THE SOCIAL SECURITY CODE.
The code subsumes 9 major labour laws relating to social security, retirement and employee benefits into one single code. The laws to be subsumed are:
- The Employees Compensation Act, 1923
- The Employees State Insurance Act, 1948
- The Employees Provident Fund and Misc. provisions Act, 1952
- The Employees Exchange Act, 1959
- The Maternity Benefit Act, 1961
- The Payment of Gratuity Act, 1972
- The Cine Workers Welfare Fund Act, 1981
- The Building and Other construction workers Cess Act, 1996
- The Unorganized Workers Social Security Act, 2008
KEY CHANGES:
- For the purpose of calculation of gratuity, definition of wages has been widened with a list of inclusions and exclusions in the Code.
- In the case of an employee employed on a fixed term employment basis, the employer shall pay gratuity on pro rata basis and not on the basis of continuous service of 5 years.
- The code provides that if there are any dues from an employer in connection with the benefits covered under the social security code i.e. Provident fund, ESI, Gratuity, Maternity Benefits, etc. then such dues shall be paid on priority in accordance with Insolvency and Bankruptcy Code, 2016.
- The code defines various expressions such as “career center”, “aggregator”, “gig worker”, “platform worker”, “wage ceiling” etc., and empowers the Central Government to frame schemes for gig, platform and unorganized workers for providing eligible benefits.
- Social Security Code, 2020 provides for registration, electronically or otherwise, of every establishment to which the Code applies, within such time and in such manner as the Central Government may by rules determine.
- Significant increase in penalties and prosecution – No compounding for repeat offences.
Visit Our Website casunilarora
Comments