Introduction: Concept and Importance of Social Security | Labour and Industrial Law - CLAT PG PDF Download

Introduction

Social security varies globally based on political ideologies.

• In socialist countries, it means complete protection from birth to death.
• In less regulated countries, it involves democratic measures to protect needy citizens.
• Social security is about societal protection against unforeseen mishaps, ensuring a minimum standard of welfare for all citizens.
• It is also a tool for social and economic justice.
• All industrial countries have developed social security measures to promote individual and family welfare, addressing issues like poverty, unemployment, and health.
• It supports those unable to work due to old age, sickness, or disability.

Definition of Social Security

• ILO Definition: Social security is the protection society provides against life risks that individuals cannot manage on their own.
• William Beveridge's Definition: Social security ensures income replacement during disruptions like unemployment, sickness, or accidents, and covers expenses related to birth, death, or marriage.

Characteristics of the Social Security Program

• Social Security Schemes offer assistance and insurance to employees facing life challenges without regular income due to certain life events.
• Legal Framework: These schemes are established through the country's laws.
• Economic and Social Security: They provide relief to employees at risk of economic and social insecurity, protecting them as members of society.
• Psycho-Social Security: These schemes not only offer immediate relief to affected employees but also provide psychological security to others who may face similar challenges in the future.

Objectives of Social Security

• Compensation: Ensures income security during contingencies to prevent double calamity for individuals and families.
• Restoration: Focuses on curing sickness and reemployment to restore individuals to their previous condition, extending beyond compensation.
• Prevention: Aims to avoid loss of productive capacity due to sickness, unemployment, or invalidity, enhancing community well-being by conserving resources.

Importance of Social Security

• Human Dignity and Social Justice: Social security upholds human dignity and promotes social justice.
• Instrument of Justice: It is a key tool for achieving social and economic justice and equality.
• Employee Protection: Provides psychological security to employees during contingencies, enhancing their productivity.
• Investment in Workforce: Money spent on social security is a valuable investment for workforce maintenance, benefiting both organizations and the country.
• Public Policy in Welfare State: In welfare states, social security is vital for public policy, and its neglect hinders equality and justice.
• Constitutional Mandate: Article 41 of the Indian Constitution emphasizes the state's responsibility for social security within its economic capacity.
• Legislative Framework: Social security in India is implemented through various laws such as the Workmen's Compensation Act, Employees' State Insurance Act, and others.
• Need for Integration: Social security legislations in India face issues like duplication and overlapping authorities, prompting the need for an integrated scheme.
• Integrated Social Security Scheme: Proposed to provide comprehensive coverage through a single agency to avoid duplication and ensure efficiency.
• Essential Component: Social security is a crucial part of government policy in India as a welfare state.

Social Security Benefits in India

Social security benefits in India are provided through two main approaches:

Social Insurance

• A common fund is created with regular contributions from workers based on their capacity to pay.
• Employers and the state also contribute to this fund.
• Examples include provident funds and group insurance.

Social Assistance

• Benefits are fully funded by the government without any contributions from workers or employers.
• Eligibility for benefits is determined based on the financial condition of the beneficiary.
• An example is the old age pension.

Influence of the International Labour Organization (ILO)

The United Nations and the ILO have made significant efforts in promoting social security at the international level through various Conventions and Recommendations.

The ILO is involved in areas such as:

Manpower Organization and Vocational Training

• Post-World War II, the ILO and the UN focused on effective use of human resources for economic and social development.
• ILO experts assist developing countries in assessing manpower needs and organizing vocational training to address skill shortages.

Women Workers

• The ILO Constitution emphasizes the protection of women workers.
• International standards for protecting expectant mothers and regulating night work for women were established in 1919.
• In 1937, the ILO outlined goals for women workers, including:
  • Guaranteeing civil and political rights.
  • Improving education opportunities.
  • Enhancing employment conditions.
  • Ensuring equal pay for equal work.
  • Providing legal protection against hazardous working conditions.
  • Offering legal maternity protection.
  • Granting women the same trade union rights as men.

Social Security

• The ILO has been a pioneer in social security, notably through the Social Security (Minimum Standards) Convention, 1952.
• Current efforts focus on extending social security to agriculture and plantation workers.
• The ILO established the International Social Security Association (ISSA).
• As a UN agency, the ILO aims to improve standards, conditions, and social security for workers globally by adopting Conventions and Recommendations that set minimum labor standards.
• Ratifying states are obligated to comply with these standards.