UNIVERSITY INSTITUTE OF LEGAL STUDIES,

PANJAB UNIVERSITY, CHANDIGARH

Labour Laws Project-

Unorganised sector and labour
laws

Submitted To: Mr. Meenal Garg

Submitted By: Palbvir Singh
Roll No.: 267/19
Semester: 9th
Section: E
Class: B.Com LLB (hons.)
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Acknowledgement:

I would like to express my sincere thanks of gratitude to my professor of Labour

Laws, Mr. Meenal Garg, who gave me the golden opportunity to do this
wonderful project on the topic “Unorganised sector and labour laws.”
Secondly, I would like to thank my family and friends who helped me
throughout the project with various information and required materials. Their
constant support was encouraging for me. It helped me to complete my project
on time.
It was my immense pleasure to research upon such a great topic which helped
me in gaining meaningful insights. It was really a delightful experience for me
to work on this topic.

Palbvir Singh

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 Index-

Series no. Topic Pages

1. Introduction 4

2. Historical Background 4-5

3. Unorganised Workers 5-6

4. Classification of unorganised Workers 7

5. Problems faced by unorganised Workers 7-8

6. Social security of unorganised Workers 9

7. Policies for unorganised Workers 10-11

8. The Unorganized Workers Social Security Act, 12-14

2008
9. Code on social security, 2020 15-18

10. Conclusion 19

11. Bibliography 20

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Unorganised sector and labour laws-

Introduction-
The unorganized sector in India plays an important role in the development of the
economy. Around 92% of India's population consists of unorganized workers. The
unorganized workers do not have enough means to provide security for themselves.

Social security for workers is important for the workers families and for the community.
Most unorganized workers face many problems like low wages, work hazards, etc. The
Unorganized Workers Social Security Act, 2008 is the legislation enacted by the
government that provides social security benefits to the unorganized workers. The Indian
judiciary plays an important role in protecting the rights of the unorganized sector.
There are many schemes and policies for the unorganized workers that provides social
security and many more benefits for the welfare of the workers.

Historical background-
The concept of social security protection for industrial workers is not new to India. In India,
the laws relating to social security owes its origin to the concept of social security as
envisaged by the International Labour Organization. The legal regime pertaining to social
security protection to industrial workers in India commenced during the British
rule with the enactment of the Workmen’s Compensation Act, 1923.The basic idea
behind the formulation of this legislation is to provide a measure of financial protection to an
industrial worker in the event of unemployment situation caused by specific eventualities.
The ILO in its founding convention has strongly propounded the concept of social
security for industrial workers on the premise that the state cannot remain as a mere
spectator for various kinds of risks exposed at the work place by industrial workers after
the advent of large-scale industries. This legislation is a well drafted legislation providing
a measure of social security protection for the industrial workers in the event of any
personal injuries suffered by them out of and in the course of their employment or for any
occupational diseases contacted by the workers which are peculiar to their employment.
The law provides reasonable measure of compensation in the event of any disability or

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death suffered by the workmen out of and in the course of their employment. This law is
based on the common law principles of employer’s liability. The law defines the terms
‘workman’ and the ‘employer’ for the purposes of the applicability of the legislation and it
applies to the workers employed both in organized and unorganized sectors. Later, the
country witnessed the enactment of other social security legislations broadly basing on
contributory system. With this initiation, the concept of social security assumed a new
dimension and now it is viewed as a saving as long as an industrial worker is in
employment and as an income when he is unemployed for any reason. The situation of
unemployment may arise due to many factors, namely, disability or invalidity in the event of
industrial injuries, sickness, death, old age, temporary loss of earning capacity due to
confinement period in case of women workers or loss of earning capacity due to loss of
employment.

Unorganised Worker-

The workers and employers are two pillars of our national economy. The relationship
between workers and employers is one of partnership in the maintenance of production and
say, the building up of the national economy. Proper regulation of employer- employee
relationship is a condition precedent for planned, progressive and purposeful development of
society. In this connection, the social and economic upliftment of the labour is important for
securing industrial piece, which is essential to increase the national productivity. The total
labour force can broadly be divided into two categories:
1- Organised

2- Unorganised

A plethora of laws have been enacted in order to protect and safeguard the interests of
organised labour. But the condition of unorganised labour is very miserable in the absence of
sufficient labour legislations. The First National Commission on Labour, undshops and
commercial establishments; sweepers and scavengers; workers in tanneries; tribal labour and
other unprotected labour.
Therefore, it is equite evident that the unorganised sector is too vast to remain within the
confines of a conceptual definition. Sometimes, it is also defined as the residual of the
organised sector. In view of the above, descriptive means are often used to identify the
unorganised or informal sector. The below mentioned are some characteristics of
employments or undertakings in which unorganised labour is employed. These characteristics
are low scale of organization; operation of labour relations on a casual basis or on the basis of
kinship or personal relations; small own account (household) or family-owned enterprises or
micro enterprises; involvement of family labourers; easy entry and exit; free mobility within
the

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lack of support from government.

Under section 2(m)3 of the Unorganized Workers Social Security Act, 2008, the term
unorganized worker' means a home-based worker or a self- employed worker or a wage
worker in the unorganized sector. It includes a worker in the organized sector who is not
covered by any of the acts pertaining to welfare schemes as mentioned in Schedule II of
Unorganized Workers Social Security Act, 2008. Unorganized workers take over the Indian
labour market and represent 90% of the total Indian workforce. Unorganized sector in India is
one of the largest in the post- industrial world Unorganized Workers are people who do not
have the benefit of pension, maternity leave, provident fund, gratuity etc. These workers work
on daily and hourly wages. The unorganized labour in India is enormous when it comes to its
number range and hence, they are omnipresent in India. The unorganized sector has to put up
with cycles of excessive seasonality of employment because most of the unorganized workers
do not have secure durable avenues of employment. Unorganized workers have no formal
employer employee relationship and their workplace is scattered and disintegrated.
Unorganized workers are subjected to indebtedness as their income does not meet with their
living needs. These workers face exploitation, harassment, discrimination by the rest of the
society.
According to Unorganized Workers and Social Security Act, 2008 – Unorganized worker
means

 A home-based worker.
 Self-employed worker.
 Nature of employment, contract, casual and bonded labour wage worker in the
unorganized sector.

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Classification of unorganised workers-

The unorganized worker has been classified into 4 categories –

1. By Occupation – small and marginal farmers, landless agricultural labourers, share

croppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and
packing, building and construction workers, leather workers, weavers, artisans, salt
workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc.
2. By nature of employment – bonded labourers, migrant workers, contract and casual
labourers etc.
3. Service category- domestic workers, fishermen, barbers, vegetable and fruit vendors
etc.
4. Special category – toddy tappers, scavengers, carriers of head loads, drivers of animal
driven vehicles, loaders and un-loaders etc.

Major problems faced by unorganised workers-

In India, 90% of the workforces are engaged in unorganized sector. As being the weaker
section in the society, they deal with many problems. Even though the unorganized sector
contributes to the economy, they are faced with many challenges. They are:er the
chairmanship of Justice GAJENDRAGADKAR, defined the unorganised sector as that part
of the workforce who have not been able to organize in pursuit of a common objective
because of constraints such as
(a) casual nature of employment,

(b) ignorance and illiteracy,

(c) Small size of establishments with low capital investment per person employed,

(d) scattered nature of establishments and

(e) superior strength of the employer operating singly or in combination.

The commission further listed the various categories of unorganised labour. These are
contract labour including construction workers; casual labour; labour employed in small scale
industry; handloom/power-loom workers; beedi and cigar workers; employees in High level
of insecurities in jobs: Unorganized workers depend on various jobs due to insecurity of
work. Factors like climate change, locations etc. affect the employment opportunities for
unorganized

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 workers. For example, agricultural sector in India is highly irregular and unassured. This is
because of the availability of work to them. They are engaged only for 3 months in a year and
the remaining 9 months they are either unemployed or they search for alternative jobs to
sustain from starvation.

2. Minimum wages: Sec 2(h) of Minimum Wages Act, 1948 defines the term Wages'. It means
remuneration capable of being expressed in terms of money which would if the terms of the
contract 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 house rent
allowance4. Even though the act defines the term, the workers are not paid minimum wages
in most cases. In Peoples' Union for Democratic Rights v. Union of India 1, the Supreme
Court held that even if poverty forces anyone to work for minimum wage, Article 23
prohibits employing workers for wages below the statutory minimum level as it results in
forced labour.
3. Long working hours: In the Unorganized sector, long working hours are beyond the labour
and regulatory norms which is standard in India. The agricultural sector has no fixed
working hours as there are no laws that regulate the working hours for the agricultural
sector. In the other unorganized sectors, the working hours are fixed from 12- 15 hours and
their wages depend on the hours their work for their employer. As most of the workers are
illiterate and are dependent on the wages given by the employer they are exploited by the
employer as they forcethe workers to work for more hours.
4. Work hazards, occupational safety and living conditions: Unorganized workers are exposed
to dangerous working conditions which affects their health conditions. They face many
healthproblems because they have low nutrition and their excessive physical activities. Due
to their low income, they are unable to pay for their medical expenses. Workers who work
in fireworkfactories, tobacco factories, and matchstick factories are prone to respiratory
diseases becauseof inhaling the tobacco dust, fire powder etc. Workers in agricultural sector
are affected by excessive use of pesticide, insecticide and fertilizers. Unorganized workers
live in slum areas and unsanitary conditions. Basic facilities like washing areas, toilet
facilities etc. are below standard.

5. Women and children are unprotected: Art 39(d) of the Constitution of India talks
aboutequal pay for equal work. This means that all workers should be given equal wages
irrespective of their sex. Wages given to men are more than the wages given to womenand
children for their equal hours of work. Many children are forced to work in households,
dhabas, and tea shops for low wages. Children work for long working hoursand they are
exposed to many hazardous working conditions which affect their health. Women are
sexually harassed and assaulted in many workplaces. Women experience many physical
and mental problems and they are not aware of their rights.

1
1982 AIR 1473
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 Social security and unorganised sector-

The social security schemes in India cover only a small segment of the organised workforce,
which may be defined as workers who are having a direct regular employer- employee
relationship within an organization. The social security legislation in India derives their
strength and spirit from the Directive Principles of the State Policy as contained in the
Constitution of India. Social security is a dynamic concept. It varies from time to time and
country to country. The International Labour organization has defined social security as:
The security that the society furnishes through appropriate organization against certain risks
to which its members are exposed. These risks are essentially contingencies against which
the individual of small means cannot effectively provide by his own ability or foresight alone
or even in private combination with fellows.
The term social security has also been endorsed by the first National Commission on Labour
in the following manner:
Social security envisages that the members of a community shall be protected by collective
action against social risks causing undue hardship and privation to individuals whose
prime resources can seldom be adequate to meet them.
In India, the organised sector, which accounts for about 7% of the total workforce, benefit
from a fair minimum standard of social security. However, in contrast to this, the unorganised
or informal sector which comprises roughly of 93 percent of the labour force have only a
minimal social security arrangement. So far there is no specific or comprehensive schemes or
legislation at the national level, which exclusively address the issues of unorganised sector.

It was realized by the Government that the unorganised sector is growing at an alarming rate,
where majority of the workers are left with no social security to fall back upon during
contingencies and old age. It was also realised by the policy makers that the existing legal and
protective frames have become grossly inadequate to address the issues of unorganised sector
workers. Therefore, in view of the above, the Parliament ultimately passed the Unorganised
Workers’ Social Security Act, 2008 (hereinafter referred to as the Act) for providing social
security to the unorganised workers.

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Policies for Unorganized Workers

Social security is necessary for the welfare of unorganized workers. There was no specific
legislation on social security for unorganized workers. The unorganized workers are covered
under various policies formulated by the government.

National Policy on Skill Development

The National Policy on Skill Development empowers individuals to improve skills,

knowledge, nationally and internationally recognize qualifications to gain better job
opportunities. The aim of this policy is to enhance individual's employability and ability to
adapt to changing technologies.
It aims to improve productivity and standard of living for workers. The objective of the
policy is to create opportunities to workers including women and youth who are skilled in the
work they do. It also aims to develop a high quality workforce related to current and
emerging market needs. It helps to attract investment in skill development and strengthen
competitiveness in the country.

National Policy on Safety, Health and Environment at Work Place

Safety and health of the unorganized workers have a positive impact on productivity,
economic and social development. The goals of this policy is to improve safety, health and
environment at workplaces.
The objectives are to reduce work related accidents, harmful diseases and cover the financial
requirements for the people affected. It also aims in spreading awareness about safety, health
and environment related issues. It establishes suitable schemes for unorganized workers
regarding subsidies. It enforces all rules and regulations regarding safety, health and
environment at workplace. It ensures that all the workers and employers have rights and
responsibilities in achieving safe and healthy working conditions.

National Policy on HIV AIDS

National Policy on HIV AIDS is necessary to provide guidelines to unorganized workers about
the HIV AIDS infection. To fight against HIV AIDS, stigma and discrimination is an important
challenge. Due to lack of understanding, most employers from both public and private sector
have not taken up workplace intervention.

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In the next 10- 12 years, India's growth will create around 10 million jobs and most workers
will be young workers. If there is a spread of HIV AIDS, then it would affect the economic
growth of the country. In order to prevent this, workplace policies should have appropriate
services and provide information regarding the same. The aim of this policy is to prevent the
transmission of HIV AIDS amongst the workers. It also aims to provide access to treatment
and protects the rights of the affected workers.

National Child Labour Policy

On 14th August 1987, the National Child Labour Policy was approved by the cabinet. The
main objective of this policy was to eliminate child labour in hazardous working sectors. In
this scheme, the target group was for children aged below 14 years and who worked in places
where children were affected with health problems.
The policy aims to launch for the welfare of children who are working in areas where there is
high concentration of child labour. The policy focuses on rehabilitation of children who work
in hazardous working areas. Activities like formal, non- formal education, raising public
awareness by conducting campaigns and rallies are etc. conducted by the government to
eliminate child labour.

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The Unorganized Workers Social Security Act, 2008

The Unorganized Workers Social Security Act, 2008 was passed by the Parliament of India
on December 30, 2008. This act aims to provide social security and welfare to the
unorganized sector. The Central Government and State Government has made various
schemes connected to life, disability, old age, housing, education, employment etc. These
schemes are funded by the Central and State Government. This act is applicable to whole of
India, specifically for the unorganized sector. For the implementation of the law, the
government has constituted the National Social Security Board and the State Social Security
Board.

Salient features of the act-

• Formulation of schemes by the Central Government for different sections of unorganised

workers on matters relating to
1. life and disability cover

2. health and maternity benefits

3. old age protection

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

• Formulation of schemes relating to provident fund, employment injury benefits, housing,

educational schemes for children, skill upgradation, funeral assistance and old age homes by
the State Governments.
• Funding of the schemes to be specified in the scheme itself.

• Constitution of National Social Security Board under the chairmanship of Union Minister
for Labour & Employment, Member Secretary and 34 nominated members representing
Members of Parliament, unorganised workers, employers of unorganised workers, civil
society, Central Ministries and State Governments.
• Adequate representation to persons belonging to the Scheduled Castes, the Scheduled
Tribes, the Minorities and Women.
The functions of National Board, inter-alia, include: to recommend to the Central Government
suitable schemes for different sections of unorganised workers; monitor the implementation of
schemes and advise the Central Government on matters arising out of the administration of the
Act.

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• Section 6 has provision for constitution of similar Boards at the State level. Identification
and Registration of Workers at the District level and issuance of Smart Cards to them.

Limitations of the act-

 Unpaid women workers are excluded: Unpaid women workers are not covered by the
Act because they do not fall within the definitions of self-employed workers, wage
workers or home-based workers. According to these definitions, getting wages or
monthly earnings are condition precedent for being considered as unorganised workers.
Therefore, the thing which gives pain is that the monetary value of women’s work is
not measured. However, it should not be a reason for denying social security to women
workers. Moreover, the problems of security, sexual harassment, proper
accommodation for migrant women workers, issues relating to nature of work and
industrial safety, gender wage gap, non-payment of wages, child care facilities at work
spot etc. have been totally ignored.

 Unorganised workers deprived of other existing benefits: It is pertinent and relevant to

mention here that many labour laws in India are of universal application to all workers
irrespective of the number of workers working in the establishment. But it is laid down
in Section 2(m) of the Act that the unorganised worker “include a worker in the
organised sector who is not covered by any of the Acts mentioned in Schedule II 16 of
the Act.” It leads to the inference that the benefits under The Workman’s Compensation
Act and the Maternity Benefit Act are now denied to the workers working in
establishment employing less than 10 workers.
Therefore, it is clearly evident that Section 2(m) of the Act limits the applicability of
the Acts mentioned in Schedule. In other words, we can say that Section 2(m) takes
away certain rights all workmen enjoy de jure.

 Social security-not justiciable: A right is justiciable if the aggrieved party can seek
remedy in a Court of law, in case it is violated. But to make a right justiciable it should
be clearly defined. The object of the Act is to provide social security and welfare to the
unorganised workers, but it does not confer any defined right to social security for
them. The schemes relating to social security are mentioned in Schedule I of the Act.
This clearly means that these schemes can be changed at any time by way of a
notification, and not after discussion in the Parliament. This denies the unorganised
workers the benefit of consistency and justiciability. It is also a fact that these schemes
are arbitrarily changed by the government through administrative notifications.

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 Therefore, it is submitted that the content of the schemes should not be changed
without the approval of the Parliament. Moreover, the government should not change
the schemes unilaterally.

 No Social Security Fund: It is very surprising to know that the Act does not provide for
the creation of a social security fund for unorganised workers, even though the
Parliamentary Standing Committee has made the following observation-
The committee feels that social security schemes cannot just work without any
statutory backing and assured resources allocation. It would not be proper to tailor the
schemes or reduce their number on the consideration of funds. Funds flow system for
the schemes has been kept virtually undefined and wide open thereby allowing total
flexibility to the government in the matter of deciding and operationalising the
schemes as per its convenience. Thus, the committee are inclined to infer that an ad
hoc approach has been adopted on such an important aspect of the Bill. This will only
make the schemes dysfunctional. The Committee, therefore, strongly recommend that
a proper, transparent and institutional mechanisms devising clear and unambiguous
methodology for generating resources be laid down paving the way for creation of a
National Social Security and Welfare Fund. The Committee are of the opinion that
creation of National Social Security and Welfare Fund will ensure permanency,
continuity and sustainability of social security benefits. Therefore, the Act should
have provided for the creation of a social security fund and a financial memorandum
for budgetary allocation for the fund.

 No mechanism for implementation of the Act: The Act has been introduced by the
Ministry of Labour, the social security schemes mentioned in schedule I are managed
by various ministries. Section 8 of the Act gives the record keeping functions of the
provision of social security for unorganised workers to the district administration, the
Panchayats and to the local urban bodies. Labour administration has no role to play in
the implementation of the Act. This is very painful.Therefore, a modal ministry is
essential for its effective implementation.

 No grievance redressal machinery: The Act does not provide for a grievance redressal
mechanism, even though it was strongly recommended by the Parliamentary Standing
Committee on Labour. Grievance redressal mechanism is a sine qua non for the fair and
effective implementation of an Act. Moreover, there is no provision for penalties in the
Act to punish those employers who violate the provisions of the Act. In addition to it,
there would be no action against the bureaucrats who refuse to register any unorganised
worker under any of the scheduled schemes. These problems are required to be taken
care of.

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Code on social security, 2020-
The Code on Social Security (CoSS), 2020 was introduced by withdrawing the earlier Code of
2019. It has amended and consolidated the laws relating to employee’s social security with the
goal to extend social security assistance to all employees & workers either in organized or
unorganized sector or any other sectors.
Social security mainly refers to protection measures provided to the workers or employees to
ensure their healthcare and income security in case of certain contingencies such as old age,
maternity, mishappening or accidents. The CoSS has vibrant provisions with respect to social
security benefits and also amalgamates, simplifies & rationalizes the relevant provisions of the 9
central labour legislations

SIGNIFICANCE OF THE CODE

The CoSS is far from being a mere consolidation of previous legislations or laws. It has
enhanced the coverage, extended the benefits/advantages to all kind of workers in the
organised/unorganised or any other sectors. It also introduced concepts of providing maximum
benefits under a minimum governance and reflects uniformity in approach across the 4 labour
codes existing as on date. The CoSS has expanded the scope of social security by providing for
the registration of all types of workers including gig workers and platform workers. Gig worker
is the new notion introduced in the CoSS. Gig workers are now also eligible for life and
disability coverage, maternity benefits, pension. The CoSS brings the workers under the ambit
of social security schemes, including life insurance and disability insurance, health and
maternity benefits, provident fund and skill up-gradation, etc.
The CoSS has also targeted to promote the digitisation where all records and returns have to be
maintained electronically. Digitisation of data will help in the exchange of information among
various stakeholders/funds set up by the Government, which will ensure compliance and also
facilitate the governance. Apart from the above significance the CoSS, it has brought in a
facilitating approach by the authorities. Unlike the existing role of inspectors or officers, the
CoSS provides for an enhanced role of inspector-cum-facilitator whereby employers can also
look for support and advice from them to enhance the compliances.

KEY HIGHLIGHTS

We have encapsulated certain important provisions of the CoSS as under:

 Employees’ Provident Fund (EPF)
The CoSS brings some changes in the EPF scheme applicability which is now
applicable to every establishment in which 20 or more employees are
employed. The Central Government may establish a Provident Fund where the
contributions paid by the employer to such fund shall be 10 % of the wages for
the time being payable to each of the employees (whether employed by him
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 directly or by or through a contactor), and the employee's contribution shall be
equal to the contribution payable by the employer.
Any employee so desires, can also contribute more than 10% of the wages,
subject to the condition that the employer shall not be under an obligation to
pay any contribution over and above 10%. provided that if Central
Government may deem feet by notification the word 10 % substituted with
the word 12 % at both the places.
 Employees' State Insurance (ESI)
Chapter 4 of the CoSS envisages the applicability of ESI Scheme. The ESI
Scheme apply to every establishment in which 10 or more persons are
employed other than a seasonal factory and the establishment which carries on
hazardous or life-threatening occupation, in which even a single employee is
employed and also on the employer of plantation who has opted for
application of ESI. The CoSS also covers Gig workers and platforms workers
under the ESI Scheme.
 Payment of Gratuity
Chapter 5 of the CoSS has fixed various thresholds with respect to eligibility
for gratuity for permanent and fixed term employees. The provisions
relating to gratuity are applicable to:
i. every factory, mine, oilfield, plantation, port and railway company; and
ii. every shop or establishment in which 10 or more employees are
employed, or were employed, on any day of the preceding 12
months; and
iii. such shops or establishments as may be notified by the
appropriate Government from time to time.
Gratuity shall be payable to an employee on the termination of his employment after
he has rendered continuous service for not less than 5 years and for working
journalist, gratuity is payable on termination of employment after a continuous
service of 3 years.
Completion of continuous service of 5 years shall not be essential where the
termination of employment of any employee happens due to:
i) death or
ii) disablement or
iii) expiration of fixed term employment or
iv) happening of any such event as notified by the Central Government.
 Maternity Benefit
Maternity benefits shall be applicable to every shop or establishment in
which 10 or more employees are employed, or were employed, on any day of
the preceding 12 months. The CoSS described for maternity benefit as under:

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 i. No woman shall work in any establishment during the 6 weeks
immediately following the day of her delivery, miscarriage or medical
termination of pregnancy.
ii. The maximum period for which any woman shall be entitled to
maternity benefit shall be 26 weeks of which not more than 8 weeks
shall precede the expected date of her delivery.
iii. A woman shall be entitled to maternity benefit if she has actually
worked in an establishment of the employer from whom she claims
maternity benefit, for a period of not less than 80 days in the 12 months
immediately preceding the date of her expected delivery.
iv. In addition to maternity benefit in terms of paid leaves, every woman is
entitled to medical bonus of up to Rs. 3,500 if pre-natal confinement
and post-natal care is not provided by her employer.
v. In case of miscarriage, or medical termination of pregnancy, a woman
shall, be entitled to leave with wages at the rate of maternity benefit on
production of such proof for a period of 6 weeks immediately
following the day of her miscarriage or medical termination.
 Benefits to Unorganised Worker, GIG Worker and Platform Workers
The CoSS provides right to the Central and State Government to frame and
notify the social security schemes for such workers on the matters related to
life and disability cover, education, accident insurance, health and maternity
benefits, old age protection, crèche. The schemes may be funded by the
combination of Central Government, State Government, aggregators (@ not
exceeding 2% but not less than 1% of the annual turnover of aggregator
specified in the 7th Schedule), beneficiaries of the scheme, or funded from
corporate social responsibility.
The CoSS places an obligation on the Central Government to constitute the
National Social Security Board for the welfare of the unorganised worker, gig
workers and platform workers to recommend and monitor the schemes for such
worker. The Central Government will setup and administer the social security
fund for the welfare of such workers.
The CoSS also gives the right to the government to setup free call helpline
centres for such workers to disseminate information on available social
security schemes, to facilitate filing, processing and forwarding of
application forms for registration, to obtain registration, to facilitate the
enrolment of the registered for the unorganised workers, gig workers and
platform workers.
This will encourage the youth to participate in such jobs and can avail the
given benefits.
 Social Security and Cess in Respect of Building and Other Construction
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 Workers
On every employer cess will be levied and collected for the purposes of
social security and welfare of building workers at such rate not exceeding
2% per cent but not less than 1% of the cost of construction incurred by an
employer, as the Central Government.
The cost of construction shall not include the cost of land and any
compensation paid or payable to an employee or his kin.
The cess levied shall be collected from every employer undertaking building
or other construction work in such manner and at such time, including
deduction at source in relation to a building or other construction work of a
Government or of a public sector undertaking or advance collection through a
local authority where an approval of such building or other construction work
by such local authority or such other authority notified by the State
Government is required.
Employer shall be liable to pay interest on the amount of cess not paid by the
employer, for the period from the date on which payment is due till the amount
is actually paid, at the rate as prescribed by the Central Government. The
Government may, by notification, exempt any employer or class of employers
in a State from the payment of cess, where such cess is already levied and
payable under any corresponding law in force in that State.
The employer shall, within 60 days or such period as may be notified by the
Central Government of the completion of building and construction work, pay
cess on the basis of his self-assessment, on the cost of construction.

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Conclusion-

Unorganised labour system is not new for our country. Its origin can be traced from the caste
hierarchy and feudal structure. In our country unorganised labour, which forms 93 percent of
the total labour force, is in existence in its various forms and are facing numerous problems.
The main problem of unorganised labour is related to their social and economic exploitation.
The social security schemes in India cover only a small segment of the organised workforce.
The condition of unorganised labour is very miserable in the absence of sufficient labour
legislations.
Therefore, in view of the above, The Unorganised Workers’ Social Security Act, 2008 was
enacted so as to confer the benefit of social security schemes upon the unorganised workers.
However, the analysis and evaluation of the provisions of the Act reveals that Act has
inherent structural gaps and inadequacies that make the Act totally ineffective in providing
social security to the unorganised workers. Social security to unorganised workers has been
narrowed down to ten paltry social security schemes. The Act does not guarantee any
justiciable right to social security for workers. It also does not contain a provision for the
creation of social security fund. Moreover, the Act is discriminatory and takes away rights
emanating from other existing labour legislations. It has no provision to punish those
employers who violate it.
The problems of women unorganised workers do not figure in the Act. Absence of dispute
redressal mechanism makes the Act more ineffective. The national and state boards for
unorganised workers are toothless bodies. Therefore, in view of the above the Act must be
taken as a beginning and we have yet to cover a long distance.
Though, the rights of the unorganized workers are protected by various articles in the
constitution of India. The unorganized workers should be given awareness regarding their
health, living, and wages and should not be exploited by the employers in their working
areas.

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 Bibliography-

i.Primary
Source Statute
The Unorganized Workers Social Security Act, 2008.
The Code on Social Security (CoSS), 2020.

Books
1. Goswami, V.G. Dr., Labour & Industrial Laws, 8th edition, Central Law Agency, 2004
2. Malhotra, O.P.,The Law Of Industrial Disputes, 6th Edition, LexisNexis ButterWorths Wadhwa, 2004
3. Mishra ,S.N., Modern Labour Laws And Industrial Relations, Deep &Deep PublicationsPvt. Ltd, 1992
4. Singh, Avtar, Introduction To Labour & Industrial Law, LexisNexis ButterWorths Wadhwa

Case Referred
Peoples' Union for Democratic Rights v. Union of India 1982 AIR 1473

Articles
1. ‘Report of the National Commission of Labour, Volume I, Part I’ at p. 366.
2. “Chapter 5- Wages”
3. “Minimum Wages Act 1948”,
4. “Minimum Wages India – Current Minimum Wage Rate India”; “Report On The WorkingOf
Minimum Wages Act”; for the year 1998 “Report On The Working Of MinimumWages Act”; for the
year 2001 Khan, Kamaluddin, “Directive Principles For the
establishment of the welfare state”, 19th Feb, 2009
5. Mirchandaney, Anuja “Law Relating to Minimum Wages”, Alternative Law Forum

ii. Secondary Source

Websites
1. http://labour.nic.in/annrep/annrep0304/english/Chapter05.pdf
2. www.labourbureau.nic.in
3. www.nidfm.nic.in
4. www.paycheck.in

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