Provisions Act, 1952 The Maternity Benefit Act, 1961 The Employees Compensation Act, 1923 The Building and Other Construction Workers Cess Act, 1996 The Payment of Gratuity Act, 1972 The Cine Workers Welfare Fund Act, 1981 The Unorganized Workers’ Social Security Act, 2008
  • 8.
    8 Chapters of theAct I- Preliminary II- Social Security Organisation III- Employees Pension Fund IV- Employees State Insurance Corporation V- Gratuity VI- Maternity benefit VII- Employees’ Compensation VIII- Social security and cess in respect of building & other construction workers IX- Social Security for unorganised workers X- Finance & accounts XI- Authorities, assessment, compliance & recovery XII- Offences & penalties XIII- Employment information & monitoring XIV- Miscellaneous
  • 9.
    9 Registration & Cancellationof registration • Establishments that are already registered under any Central labour law shall be deemed to be registered under the Code • New establishments can register under the Code either electronically or otherwise • Establishments to which Chapter III (Employees’ Provident Fund) / Chapter IV (Employees’ state Insurance Corporation) applies and its business activities are in process of closure, can make application for cancellation of registration as per the procedure laid down in the Code
  • 10.
    Definitions 10 Contractor in relationto an establishment means a person, who— (i) undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment through contract labour; or (ii) supplies contract labour for any work of the establishment as mere human resource, and includes a sub-contractor Contribution means the sum of money payable by the employer, under this Code, to the Central Board and to the Corporation, as the case may be, and includes any amount payable by or on behalf of the employee in accordance with the provisions of this Code
  • 11.
    Contd. 11 Establishment means— (a) aplace where any industry, trade, business, manufacture or occupation is carried on; or (b) a factory, motor transport undertaking, newspaper establishment, audio visual production, building and other construction work or plantation; or (c) a mine, port or vicinity of port where dock work is carried out Gig worker means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer- employee relationship
  • 12.
    Contd. 12 Social security meansthe measures of protection afforded to employees, unorganised workers, gig workers and platform workers to ensure access to health care and to provide income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner by means of rights conferred on them and schemes framed, under this Code Unorganised worker means a home-based worker, self-employed worker or a wage worker in the unorganised sector & includes a worker in organised sector who is not covered by Industrial Disputes Act, 1947 or Chapters III to VII of this Code. Platform work means a work arrangement outside of a traditional employer employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or such other activities which may be notified by the Central Government, in exchange for payment Platform worker means a person engaged in or undertaking platform work
  • 13.
    Chapter II-Social SecurityOrganisations (SSO) 13
  • 14.
    14 • Board oftrustees of Employees’ Provident Fund – known as Central Board • Function - Administration of fund • Authority - CG • Employees State Insurance Corporation – known as Corporation • Standing Committee shall administer the affairs of the Corporation and submit such cases and matters for consideration & decision of the Corporation • Authority- CG • Medical Benefit Committee • Function - To assist the Corporation • Authority - CG Functions & procedure of SSO
  • 15.
    15 All the 5Social Security Organisations will be collectively referred as Organisations • “State name” Building & Other Construction Workers’ Welfare Board • Authority- SG • Members of the Board – atleast 1 member shall be woman • Functions: To provide death & disability benefits; pay pension; pay premium for Group Insurance Scheme; meet medical expenses; pay maternity benefits; provide transit accommodation / hostile facility; frame skill development and awareness schemes for beneficiaries and make provision and improvement of such other welfare measures and facilities as prescribed by CG • National Social Security Board – CG • “State name” Unorganised Workers Social Security Board- SG • Function – for framing suitable schemes & monitoring such social welfare schemes for unorganised workers, gig workers & platform workers • Members of the Board – Adequate representation shall be given to persons belonging to Scheduled Castes, Scheduled Tribes, Minorities & Women
  • 16.
    16 Disqualification / Removal– When a member of SSO falls under the criteria as specified in the Code, he will disqualified to act as a member / removed from the office Supersession of Organisation- If it is unable to perform its functions / persistently made delay in discharging its functions / exceeded or abused its powers or jurisdiction then, appropriate Govt. may by notification after giving an opportunity to show cause as to why it should not be superseded, supersede and take appropriate action thereon Additionally, the CG may by notification constitute State Boards for State after consultation with SG for performing such functions as may be assigned to it by CG from time to time Procedure – Organisations shall meet at such intervals to observe the transaction of business for performing their functions as specified by the appropriate Govt.
  • 17.
    Chapter III- Employees’Provident Fund 17
  • 18.
    18 Employees’ Provident FundOrganisation- means an organisation consisting of officers and employees of the Central Board Concept of deemed wages Wages - means all remuneration, whether by way of salaries, allowances or otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and includes and excludes certain payments Where an employee is given remuneration in kind in lieu of whole or part of the wages payable to him, value of such remuneration as does not exceed 15% of the total wages payable to him, shall be deemed to be wages
  • 19.
    19 Schemes Pension Scheme: Contribution bythe Employer: not exceeding 8 and 1/3% of wages or such per cent of wages as may be notified by CG Insurance Scheme: Contribution by the Employer: not more than 1% of wages or such per cent of wages as may be notified by CG and for meeting all expenses for administration of the Insurance Scheme not exceeding 1/4th of the contribution made Provident Fund Scheme: Contribution by Employer: 10% of wages paid to the employee Contribution by Employee: equal to the contribution made by the employer / more amount, if the employee desires
  • 20.
    Recovery of amountfrom Contractor 20 Where any amount is contributed (by the employer / employee) towards any scheme for an employee who is employed by or through a contractor, contribution may be recovered by such employer form the contractor In turn, the contractor may recover the funds from an employee, to the extent of employees’ contribution and he shall not deduct the employer’s contribution from the wages payable to the employee
  • 21.
    Chapter IV –Employees State Insurance Corporation 21
  • 22.
    22 Employees State InsuranceFund shall be administered by Employees State Insurance Corporation All contributions and user charges paid under this Chapter and all other moneys received on behalf of the Corporation shall be paid into the fund Corporation may accept grants, donations, CSR fund and gift from CG / SG / local authority / individual / any body corporate whether incorporated or not
  • 23.
    23 Utilisation of Fund paymentof benefits and provision of medical treatment and attendance to Insured Persons payment of fees and allowances to members of the Corporation, the Standing Committee, the Medical Benefit Committee or other Committees payment of salaries, leave and joining time allowances, travelling and compensatory allowances, gratuities and compassionate allowances, pensions, contributions to provident or other benefit fund of officers and staff of the Corporation and meeting the expenditure in respect of offices and other services The fund can be utilised only for the following purposes-
  • 24.
    24 Contd. establishment and maintenanceof hospitals, dispensaries and other institutions and the provision of medical and other ancillary services for the benefit of Insured Persons payment of contribution to SG, local authority or any private body or individual, towards the cost of medical treatment and attendance provided to Insured Persons defraying the cost (including all expenses) of auditing the accounts of the Corporation and of the valuation of its assets and liabilities defraying the cost (including all expenses) of the Employees' Insurance Courts set up under this Chapter payment of any sums under any contract entered into for the purposes of this Code by Corporation or the Standing Committee or by any officer duly authorized by the Corporation or the Standing Committee in that behalf;
  • 25.
    25 Contd. payment of sumsunder any decree, order or award of any Court or Tribunal against the Corporation or any of its officers or staff for any act done in the execution of his duty or under a compromise or settlement of any suit or other legal proceeding or claim instituted or made against the Corporation defraying the cost and other charges of instituting or defending any civil or criminal proceedings arising out of any action taken under this Code relating to this Chapter defraying expenditure, within the limits prescribed by the Central Government after consultation with the Corporation, on measures for the improvement of the health and welfare of Insured Persons and for the rehabilitation and re-employment of Insured Persons who have been disabled or injured and such other purposes with the prior approval of CG
  • 26.
    26 Thank You! Scan theQR Code to Join our Research Group on WhatsApp Scan the QR Code to explore more Research from our Website DVS Advisors LLP India-Singapore-London-Dubai-Malaysia-Africa www.dvsca.com Copyrights © 2020 DVS Advisors LLP