Unorganized Workers Social Security Act, 2008 | Labour and Industrial Law - CLAT PG PDF Download

Introduction

The Act focuses on providing social security and welfare measures for unorganized workers, who make up a significant portion of the workforce but often lack basic protections. 
The objective is to ensure these workers receive necessary support and benefits to improve their welfare and well-being.

Objects of the Act

• The Act aims to address the social security and welfare needs of unorganized workers, who constitute over 95% of total employment. 
• Despite efforts by the government and non-governmental organizations, there is a significant gap in the coverage of labour protection and social security measures for these workers.

Constitution of National Social Security Advisory Board

• To enhance the welfare of unorganized sector workers, the Central Government (CG) will establish a National Social Security Advisory Board. 
• This board will be responsible for formulating and recommending welfare schemes tailored to different groups of unorganized sector workers.

Eligibility for Social Security Benefits

• To qualify for social security benefits, unorganized sector workers must be duly registered. 
• Each registered worker will receive an identity card, which will be a smart card with a unique identification number, ensuring portability and easy access to benefits.

Framing of Welfare Schemes

• Central Government (CG): The CG will formulate and notify various welfare schemes for unorganized workers, covering areas such as:
• Life and disability cover
• Health and maternity benefits
• Old age protection
• Any other benefits as determined by the CG

State Government Schemes

• The State Government may also formulate and notify welfare schemes for unorganized workers, including:
• Provident fund
• Employment injury benefit
• Housing
• Educational schemes for children
• Skill upgradation of workers
• Funeral assistance
• Old age homes

Funding of Central Government Schemes

• Funding for schemes formulated by the Central Government (CG) will come from:
• Central Government
• State Government
• Beneficiaries’ contributions

National Social Security Board

• The CG will establish a National Social Security Board to oversee and recommend suitable schemes for unorganized workers. Key points include:
• The board will be chaired by the Union Labour and Employment Minister.
• The Director General of Labour Welfare will be the member secretary.
• The board will have 34 members, including representatives from unorganized workers, employers, civil society, and government officials.
• The term of the board is three years, with regular meetings to monitor and review progress.

Functions of the National Board

• Recommending suitable schemes for different sections of unorganized workers.
• Advising the CG on the administration of social welfare schemes.
• Monitoring the implementation of these schemes.
• Reviewing progress on the registration and issuance of identity cards to unorganized workers.
• Overseeing record-keeping functions at the state level.
• Reviewing expenditure from funds under various schemes.
• Carrying out any other functions assigned by the CG.

State Social Security Board

• The State Government will establish a State Social Security Board to recommend and monitor social security schemes for unorganized workers. Key points include:
• The board will be chaired by the Minister of Labour and Employment of the concerned state.
• The board will have 28 members, including representatives from unorganized workers, employers, civil society, and government departments.
• The term of the board is three years, with quarterly meetings to review progress and make recommendations.

Functions of the State Board

• Recommending suitable schemes for different sections of unorganized workers.
• Advising the state government on labour matters.
• Monitoring the implementation of social security schemes.
• Reviewing record-keeping functions at the district level.
• Reviewing the progress of registration and issuance of identity cards to unorganized sector workers.
• Reviewing expenditure under various schemes.

Funding of State Government Schemes

• State Government schemes can be:
• Wholly funded by the State Government.
• Partly funded by the State Government and contributions from employers and employees.
• The Central Government may provide financial assistance for these schemes.

Record Keeping by District Administration
Record keeping will be managed by:

• The District Panchayat in rural areas.
• The urban local bodies in urban areas.

Workers Facilitation Centre

The government may establish Workers Facilitation Centres to:

• Disseminate information on available social security schemes for unorganized workers.
• Facilitate the filling, processing, and forwarding of application forms for registration of unorganized workers.
• Assist unorganized workers in obtaining registration from the District administration.
• Facilitate the enrollment of registered unorganized workers in social security schemes.

Eligibility for Registration and Social Security Benefits

• Every unorganized worker is eligible for registration subject to the following conditions:
• Completion of fourteen years of age
• A self-declaration confirming their status as an unorganized worker
• Every eligible unorganized worker must submit an application in the prescribed form to the District administration.