Section 86: Furnishing Periodic Employment Returns

Overview

Section 86 of the Code on Social Security, 2020, doesn’t directly deal with a specific social security benefit like Provident Fund or ESI. Instead, it focuses on the *collection of employment data*. This data is crucial for the government to effectively administer and improve all social security schemes, understand labour market trends, and formulate appropriate policies. Accurate employment statistics are foundational for planning and implementing effective social security measures across various benefits like gratuity, maternity benefits, and employee compensation.

Who is Covered?

• This section applies to all ‘establishments’ as defined under the Code on Social Security, 2020. The definition of ‘establishment’ varies based on the specific provisions of the Code and may include factories, shops, establishments employing a certain number of workers, and other organized sector entities.
• All categories of workers – direct, indirect, fixed-term, contract, and migrant workers – are generally included in the reporting requirements.
• There are no specific eligibility conditions related to length of service or wage limits for the *reporting* requirement itself. The obligation to furnish returns rests with the establishment, regardless of individual employee characteristics.

Benefits and Contributions

This section does not involve direct benefits to employees or contributions from employers or the government. It is a *reporting requirement* that facilitates the administration of social security benefits. The benefit is to the government and, indirectly, to employees through better-informed social security policies and scheme implementation.

Procedure and Compliance

Here’s a simplified breakdown of the compliance process:

1. Reporting Frequency: The Code empowers the appropriate Government (Central or State) to specify the frequency of these returns (e.g., monthly, quarterly, annually).
2. Information Required: Establishments must provide details on workforce strength, categories of workers (permanent, temporary, contract, etc.), number of vacancies, hiring patterns (number of new hires), retrenchments (number of employees terminated), and other relevant employment indicators.
3. Mode of Submission: Returns can be furnished electronically, as prescribed by the government. This facilitates efficient data collection and analysis.
4. Timely Submission: Establishments must submit the returns within the stipulated timeframe to avoid penalties.

Practical Examples

• Example 1: A manufacturing company with 200 employees is required to submit a quarterly employment return detailing the number of permanent workers, contract workers, new hires during the quarter, and any retrenchments that occurred.
• Example 2: A retail chain fails to submit its annual employment return within the prescribed deadline. The Labour Department issues a notice for non-compliance and imposes a penalty as per the provisions of the Code.

Disclaimer

This article is for basic understanding of the Code on Social Security, 2020, and Section 86 specifically. It should not be treated as legal advice. Consult with a qualified legal professional for advice tailored to your specific situation.