Unit 4 - Labour Law
Unit 4 - Labour Law
1) Critically examine the framing of social security benefit schemes by National social
security Board. Analyse its powers and functions under the Unorganized Workers' Social
Security Act, 2008.
The National Social Security Board (NSSB) was constituted under the Unorganized Workers'
Social Security Act, 2008 ("UWSSA, 2008") to recommend social security schemes for
unorganized sector workers — a group historically marginalized in India's formal welfare
policies. The Board’s primary function is advisory, intended to bridge the gap in welfare
between organized and unorganized labor.
Challenges:
1. Lack of Binding Power:
are susceptible to dilution or neglect depending on the political will of the
government.
2. Fragmented Scheme Coverage:
criticized for being fragmented rather than offering holistic security. Workers are
often covered under multiple overlapping schemes, leading to administrative
inefficiency.
3. Underfunding and Budgetary Constraints:
Welfare schemes like Rashtriya Swasthya Bima Yojana (RSBY) did not get adequate
financial support to meet the needs of a growing unorganized sector workforce.
4. Exclusion and Identification Challenges:
lack of proper documentation or poor awareness
5. Minimal Participation of Workers:
The Board, despite being multi-stakeholder in theory (including workers, employers,
and civil society), has often been criticized for limited grassroots participation.
6. Overlap with Other Legislations:
After the introduction of the Code on Social Security, 2020, the framework has
shifted towards a more centralized system, leading to questions about the continued
relevance and authority of the Board under the 2008 Act.
Powers and Functions of the National Social Security Board under the Unorganized
Workers' Social Security Act, 2008
Section 5:
Recommend Schemes:
To recommend to the Central Government suitable welfare schemes for unorganized
workers concerning life and disability cover, health and maternity benefits, old age
protection, and other benefits as may be determined.
Advise the Government:
To advise the Central Government on matters relating to the administration of the
Act and improving the efficiency of delivery mechanisms for social security schemes.
Monitor Implementation:
Although mostly advisory, the Board is tasked with monitoring the implementation of
welfare schemes, ensuring that feedback loops exist to refine existing schemes.
Review and Evaluation:
The Board can review from time to time the progress of implementation of welfare
schemes and suggest modifications where necessary.
Other Functions Assigned by the Government:
The Act allows the government to assign any other functions as it deems necessary
for achieving the objectives of social security for unorganized workers.
Critical View:
The Board lacks regulatory or enforcement powers, making it dependent on
government discretion.
Its capacity for proactive monitoring and scheme enforcement is limited.
In practice, the Board has operated more as a policy advisory body rather than
a social justice enforcer.
Conclusion
The National Social Security Board, under the Unorganized Workers' Social Security Act,
2008, represents a significant conceptual move towards recognizing the welfare needs of
India's vast unorganized workforce. However, weak institutional design, non-binding
recommendations, poor funding, and operational challenges have severely limited its
effectiveness. The later Code on Social Security, 2020 aims to overhaul this framework but
raises concerns about centralization and further alienation of unorganized workers’ voices.
In a country where more than 80% of the workforce is in the unorganized sector, mere
advisory boards without teeth cannot bring meaningful social security reform — a more
empowered, worker-centric, and well-funded institution is necessary.
Q.1) Critically examine the framing of social security benefit schemes by State social
security Board. Analyse its powers and functions under the Unorganized Workers' Social
Security Act, 2008.
The State Social Security Board (SSSB) under the Unorganized Workers' Social Security Act,
2008 ("UWSSA, 2008") was created to replicate the national-level welfare mechanism at the
state level, considering the unique local needs of unorganized workers.
Challenges:
1. Implementation Gaps Between States:
States differ widely in political priorities, financial capacities, and administrative
infrastructure. States like Kerala and Tamil Nadu have been relatively proactive, but
others have lagged far behind.
2. Limited Financial Autonomy:
State Boards depend heavily on central grants or state budgetary allocations, which
are often insufficient or delayed. This financial dependency restricts the Board's
ability to design innovative, context-specific welfare schemes.
3. Fragmented Scheme Development:
Many schemes framed by State Boards are sector-specific rather
than comprehensive. This leaves large sections of unorganized workers uncovered or
forces them to register under multiple schemes.
4. Weak Monitoring and Follow-Up:
lack the manpower or mechanisms to do so effectively. As a result, framing of
schemes often becomes a one-time exercise without continuous evaluation or
adaptation.
5. Political Interference and Bureaucratic Delays:
The functioning of several State Boards has been compromised by political
patronage, bureaucratic inefficiency, and frequent changes in leadership, which
affects the continuity of policy initiatives.
6. Awareness and Accessibility Issues:
Even when schemes are framed, the benefits often don't reach intended
beneficiaries due to poor awareness, complex procedures, and lack of a strong
registration system for unorganized workers at the state level.
Powers and Functions of the State Social Security Board under the Unorganized Workers'
Social Security Act, 2008
Section 6:
Recommend Welfare Schemes to State Government:
Suggest social security schemes for unorganized workers covering areas like health
and maternity benefits, old-age protection, life and disability insurance, housing,
education, skill upgradation, funeral assistance, etc.
Advise on Matters Arising Out of Administration of the Act:
Act as an advisory body to the state government on effective administration, delivery,
and operationalization of social security for unorganized workers.
Monitor Implementation of Welfare Schemes:
Track and monitor the execution of social security schemes at the ground level.
Review from Time to Time the Progress of the Welfare Schemes:
Conduct periodic reviews and suggest necessary improvements.
Other Functions Assigned by the State Government:
Undertake any additional tasks as deemed necessary for fulfilling the objectives of
worker welfare.
Critical View:
Merely Advisory Role: Similar to the National Board, the State Board also does not
have binding decision-making powers.
No Enforcement Mechanism: The Board cannot enforce its recommendations, nor
penalize non-compliance by implementing agencies.
Overburdened with Functions, Under-equipped in Capacity: Many State Boards lack
sufficient institutional support and autonomy to discharge their functions effectively.
Conclusion
The State Social Security Boards were conceptualized to make social security
more responsive to local needs, yet in reality, they suffer from weak financial support,
political interference, capacity deficits, and lack of autonomy. To achieve the vision of
the Unorganized Workers' Social Security Act, 2008, States must empower these Boards
with decision-making authority, ensure adequate funding, and streamline administrative
support to make the framing and delivery of social security schemes truly meaningful for
unorganized workers.
Q.1) Difference
Aspect National Board State Board
Primary Role Recommend central schemes Recommend state-specific schemes
Powers Advisory only Advisory only
Monitoring Central-level monitoring State-level monitoring
Funding Support Largely from Central Government Central + State funding
Major Non-binding powers, poor Financial limitations, uneven
Challenges coordination implementation
Q.2) Discuss the eligibility conditions for registration under the Unorganized Workers'
Social Security Act, 2008.
The Unorganized Workers' Social Security Act, 2008 ("UWSSA, 2008") provides a legal
framework to ensure that unorganized workers receive social security benefits. To access
these benefits, workers must register under the Act. The eligibility conditions for registration
are outlined mainly under Section 10 and related provisions.
The main eligibility conditions are:
2. Age Requirement
Condition:
The worker must be 14 years of age or above at the time of registration.
Rationale:
This aligns with child labor regulations and ensures that social security benefits are
targeted at adult or employable individuals.
4. Submission of Application
The worker must submit a self-declaration form stating their eligibility, along with
the required documents, such as proof of age, occupation, and residence.
The application is to be made to the District Administration or other authority
designated by the State Government.
5. Possession of an Identity Card
Upon successful registration, the worker is issued a smart card or identity card,
which acts as proof of registration and enables access to various welfare schemes.
Critical Note
While the Act sets broad eligibility criteria to make the process simple and inclusive, in
practice, issues like lack of awareness, cumbersome documentation requirements, and
administrative delays have restricted the number of workers who actually get registered.
Conclusion
The eligibility conditions under the UWSSA, 2008 are intentionally broad and simple — an
unorganized worker aged 14 or above, engaged in informal work, and not covered under
existing labor welfare laws, can apply for registration. However, effective registration
requires not just legal eligibility but also strong administrative support and awareness at the
ground level.
Q.3) Discuss the social security benefit conferred under the Unorganized Workers' Social
Security Act, 2008 with respect to the National Social Security Board for unorganized
workers.
The Unorganized Workers' Social Security Act, 2008 ("UWSSA, 2008") was enacted to
extend basic social security to workers outside the ambit of formal labor protections. Under
this Act, the National Social Security Board for Unorganized Workers plays a central role in
recommending and guiding the implementation of social security schemes.
Critical Analysis
Advisory Nature:
The Board’s role is mainly advisory, and its recommendations are not binding on the
Central Government, leading to potential delays or non-implementation.
Fragmented Coverage:
While schemes exist, they often cover only specific contingencies (like life insurance
or health) rather than providing comprehensive social security.
Identification Challenges:
A significant proportion of unorganized workers remain outside the coverage due to
poor registration mechanisms and administrative inefficiencies.
Post-2008 Developments:
After the Act, several targeted schemes were introduced, but a unified, robust social
security system for all unorganized workers is still lacking. The 2020 Social Security
Code attempts to address some of these gaps but still builds on the 2008 framework.
Conclusion
The Unorganized Workers' Social Security Act, 2008, through the National Social Security
Board, lays the foundation for extending social security benefits like health, life insurance,
and pensions to India’s vast unorganized workforce. However, the realization of these
benefits depends heavily on effective scheme design, strong administrative will, funding, and
grassroots-level awareness. Without these, the social security envisioned by the Act remains
incomplete.
Q.3) Discuss the social security benefit conferred under the Unorganized Workers' Social
Security Act, 2008 with respect to the State Social Security Board for unorganized workers.
The Unorganized Workers' Social Security Act, 2008 ("UWSSA, 2008") recognizes the need
for localized action to address the welfare needs of workers in the unorganized sector. For
this purpose, it mandates the creation of the State Social Security Board for Unorganized
Workers in every state.
Critical Analysis
Limited Binding Authority:
Like the National Board, the State Boards only have an advisory role and cannot
enforce their recommendations, which sometimes results in slow or partial
implementation of welfare measures.
Variations Across States:
Since social security is a state subject under the Constitution, states vary widely in
the nature, scope, and quality of benefits provided.
Financial Constraints:
Many state governments face budgetary limitations, affecting the range and
sustainability of welfare schemes.
Administrative Challenges:
Poor worker registration, lack of awareness among beneficiaries, and bureaucratic
inefficiencies often prevent workers from accessing the benefits.
Best Practices:
States like Tamil Nadu and Kerala have shown how strong political will and effective
administrative systems can maximize the social security coverage of unorganized
workers.
Conclusion
The State Social Security Board under the UWSSA, 2008 plays a crucial role in localizing and
implementing social security measures for unorganized workers. While the structure allows
for flexible and need-based welfare interventions, the effectiveness of these benefits greatly
depends on political commitment, financial resources, administrative capacity, and workers’
awareness. A strong and proactive State Board can substantially enhance the quality of life
for millions of informal workers.
Q.4) Discuss the composition of members in the National Social Security Board for
unorganized workers under the Unorganized Workers' Social Security Act, 2008.
The Unorganized Workers' Social Security Act, 2008 ("UWSSA, 2008") under Section
5 provides for the establishment of the National Social Security Board for Unorganized
Workers. The composition of this Board is designed to represent various stakeholders
involved with the welfare of unorganized workers.
The composition includes:
1. Chairperson
Union Minister for Labour and Employment acts as the Chairperson of the Board.
2. Vice-Chairperson
The Minister of State for Labour and Employment (if any) is the Vice-Chairperson.
3. Members
The Board consists of representatives from various groups:
Category Details
Not exceeding 5 members, representing different ministries such
Central Government
as Finance, Health, Rural Development, and Women and Child
Officials
Development.
State Government Not exceeding 7 members, each representing a different state,
Representatives appointed by rotation.
Category Details
Employers of Not exceeding 7 members, representing employers of unorganized
Unorganized Sector sector workers.
Not exceeding 7 members, representing unorganized workers
Unorganized Workers
(including self-employed and wage workers).
Members from Civil Not exceeding 7 members, representing NGOs, community-based
Society organizations, or experts involved with labor issues.
4. Member Secretary
An officer of the Central Government (not below the rank of Joint Secretary) is
appointed as the Member-Secretary of the Board.
Critical Analysis
Advisory Role Only:
Despite broad representation, the Board’s powers are purely advisory; it can only
recommend welfare schemes, not enforce them.
Challenges of Coordination:
Diverse membership may sometimes cause coordination challenges and slow
decision-making.
Potential for Better Worker Representation:
While workers are represented, selection processes often lack transparency, and
genuine grassroots representation can sometimes be weak.
Conclusion
The National Social Security Board under the UWSSA, 2008 reflects an effort to create
a participatory and multi-stakeholder body for the welfare of unorganized workers.
However, the real impact of this composition depends on how actively the Board functions
and how seriously its recommendations are implemented by the government.
Q.4) Discuss the composition of members in the State Social Security Board for
unorganized workers under the Unorganized Workers' Social Security Act, 2008.
The Unorganized Workers' Social Security Act, 2008 ("UWSSA, 2008") under Section
6 mandates the establishment of a State Social Security Board in every state to oversee and
recommend welfare measures for unorganized workers.
The composition of the Board is structured to ensure representation from all major
stakeholders — government, employers, workers, and civil society.
1. Chairperson
The Minister of Labour of the respective State Government serves as
the Chairperson.
2. Vice-Chairperson
A Minister of State for Labour, if appointed in the state, acts as the Vice-
Chairperson.
3. Members
The Board includes:
Category Details
State Government Up to 5 members representing various relevant departments like
Officials Labour, Finance, Health, Social Welfare, and Rural Development.
District Administration
Up to 7 members, one from each different district, by rotation.
Representatives
Employers of Up to 7 members representing employers engaged in
Unorganized Sector unorganized sector industries.
Up to 7 members representing different categories of
Unorganized Workers'
unorganized workers (e.g., agricultural laborers, street vendors,
Representatives
domestic workers).
Up to 7 members from NGOs, community-based organizations,
Civil Society Members
or experts involved in labor welfare.
4. Member Secretary
An officer of the State Government, not below the rank of Joint Secretary, is
appointed as the Member-Secretaryof the Board.
Critical Analysis
Advisory Role:
Like the National Board, the State Board has only recommendatory powers; it cannot
directly implement or enforce welfare schemes.
Dependence on State Will:
The functioning of the Board largely depends on the political
commitment and financial support of the respective State Government.
Challenges of Genuine Representation:
In practice, there may be issues with the genuine representation of workers if
appointments are politically influenced.
Conclusion
The State Social Security Board under the UWSSA, 2008 is an important institutional
mechanism to promote and protect the interests of unorganized workers at the state level.
Its diverse composition is meant to foster participatory decision-making, but the real
effectiveness depends on how seriously state governments engage with the Board’s
recommendations.
Q.4) Difference
1. Objective
The main purpose of the Act is to provide emergency relief and compensation to
individuals who suffer personal injuries due to accidents or other urgent situations.
It aims to ensure quick access to funds for medical treatment and rehabilitation.
2. Relief Fund
The Act establishes a Relief Fund, which is set aside specifically for the provision of
immediate assistance to victims of personal injuries.
Monetary grants are provided to the injured parties for medical expenses,
hospitalization, rehabilitation, and other associated costs.
4. Administration
The State Governments are tasked with administering the provisions of the Act,
ensuring that the funds are appropriately distributed and that injured individuals are
promptly compensated.
Designated authorities at the state level oversee the identification of beneficiaries,
the approval process for disbursement, and the management of the Relief Fund.
5. Expeditious Relief
The Act emphasizes speedy processing of claims and provides for immediate
assistance without the need for prolonged legal or administrative processes.
The focus is on urgent relief to ensure the survival and proper treatment of victims,
particularly in cases where time is of the essence.
Critical Analysis
Provisional Relief: The Act serves as an emergency provision aimed at offering quick
financial relief, but it does not replace long-term compensation laws (like Workmen's
Compensation Act, 1923) or insurance schemes.
Geographical and Sectoral Limits: The Act may not cover all sectors or regions in a
uniform manner, as its scope depends on the extent of state-level administration and
implementation.
Timely Assistance: The Act's emphasis on quick disbursement is a significant
strength, as it ensures that victims can focus on recovery without worrying about
financial stress.
Conclusion
The Personal Injuries (Emergency) Provisions Act, 1962 plays a crucial role in ensuring that
individuals who suffer personal injuries in emergencies are provided with timely relief for
their medical expenses and recovery. However, its effectiveness depends heavily on swift
administrative procedures and the availability of adequate funding through the Relief Fund.
2. Coverage of Employers
The Act applies to every employer in both the public and private sectors who
employs 10 or more workers.
The provision applies to all industries, including private companies, public sector
undertakings, government departments, and industrial establishments.
4. Exceptions
Section 4(2) provides certain exemptions under specific conditions. For example, if
the employer has a temporary or short-term vacancy that doesn’t exceed 30 days,
they may not be required to notify it.
Employers may also be exempt from this requirement for vacancies that are
filled internally or from within their own existing workforce.
Critical Analysis
Increased Transparency: The requirement for employers to notify vacancies provides
transparency in the hiring process and ensures that qualified individuals have access
to job opportunities.
Government-Employer Collaboration: By mandating the notification of vacancies to
employment exchanges, the Act fosters collaboration between the government and
employers, ensuring a more streamlined and effective hiring process.
Challenges in Implementation: Despite its good intentions, the Act faces challenges
in its implementation, particularly in ensuring that employers comply with the
notification requirements. Many small and medium-sized enterprises may not fully
comply due to lack of awareness or administrative burden.
Limited Scope: While the Act covers organizations employing more than 10 workers,
it does not apply to small businesses or informal sector employers who may not be
required to report job vacancies. This leaves a significant portion of the labor market
unregulated.
Conclusion
The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 plays a
pivotal role in creating a more organized labor market by ensuring that employers notify job
vacancies to employment exchanges. This enhances job search efficiency and transparency,
helping connect job seekers with employers. However, challenges such as non-
compliance and the limited scope of coverage indicate areas for further improvement to
ensure that the Act can meet its goal of reducing unemployment and improving job
matching in India.
Q.9) Discuss the Social Security (Minimum Standards) Convention 102 with reference to
general observations of 2024 (which highlights gender bias) under the general report of
2024.
Overview of Convention No. 102
The Social Security (Minimum Standards) Convention, 1952 (No. 102), adopted by the
International Labour Organization (ILO), sets out minimum standards for social security
systems across nine branches:International Labour Organization+2Social Protection and
Human Rights+2International Labour Organization+2
Medical care
Sickness benefit
Unemployment benefit
Old-age benefit
Employment injury benefit
Family benefit
Maternity benefit
Invalidity benefit
Survivors' benefitInternational Labour Organization+5Social Protection and Human
Rights+5International Labour Organization+5
The Convention aims to ensure that all individuals have access to essential social protection,
contributing to social justice and economic stability.