LABOUR LAW REFORMS ON UNORGANIZED, GIG AND PLATFORM

WORKERS UNDER THE CODE ON SOCIAL SECURITY: ISSUES AND

CHALLENGES

The workers in the unorganised sector in India constitute more than 91% of the workforce in
the unorganised sector. They are facing serious problems of the uncertainty of employment,
security of tenure and denial of social security. Most of the social security legislation does
not apply to workers in the unorganized sector. The Unorganised Workers Social Security
Act, 2008 is the first and only legislation that seeks to provide for social security for
unorganised workers but even this legislation has extremely limited coverage and lacks
enforcement. The Code on Social Security, 2020 has been enacted to amend and consolidate
the laws relating to social security for employees/ workers in the organized and unorganised
sector including gig workers and platform workers. However, like the Unorganised Workers
Social Security Act ,2008 no concrete steps have been spelled out. Indeed, provisions have
been framed in a recommendatory manner showing the legislator's intention instead of
making it a mandate for its enforcement. Further the Code has failed to provide a right-
based universal social protection floor for the unorganized sector.

This paper identifies the issues, shortcomings, and lacunae in the existing provisions in the
Code on Social Security relating to social security for unorganised, gig and platform
workers. The paper also examines how the Code has missed the opportunity to provide a
right-based universal social protection floor for the unorganized sector. The author argues
as to why we should have a law that is only on paper.

INTRODUCTION
Workers in the unorganised sector, who constitute 91% of the workforce, have been the most
neglected and exploited class of human labour. There are no fixed working hours, holidays,
leave, medical facility, occupational safety provisions and adequate social security. In
practice they are sometimes denied even minimum wages. While there are 38 Central
legislation and more than 100 State legislation, which seeks to regulate workers in the
organized sector most. If not, all do not apply to a worker engaged in an unorganized sector.
Even, these legislations have extremely limited coverage and lack enforcement.

As per the periodic Labour Force Survey carried out by the National Sample Survey
Organization of the Ministry of Statistics & Programme Implementation in 2017-18, the total
employment in both organized and unorganized sectors in the country was of the order of 47
crores. Out of this, about 9 crores are engaged in the unorganized sector and the balance is 38
crores in the unorganized sector1. The workers in the unorganized sector constitute more than
81 percent as per the
Annual Report of the Ministry of Labour, Government of India of Labour of 2020-21 of the
total employment in the country. However, this number is expected to have gone up due to
Covid-19 and lockdown thereon2. A large number of unorganized workers are home based
and are engaged in occupations such as beedi rolling, agarbatti making, papad making,
tailoring and embroidery work, street vendors, mid-day meal workers, head loaders, brick
kiln workers, cobblers, rag pickers, domestic workers, washermen, rickshaw pullers, landless
labourers, own account workers, agricultural workers, construction workers, handloom
workers, leather workers, audio- visual workers and those engaged in similar occupations.

In recent years, a new category of gig workers and platform workers set its foot on India soil
and received legal recognition under the Code of Social Security, 2020. In India, there are
about 3 million gig workers that include temporary workers including independent
contractors, online platform workers, contract firm workers, and on-call workers2.

In order to provide social security to workers in the unorganized sector the

Unorganised Workers’ Social Security Act, 2008 (UWSS Act) was enacted. The Act came
into force with effect from 16.05.2009. The Act seeks to provide social security and welfare
to the unorganized workers and for other matters connected therewith or incidental thereto.
The aforesaid Act has been subsumed in the Code on Social Security, 2020. The Code
received the assent of the President on 29.09.2020. However, it has not yet come into force.
The Code on Social Security, 2020 (CSS) not only seeks to provide social security and
welfare for unorganized workers who were covered under the Unorganized Workers Social
Security Act, 2008 but also specifically brought gig workers and platform workers under the
ambit of social security schemes framed under CSS. Thus, for the first time in India the CSS
defines and provides social security for gig and platform workers along with workers of the
unorganised sector.

This paper seeks to examine the labour law reforms brought by the Code on Social Security,
2020 in regard to unorganized, gig and platform workers.

1 Ministry of Labour & Employment, Government of India, Annual Report 2020-21, available at
https://labour.gov.in/sites/default/files/Annual_Report_202021_English.pdf 2 Ibid at 78
2 Gig Economy and platform workers under labor laws in India, Forumias, available at
https://blog.forumias.com/gig-and-platform-workers-under-labor-laws-in-india.
WHO IS AN UNORGANISED WORKER?

Section 2(86) of CSS defines “unorganised worker" means a home-based worker, self-
employed worker or a wage worker in the unorganised sector and includes a worker in the
organized sector who is not covered by the Industrial Disputes Act, 1947 or Chapters III to
VII of CSS.

A perusal of the aforesaid definition reveals that the CSS adopted the definition of the same
term under section 2 (m) of the Unorganised Workers Social

Security Act, 2008 except that the words “any of the Acts mentioned in Schedule
II of this Act” has substituted by “the Industrial Disputes Act, 1947 or Chapters
III to VII of this Code”. Here it may be mentioned that as and when the four Labour
Code would come into force the Industrial Disputes Act, 1947 would be subsumed into the
Industrial Relations Code, 2020 and would then require further amendment.

A perusal of the aforesaid definition also requires description and analysis of:

• home-based worker,

• self-employed workers,

• wage worker,

• unorganized sector.

The inclusive part of the definition requires determination of the scope and coverage of the
Industrial Disputes Act, 1947 and Chapters III to VII of this Code. Let us turn to examine
them.

2.1. Home–based workers

Section 2(36) CSS has adopted the definition of "home-based worker" provided under section
2(e) of the UWSS Act except that in place of “his or her” it has used only used “his” and,
therefore, has provided a scope for argument based on gender issue Be that as it may "home-
based worker" means a person engaged in the production of goods or services for an
employer in his home or other premises of his choice other than the workplace of the
employer, for remuneration, irrespective of whether or not the employer provides the
equipment, materials or other inputs.

2.2. Self-employed workers

Section 2(75) of the CSC retained the definition of “self-employed worker" under section 2
(f) of the UWSS Act. It means any person who is not employed by an employer but engages
himself in any occupation in the unorganised sector subject to a monthly earning of an
amount as may be notified by the Central Government or the State Government, as the case
may be, from time to time or holds cultivable land subject to such ceiling as may be notified
by the State Government.

2.3. Wage worker

Section 2 (90) of the CSC also retained the definition of "wage worker" under section 2 (n)
of the UWSS Act. It means a person employed for remuneration in the unorganised sector,
directly by an employer or through any contractor, irrespective of place of work, whether
exclusively for one employer or for one or more employers, whether in cash or in kind,
whether as a home-based worker, or as a temporary or casual worker, or as a migrant worker,
or workers employed by households including domestic workers, with a monthly wage of an
amount as may be notified by the Central Government and the State Government, as the case
may be.

Inclusive part of the definition:

The definition of unorganized workers also includes a worker in the organized sector who is
not covered by any of the Acts mentioned in Schedule I to this Act, namely:

Industrial Disputes Act, 1947 or Chapters III to VII of this Code.

• Chapters III – Employees Provident Fund

• Chapters IV Employees State Insurance Corporation

• Chapters V- Gratuity

• Chapter VI- Maternity Benefit

• Chapter VII -Employee's Compensation

The aforesaid provision, in substance, has been adopted from section 2 (m) of the
Unorganised Workers Social Security Act, 2008 (UWSS Act) except that Schedule I of the
CSS unlike Schedule II of the UWSS Act has added Employees Compensation also. From
this it appears that the provisions of the CSS in respect to unorganized workers would include
those who are not covered by the Employees’ Compensation. Thus, the provisions of the
employee’s compensation are not available to unorganized workers. This, in effect, curtails
the scope of unorganized workers compared to the UWSS Act.

3. SCOPE AND APPLICABILITY OF THE CODE ON SOCIAL SECURITY IN

UNORGANIZED SECTOR
The Code on Security Code, 2020 expands the scope of social security by providing for the
registration of all types of workers including gig workers, unorganised workers, and platform
workers.

As mentioned in part II the unorganised workers must be employed in the unorganised sector.
It is, therefore, necessary to examine the concept and definition of "unorganised sector".
Section 2 (85) defines "unorganised sector" to mean an enterprise owned by individuals or
self-employed workers and engaged in the production or sale of goods or providing service of
any kind whatsoever, and where the enterprise employs workers, the number of such workers
is less than ten.

An analysis of the aforesaid definition reveals that in order to be covered by the unorganised
sector" there must be:

• An enterprise
• Such enterprise must be owned by:  Individuals
or
 Self-employed workers
 Such enterprises must be engaged in the
 production or
 sale of goods or
 providing service of any kind whatsoever
 Where the enterprise employs workers, the number of such workers is less than ten.
The aforesaid definition has been adopted from section 2 (l)3 of the UWSS Act.

4. FRAMING OF SCHEMES FOR UNORGANISED WORKERS

4.1. By the Central Government

The CSS seeks to provide for the framing of schemes for unorganised workers.

3 According to Section 2 (l) of the Unorganised Workers Social Security Act, 2008 “unorganised sector” means
an enterprise owned by individuals or self-employed workers and engaged in the production or sale of goods or
providing service of any kind whatsoever, and where the enterprise employs workers, the number of such
workers is less than ten.
It imposes a duty upon the Central Government to formulate and notify, from time to time,
suitable welfare schemes for unorganised workers on matters relating to:

• life and disability cover.

• health and maternity benefits.
• old age protection.
• education; and
• any other benefit as may be determined by the Central Government.4

4.2. By the State Government

The CSS also imposes an obligation upon the State Government to formulate and notify, from
time to time, suitable welfare schemes for unorganised workers, including schemes relating to

• provident fund.
• employment injury benefit.
• housing.
• educational schemes for children.
o skill upgradation of workers o funeral
assistance; and

• old age homes.5

Key Issues involved in the formulation of social security schemes for unorganized
workers under section sub-section (1) and (2) of section 109
A perusal of the aforesaid provisions reveals that the aforesaid provisions merely enumerate
the welfare schemes but have not specified the extent and procedure to enforce the same.

A perusal of sub-sections (1) and (2) of section 109 of CSS also reveals that the Code assigns
the subject on which Central and State governments will formulate social security schemes
for unorganized workers. However, there are some overlapping of the welfare schemes to be
notified between the Central Government on areas pertaining to old age protection and
education.

A perusal of the aforesaid sub-sections further reveals that the CSS retains the provisions of
section 3 (1) of the UWSS Act. But unlike UWSS Act it has added a new clause (iv) relating
to education under section 109(1). This is a progressive measure on the subject.
4 S.109(1), The Code on Social Security, 2020.
5 S.109(2), The Code on Social Security,2020.
A close examination of the aforesaid provisions also reveals that even though the title of the
chapter is “Social Security to unorganized workers, gig Workers and platform Workers “the
aforesaid sub-section, as mentioned therein, deals with the formulation of welfare scheme and
not specifically the social security scheme. It is true that broadly speaking welfare provisions
includes social security but in order to avoid any confusion and to be more precise it is felt
that it should clearly specify social security or use both social security and welfare.

5. FUNDING OF SCHEME
5.1. By the Central Government

The scheme notified by the Central Government may be (i) wholly funded by the Central
Government or (ii) partly funded by the Central Government and partly funded by the State
Government or (iii) partly funded by the Central Government, partly funded by the State
Government and partly funded through contributions collected from the beneficiaries of the
scheme or the employers as may be specified in the scheme by the Central Government; or
(iv) funded from any source including corporate social responsibility fund within the meaning
of the Companies Act, 2013 or (v) any other such source as may be specified in the scheme6.

5.2. By the State Government

Like Central Government any scheme notified by the State Government 7 under section 109(2)
may be (a) wholly funded by the State Government; or (b) partly funded by the State
Government, partly funded through contributions collected from the beneficiaries of the
scheme or the employers as may be specified in the scheme by the State Government; or (c)
funded from any source including corporate social responsibility fund referred to in clause
(iv) of sub-section (3) of section 109 or (d) any other such source as may be specified in the
scheme. The State Government may also seek financial assistance from the Central
Government for the schemes formulated by it and the Central Government may provide such
financial assistance to the State Governments for the purpose of schemes for such period and
on such terms and conditions as it may deem fit8.

Key issues involved in funding from corporate social responsibility fund

Out of above clause (c) requires special consideration. Here it may be mentioned that under
the Companies Act, 2013 every company having a net worth of rupees five hundred crore or
more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or

6 Ibid, S. 109 (3).

7 Supra 6.
8 S.110, The Code on Social Security, 2020.
more during the immediately preceding financial year shall constitute a Corporate Social
Responsibility Committee of the Board consisting of three or more directors, out of which at
least one director shall be an independent director.9 Further every company, on which
corporate social responsibility is applicable, shall ensure that it spends, in every financial
year, at least 2% of the average net profits of the company made during the 3 immediately
preceding financial years.

The aforesaid provision was the subject-matter of debate before the Parliamentary Standing
Committee on Labour while dealing with the Code in Social Security Bill. 2019. On the
provisions of Clause 109(3)(iv) it was suggested that the Companies Act 2013 should be
amended to levy an extra 12% over and above their CSR to contribute to the Fund for the
Unorganised Workers directly and/or indirectly. It was further suggested that the Government
should also consider levying a cess from the public. Both should finance unemployment
assistance to the workers registered under the Social Security Organization as suitable. These
are the policy matter to be determined by the government. However, there is a need to widen
the scope of funding and to include specifically the amount collected by way of fine
recovered in the process of composition of offences.

6. IMPLEMENTATION OF THE SCHEME

Every scheme notified by the Central Government10 shall provide for such matters that are
necessary for the efficient implementation of the scheme including the matters relating to all
or any of the following:

• scope of the scheme.

• authority to implement the scheme.
• beneficiaries of the scheme.
• resources of the scheme.
• agency or agencies that will implement the scheme.  redressal of grievances; and

• any other relevant matter.11

The CSS also authorizes the Central Government to constitute a special purpose vehicle for
the purpose of implementation of such scheme.

9 Ibid, S. 135.
10 Ibid, S.109(1).
11 S.109 (4) The Code on Social Security, 2020.
Key issues involved in the implementation of the social security schemes for
unorganized workers
A perusal of section 110 of CSS reveals that it merely provides the matters that are necessary
for the efficient implementation of the scheme. But it is felt that without any legal machinery
to enforce the same it will neither bring the intended benefits for the unorganized workers nor
widen the existing social security coverage. Thus, there is a need to ensure a legally binding
universal social protection for all the workers in the unorganized sector within a definite time
frame.12 Further there is a need to specify the implementing authority at the State levels.

7. ADMINISTRATION OF SOCIAL SECURITY SCHEME FOR UNORGANISED

WORKERS
The CSS imposes a duty upon the Central Government to administer the social security
scheme for unorganised workers at the national level. Likewise, State Government is required
to administer the social security scheme for unorganised workers at the State level.

7.1. Administration at National Level

In order to administer the social security scheme the Central Government is required to
constitute the National Social Security Board for unorganised workers to (a) recommend to
the Central Government for formulating suitable schemes for different sections of
unorganised workers, gig workers and platform workers; (b) advise the Central Government
on such matters arising out of the administration of this Code as may be referred to it; (c)
monitor such social welfare schemes for unorganised workers, gig workers and platform
workers as are administered by the Central Government (d) review the record keeping
functions performed at the State level (e) review the expenditure from the fund and account;
and (f) undertake such other functions as are assigned to it by the Central Government from
time to time.13

The Central Government is also required to constitute one or more advisory committees to
advise it upon matters arising out of the administration of this Code relating to unorganised
workers and such other matters as referred to it for advice.15

7.1.1. Composition of the National Social Security Board

The National Social Security Board shall consist of (a) Union Minister for Labour and
Employment as Chairperson; (b) Secretary, Ministry of Labour and Employment as Vice-
Chairperson; and (c) forty members to be nominated by the Central Government, out of
12 Standing Committee on Labour, Lok Sabha, Code on Social Security, 2019.
13 S. 6(7) The Code on Social Security, 2020. 15 Ibid, S. 6(8).
whom (i) seven members representing unorganised sector workers; (ii) seven members
representing employers of the unorganised sector; (iii) seven members representing eminent
persons from civil society; (iv) two members representing the Lok Sabha and one from the
Rajya Sabha; (v) ten members representing Central Government Ministries and Departments
concerned; (vi) five members representing State Governments;
(vii) one member representing the Union territories; and (d)the Director General Labour
Welfare, as Member Secretary, ex officio.14

7.1.2. Who may be nominated as members?

All forty members to be nominated by the Central Government, except Chairperson of the
National Social Security Board shall be from amongst persons of eminence in the fields of
labour welfare, management, finance, law, and administration. 15 However adequate
representation must be given to persons belonging to the Scheduled Castes, the Scheduled
Tribes, the minorities, and women16.

7.1.3. Terms and conditions of appointment as members

The term of office and other conditions of service of members, the procedure to be followed
in the discharge of their functions by, and the manner of filling vacancies among the
members of, the National Social Security Board shall be such as may be prescribed by the
Central Government17.

The term of the National Social Security Board shall be three years 18. The National Social
Security Board shall meet at least thrice a year, at such time and place and shall observe such
rules of procedure relating to the transaction of business at its meetings, as may be prescribed
by the Central Government.19

7.2. ADMINISTRATION AT STATE LEVEL

At the State level every State Government is required to constitute a State Unorganised
Workers' Social Security Board to:

14 S. 6(2) The Code on Social Security, 2020.

15 Ibid, S. 6(3).
16 Ibid, S. 6(4) proviso.
17 S. 6(4) The Code on Social Security, 2020.
18 Ibid, S. 6(5).
19 Ibid, S. 6(6).
 • 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
Code 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

• undertake such other functions as are assigned to it by the State Government from
time to time20.

7.2.1. Composition of State Unorganised Workers' Board

Every State Unorganised Workers' Board shall consist of:

• Minister of Labour and Employment of the concerned State as

Chairperson, ex officio
• Principal Secretary or Secretary (Labour) as Vice-Chairperson
• one member representing the Central Government in the Ministry of Labour and
Employment

• thirty-one members to be nominated by the State Government, out of whom:

• seven representing the unorganised workers.

• seven representing employers of unorganised workers.
• two members representing the Legislative Assembly of the concerned State.

• five members representing eminent persons from civil society.

• ten members representing the State Government Departments concerned and (e)
Member Secretary as notified by the State Government.21

20 S. 6(15) The Code on Social Security, 2020.

21 Ibid, S. 6(10).
 7.2.2. Nomination, Representation, Terms of office and procedure for holding a
meeting

All members (except Chairperson) of the State Unorganised Workers' Board shall be
nominated from amongst persons of eminence in the fields of labour welfare, management,
finance, law, and administration 22. However adequate representation should be given to
persons belonging to the Scheduled Castes, the Scheduled Tribes, the minorities, and
women23. The term of the State Unorganised Workers' Board shall be three years 24. The State
Unorganised Workers' Board shall meet at least once in a quarter at such time and place and
shall observe such rules of procedure relating to the transaction of business at its meetings, as
may be prescribed by the State Government.27

Disqualification, removal, the resignation of a member and supersession and re-

constitution of Social Security Organization at national and State levels

A member of any Social Security Organization (i) would be disqualified to hold such office
(ii) removed (iii) shall cease to hold office (iv) resign and (v) are the prohibition to take part
in any proceeding or decision of the Social Security Organization or a Committee. Further the
CSS prescribes the procedure for transaction of business of Social Security Organization, etc.
Moreover, CSS further provides for supersession and re-constitution of Social Security
Organization at national and State levels. Let us turn to examine them.

7.2.3. Disqualification of a member of any Social Security Organization

No person shall be chosen as, or continue to be, a member of a Social Security Organization,
or any Committee thereof who:

• is or at any time has been adjudged an insolvent or

• is found to be a lunatic or becomes of unsound mind; or
• is or has been convicted of any offence involving moral turpitude or
• is an employer in an establishment and has defaulted in the payment of any dues
under this Code?

• is a member of a Social Security Organization a member of the Parliament or a

member of a State Legislative Assembly, when he ceases to be such member of the
Parliament or State Legislative Assembly, as the case may be or
22 Ibid, S. 6(11).
23 Ibid, S. 6(12) proviso
24 S. 6(13) The Code on Social Security, 2020. 27 S. 6(14) The Code
on Social Security, 2020.
 • is a member of Social Security Organization being a member of the Parliament or a
member of a State Legislative Assembly, and he becomes a?
 Minister of Central or State Government; or
 Speaker/Deputy Speaker of House of the People or State Legislative
Assembly; or
 Deputy Chairman of the Council of States.25
The aforesaid disqualification shall not apply in the case of persons who are members of the
Social Security Organization ex officio, by virtue of being a Minister.26

If any question arises whether any person is disqualified under clause (d), it shall be referred
to the appropriate Government and the decision of the appropriate Government on any such
question shall be final27.

7.2.4. When can a member be removed?

The CSS empowers the Central Government to remove a member of the National Social
Security Board from his office who:

• remains absent without leave of the Social Security Organization of which he is a

member for more than three consecutive meetings of the Social Security Organization
or a Committee thereof or.

• has abused the position of his office so as to render that member's continuation in the
office detrimental to the public interest or.

• is otherwise unfit or unsuitable to continue as such member in the opinion of such

Government.28
However, no person shall be removed under clauses (b) and (c), unless that person has been
given an opportunity to show cause as to why he should not be removed.29

7.2.5. When a member would cease to hold office

If in a Social Security Organization or a Committee thereof, the Central Government or the
State Government, as the case may be, is of the opinion that:

25 Ibid, S. 8.
26 Ibid, S. 8 Exp 2.
27 S. 8, Exp 1 The Code on Social Security, 2020.
28 Ibid, S 8(2).
29 Ibid, S 8(2) first proviso.
 • any member thereof representing employers or the employees or the unorganised
workers, as the case may be, ceases to adequately represent so; or

• any member thereof representing to be an expert in a specified area, is, later on, found
not to possess sufficient expertise in that area; or

• having regard to exigencies of circumstances or services in such Government, the

member thereof representing such Government cannot continue to represent the
Government; then, such Government may, by order, remove such member from his
office.30
But such person shall, however, not be removed under clause (a) or clause (b), unless that
person has been given an opportunity to show cause as to why he should not be removed.31

7.2.6. When a member of the Executive Committee of the Central Board or the
Standing Committee of the Corporation shall cease to hold office
A member of the Executive Committee of the Central Board or the Standing Committee of
the Corporation shall cease to hold office if he ceases to be a member of the Central Board or
the Corporation, as the case may be.32

7.2.7. Resignation by members

Any member of a Social Security Organization or a Committee thereof may at any time
resign from his office in writing under his hand addressed to the Central Government or the
State Government, as the case may be, which had made his appointment and on acceptance of
such resignation, his office shall become vacant33.

7.2.8. Prohibition to take part by a member in any proceeding or decision of the

Social Security Organization or a Committee

If any member of a Social Security Organization or a Committee thereof, who is a director of

a company and who as such director, has any direct or indirect pecuniary interest in any
matter coming up for consideration of the Social Security Organization or a Committee
thereof, then, he shall, as soon as may be possible after such fact of interest has come to his
knowledge, disclose the nature of the interest and such disclosure shall be recorded in the
30 S. 8(4), The Code on Social Security, 2020.
31 Ibid, S. 8(3) proviso.
32 S. 8(2) second proviso, The Code on Social Security, 2020.
33 S. 8(3), The Code on Social Security,2020
proceedings of the Social Security Organization or the Committee thereof, as the case may
be, and such member, thereafter, shall not take part in any proceeding or decision of the
Social Security Organization, or a Committee thereof relating to that matter 34.

7.2.9. Procedure for the transaction of business of Social Security Organization

• A Social Security Organization or any Committee thereof shall meet at such intervals
and follow such procedure in regard to the transaction of business at its meetings
(including the quorum at such meetings) as may be prescribed by the Central
Government.35

• All orders and decisions of the Social Security Organization shall be authenticated by
such officer as may be notified by the appropriate Government and all other
instruments issued by the Social Security Organization shall be authenticated by the
signature of such officer as may be authorized by an order by the respective Social
Security Organizations.36

• No act done or proceeding taken by a Social Security Organization or any Committee

thereof shall be questioned on the ground merely of the existence of any vacancy in,
or any defect in the constitution of the Social Security Organization or the Committee
thereof, as the case may be. 37

• The members of a Social Security Organization or any Committee thereof shall be

entitled to such fee and allowances as may be prescribed by the Central
Government.38

7.2.10. Supersession and Re-constitution of Corporation, Central Board, National

Social Security Board or State Unorganised Workers' Board
The CSS authorizes the Central Government in case of the National Social Security Board
and the State Government in case of the State Unorganised Workers' Board to supersede the
National Social Security Board or the State

Unorganised Workers’ Board if it is:

• unable to perform its functions, or,

34 Ibid, S. 8(5).
35 Ibid, S. 9(1).
36 Ibid, S. 9(2).
37 Ibid, S. 9(3).
38 S. 9(4), The Code on Social Security, 2020.
 • has persistently made delay in the discharge of its functions or  has exceeded or
abused its powers or jurisdiction.

However, before issuing a notification such Government is required to give an opportunity to

such National Social Security Board or the State Unorganised Workers Board or any
Committee thereof, as the case may be, to show cause as to why it should not be superseded
and consider the explanations and objections raised by it and take appropriate action
thereon.39

After the supersession of the National Social Security Board, the State
Unorganised Workers’ Board as the case may be, and until it is reconstituted, the Central
Government or the State Government, as the case may be, shall make such alternate
arrangements for the purpose of administration of the relevant provisions of this Code, as
may be prescribed by the Central Government.40

In the aforesaid situation the Central Government or the State Government, as the case may
be, shall cause, a full report of any action taken by it under this section and the circumstances
leading to such action, to be laid before each House of Parliament or the State Legislature, as
the case may be, at the earliest opportunity and in any case not later than three months from
the date of the notification of supersession issued.44

7.2.11. Entrustment of additional functions to Social Security Organizations

The CSS empowers the Central Government to assign additional functions to a Social
Security Organization including administration of any other Act or scheme relating to social
security subject to such provisions as may be specified on this behalf in the notification. 41
Where the Central Government assign additional functions it may specify:

• the terms and conditions of discharging the functions by the Social Security
Organization.

39 Ibid, S. 11(1).
40 Ibid, S. 11(2). 44 Ibid, S. 11(3).
41 A Social Security Organization, the officer or authority of such organization, to whom such function has
been assigned, shall exercise the powers under the enactment or scheme required for discharging such function
in the manner as may be specified in the notification. Further, the Social Security Organizations may assign
such additional functions to existing officers or appoint or engage new officers necessary for such purpose, if
such functions may not be performed and completed with the assistance of its personnel as existing immediately
before the assignment of the additional functions.
 • the expenditure incurred in discharging the functions including appointment or
engagement of personnel necessary for the proper discharge of such functions shall be
borne by the Central Government.

• the powers which the Social Security Organization shall exercise while discharging
the functions specified in clause (i).

In the aforesaid situation any expenditure incurred for the aforesaid purposes shall be made
by the Social Security Organization after prior approval of the Central Government 42.

The CSS like UWSS Act confers upon the National Social Security Board a limited power to
recommend suitable schemes, advise monitor the social welfare scheme or review the
progress of registration. However, it is not empowered to implement or enforce social
security

7.3. Gig workers and Platform Workers

The gig and platform economy in recent years has occupied a significant place in the Indian
economy and gig and platform workers have formed part of the work force in India since
2018. The nature of engagement of gig workers and platform workers is similar to short term
contracts or freelance work as opposed to permanent jobs. It often involves connecting with
customers through an online platform such as delivery boys of app-based food, consultants,
bloggers. The platform work economy is sometimes referred to as the gig worker economy,
but gig economy is a broader term that includes platforms. The platform economy is also
known as the digital economy. Here the distribution of, and access to work is made through
websites and apps.

In India, there are about 3 million gig workers that include temporary workers including
independent contractors, online platform workers, contract firm workers, and on-call
workers.43 The Associated Chambers of Commerce and Industry in India (ASSOCHAM) has
projected that India’s gig economy would grow at a compounded annual rate of 17% to reach
$455 billion by 2023, according to Economic Times 44. However, gig and platform workers
constitute a very small percentage of the labour force in the unorganized sector but have
42 S. 13 The Code on Social Security, 2020.
43 Supra 3.
44 Sumathi Bala, Already under massive stress from the virus, more Indian workers turn to ‘gig economy’
livelihoods, CNBC (13/05/2021), available at
https://www.cnbc.com/2021/05/14/india-jobs-workers-turn-to-gig-economyjobs-amid-coronavirus-crisis.html
occupied an equal if not better place under the Code of Social Security, 2020. Maybe this is
not solely because they are not getting adequate wages or social security benefits but because
they are more united than unorganized workers. This is all the more so when there are no
traditional employer employee relations. Moreover, the Unorganized Workers Social Security
Act, 2008 is not applicable to gig and platform workers. Nevertheless, gig workers and
platform workers for the first time received legal recognition under the Code on Social
Security, 2020.

7.3.1. Who are gig worker and platform worker?

Section 2 (35) of CSS defines “gig worker” to mean a person who performs work or
participates in a work arrangement and earns from such activities outside of the traditional
employer-employee relationship.

Section 2 (61) defines “platform worker” to mean a person engaged in or undertaking

platform work.

The platform work means a work arrangement outside of a traditional employer employee
relationship in which organizations or individuals use an online platform to access other
organizations or individuals to solve specific problems or to provide specific services or any
such other activities which may be notified by the Central Government, in exchange for
payment45.

7.3.2. Who is aggregator?

Section 2(2) defines "aggregator" to mean a digital intermediary or a marketplace for a buyer
or user of a service to connect with the seller or the service provider.

7.3.3. Schemes for gig workers and platform workers

The CSS46 empowers the Central Government to formulate and notify, from time to time,
suitable social security schemes for gig workers and platform workers relating to:

• life and disability cover.

• accident insurance.
• health and maternity benefits.

45 S. 2 (60) The Code on Social Security,2020

46 Ibid, S. 114(1).
 • old age protection.
• crèche; and

• any other benefit as may be determined by the Central Government.

7.3.3.1. Provisions to be incorporated in the social security schemes

Under CSS every scheme formulated and notified as mentioned above may provide for:

• the manner of administration of the scheme.

• the agency or agencies for implementing the scheme.
• the role of aggregators in the scheme.
• the sources of funding of the scheme; and
• any other matter as the Central Government may consider necessary for the efficient
administration of the scheme.47

7.3.3.2. Funding of Social security schemes

Any scheme notified by the Central Government for gig and platform workers may be:

• wholly funded by the Central Government; or

• partly funded by the Central Government and partly funded by the State Government;
or

• wholly funded by the contributions of the aggregators; or

• partly funded by the Central Government, partly funded by the State Government, and
partly funded through contributions collected from the beneficiaries of the scheme or
the aggregators, as may be specified in the scheme formulated by the Central
Government; or

• funded from corporate social responsibility fund within the meaning of Companies
Act, 2013; or  any other source.

7.3.3.3. Scope of clauses (c) and (d)

A perusal of the aforesaid provisions reveals that the source of funds for gig workers and
platform workers unlike unorganised workers also include funds received wholly funded by
the contributions of the aggregators and partly funded through contributions collected from

47 S. 114(2), The Code on Social Security,2020.

the beneficiaries of the scheme or the aggregators. The contribution to be paid by the
aggregators for the funding to social security schemes for gig workers and platform workers
shall be at such rate not exceeding two per cent, but not less than one per cent, as may be
notified by the Central Government, of the annual turnover 48 of every such aggregator who
falls within a category of aggregator specified in the Seventh Schedule49.

However, the contribution by an aggregator shall not exceed five percent of the amount paid
or payable by an aggregator to gig workers and platform workers 54. The date of
commencement of contribution from aggregator shall be notified by the Central Government.
55

7.4. Administration of Social security schemes for gig workers and platform workers

The Social security schemes for gig workers and platform workers are required to be
administered by the National Social Security Board constituted under subsection (1) of
section 6, but for the purposes of the welfare of gig workers and platform workers the
following members shall constitute the Board instead of the members specified in clauses (c)
and (d) of sub-section (2) of section 6, namely: —

• five representatives of the aggregators as the Central Government may nominate.

• five representatives of the gig workers and platform workers as the Central
Government may nominate.

• Director General of the Corporation; (d) Central Provident Fund Commissioner of the
Central Board.

Sl. No. Classification of Aggregator

1. Ride sharing services
2. Food and grocery delivery services
3. Logistic services
4. E-Market place (both market place and inventory model) for wholesale/ retail sale of goods and/or
services (B2B/B2C)
5. Professional services provider
6. Healthcare
7. Travel and hospitality
8. Content and media services
9. Any other goods and service provider platform 54 S. 114(4), The Code on Social Security, 2020.

48 See Explanation to S. 114(4) The Code on Social Security,2020

49 The Seventh Schedule of The Code on Social Security,2020 specifies following classification of Aggregator:
55
Ibid, S. 114(5).

• such expert members as the Central Government may consider appropriate.

• five representatives of the State Governments by such rotation as the Central

Government may consider appropriate.

• Joint Secretary to the Government of India in the Ministry of Labour and

Employment, who shall be the member secretary to the Board.50
The aforesaid provisions show that CSS provides for a separate board for unorganised
workers and gig/platform workers. A close examination of the relevant provisions of CSS
shows that there is overlapping.

7.5. Duty of Central Government to provide details for the functioning of the social
security scheme

The CSS imposes a duty upon the Central Government to provide for:
• the authority to collect and to expend the proceeds of contribution collected.

• the rate of interest to be paid by an aggregator in case of delayed payment, less

payment or non-payment of contribution.

• self-assessment of contribution by aggregators.

• conditions for the cessation of a gig worker or a platform worker; and

• any other matter relating to the smooth functioning of the social security scheme
notified by the Government.51

7.6. Powers of the Central Government to exempt aggregator or class of aggregators

The CSS empowers the Central Government to exempt an aggregator or class of aggregators
from paying of contribution under section 114 (4), subject to such conditions as may be
specified in the notification.52

7.7. Determination of a separate business entity of aggregator

50 Ibid, S. 114(6).
51 S. 114(7) (i) The Code on Social Security,2020.
52 Ibid, S. 114(7) (ii).
For the purposes of section 114 of CSS, an aggregator having more than one business shall be
treated as a separate business entity of aggregator.5354

7.8. Application of Employees’ State Insurance Act, 1948 and CSS to gig and
platform workers

The Government’s policy to extend the provisions of the Employees’ Estate Insurance
Corporation and payment of minimum wages to gig workers and platform workers is best
stated by the Finance Minister Mrs. Nirmala Sitharaman while presenting a budget speech for
the year 2020-21 when she observed that” for the first time globally, social security benefits
will extend to gig and platform workers, and they will be covered by the Employees State
Insurance Corporation. Accordingly, 50 lakh gig workers under ESIC are to be brought under
the social security net.60.

7.9. Registration of unorganised workers, gig workers and platform workers.

The CSS mandates for compulsory registration of unorganised workers, gig workers and
platform workers for the purposes of Chapter IX.

7.9.1. Conditions for registration of unorganised worker, gig workers and platform
The registration of unorganised worker, gig workers and platform workers shall be made on
the fulfilment of the following conditions, namely:

• he has completed sixteen years of age, or such age as may be prescribed by the
Central Government,

• he has submitted a self-declaration electronically or otherwise in such form and in

such manner containing such information as may be prescribed by the Central
Government.55

7.9.2. Procedure for obtaining registration

53 Ibid, S. 114 Explanation.

54 lakh gig workers under ESIC to be brought under social security net, Financial Express (13/03/2021)
https://www.financialexpress.com/economy/50-lakh-gig-workers-under-esic-tobe-brought-under-social-
security-net/2211492
55 S. 113 The Code on Social Security, 2020.
The CSS provides that every eligible unorganized worker, gig worker or platform worker
shall make an application for registration in the form prescribed by the Central Government
along with such documents including Aadhaar numbers as may be prescribed by the Central
Government, to the registering authority.

On receipt of the application such unorganised worker shall be registered by registering

authority and be assigned a distinguishable number to his application or link the application
to the Aadhaar number.

7.9.3. Portability

As regard portability, the same is to be maintained through Aadhaar number which is to be

obtained at the time of registration of a member/beneficiary or at the time of availing of
benefits. Through the seeding of Aadhaar in the registration database, portability can be
achieved.

7.9.4. Self-Registration
The system of electronic registration maintained by the appropriate Government shall also
provide for self-registration by any such worker in such manner as may be prescribed by the
Central Government. On registration a registered unorganised worker, gig worker or platform
worker shall be eligible to avail the benefit of the scheme (i) framed under CSS, (ii) framed
the Central Government, or the State Government.

7.10. Helpline, facilitation center, etc., for unorganised workers, gig workers and
platform workers
In order to (i) facilitate filing, processing and forwarding of application forms for registration
of unorganised workers, gig workers and platform workers, (ii) assist unorganised workers,
gig workers and platform workers to obtain registration; and (d) to facilitate the enrolment of
the registered unorganised workers, gig workers and platform workers in the social security
schemes the CSS empowers the appropriate Government to set up a toll free call center or
helpline or such facilitation centers.56

7.11. Key issues relating to registration of unorganized workers

Under the Unorganized Workers Social Security Act, 2008 in several States, unorganised
workers are registered on the State portal. A question, therefore, arises whether on the

56 S.112 The Code on Social Security, 2020.

commencement of the Code on Social Security, 2020 registered unorganized workers’ data
on the State portal will be transferred to the Central portal to be set up under CSS or
unorganized workers would be required again to register themselves under CSS. The CSS is
silent on this issue.

The second issue relates to difficulties faced by most of the unorganized workers who do not
possess the skill or knowledge to make online registration.

The third issue relates to linking Aadhar to the registration of workers. It has been asserted by
some stakeholders that the linking of the application for registration solely with Aadhaar
cards may pose challenges. They also suggested that it should be the responsibility of the
Central Government to provide and maintain a database for the registration of the
unorganised workers. Further, it has often been condensed by some stakeholders that
portability of the benefits of the unorganised workers in case of their movement from one
State to other and promoting a single point of contact for beneficiaries to avail social security
benefit should be ensured by the Central government. In response, the Ministry of Labour and
Employment, Government of India stated as under:

“Clause 113 (2) of the Code provides that every eligible unorganized worker under sub-
section (1) of clause 113 shall make an application for registration in such form along with
such documents, to such registering authority as may be prescribed by the Central
Government and such unorganised worker shall be registered by such registering authority by
assigning a distinguishable number to his application or by linking the application to the
Aadhaar number. As regard portability, the same is to be maintained through the Aadhaar
number which is to be obtained at the time of registration of a member/beneficiary or at the
time of availing of benefits. Through the seeding of Aadhaar in the registration database,
portability can be achieved.”57

The fourth issue relates to the delay involved in the process of registration p by several State
Governments. This is so because in order to avail the social security and welfare facilities
registration of unorganised workers is mandatory. But despite the direction issued by the
Supreme Court58 the State Government did not take adequate measures to comply with the

57 Supra 13 at paras 13.32 & 13 .37.

58 Domestic Workers Registration: Supreme Court ask Government not to give funds to States, Economic
Times (31/05/2018) available at https://economictimes.indiatimes.com/news/politicsand-nation/domestic-
workers-registration-supreme-court-asks-govt-not-to-give-funds-tostates/articleshow/64404124.cms
orders. In view of this the apex Court directed the Centre not to disburse any grants to the
states which have not registered domestic workers under the Unorganised Workers Social
Security Act. The directions to the Centre came on a petition filed by NGO Shramjeevi
Mahila Samiti, which had told the court that despite the Act coming into force in 2008 and
framing of several schemes, no domestic worker had enjoyed their benefits.

8. MANDATORY REQUIREMENT OF AADHAR CARD FOR

AVAILING VARIOUS BENEFITS
The CSS,59 as observed earlier, imposes an obligation upon an employee , unorganised
worker or any other person, to establish his identity or, as the case may be, to establish the
identity of his family members or dependents through Aadhaar number not only for
registration but also for seeking benefit whether in cash or kind for medical/ sickness,
pension, gratuity or maternity benefit or any other benefit or for withdrawal of fund or
availing services of career center; or receiving any payment or medical attendance as insured
person himself or for his dependents, under CSS or rules, regulations or schemes made or
framed thereunder.

The aforesaid provision of CSS unlike other provisions contained therein has come into
effect with effect from 3rd May,2021.60

The validity of linking the application for registration with Aadhaar cards was upheld by the
Constitution Bench of the Supreme Court in K.S. Puttaswamy (Retd.) v. Union of India. 67 The
Court ruled that

(i) the requirement of mandatorily linking Aadhaar with PAN is valid on the basis of
legitimate State interest and satisfying the proportionality principle.

(ii) The requirement of mandatorily linking Aadhaar to the bank account numbers was held
not to be valid as didn’t satisfy the proportionality test.

59 S.142 The Code on Social Security, 2020.

60 The Central Government has notified section 142 of the Social Security Code, 2020 with effect from
3.5.2021. The extension of date for Aadhaar number requirement would not have been possible unless the
representation was made by Labour Law Reporter on 3 rd June 2021 followed with writ petition filed in Delhi
High Court by Association of Industries & Institutions. Consequently, EPFO has amended ECR filing protocol
and from 1.9.2021. [See llr@jditech.in via sendpulse. email dated 20 June,2021] 67 K.S. Puttaswamy v. Union of
India (2017) 10 SCC 1.
(iii) The requirement of mandatorily linking Aadhaar to mobile numbers was also held
invalid as served as an encroachment on individual liberties.

(iv) Aadhar is not mandatory for digital wallets.

9. RIGHTS BASED UNIVERSAL SOCIAL SECURITY SYSTEM

We now turn to examine whether the Code on Social Security provides rights based universal
social security system. This is necessary because unorganised

workers constitute 91 per cent of India’s workforce. This issue was raised before the
Parliamentary Standing Committee on Labour to whom the reference was made by the Lok
Sabha to consider the Code on Social Security Bill, 2019. When the Standing Committee
asked the Ministry of Labour and Employment, Government of India to explain the specific
reasons for omitting the aforesaid commitment towards rights based universal social security
system the Ministry clarified as under:

The exercise of codification of social security legislations has been going on since the
beginning of the year 2017. The 1st draft on Social Security was placed on the website for
inviting comments/suggestions of various stakeholders including of general public on 16th
March 2017. After considering the comments from various stakeholders, a revised draft Code
was uploaded on the website of the Ministry on 1st March 2018 (called 2nd draft). This draft
essentially sought to delegate the functions of Employees Provident Fund Organization
(EPFO) and Employees State Insurance Corporation (ESIC) to the State Governments. This
was opposed by trade unions as they were not in agreement for dismantling the existing
structure of EPFO and ESIC but wanted universalization of social security to all, as proposed
in the Code. After opposition of trade unions and revisiting of matter in the Ministry, 3rd
draft was circulated on 16th November 2018 excluding EPFO and ESIC. Representatives of
trade unions again objected that with the exclusion of EPF and ESIC, the draft Code has no
meaning. Finally, the current draft was circulated to all State Governments and Union
Territories on 17th September 2019 and was also placed on the website for seeking comments
of all stakeholders, including from the public. This Code has different provisions from all the
previous codes as it retains Employees Provident Fund Organization and Employees State
Insurance Corporation in the central sphere as it exists today.

Whatever may the explanation the CSS failed to provide universal social security. In India
although the Constitution does not recognize it as a fundamental right, the Supreme Court 61

61 Paschim Bangla Khet Mazoor Samiti v. State of West Bengal 1996(4) SCC 37.
has ruled that the right to livelihood is inherent in the right to life which is a fundamental
right. As the ultimate object of social security is to assure everyone the means of livelihood it
follows that the right to social security is also inherent in the right to life. In Paschim Bangla
Khet Mazdoor Samiti v. State of West Bengal 62 the Supreme Court held that Article 21 of the
Constitution imposes an obligation on the State to safeguard the right to life of every person
and, therefore, failure on the part of a government hospital to provide timely medical
treatment to a person in need of such treatment results in violation of his right to life
guaranteed under Article 21 of the Constitution. Further, the Court ordered that primary
health care centers be equipped to deal with medical emergencies

Dealing with the ratification of the ILO Convention the Study Group on Social Security
constituted by the Second National Commission on Labour felt that it might not be possible
to ratify all the Conventions of the ILO immediately, but it is desirable to plan for their
eventual ratification by upgrading laws and practices, beginning with the Minimum Standard
Convention. The Second National Commission on labour endorses the view of the Study
Group. The Study Group on Social Security also felt that in view of the fact that the right to
social security is regarded as one of the basic human rights the Government of India had
recognized it as such by ratifying the Covenant on Social Economic and Cultural Rights
social security it should be given the status of a fundamental right under the Constitution of
India and necessary resources should be allocated to it. The Study Group accordingly
suggested that the National Commission on Labour should make a strong recommendation
for amendment of the Constitution so as to make it a fundamental right63.

In view of the above it is felt that a right based universal social protection floor for the
unorganized sector should be put in place, which was envisaged in the second draft version of
the Social Security Code Bill which the Government withdrew for reasons not known after
soliciting public comments. To begin with minimum standards of social security be identified
and be given as a matter of right. This is all the more so because “since 2018, India’s working
age population (people between 15 and 64 years of age) has grown larger than the dependent
population-children aged 14 or below as well as people above 65 years. This bulge in the
working population is going to last till 2055”.64

62 Ibid.
63 Ministry of Labour and Employment, Government of India, Report by National Commission on Labour on
Social Security, 2002 at para 13.3
64 Atul Thakur, India enters 37-year period of Demographic Dividend, Economic Times
(22/07/2019), available at
https://economictimes.indiatimes.com/news/economy/indicators/india-enters-37-yearperiodof-demographic-
dividend/articleshow/70324782.cms.
10. ROAD MAP TOWARDS A RIGHT BASED SOCIAL SECURITY
Having said that the Code on Social Security, 2020 failed to provide rights based universal
social security system it is necessary to examine whether there is a road map towards a right
based social security for all workers. The social security schemes currently operating in India
are the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha
Bima Yojana (PMSBY) which provide insurance cover to a set of unorganised workers,
Pradhan Mantri Shram Yogi Maan-dhan (PMSYM) provides a pension scheme to the
Unorganised Workers and National Pension Scheme for Traders, Shopkeeper and Self-
Employed Persons is a voluntary and contributory pension scheme.

The Pradhan Mantri Suraksha Bima Yojana (PMSBY) provide insurance cover to a set of
unorganised workers. It provides life insurance cover of Rs. 2 lakhs on payment of premium
of Rs. 330 per annum for the age group of 18 to 50 years. The insurance coverage covers
accidental death or full disability. The scheme also provides insurance coverage of Rs. 1
lakh on partial disability on payment of a premium of Rs. 12 per annum for the age group 18
to 70 years. It has been reported that around 2.66 Crore beneficiaries were covered under
these schemes during the Insurance cycle year 2019-20.65

Pradhan Mantri Shram Yogi Maan-dhan (PMSYM) is a pension scheme for unorganised
workers which has been introduced by the Government of India to provide old age protection
to Unorganised Workers. The enrolment under the scheme started on 15 February 2019 and
was formally launched by the Hon'ble Prime Minister on 5 March 2019. As of 20.01.2021,
over 45 Lakhs beneficiaries have been registered under the scheme. It is a voluntary
contributory pension scheme.66

The National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons was
launched on 12.09.2019. It is also a voluntary and contributory pension scheme. In this
scheme the annual turnover should not exceed Rs. 1.5 Crore and the subscribers should not
be a member of EPFO/ESIC/NPS/ PMSYM. As of 20.01.2021 around 43,000 beneficiaries
have been registered under the prescribed scheme. The Scheme is being implemented through
the LIC of India and Common Services Centers.67

The aforesaid scheme no doubt provides social security but the scope and coverage of even
such schemes are extremely limited and that too without any legal framework.

65 Ministry of Labour & Employment, Government of India, Annual Report, 2020-21 at 80.
66 Ibid.
67 Id. at 81.
11. CONCLUSION
Making social security schemes accessible to the unorganized sector is a major challenge.
This is all the more so because about 91 percent of the workforce are in an unorganized sector
and to whom there is no legally enforceable social protection and social security. Thus, there
is an urgent need to provide social security to all the unorganized workers subject to certain
ceilings on income specified from time to time. It is all the more so because, social security
and minimum standards of employment are inherent in the “right to life” which includes the
right to livelihood. Further, social security is based on the ideal of human dignity and social
justice. It provides for social security against risks of want, disease, ignorance, squalor and
idealness by social insurance and social assistance or a combination of all or any of these
devises. Thus, denial of social security would be against human rights, the right to life,
human dignity, and social justice.68

The Code on Social Security, 2020 aims to provide social security to unorganised workers but
like the Unorganised Workers Social Security Act, 2008 no concrete steps have been spelt
out. Indeed, provisions made in CSS are of a recommendatory nature instead of a mandatory
one.

Experience shows that the Unorganised Workers Act, 2008 failed to provide social security to
unorganised workers. As per the report of the Parliamentary Standing Committee on Labour
even after 12 years of the enactment of the UWSS Act, only six percent of the unorganized
workers are covered under one or another form of social security. 69 The Code on Social
Security, 2008, by and large retains the provisions contained therein in regard to unorganised
workers. It has also largely retained usual administrative clauses of the UWSSA 2008 in
Chapter IX and Chapter II of the CSS without any legal framework. Further it has not
brought legally enforceable social security benefits for the unorganized workers. This creates
an apprehension in one’s mind that the CSS may not see a fate similar to one under the
UWSS Act regarding the coverage of social security for unorganised workers.

The social security fund for workers in the unorganised sector lack firm commitment on the
part of the Government. Thus, there is a need to specify the amount or percentage of
contributions to be made by the Central Government or State Governments. The Code may
also provide the guidelines for diversion of funds from corporate social responsibility,

68 S.C. Srivastava, Legal Protection and Social Security in unorganized sector, 230-231(The Book Line, 2017).
69 Supra 13 at para 13.3.
donations and other sources. Further the amount collected from a compounding of fines for
offences committed under the provisions of the CSS should form part of the funding and be
specifically included in CSS or else be brought under any other source, as recommended by
the Parliamentary Standing Committee on Labour.

The Central Government should upkeep the database at the national level for all the
unorganised sector workers and in particular ensure that in case of movement of unorganised
workers from one State to another, the projected benefits are actually extended to them.
Further, this data base should be technologically linked with the data base of such workers
whether they are self-employed such as street vendors, casual and daily wagers.

There is a need to make provisions for unemployment insurance for unorganized workers. 70
This is the need of the hour particularly during lock down due to the
Covid-19 pandemic.

70 Ibid.