About

• It replaces nine laws related to social security, including the Employees’ Provident Fund Act, 1952, the Maternity Benefit Act, 1961, and the Unorganised Workers’ Social Security Act, 2008. Social security refers to measures to ensure access to health care and provision of income security to workers.   

• Changes in definitions: The Code changes the definitions of certain terms.  These include: (i) expanding the definition of ‘employees’ to include workers employed through contractors, (ii) expanding the definition of “inter-state migrant workers” to include self-employed workers from another state, (iii) expanding the definition of “platform worker” to additional categories of services or activities as may be notified by the government, (iv) expanding the definition of audio-visual productions to include films, web-based serials, talk shows, reality shows and sports shows, and (v) exempting construction works from the ambit of “building or other construction work” if the total cost of construction work exceeds Rs 50 lakhs (and if they employ more than a certain notified number of workers).
• The central government will set up a social security fund for unorganised workers, gig workers and platform workers. Further, state governments will also set up and administer separate social security funds for unorganised workers. 
  • Gig workers refer to workers outside of the traditional employer-employee relationship (e.g., freelancers). Platform workers are workers who access other organisations or individuals using online platforms and earn money by providing them with specific services.  Unorganised workers include home-based and self-employed workers.  
• The Code makes provisions for registration of all three categories of workers – unorganised workers, gig workers and platform workers.  
• National Social Security for gig workers and platform workers:  The Code provides for the establishment of the National Social Security Board and various state-level boards for welfare of unorganised sector workers, gig workers and platform workers and can recommend and monitor schemes for them.  
• Term of eligibility for gratuity: Gratuity is payable on the termination of employment, if the employee has been in the organisation for at least five years. The Code extends gratuity entitlement to fixed term employees as well. Such employees would be paid gratuity based on the term of their employment contracts on a pro-rata basis, even if the contract period is less than 5 years.

Why in News?

• This information was given by the Minister of State for Labour and Employment Rameswar Teli in a written reply to the Rajya Sabha.

https://pib.gov.in/PressReleasePage.aspx?PRID=1914416