Government Notified Draft Rules under the Code on Social Security

The labour and employment ministry has notified the draft rules under the Code on Social Security, 2020 on November 13, 2020. These rules were notified in order to bringing the workers from unorganized sector, gig workers and the platform workers under the social security cover.

Highlights

The ministry has asked for objections and suggestions on the draft rules within 45 days.

About the Draft Rules

  • The draft rules provide for operationalization of provisions of the Code related to EPF, ESIC, gratuity, maternity benefits, social security, and cess. These codes are applicable for such workers who have allowed self-registration on a government portal in order to avail the benefits.
  • Further, the draft rules provide for Aadhaar-based registration of building and other construction workers on the portal of the central and state government or the state welfare board. These building workers would be entitled to get the benefits in the state they are working in.
  • The draft rules also comprise of the provision pertaining to the gratuity of a worker who is on fixed-term employment.
  • The rules have provisions for a single electronic registration and its cancellation for an establishment in case of its business closure.
  • It also has a provision with respect to manner and conditions for an establishment to exit EPFO and ESIC coverages.
  • Under the rules, the interest rate for delayed payment has been brought down from 2 percent every month or part of a month to 1 percent with respect to cess payment.
  • Rules regarding the power of Assessing Officer (AO)-  Under the current system, the AO had the authority to direct that no material or machinery can be removed or disturbed from the construction site. But, under the draft rules, Such power for indefinitely stopping of construction work has been withdrawn. Under the rules, the AO would now have to get the approval of the Secretary of the Building and Other Construction Workers Board so as to visit the construction site.
  • Lastly, the draft rules also provides for the manner of payment of contribution by the aggregators by self-assessment.