Social Security Code, 2020 and Rules

The Social Security Code, 2020 and the rules framed thereunder raise a number of issues regarding the working of the new legislation, which is the focus of the article. A major problem is the complex provisions that allow for dual authorities and overlapping of zones. Integration of the new code with the ongoing social security programmes and financing of new ones are other issues discussed.

The Code on Social Security, 2020 was passed by Parliament in September 2020 and subsequently obtained presidential assent. The Code on Social Security, 2020, once in place, will merge eight existing labour laws: the Employees’ Compensation Act, 1923, Employees’ State Insurance Act, 1948, Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, Maternity Benefit Act, 1961, Payment of Gratuity Act 1972, Cine Workers Welfare Fund Act 1981, Building and Other Construction Workers Cess Act, 1996, and Unorganised Workers Social Security Act, 2008.

The Ministry of Labour and Employment, Government of India is presently in the process of finalising the rules. The draft rules have been put in the public domain for getting general feedback. It is expected that the draft rules would be finalised in the near future. These issues are being discussed below (Mehrotra 2020).¹