Social security and its relevance under the labour legislation in india

1. Social Security and its Relevance
Under The Labour Legislation in
India
Sharlet Abraham
Roll No 54
7th Sem BA

2. INTRODUCTION
 Social Security refers to the programs, policies, and practices
designed to protect individuals from economic and social risks
that may arise during their lives, including old age, disability,
unemployment, and illness.
 In India, Social Security is governed by a range of laws and
regulations that are designed to protect the interests of workers
and ensure that they are provided with adequate social security
benefits.
 The concept of social security in India can be traced back to the
early 20th century when the first factory act was passed in 1881.
Since then, a number of legislations have been enacted to
safeguard the interests of workers and provide them with social
security benefits.

3. VARIOUS LABOUR LEGISLATIONS AND SOCIAL
SECURITY
Under the labour legislation in India, social security measures are
provided to workers in various forms. These include pensions, health
insurance, disability benefits, maternity benefits, and gratuity.
1. The Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952.
 One of the most important and primary pieces of legislation that
governs Social Security in India is the Employees’ Provident Fund and
Miscellaneous Provisions Act, 1952. This Act establishes a
comprehensive system of social security benefits for employees in
India.
 It mandates the establishment of the Employees’ Provident Fund
(EPF), which is a retirement benefit scheme that covers employees
in certain sectors such as factories, mines, and plantations.

4.  Under this Act, employers are required to contribute a portion of their
employees’ salaries to the Employees’ Provident Fund, which is then
managed by the Employees’ Provident Fund Organisation (EPFO).
 The EPF provides a lump sum amount to employees on retirement,
which acts as a social security net for them in their old age.
 The EPFO is responsible for administering the Employees’ Provident
Fund, as well as other social security schemes such as the Employee
Pension Scheme and the Employees’ Deposit-Linked Insurance Scheme.
These schemes provide retirement benefits, pension benefits, and
insurance benefits to employees in the event of death or disability.
In Regional Provident Fund Commissioner and others v. A.B.S. Spinning
Orissa Ltd. And another (2009), the question for determination was
whether holding company was liable to pay Provident Fund dues of its
subsidiary company or not.
It was held that there is nothing on record to show that the holding
company is liable for the recovery of Provident Fund dues of its subsidiary
company. The holding company is not liable because the subsidiary
company has an independent existence as against the holding company.

5. 2. The Employees’ State Insurance Act, 1948
 The act provides for medical facilities, cash, maternity, disability,
health, sickness and dependent benefits to workers in the organized
sector earning less than a certain amount.
 The scheme is administered by the Employees’ State Insurance
Corporation (ESIC), and both the employer and employee contribute
a percentage of the employee’s salary towards the fund.
In Balchandra Agrawal & anr v. UOI & others (2004), the petitioner’s
firm was registered under the West Bengal Shops and Establishments
Act, 1963 as a commercial establishment. The Employees’ State
Insurance Act, 1948 was made applicable to the firm which was
challenged by it. It was held by the High Court that the petitioner
establishment is engaged in rendering services to its customers by
providing technical services and such selling of services by the firm
brings the establishment within the purview of Section 1(5) of the
Employees’ State Insurance Act, 1948.

6. 3. Employee’s Compensation Act, 1923
 This legislation provides for compensation to employees in
case of injury or death during the course of employment.
 The act aims to provide financial assistance to workers
and their families during times of distress.
In Pratap Narain Singh Deo v. Srinivasa,(1976) a carpenter
suffered injury in the course of his employment which
resulted in amputation of left hand above elbow. Since a
carpenter cannot work with one hand, disablement was held
to be total and not partial.

7. 4. The Maternity Benefit Act, 1961
 Aims to provide social security to women workers.(maternity
benefit)
 It mandates that female employees are entitled to get paid leave
for a certain duration before and after childbirth.
 The act aims to protect the health of mothers and their children
and provide them with financial assistance during the crucial
period of childbirth.
In Punjab National Bank by Chairman and another v. Asiamja Dash,
(2008), it was held that as per provisions of the Maternity Benefit
Act, 1961, a woman can avail leave during the period of six weeks
from the day immediately following the day of her delivery,
miscarriage or medical termination of pregnancy. If request is made
by herself she would not be asked to work for the period specified
as per Section 4(4), she would be entitled to the benefits of
Sections 6 and 9 of the Act.

8. 5. The Payment of Gratuity Act, 1972
 This legislation mandates that employees who have
completed a certain period of service are entitled to a
gratuity payment.
 The payment is made to the employees on their
retirement/resignation/termination of employment.
 The act aims to provide financial security to workers who
have completed a long period of service with their
employers.
In Jorsingh Govind Vanjari v. Divisional Controller,
Maharashtra S.R.T.C.(2017), the Supreme Court has held
that gratuity can be denied only when there is termination
on account of alleged misconduct, which constitutes an
offence involving moral turpitude.

9. SOCIAL SECURITY SCHEMES
 In addition to these legislations, the Indian government has
implemented various other social security schemes for workers,
including the National Pension System (NPS), the Pradhan Mantri
Shram Yogi Maandhan (PMSYM), and the Pradhan Mantri Jan Dhan
Yojana (PMJDY).
 The NPS is a pension scheme that provides retirement benefits to
workers in the unorganized sector.
 The PMSYM is a voluntary pension scheme for workers in the
informal sector.
 The PMJDY is a financial inclusion program that aims to provide
banking facilities to every household in the country.
 Also there is the Unemployment Insurance Scheme which provides
financial assistance to workers who are unemployed. The scheme
aims to provide a safety net for workers who lose their jobs due
to various reasons such as retrenchment or closure of the
company.

10. CONCLUSION
 Social security - essential component of labor legislation in India.
 Various social security schemes & legislations provide financial assistance
and support to workers during periods of economic and social risks, such
as old age, disability, and illness and it aims to ensure - workers are not
left vulnerable & are able to lead a decent life even in times of distress.
 The implementation of these schemes has led to a significant reduction
in poverty & has contributed to overall development of the country.
 Recently, The Code on Social Security, 2020 was introduced by
withdrawing the earlier Code of 2019. It has amended and consolidated
the laws and provisions of the above discussed Labour Legislations
relating to employee’s social security with the goal to extend social
security assistance to all employees and workers either in organized or
unorganized or any other sectors.
 Therefore, it is imperative that the government continues to strengthen
and expand social security programs to ensure that all workers are
covered and protected.
THANKYOU