DRAFT RULES RELATING TO EMPLOYEE’S COMPENSATION UNDER THE CODE ON SOCIAL SECURITY, 2020 NOTIFIED

THE CONTEXT: Ministry of Labour and Employment, Government of India has notified the draft rules relating to Employee’s Compensation under the Code on Social Security, 2020 on 03.06.2021 for inviting objections and suggestions, if any, from the stakeholders.

Analysis:

  • 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 Code on Social Security, 2020 amends and consolidates the laws relating to social security with the goal to extend social security to employees and workers in the organised as well as unorganised sectors.
  • Chapter VII (Employee’s Compensation) of the Social Security Code, 2020 envisages, inter-alia, provisions relating to employer’s liability for compensation in case of fatal accidents, serious bodily injuries or occupational diseases.
  • The draft Employee’s Compensation rules notified by the Central Government provide for the provisions relating
    • to manner of application for claim or settlement,
    • rate of interest for delayed payment of compensation,
    • venue of proceedings and transfer of matters,
    • notice and manner of transmitting money from one competent authority to another
    • and arrangements with other countries for the transfer of money paid as compensation.
  • The draft rules under 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 Constructions Workers, Social Security for Unorganised Workers, Gig Workers and Platform Workers and Employment Information were notified on 13.11.2020.

CODE ON SOCIAL SECURITY: SALIENT FEATURES

  • The Second National Commission on Labour (2002) suggested the amalgamation of central labour laws into broader groups such as: (i) Wages, (ii) Industrial Relations, (iii) Social Security, and (iv) Occupational Safety, Health and Working Conditions.
  • The Code on Social Security 20 is enacted to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised sector.
  • The SS code defines various terms such as, aggregator, gig worker, platform worker, unorganised worker (home based worker and self-based workers).
  • Further, the definition of the employee has been widened to include maximum number of employees and workers.
  • The SS code provides the social security and protection to the workers in the unorganized sector to ensure access to health care and to provide income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner etc.
  • The Code provides right to the Central Government and State Government to frame and notify the social security schemes.
  • The schemes may be funded by the combination of Central Government, State Government, aggregators, beneficiaries of the scheme, or funded from corporate social responsibility.
  • The code places an obligation on the Central Government to constitute the National Social Security Board for the welfare of the unorganised worker as well as for the gig workers and platform workers and can recommend and monitor the schemes for such worker.
  • The Central Government will setup and administer the social security fund for the welfare of such workers
  • The code provides the compulsory registration of the every unorganised worker, gig worker and platform workers to avail the benefit of the concerned scheme framed under this code.
  • The code has revised the applicability of the Employees Provident Fund Scheme (“EPF”). The EPF will apply to the establishment employing 20 or more employees
  • ESI scheme will apply to establishment employing 10 or more employs.
  • It is also be applicable to an establishment, which carries on such hazardous or life threatening occupation as notified by the Central Government, even a single employee is employed.
  • The code covers the gig workers and platform workers under the ESI scheme

The Social Security Code (SS Code) has replaced the following enactments

  • The Employee’s 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.

NOTE: THE RULE MAKING POWER OF THE EXECUTIVE/GOVERNMENT IS TERMED AS ‘DELEGATED LEGISLATION/SUB ORDINATE LEGISLATION’.  In 2014, the Central government introduced the Pre-Legislative Consultation Policy. Under this, it has been mandated that every Ministry must place draft bills in the public domain for comments/feedback for 30 days. The document put out for public consultation should also provide reasons for the need of the law, financial considerations and explanation of legal terms in simple language. The document is also required to cover the possible impact it could have on the citizens and their fundamental rights. It is only after the completion of this process that the draft is sent for approval to the Cabinet. THIS PRACTICE MAKES LAW MAKING A MORE INCLUSIVE AND PARTICIPATIVE EXERCICE. But of late, this practice has been observed more in its breach according to PRS legislative research study




ODISHA FOREST DEPARTMENT ANNOUNCES CASH REWARD FOR RESCUING GHARIALS

THE CONTEXT: The Mahanadi Wildlife Division in Odisha announced on June 10 a cash reward of Rs 1,000 for rescuing gharials, a critically endangered crocodile species, and informing wildlife personnel. The division will also provide compensation to fishermen, whose fishing nets are destroyed by gharials

Analysis:

  • The announcement of the cash award is an effort to conserve the gharials in the Mahanadi river basin.
  • The population of gharials in the area was on a decline over the last few years and had reduced to just eight in January 2021.
  • It spiked to 36 when 28 gharials were born last month in the Satkosia gorge of Mahanadi at Tikarpada, Angul district.
  • The breeding of these reptiles in their natural conditions occurred after years.
  • The forest department has launched an awareness drive to save the crocodiles in over 300 villages spreading over five districts: Boudh, Angul, Cuttack, Sonepur and Nayagarh.

ABOUT GHARIAL

  • The Gharial is a fish-eating crocodile is native to the Indian subcontinent.
  • They are a crucial indicator of clean river water.
  • Gharials were once widely distributed in the large rivers that flow in the northern part of the Indian subcontinent.
  • These included the Indus, Ganga, Brahmaputra and the Mahanadi-Brahmani-Baitrani river systems of India, Bhutan, Bangladesh, Nepal and Pakistan.
  • They are also thought to have been found in the Irrawady River of Myanmar.
  • Today, their major population occur in three tributaries of the Ganga River: the Chambal and the Girwa Rivers in India and the Rapti-Naryani River in Nepal.
  • The Gharial reserves of India are located in three States – Uttar Pradesh, Madhya Pradesh and Rajasthan
  • Small released populations are present and increasing in the rivers of the National Chambal Sanctuary, Katarniaghat Wildlife Sanctuary, and Son River Sanctuary.
  • Gharials reside exclusively in river habitats with deep, clear, fast-flowing waters and steep, sandy banks.
  • The gharial is listed in schedule 1 of the Wildlife (Protection) Act, 1972 and also described as critically endangered on the International Union for Conservation of Nature Red List of Threatened Species.
  • Their habitat is threatened because of human encroachment and fishing activities.
  • They are genetically weaker than salt water crocodiles and muggers
  • Gharials caught accidentally in fishing nets are either hacked to death or have their snout chopped off by fishermen.
  • Forty gharials were released in the Ghaghara River by the Bahraich forest division of Uttar Pradesh recently.



ESI COVERAGE FOR CASUAL AND CONTRACTUAL EMPLOYEES OF MUNICIPAL BODIES IN THE STATES/UTS

THE CONTEXT: Union Minister of State (I/c) for Labour and Employment announced the decision to extend coverage under the Employees’ State Insurance Act, 1948 (ESI Act) to all casual and contractual workers working in the municipal bodies in the country on 10th June.

Analysis:

  • The ESI Corporation has been directed to take up the matter with the States/ UTs, being the appropriate Government(s) under the ESI Act, for issue of notification for coverage of casual and contractual workers in the Municipal Corporation(s)/ Council(s) in their respective jurisdictions.
  • The coverage shall be extended to those casual and contractual employees/ agencies/ establishments which are within the implemented areas already notified under the ESI Act, 1948 by the Central Government.   ​
  • For National Capital Region of Delhi, the Central Government being the appropriate government under the ESI Act, the Ministry of Labour and Employment has already issued intention notification dated 7 June, 2021 for coverage under the ESI Act of casual and contractual employees working with Municipal Corporations/ Council in the NCT of Delhi.
  • Various municipal bodies in different States and Union Territories in the country employ a large number of casual and contractual workers.
  • However, not being regular employees of the Municipal Corporations/Municipal councils, these workers remain out of the social security net making them a vulnerable lot.
  • This important decision has been taken to address this issue.
  • ESI coverage of casual and contractual employees working with municipal bodies shall go a long way in providing social security cover to a very vulnerable segment of the workforce.
  • Once notifications for ESI coverage are issued by the respective States/ UTs, the casual and contractual workers working with municipal bodies will be able to avail the full gamut of benefits available under the ESI Act such as sickness benefit, maternity benefit, disablement benefit, dependent’s benefit, funeral expenses etc.
  • In addition and importantly, these workers will be eligible to avail medical services through vast network of ESI facilities i.e. 160 hospitals and over 1500 dispensaries all over the country.

 ABOUT EMPLOYEES STATE INSURANCE CORPORATION

  • Employees’ State Insurance Corporation (ESIC) is a government organisation that manages the Employees’ State Insurance (ESI) scheme.
  • Employees‘ State Insurance Corporation is a statutory body constituted under an Act of Parliament (ESI Act, 1948) and works under the administrative control of Ministry of Labour and EmploymentGovernment of India.
  • ESI is a social security scheme offered by the Government of India as per the Employees’ State Insurance Act, 1948.
  • The scheme provides protection to employees against disablement/death due to employment injury, sickness, and maternity.
  • This is a self-financing scheme, where the employees and the employers make regular monthly contributions to the scheme at a certain percentage of their wages.
  • ESI is applicable to any entity that employs ten or more people, such as shops, hotels and restaurants that is not engaged in manufacturing, cinemas, road motor transport establishments, newspaper establishments, private educational and medical institutions.
  • The minimum number of employees required to subscribe for ESI scheme varies with states.
  • Employees with a monthly salary within Rs.21,000 are entitled to get the benefits of the scheme.
  • Putting it together, employees working for factories/establishments with ten or more employees drawing wages of up to Rs.21,000 per month are entitled to receive health benefits under the ESI Act.
  • There are exemptions to the rule in the case of daily average wages of Rs.137.
  • They do not have to contribute to the scheme from their wages. Only the employer’s contribution is paid for such people.

CONCEPT OF SOCIAL SECURITY

  • Social security is the protection that a society provides to individuals and households to ensure access to health care and to guarantee income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner.
  • Social security protection is clearly defined in ILO conventions and UN instruments as a basic human right – albeit one that a small proportion of the people on our planet actually enjoy.
  • Broadly defined as a system of contribution based health, pension and unemployment protection, along with tax-financed social benefits, social security has become a universal challenge in a globalizing world.
  • Social security has a powerful impact at all levels of society.
  • It provides workers and their families with access to health care and with protection against loss of income, whether it is for short periods of unemployment or sickness or maternity or for a longer time due to invalidity or employment injury.
  • It provides older people with income security in their retirement years.
  • Children benefit from social security programmes designed to help their families cope with the cost of education.
  • For employers and enterprises, social security helps maintain stable labour relations and a productive workforce.
  • And social security can contribute to social cohesion and to a country’s overall growth and development by bolstering living standards, cushioning the effects of structural and technological change on people and thereby providing the basis for a more positive approach toward globalization.



ALL INDIA SURVEY ON HIGHER EDUCATION (AISHE) 2019-2020

THE CONTEXT: Union Education Minister Shri Ramesh Pokhriyal announced the release of the report of All India Survey on Higher Education 2019-20 on 10 June.

Analysis:

  • This Report provides key performance indicators on the current status of Higher education in the country.
  • In the last five years from 2015-16 to 2019-20, there has been a growth of 11.4% in the student enrolment.
  • The rise in female enrolment in higher education during the period is 18.2%.
  • This report is the 10th in the series of All India Survey on Higher Education (AISHE) annually released by D/o Higher Education.

Key features of All India Survey on Higher Education Report 2019-20

  • Total Enrolment in Higher Education stands at 3.85 crore in 2019-20 as compared to 3.74 crore in 2018-19, registering a growth of 36 lakh (3.04 %). Total enrolment was 3.42 crore in 2014-15.
  • Gross Enrolment Ratio(GER), the percentage of students belonging to the eligible age group enrolled in Higher Education, in 2019-20 is 27.1% against 26.3% in 2018-19 and 24.3% in 2014-2015.
  • Gender Parity Index (GPI)in Higher Education in 2019-20 is 1.01 against 1.00 in 2018-19 indicating an improvement in the relative access to higher education for females of eligible age group compared to males.
  • Pupil Teacher Ratio in Higher Education in 2019-20 is 26.
  • As on 2019, the total number of universities in India stands at 1043 which was 993 in 2018-19.

MAJOR ISSUES WITH HIGHER EDUCATION IN INDIA AS PER UGC

  • A severely fragmented higher educational ecosystem;
  • Less emphasis on the development of cognitive skills and learning outcomes;
  • A rigid separation of disciplines, with early specialisation and streaming of students into narrow areas of study;
  • Limited access particularly in socio-economically disadvantaged areas, with few HEIS that teach in local languages
  • Limited teacher and institutional autonomy;
  • Inadequate mechanisms for merit-based career management and progression of faculty and institutional leaders;
  • Lesser emphasis on research at most universities and colleges, and lack of competitive peer-reviewed research funding across disciplines;
  • Suboptimal governance and leadership of HEIS;
  • An ineffective regulatory system; and
  • Large affiliating universities resulting in low standards of undergraduate education.

NATIONAL EDUCATION POLICY 2020 AND HIGHER EDUCATION

  • Increase GER in higher education to reach at least 50%by 2035
  • The policy envisages a broad-based multi-disciplinary holistic education at the undergraduate level for integrated exposure to science, arts, humanities, mathematics and professional fields having flexible curricular structures, integration of vocational education and multiple entry/exit points.
  • The undergraduate degree will be of either 3 or 4-year duration, with multiple exit options within this period, with appropriate certifications-
  • An Academic Bank of Credit (ABC) shall be established which would digitally 8 8 store the academic credits earned from various recognized HEIs so that the degrees from an HEI can be awarded taking into account credits earned
  • Multidisciplinary Education and Research Universities(MERUs) will be set up and will aim to attain the highest standards for multidisciplinary education across India
  • The system of affiliation will be phased out over 15 years and a state-wise mechanism for granting graded autonomy to colleges, through a transparent system of graded accreditation, will be established.
  • National Research Foundation (NRF) will be set up to catalyze and expand research and innovation across the country.
  • Internationalization of education will be facilitated through both institutional collaborations, and student and faculty mobility and allowing entry of top world ranked Universities to open campuses in our country.
  • Faculty will be given the freedom to design their own curricular and pedagogical approaches within the approved framework.
  • Excellence will be 10 10 further incentivized through appropriate rewards, promotions, recognitions, and movement into institutional leadership.
  • Faculty not delivering on basic norms will be held accountable.
  • There will be a single overarching umbrella body for promotion of higher education- the Higher Education Commission of India (HECI)
  • With independent bodies for standard setting- the General Education Council; funding-Higher Education Grants Council (HEGC); accreditation- National Accreditation Council (NAC); and regulation- National Higher Education Regulatory Council (NHERC).
  • Regulation will be ‘light but tight’ to ensure financial probity and public-spiritedness to eliminate conflicts of interest with transparent self-disclosure as the norm not an inspectorial regime.
  • An autonomous body, the National Educational Technology Forum (NETF), will be created to provide a platform for the free exchange of ideas on the use of technology to enhance learning, assessment, planning, administration
  • The Centre and the States will work together to increase the public investment in Education sector to reach 6% of GDP at the earliest
  • The Central Advisory Board of Education will be strengthened to ensure coordination to bring overall focus on quality education