Code on Social Security, 2020 Comprises of mentioned below acts:

The Employees’ Compensation Act, 1923

The Employees’ State Insurance Act, 1948

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

The Maternity Benefit Act, 1961

The Payment of Gratuity Act, 1972

The Cine Workers Welfare Fund Act, 1981

The Building and Other Construction Workers Welfare Cess Act, 1996

The Unorganised Workers’ Social Security Act, 2008

Objective:

By combining several welfare laws into a single framework, the Code on Social Security, 2020 aims to modernize social protection in India. Its aims are to enhance the benefits like pensions, maternity benefits, life insurance, disability protection, especially for gig workers, employment based on platform, unorganized sector, smooth compliance for employees and health insurance.

Applicability

It is applicable to PAN India, including both organized and unorganized sectors workers, included gig worker, platform workers, traditional employees, domestic worker and self-employed the date or dates that various chapters of this Code will go into effect may be announced by the Central Government and State Governments.

Exceptions

1. Government may exempt establishments providing better social security benefits than mandated.

2. Exemptions available to specific categories of work or small-scale construction activities based on notified conditions.

3. Some provisions will not apply on the special approval gained establishment under Public Interest.

Key Provisions:

1. Combines nine previous social security laws into one comprehensive code.

2. Extends coverage to unorganized, gig, and platform workers, along with organised sector employees.

3. Provides benefits including EPF, ESI, gratuity, maternity, insurance, and compensation.

4. By this uniformity in definition of wages and the calculation of benefits of wages is introduced. Introduces uniform definition of wages for calculation of benefits.

5. Establishes national and state social security boards for scheme implementation and worker registration.

6. It allows the benefits of portability for migrant's workers.

7. Creation of Social Security boards for different types of workers (platform, gig, and unorganized).

8. To avail the benefits under social security programs employees should register themselves.

9. It defined the terms like “Gig workers” and platform worker”, by this now it is included in social security system.

10. Provisions for opt-out or exemption in specific situations where employers offer comparable or better benefits subject to government approval.

Penalty and compliance

1. Mandatory registration of workers, maintenance of records, and timely deposit of contributions.

2. Digitalization of return system, filing, and claims.

3. Penalties for violations include heavy fines, prosecution, and imprisonment for serious offences.

4. Compounding of offences allowed in certain cases to avoid litigation.