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Abhijith Govind PPT On Code On Social Security 2020

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Abhijith Govind PPT On Code On Social Security 2020

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abhijithgovind126
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By Abhijith Govind

PGDHRM
The Code on Social Security, 2020 is a code to amend and consolidate the laws relating to social security with the goal
to extend social security to all employees and workers either in the organized or unorganized or any other sectors.

The Social Security Code, 2020 brings unorganized sector, gig workers and platform workers under the ambit of social
security schemes, including life insurance and disability insurance, health and maternity benefits,
provident insurance, pension and skill upgradation, etc. The act amalgamates nine central labour enactments relating to
social security.

The bill was introduced by the Labour Minister Santosh Gangwar. The bill was passed by the Lok Sabha 22 September
2020 and the Rajya Sabha on 23 September 2020. The bill was formulated according to the Report and
Recommendations of the Second National Commission on Labour.

It consolidated The Employees’ Compensation Act, 1923, The Employees’ State Insurance Act, 1948, The Employees’
Provident Funds and Miscellaneous Provisions Act, 1952, The Employment Exchanges (Compulsory Notification of
Vacancies) Act, 1959, The Maternity Benefit Act, 1961, The Payment of Gratuity Act, 1972, The Cine Workers Welfare
Fund Act, 1981, The Building and Other Construction Workers Welfare Cess Act, 1996,
Unorganized Workers' Social Security Act 2008.

The bill received the presidential assent on 28 September 2020, and section 142 of the Act has come into force on 3 May
2021.
COVERAGE AND APPLICABILITY
The Code applies to everyone on wages in an establishment, irrespective of occupation.
Earlier, under the Payment of Gratuity Act, 1972, the term "wages" included "all emolument
which is earned by an employee while on duty or leave in accordance with the terms and
conditions of his employment and which are paid or are payable to him in cash and includes
dearness allowance but does not include any bonus, commission, house rent allowance,
overtime wages and any
other allowance".

Under the Social Security Code, the term "wages" includes all kinds of remunerations
capable of being expressed in monetary terms including basic pay, dearness allowance, and
retaining allowance. However, it does not include any overtime compensation, house rent,
conveyance allowance, gratuity upon termination, or any retrenchment compensation.

The Code shall have an overriding effect over anything inconsistent in any other law or the
terms of any award, agreement, or contract of service, whether it was made before or after
this Code came into force.
CODE ON SOCIAL SECURITY: STRUCTURE AND PROCEDURE
The Code deals with social security organisations, employees' compensation, provident fund, gratuity,
Employees' State Insurance Corporation, social security for construction workers, unorganised workers,
gig workers, and platform workers.

Every establishment shall mandatorily obtain registration under this Code, including the establishments
already registered under any Central Act. Workers under different categories shall be required to register
under applicable Chapters in the Code. Further, any business in the process of closure shall apply for
registration cancellation under this Code.

With the intent to increase the authenticity of the Code, any employee or worker employed in the
unorganized sector must establish their identity through aadhaar numbers for seeking benefits available
under the Code.

The Code has also included provisions for the establishment of several boards that would administer
and enforce different schemes, such as State Building Workers Welfare Boards, National Social Security
Board, State Unorganized Workers' Social Security Board, etc.

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