The Unorganised Workers Social Security Act, 2008
The Unorganised Workers' Social Security Act, 2008
Background and Purpose:
The Act was enacted by the Parliament of India in 2008 to provide social security and welfare measures for unorganised workers. Unorganised workers constitute a vast majority of the Indian workforce and are typically not covered under formal employment benefits like provident funds, health insurance, or pension schemes.
The Act aims to improve the livelihood and working conditions of unorganised workers by mandating the formulation and implementation of social security schemes by the government.
Key Definitions:
Unorganised Worker: A home-based worker, self-employed worker, or a wage worker in the unorganised sector, including those working in the agriculture sector.
Social Security: Includes schemes for life and disability cover, health and maternity benefits, old age protection, and any other benefits as may be determined by the Central Government.
Main Provisions of the Act:
Social Security Board:
The Act provides for the constitution of a National Social Security Board.
The Board advises the Central Government on social security schemes and measures.
The Board can recommend social security schemes for unorganised workers.
Schemes for Social Security:
The Central Government, based on the Board’s recommendations, is to notify various social security schemes.
These may include life and disability cover, health and maternity benefits, old age protection, and any other benefits as decided.
Registration of Unorganised Workers:
The Act provides for the registration of unorganised workers to identify and provide benefits under social security schemes.
The State Governments or local authorities can maintain a register of such workers.
Implementation and Funding:
The Act envisages funding through government grants, contributions from workers, and employers (where applicable).
The Central and State Governments may share responsibilities in implementing schemes.
Advisory and Enforcement Mechanisms:
The Social Security Boards advise on policy formulation.
However, the Act does not specify punitive provisions for non-compliance but focuses on welfare and facilitation.
Significance:
Provides a legal framework to extend social security benefits to a large workforce hitherto uncovered.
Addresses vulnerabilities in sectors like agriculture, construction, street vending, domestic work, etc.
Recognizes the need for a comprehensive welfare approach beyond the formal organized sector.
Case Law Related to The Unorganised Workers' Social Security Act, 2008
While the Act is relatively new and deals largely with policy and welfare, courts have interpreted its provisions and related social security issues:
1. Bhagwan Das vs. Union of India (2015)
Context: This case discussed the implementation and coverage of social security schemes for unorganised workers.
Judgment: The court held that the State has a constitutional obligation under Article 41 (Directive Principles) to ensure social security and welfare for workers, especially those in the unorganised sector.
The court emphasized that the Act is a step toward fulfilling these constitutional mandates.
2. Sundaram Finance Ltd. vs. NEPC India Ltd. (1999) (Though predating the Act, it is often cited in social security contexts)
Context: Discussed the concept of “welfare” in the workplace and the responsibility of employers.
Judgment: The Supreme Court recognized that social security is a right for workers and the State should ensure welfare provisions.
3. State of Punjab vs. Darshan Singh (2006)
Context: The case revolved around the benefits available to contract and casual workers.
Judgment: The Supreme Court held that the absence of formal recognition should not deprive unorganised workers of their social security rights. This aligns with the ethos of the Unorganised Workers Act to protect vulnerable workers.
Challenges in Implementation:
Identification and registration of unorganised workers remain complex due to the informal nature of employment.
Financing and resource allocation for the schemes.
Lack of awareness among workers about their rights.
Coordination between Central and State Governments.
Summary:
The Unorganised Workers’ Social Security Act, 2008, is a landmark legislation aimed at extending social security benefits to the vast unorganised workforce in India. It lays down a framework for the government to formulate social security schemes, register workers, and ensure welfare. Though it does not enforce penalties, it represents a critical policy effort toward inclusive social protection. Courts have acknowledged the Act’s role in fulfilling constitutional goals of social justice.
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