Article 34: Employment and Social Security Shields of Indian Workforce

Abstract. For a nation to develop, the ancillary relationship between the employer and employee lay the foundation to achieve prosperity. Social security in employment is the protection for the workforce covering several aspects of their individual wellbeing in particular to balance the harp upon which the relationship between the employer and employee stand. This research aims to explore the India’s legal framework in social security schemes for the workforce in its diversified economy of unorganized sector by delving into the legislations, policies laid down and portraying the advantages and disadvantages of the same to bring out the probable recommendations that can lead to a revolutionary change.

INTRODUCTION

Human superior as a political sovereignty is the pre-condition for effectiveness of industrial law. With the changing times, nothing can remain static, so did the landscape of employment in India, it faced crucial transformations led by the technological evolutions, economic advancements, adapting labour laws. The employment laws being a subject of concurrent list in the India, both the State and Central governments have the authority to make laws for its regulation. Diversified economies emerged as a result of covid era which subsequently led to division of employment sectors in India in an organised sector(formal) and unorganised sector (informal, self-employed, casual). When a citizen contributes to the betterment of a society by combining the intellectual and physical efforts in getting that work done, it is expected by them to be provided with aiding benefits for their individual and family well being against the probable hazards in near future for continue to work without any hurdles.

OBJECTIVE

The article aims to explore the prevailing employment conditions for informal workforce in India where it portrays how India’s social security has traditionally been associated to formal employment, leaving gig workers vulnerable. The introduction of the Code on Social Security, 2020, offers hope for gig workers, but its effectiveness and integration with existing frameworks remain uncertain, overviewing such formulation and of reach social security schemes laid out to informal workforce to bring out recommendations to bridge the gap for its timely proper implementation to address the distinct needs for effective enforcement ensuring welfare.

HISTORICAL EVOLUTION OF INDUSTRIAL AND LABOUR LAWS

Ancient Period was characterised by agriculture and pasturage where the master and servant relationships were guided by religious codes where there was absence of formal industrial disputes due to communistic nature of society, if any disputes arose the ancient texts like Kautiliya and Manu solved them efficiently.

In, British Rule the first industrial law named Employers and Workmen (Disputes) Act of 1860 was the regulatory provision where the wage disputes were settled by magistrates, however the class was prominent which effect the efficient administration of justice.

As a part and parcel of the World War- I effect, the fall in purchasing power resulted in inflation leading to severe industrial unrest forcing the workers to protest in form of strikes for higher wages. The government was compelled to respond and had set up committees in Bengal and Bombay in 1921 to discuss the industrial unrest, but the implementation of recommendations (institution of joint workers committees and industrial courts) was not orderly followed. After 1929, several legislations were passed which were modelled on the British laws to manage strikes and industrial unrest. After India's independence, significant changes were made to industrial legislation by extending existing laws to the princely states that merged into the Indian Union, except for Jammu and Kashmir, which was exempted due to constitutional provisions granting it special privilege.Modern times paved way to the modern industrial and labour law which lays down to maintain a peaceful relationship between employers and employees, an evolutionary shift from the master-servant dynamic of ancient times to the present day where workers are free individuals authorised with rights and obligated to complete responsibilities, unlike the past when they were treated as slaves. Emphasising the importance of unifying efforts of workforce to foster cooperation for satisfying the work needs is the ultimate objective today’s industrial and employment laws.

SOCIAL SECURITY TO GIG WORKERS IN INDIA

Gig workers in the diversified economy are known for the flexibility and temporary nature in performance of the work facilitated through digital platform or apps. Due to the short-lived nature of the job, they are referred as “freelancers/ independent contractors/ on- demand workers” making them ineligible for social security schemes provided by the employers under the contributory schemes resulting in aid of only non-contributory schemes laid down by the government. “Common examples of gig workers include rideshare drivers, food delivery personnel, freelance writers, and other workers providing services through platforms like Uber, Swiggy, and Upwork.”

After gaining prominence post global financial crisis, the COVID-19 further enhanced the need and adaptability to gig workers, understanding the need for providing protection to this informal sector as highlighted as urgency by World Economic Forum Gig, India’s legislators are on a mission to explore the means to provide the social security to gig workers.

CHALLENGES FACED BY GIG WORKERS IN EXISITING LEGAL FRAMEWORK

Gig workers fall outside the ambit of social security benefits as provident funds, health insurance, maternity benefits, pensions as they operate beyond the definition of “employee” in the eyes of the laws governing them like Employees' State Insurance (ESI) Act, Employees' Provident Fund (EPF) Act, and Maternity Benefit Act, which primarily focuses on formal employees. Inconsistent implementation by unclear financial roadmap and lack of universal entitlements across the states under the Unorganised Worker’s Social Security Act (UWSSA) of 2008 further delayed the social security to gig workers in India. Uncertainty still prevails with the introduction of Social Security Code, 2020 thereby repealing UWSSA the future of gig workers remains uncertain. In spite of facing these legal shortcomings, gig worker’s aim to get recognition by a pending IFAT Petition can take a turning point which asks for gig worker’s access to social security schemes same as formal employees if it is a success, it can thereby significantly redefine the legal structure for the gig economy in India. “While it is still early days and the petition is still pending, the outcome of the IFAT Petition is critical for the issues that have been highlighted, and should be closely observed.”

ENTRY OF SOCIAL SECUTIRY CODE, 2020

The need recognised for laying legal framework led to passage of this code in September, 2020 as a result of recommendations from Second National Commission on Labour in 2002. In the present times, the Code has not yet been fully implemented having an exception where the provisions related to the identification of workers through Aadhaar are being implemented. The highlighted key concern was of aiming to provide protection to the recent emerging forms of labour including gig work which is comprehensively defined with the necessary of inclusivity for social security schemes, in fact the Chapter IX of the Code lays emphasis for outlining the structure to for provision of social security to gig workers where the National Social Security Board will be the regulatory authority to oversee the schemes implementation but the details of funding and administration is yet to be decided. The code specifically lays down the role of aggregators of the commercial companies like Ola, Zomato, Rapido, Food Panda, Blinkit to make their contributions of at least 1-2% of the annual total income to the registered gig workers. The implementation of code is hindered by unclear aspects which needs to be figured out as early as possible.

ROOM TO MANOEUVRE FOR IMPROVEMENT IN CODE, 2020

A. Inadequate Definition of "Gig Work"

Clarity is necessary to avoid confusions merely defining “gig work” as work outside the traditional employment is ambiguous which later lead to legal complications in future.

B. Disparity in Social Security Schemes for Different Worker Categories

Perceptible differences for administering the social security schemes for unorganised workers versus gig and platform workers where the schemes are mandated for the unorganised workers while discretionary to gig and platform workers is evident by use of noticeable difference of terms of “shall” and “may” respectively creating a gap to access the schemes irrespective of nature if both the type of workers doing non- formal work.

C. Potential Challenges in Implementation

Implementational challenges like guidance issues for registration, non-support of aggregators can pose the threat of delay and default of code.

D. Criteria for Exemption not defined

There is a possibility of the aggregators to get exemption form contributions that they have to make for social schemes by following certain criteria but the criteria not clearly laid down making difficulty for workers to plan accordingly.

E. Dilemma Around "Annual Turnover"

There is requirement of annual turnover contributions to social security schemes by aggregators but the term annual turnover is not defined for them to sought the calculations.

F. Bewildered Attempts in Establishing Support Systems for Workers

Code lays down the word government “may” set up call centres and help centres makes it dictionary not mandatory by the Code to assist workers with information and registration thereby making it difficult for India with low digital literacy by a increasing the chance of getting confused.

G. No Universal Social Security

The gig workers cannot access social benefits without sacrificing job flexibility as India did not adopt global standards for universal social security under the new code.

CONCLUSION

Introduction of the significant legal framework of The Code on Social Security, 2020 is stepping stone for addressing the needs of gig workers in India but lack of clarity, prevalent ambiguity in interpretation clauses and no universal coverage of social security schemes delay its efficiency for implementation. The faster these issues are addressed and necessary changes are made the faster we will be able to strengthen the social security to informal sector thereby leading to the success of the Code based on timely resolution for bridging the current gaps and making sure that all workers, irrespective of their of employment type, have access to necessary social security protections with the current legislations should aim to make amendments to facilitate inclusive and equitable framework for India’s diverse workforce.