Ministry of Labour and Employment issues FAQs on the Code on Social Security, 2020

The Ministry of Labour and Employment has issued detailed FAQ on the Social Security Code, 2020 to clarify procedures, benefits, workers’ rights, and compliance requirements under India’s social security framework.

Key Clarifications:

I. Under General Framework and Registration:

1. The Social Security Rules do not mandate that all procedures be carried out exclusively in digital mode, while the framework emphasises digital processes to enhance transparency and ease of access, physical submissions are permitted in certain cases, including claims related to gratuity and maternity benefits, which may be filed either electronically or through physical modes.

2. Registration under the Social Security Rules does not guarantee automatic payment of benefits, as it merely serves as an entry point for workers to access social security schemes, with benefits being payable only under schemes onboarded on the relevant portal, such as e-Shram, and subject to the fulfilment of scheme-specific eligibility conditions.

II. Under Schemes, Rule-Making and Social Security Funds:

Social Security Funds cannot be merged with general government accounts, as the Rules require them to be maintained as separate accounts with provisions for periodic reporting, audit by the Comptroller and Auditor General of India, and utilisation strictly limited to worker welfare purposes.

III. Under Maternity Benefit Provisions:

1. Maternity benefit claims cannot be rejected solely for failure to use prescribed forms, as the Rules emphasise that procedural lapses do not override substantive rights and allow applications to be submitted either physically on plain paper or through electronic means.

2. Certification by a registered medical practitioner is not mandatory for maternity benefits, as the Rules expand the range of acceptable proof to include certificates from ASHAs, Auxiliary Nurse Midwives, local authorities, and other prescribed village or municipal officials.

3. Nursing breaks are not restricted to two fixed intervals, as the Rules allow additional time, including travel time, based on the distance to the creche or childcare facility, while creche facilities are not required to be located within the employer’s premises, with the Rules permitting shared or pooled arrangements and mandating payment of a creche allowance where such facilities are not provided.

IV. Under Gratuity Rules:

1. Gratuity need not be claimed after the end of employment, as the Rules allow advance submission of applications when the date of retirement or cessation is known, and any delay in filing a gratuity claim does not lead to forfeiture, since the Rules clarify that delay alone cannot invalidate such claims.

2. Employers do not have unfettered discretion to reject gratuity claims, as the Rules require mandatory notices, reasoned orders, defined timelines, and appeal mechanisms to ensure transparency and prevent arbitrary decisions.

V. Under Building and Other Construction Workers’ Welfare:

1. Building and Other Construction Workers (“BOCW”) Welfare Cess is not payable only after completion of construction, as the Rules allow advance payment based on self-assessment with final adjustment later. Instalments are permitted only with disclosure of work progress and cost assessment, and excess cess deposited can be refunded through a time-bound mechanism following assessment or appellate orders.

2. The responsibility for payment of BOCW Cess is assigned to employers, contractors, government departments, and public sector undertakings, depending on the nature and execution of the construction work.

VI. Under provisions pertaining to Gig and Platform Workers:

The Rules cover gig and platform workers engaged not only directly by aggregators but also through subsidiaries, associate or holding companies, LLPs, and third-party arrangements, and failure to update worker data results only in temporary ineligibility, which can be restored once the required information is updated on the designated portal.

VII. Under Compliance, Inspection & Enforcement provisions:

Appeals under the Rules are subject to strict timelines, featuring defined limitation periods, standardized formats, and prescribed schedules for disposal.

VIII. Under Exemptions and Trust Governance provisions:

Exempted establishments are not entirely free from oversight, they must comply with eligibility criteria, audit and reporting requirements, and exemptions can be revoked if there are structural changes.

IX. Under provisions pertaining to Administration and Records:

The records need not be maintained solely at the workplace, as the Rules permit electronic storage or keeping them at a notified nearby location, as long as they remain accessible for inspection.

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Source: Ministry of Labour and Employment