Labour code to provide social security cover to all workers

• The government of India has proposed a labour code which will provide social security cover to the entire workforce in the country, including self-employed and agricultural workers

Main Highlights of the code:

• Even households employing domestic help will also have contribute towards schemes including provident fund and gratuity for the worker.
• Factories employing even a single worker will have to contribute towards social security benefits.
• Every working person in the country will be covered under the social security code whether she belongs to the organised sector or the unorganised sector.
• For the first time, government intend to cover agricultural workers along with self-employed people and target to provide social security benefits to 45 crore workers.
• A National Social Security Council, chaired by the Prime Minister, has been proposed to streamline and make policy on social security schemes related to all the Ministries. Other members would include: Finance Minister, Labour Minister, Health and Family Welfare Minister along with employer and employees’ representatives. The council will co-ordinate between central and State governments, monitor the implementation of social security schemes, regulate funds collected under various social security schemes, among others, according to the proposed labour law.
• The proposed code seeks to cover “any factory, any mine, any plantation, any shop, charitable organisations” and all establishments or households employing casual, part-time, fixed-term, informal, apprentice, domestic and home-based workers.
• All such establishments or factories will be liable to pay compensation if they fail to contribute towards the social security schemes of the workers.

By: Vishal