This article has been written by Ms. Saina Parveen, a CS Executive level Student from the Institute of Company Secretary of India (ICSI)

INTRODUNCTION

SOCIAL SECURITY OF LABOUR:

In the constitution of India policy contained of State Directive Principle which drives their and strength and spirit by social security legislation in India. Protective entitlement accrues to the employee’s compliance responsibility is entrusted to the employer. The Employees’ Provident Fund Act is one of the examples of security enacted by legislature to provide provident fund to employees and their families on timely basis when they are unable meet social support in old age, disablement or early death of the bread winner of the family. 

The provident Fund Act strictly followed in India and amendments come time to time and other insurance covered in it. The principle social security laws enacted for the organised sector in India are:

1. The Employees’ State Insurance Act.1948
2. The Employees’ Provident Funds & Miscellaneous Provisions Act,1952
3. The Employees’ Compensation Act,1923
4. The Maternity Benefits Act, 1961
5. The Payment of Gratuity Act,1972
6. The Unorganized Workers’ Social Security Act,2008
7. The Apprentices Act,1961
8. The Employment Exchanges (Compulsory Notification of Vacancies) Act,1959.

CONCEPTS IN DETAILS:

Employees’ Compensation Act,1923: 

This Act impose compulsory statutory responsibility and make liable to the employer to discharge moral obligation towards their employees who suffer any disability in the course of employment in hazardous work, support their families and dependents of the employees.

Further the employer supports their employees on the basis of disablement. It can be partial disablement or total disablement. While disablement consider the nature of injury of loss of earning capacity of the employee. Therefore, the Act classified partial disablement in 2 categories – (i) Partial Disablement, and (ii) Total Disablement.

Partial Disablement can be classified as temporary partial disablement and permanent partial disablement.

*It was observed: “If a workman suffers as suffers as a result of an injury from physical defect which does not in fact reduce his capacity to work but at the same time makes his labour unsaleable in any market reasonably accessible to him, there will be either total incapacity for work when no work is available to him at all or there will be a partial incapacity when such defect makes his labour saleable for less than it would otherwise fetch. The capacity of a workman may remain quite unimpaired, but at the same time his eligibility as an employee may be diminished or lost if such a result ensures by the reason of the results of an accident, although the accident has not really reduced the capacity of the workman to work. 

He can establish a right to compensation, provided he proves by satisfactory evidence that he has applied to a reasonable number of likely employers for employment, but had been turned away on account of the results of the accident visible on his person.”

Total Disablement also divided into 2 categories as temporary disablement and permanent disablement.

Employer’s Liability for Compensation: Section 3 of the Act provides for employers for compensation in case of disease or personal injuries such as: –

1. In cases of occupational disease 
2. In case of personal injury:

1. Personal Injury: Injury as physical or bodily injury caused by an accident, nervous shock or break-down or mental strain.
2. Accident
3. Arising out of employment and in the course of employment
4. Theory of notional extension of employment
5. When employer is not liable

1. Suit for damages in a Court barred 

Section 18A of the prescribes the penalty for the contravention of the Act with fine up to Rs. 1,00,000/-.

Employees’ State Insurance Act,1948:

Benefits of employees in case of sickness, maternity and employment injury is provided under the Employees’ State Insurance Act,1948. A factory or an establishment to which this Act applies shall continue to governed this Act even when the number of employees fall below the prescribed limits.

A separate fund is created under Employees State Insurance Fund and shall be opened with Reserve Bank of India or any other Bank by the approval of Central Government. It shall be operated by officers authorised by the Standing Committee with approval of the Corporation.

Purposes of which the Fund may be expended as per Section 28 is lays down below:

1. Payments of benefits of medical treatment and provisions and attendance of the insured and if the benefits will extend to families, then benefits of such family members.
2. Payment of fees and allowances to the Standing Committee, members of the Corporation, Medical Benefits Council, Local Committees, the Regional Boards, Regional and local benefits Councils; 
3. Payment of allowances, leave, salaries, travelling and compensatory allowances etc. 

Employee’s Provident Funds and Miscellaneous Provisions Act,1952:

As per Section 16 this Act applies on:

1. Every establishment where 20 or more persons employed as per Schedule I
2. Any other establishment where 20 or more or persons or other such class of establishment which Central Government by notification in Official Gazette specify.

Employees’ Deposits-Linked Insurance Scheme:

The Act come in force in 1976 with new section 6C framed by Central Government which provides life insurance to the employee of any establishment.

1. Employee’s Deposit-Linked Insurance Scheme applicable to all establishment where Employees’ Provident Fund and Miscellaneous Provisions applies.
2. 1% of the total emoluments i.e., basic wages, dearness allowance including cash value of any food concession, retaining allowance contributed by the employer to the insurance fund and employee is not allowed to contribute under the Act.

Central Government have the power to exempt such number of factories to the provisions and grant other rules as it deems fit by notification in Official Gazette.

Payment of Gratuity Act,1972: 

A lump sum amount is given to the employee of the establishment at the time of retirement by the employer a token of appreciation and honestly severing his duty. 

This Act is applicable to employees engaged in the factory, mines, oilfield plantations, ports, railways companies, shops or other establishments.

The Act underwent different amendments from time to time with the prevailing situation. The amount of gratuity that can be withdrawn is Rs. 10 lakhs rupees which later enhanced by Rs.20 lakhs.

The calculation of gratuity is based on Income Tax Act.1961. According to Section 4(1) of the Act gratuity is payable to employees at the time of termination of the employment and with the continuous service of not less than 5 years 

1. On his superannuation; or
2. On his retirement or resignation; or
3. On his death or disablement dua to accident or disease. 

The Unorganized Workers’ Social Security Act,2008

The Unorganized Sector Workers are those who due to constraints like casual nature of employment absence of definite employer-employee relationship, ignorance, illiteracy etc. not able to pursue their common interests. 

This are generally low paid workers and majority of them are not get any benefits such as medical treatment, pensions, maternity benefits etc.

The unorganized sector worker can be categorized broadly into four categories:

1. Occupation: Workers in building and construction, small and marginal farmers, landless agricultural laborer’s, share croppers, fishermen, those engaged in animal husbandry, in beedi labeling and beedi packing etc.
2. Nature of Employment: Contract and casual laborer’s come under this category, self-employment, attached agricultural laborer’s, migrant laborer’s etc.
3. Specially distressed categories: Driver of animal driven vehicles, toddy tappers, scavengers, carries of head loads, loaders and unloaders belong to this category.
4. Service categories: Newspaper vendors, vegetable and fruit vendors, domestic workers, fishermen and women, midwives etc. come under this category.

CONCLUSION:

The Government of India at present amended provisions of various Act as to provide and covered all sectors of workers like Apprentices Act which cover those employees who are under training and working with the organization as same time other employees are covered under the benefits of the organization except the apprentices’ workers. 

Referred Case law– 

Sukhai v. Hukam Chand Jute Mills Ltd.