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This article has been written by Sharma Amitkumar Rampratap, pursuing a Diploma in Labour, Employment and Industrial Laws (including POSH) for HR Managers from LawSikho.

Table of Contents

Introduction

Introduction to the new code on social security

India, a booming gig economy, has been seeing a dramatic increase in the number of gig operators over the past few years. This has led to the Indian legislature introducing gig workers in one of the workers’ codes on Social Security, 2020, which is also discussed here.

New social security Code, 2020 (“Code”). The Code will replace nine laws that provided for social security for employees such as the Maternity Benefit Act, Employees’ Provident Fund Act, Employees’ Pension Scheme, Employees’ Compensation Act, among others. This Code aims to provide uniformity in providing social security benefits to employees who were previously classified under different practices and operated differently. The Code also aims to provide social security to a wider group of employees as this code has identified and included employees working in the informal sector. Several new concepts have been developed such as gig operators, platform operators, part-timers etc. Previously it was unknown under any labor law. The government has also published draft laws incorporated under the Code. In this article, we would like to discuss new ideas and benefits provided under the Code.

Introduction to the gig staff

The term gig worker is a concept recently introduced in India. The term gig worker usually refers to a person who works part-time or part-time jobs in everything from food events to software development. The Work is usually temporary and completed within the allotted time under a work schedule that is not in order. This Code defines the name of a gig employee as, “a person who performs work or participates in work programs and leads in those activities without the traditional employer-employee relationship”. The official recognition of a gig worker was a matter of an hour as the description provided an umbrella for a large group of temporary workers. One can become a part-time professor and enter the gig economy. Other common names include part-time workers, freelancers and independent contractors etc.

The gig economic concept is the most prominent western concept among young people. The concept allows students to take on jobs at an early age and gain exposure in their fields. The benefits associated with such activities will encourage the people of India to engage in such activities and to reap the benefits.

Introduction to platform staff

The term platform generally refers to an employee working for an organization that provides specific services using an online platform directly to individuals or organizations. Example: Uber, Ola, Zomato etc. According to the Code, a platform employee means “a person who performs or performs a platform function”. 

A better understanding of the definition of platform function should be read in conjunction with the definition of a platform function that the platform function means “organizing work outside the traditional employer relationship where organizations or individuals use the online platform to access other organizations or individuals to solve specific problems or provide certain services or services Great, for a fee.

Compulsory registration under Social Security Code 2020

The Code also mentions compulsory registration of both gig employees and those working on the online platform to receive benefits under the Code to be determined by the Central Government. However, this registration is subject to certain conditions, namely:

  1. He should be sixteen years old, & should be under the age of 60 years;
  2. The employee has worked for not less than 90 days in the last twelve years;
  3. He should have submitted a self-declaration, electronically or otherwise in such a manner and manner containing such information as may be prescribed by the Central Government;
  4. All eligible informal, gig or platform operators will apply for such registration and such documents including Aadhaar number.

Social security benefits

Previously, labour laws did not provide any social security benefits to employees working in the informal sector but this Code empowers the Central Government to organize social welfare schemes for workers in the informal sector in matters relating to:

  1. Health and disability cover;
  2. Accidental insurance;
  3. Health and maternity benefits;
  4. Protection of older persons;
  5. Kindergarten; and
  6. Any other benefits that may be determined by the Central Government.

These programs can be funded entirely by the Central Government or partially by the Central Government and partly by the State Government or partly funded by consolidated donations or partly by the Central Government and some by the State Government and some by fund beneficiaries or aggregators Corporate, 2013 or any other source.

Key improvements

The Social Security Code 2020, includes the various types of jobs and employees involved in classifying it as a gig and/or platform workers, informal workers, domestic workers, etc., excluding current industrial rules, the Code proposes to extend certain benefits to him.

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A closer look at the definitions of ‘employee’ and ‘gig worker’ makes a clear distinction between the nature and scope of a gig worker work and work in the traditional sense. While the definition of an employee is the same as previously defined under various social security laws, the definition of a gig or platform employee includes the concept of employment which is considered independent of the traditional employer-employee relationship.

In addition, the Act proposes that the Central Government may establish gig social security schemes and operate on the basis of matters relating to: (a) health and disability; (b) health and maternity benefits; (c) the protection of the elderly; and (d) any other benefit that may be determined by the Central Government.

Conclusion

Gig’s economy is growing rapidly in the job market and has seen rapid outrage over the past few years. In addition, new business models sought by technology support companies have established a variety of staff facilities, including gig and platform operators. Currently, in India, gig employees are governed by existing labour and employment laws and their association with the business is governed by an understanding of the agreement between the said business and those persons.

Given the type of engagement or relationship, at this stage, gig employees are not allowed to receive any legal or legal social security benefits available to ordinary employee’s i.e. provident fund, state insurance and gratuity, etc.

Although the Code makes an effort to create social security schemes for gig workers and platform operators, in its current context, the Code aims to highlight a number of legal challenges including, the principles set out in various judicial proclamations pertaining to private contractors and head to key relationships, etc. The code describes only the type of benefits that should be provided to that employee, without having the right to guarantee the employer-employee relationship. Detailed rules and regulations pertaining to gig and platform staff, can make things clearer.

The Indian government can, among other things, consider developing various strategies for gig workers and platform operators, in which those employees, while maintaining their status as a gig employee, are able to participate voluntarily, contribute and directly benefit from the public safety benefits that such employees can receive.

Alternatively, the government may recognize gig-workers (or those working on the platform) as a small or medium-sized institution and look at expanding benefits (such as health, insurance cover and disability benefits) that already exist for small, medium-sized enterprises or the informal sector. In order to make the best use of these programs and to ensure that the benefits of these programs are available to gig employees, the government may consider establishing an independent council or organization that will act as a special vehicle to oversee the implementation of the program. said the schemes also helped the government in creating awareness about these programs mentioned among gig operators.

References


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