Labour Ministry announces Draft Rules under Code on Social Security

November 16, 2020

On November 15, 2020, the Labour Ministry released draft rules under Code on Social Security. The rules provide for Aadhaar-based registration. This includes registration of gig workers, unorganized workers and platform workers on the portal of Central Government.

Highlights

The draft rules have been linked to the Employees Provident Fund Organization, National Social Security Board, Employees State Insurance Corporation, platform workers and gig workers outlined in Code on Social Security. The rules also include construction workers. In order to avail the benefits of social security schemes that are framed under the code, the workers have to register in the portal of labour ministry.

The Rules

When a worker migrates from one state to another, he is entitled to get the benefits from the states where he is currently working. It is the responsibility of the Building Workers Welfare Board to make sure the benefits reach the migrated workers.
The rules also include gratuity to an employee who was on fixed-term employment.
It also provides single electronic registration of an establishment and also single electronic cancellation of registration in case of closure activities.
The rules provide procedure for self-assessment and payment of cess by the Building and Other Construction Workers. For self-assessment, the employer shall calculate the cost of construction as specified by the State Public Works Department or Central Public Works Department. The cost of construction shall also be calculated based on the returns or the documents submitted to the Real Estate Regulatory Authority.
The rate of interest for delayed payment has been reduced from 2% to 1% per month.
Under the rules, the assessing officer has powers to direct that no machinery or material shall be disturbed or removed from the construction site. The rules have withdrawn the powers of the officer to stop the construction work. Also, according to the new rules, the assessing officer shall visit the site only with prior approval of Secretary of Building and Other Construction Workers Board.

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