Furthering the agenda of labour empowerment, India consolidated 29 central labour laws into four codes – The Industrial Relations Code, 2020, the Code on Social Security, 2020, the Occupational Safety, Health and Working Conditions Code, 2020, and the Code on Wages, 2019.
The Social Security Code, 2020 proposes to extend social security benefits like health insurance, maternity leave, disability insurance, gratuity, old age protection to the workers. It also proposes for the creation of a social security fund with possible contributions from the employer (1-2 percent of the turnover or 5 percent of the worker’s wages), the central and the state governments.
However, there is a delay of 3-5 months in the implementation of these codes due to delay by the state governments in finalising the draft rules mainly caused by resurgence of COVID. According to industry experts, the delay has given breather to industry to prepare for the administrative and financial implications of the codes but at the same time it has delayed the health & income benefits for gig workers. On the other hand, the workers union leaders have questioned the intentions of the government in extending health & income security to the platform & gig workers.
