Protection of Self-employed Unorganized Workers under the Code on Social Security, 2020

Abstract

This research paper will highlight the issue of social security of unorganized workers in India in the light of informal or unorganized economy with special reference to self employed workers. As per the Periodic Labour Force Survey (PLFS) carried out by the National Sample Survey Organisation of the Ministry of Statistics & Programme Implementation, in the year 2017-18, out of 47 crores workers around 38 crores are in the unorganized sector. That is more than 80.85 % of national workforce in India is in unorganized employment, and of which a large majority is the self employed workers who face serious decent work gaps, including a lack of access to social protection i.e. social assistance and social insurance. According to the National Commission for the Enterprises in the Unorganised Sector (NCEUS), the share of self-employed in the workforce was 56.61 % in 2004-05. The Periodic Labour Force Survey (PLFS) of 2017-18 found that this percentage had come down to 52.2%. This large scale of unorganized workers cannot count on access to health care services and at least a basic level of minimum income security, and hence, could not enjoy their human right to social security. This research paper also aims to cover case laws decided by the Indian Supreme Court on social security. Social security is recognized as a universal human right which is integral to the guarantee of human dignity for all persons and social as well as national cohesion. Indeed, Article 22 of the Universal Declaration of Human Rights of 1948 affirms that “everyone, as a member of society, has the right to social security.” Not surprisingly, there has been a rapid increase of social security legislations in most of the democracies countries like India. In India, social security has also been preserved in the Constitution as one of the Directive Principles of State Policy and recognised by the judiciary as to be included in the periphery of fundamental Right to Life under Constitution. This constitutional mandate has been executed through different Central legislations on social security and numerous other state legislations like West Bengal Transport Workers Social Security Scheme 2010; Karnataka State Private Commercial Transport Workers Accident Benefit Scheme etc. But still there persists some barriers in extension of social security to the unorganized self employed workers in India as well as in abroad as identified by the International Labour Organization Social Protection Platform. Literally the term ‘self employed’ are defined as “earning one's living in one's own business or through freelance work, rather than as the employee of another’ ; “working for oneself, with direct control over work, services, etc. undertaken and fees, charges, etc. ” and “earning one's living directly from one's own profession or business, as a freelance writer or artist, rather than as an employee earning salary or commission from another ”. Unorganised Workers Social Security Act, 2008 was specifically enacted for informal labour and did extend to self-employed workers. S. 2 (m) of this Act which defines ‘unorganised worker’ includes a reference to ‘self-employed worker’. In India, self-employed workers, including own-account workers and assisting family workers, consists the major portion of the workforce. Five out of ten workers are self-employed or work in small businesses. Social security legislation has traditionally covered organized employees. However, India is now adopting measures to extend social security to the unorganized workers including self-employed workers through the Unorganised Workers Social Security Act, 2008 and try to overcome the related challenges through a range of measures as provided to the unorganized self employed workers. But the Parliamentary Standing Committee on Labour found that “even after 12 years of the enactment of the Act, only six per cent of the unorganised workers are covered under one or other form of social security. ” Further, the Comptroller and Auditor General (CAG) had found in 2016-2017 that the funds lying in the National Social Security Fund constituted under the UWSSA had not been used since its inception. Further progress is still required to ensure effective protection for self-employed workers. The Code on Social Security, 2020 was enacted on the basis of the recommendations made by the Second National Commission on Labour, which stated in its report that the existing set of labour laws must be amalgamated on the basis of subject-matter. The Code was introduced in the Parliament in December 2019 and the Parliamentary Standing Committee submitted its report on 31st July 2020. Thereafter, a fresh Bill was introduced, namely the Code on Social Security, 2020 aiming to facilitate the implementation of labour laws, reducing the multiplicity of definitions, giving streamline to different authorities under various labour laws and ensuring basic concepts of benefits and welfare to the workers. Another major objective of this Code is to promote relevant technologies to ensure the compliance and execution of the provisions there under.