Union Labour Ministry Notifies Draft Rules
under the Code on Social Security 2020
Union Ministry of Labour and
Employment has notified the draft rules under the Code on Social Security, 2020
on 13.11.2020 inviting objections and suggestions, if any, from the
stakeholders on 15 November 2020. Such objections and suggestions are required
to be submitted within a period of 45 days from the date of notification of the
draft rules.
The draft rules provide for operationalization of provisions
in the Code on Social Security, 2020 relating to Employees’ Provident Fund,
Employees’ State Insurance Corporation, Gratuity, Maternity Benefit, Social
Security and Cess in respect of Building and Other
Construction Workers, Social Security for Unorganised
Workers, Gig Workers and Platform Workers.
The draft rules also provide for Aadhaar
based registration including self-registration by unorganised
workers, gig workers and platform workers on the portal of the Central
Government. Ministry of Labour and Employment has
already initiated action for development of such portal. For availing any
benefit under any of the social security schemes framed under the Code, an unorganised worker or a gig worker or platform worker shall
be required to be registered on the portal with details as may be specified in
the scheme.
The rules further provide for Aadhaar
based registration of Building and Other Construction Workers on the specified
portal of the Central Government and the State Government or the State Welfare
Board. Where a building worker migrates from one State to another he shall be
entitled to get benefits in the State where he is currently working and it
shall be the responsibility of the Building Workers Welfare Board of that State
to provide benefits to such a worker.
Provision has also been made in the rules regarding gratuity
to an employee who is on fixed term employment.
The rules also provide for single electronic registration of
an establishment including cancellation of the registration in case of closure
of business activities.
Provision has also been made regarding manner and conditions
for exiting of an establishment from EPFO and ESIC coverage.
The procedure for self-assessment and payment of Cess in respect of building and other construction workers
has been elaborated in the rules. For the purpose of self- assessment, the
employer shall calculate the cost of construction as per the rates specified by
the State Public Works Department or Central Public Works Department or on the
basis of return or documents submitted to the Real Estate Regulatory Authority.
The rate of Interest for delayed payment of such cess has been reduced from 2 per cent every month or part
of a month to 1 per cent. Under the existing rules, the Assessing Officer has
the power to direct that no material or machinery can be removed or disturbed
from the construction site. Such power for indefinitely stopping of
construction work has been withdrawn in the draft rules. Further, under the draft
rules, the assessing officer can visit the construction site only with the
prior approval of the Secretary of the Building and Other Construction Workers
Board.
The rules have also provided for the manner of payment of
contribution by the aggregators through self-assessment.