Section 75: General Framework for Offences and Penalties

Overview

Section 75 of the Code on Social Security, 2020, doesn’t deal with a specific social security benefit like Provident Fund or ESI directly. Instead, it establishes the overarching framework for dealing with violations across all the schemes covered under the Code. This includes provisions relating to Employees’ Provident Fund (EPF), Employees’ State Insurance (ESI), gratuity, maternity benefits, building and other construction workers welfare, and social security for unorganized workers. It outlines how breaches of the Code’s provisions will be addressed, ensuring accountability and protecting worker rights.

Who is Covered?

• This section applies to all employers and employees covered under the various social security schemes consolidated by the Code on Social Security, 2020. This broadly includes establishments employing a specified number of workers (the threshold varies depending on the scheme) and all eligible employees within those establishments.
• Eligibility for specific benefits (like gratuity or maternity benefit) still depends on the individual scheme’s requirements, such as length of service or wage ceilings. Section 75 focuses on the consequences of failing to comply with the rules of those schemes.

Benefits and Contributions

Section 75 itself doesn’t define benefits or contributions. Those are determined by the specific social security scheme (EPF, ESI, etc.). However, the penalties outlined in Section 75 are triggered by failures related to contributions, benefit disbursement, or other obligations arising from those schemes. For example, failing to remit EPF contributions on time, or denying a worker their legally entitled maternity benefit, could lead to penalties under this section.

Procedure and Compliance

Compliance with the Code involves several steps, depending on the specific scheme. Generally, employers must register with the relevant authorities, maintain accurate records of employees and contributions, and remit contributions within the prescribed timelines. Employees have the right to access information about their social security entitlements and to file claims for benefits. Section 75 comes into play when these procedures are not followed. If an employer fails to comply, the authorities can investigate, issue notices, and impose penalties as outlined in the section. The Code emphasizes a corrective approach, aiming to ensure compliance and protect worker entitlements before resorting to purely punitive measures.

Practical Examples

• Example 1: An employee, Ms. Sharma, works for a company for five years and meets the eligibility criteria for gratuity. The employer, following the Code’s provisions, calculates and pays her the gratuity amount within the stipulated timeframe. This demonstrates compliance and avoids any penalties under Section 75.
• Example 2: A factory owner consistently delays the remittance of ESI contributions for their employees. After repeated warnings, the ESI authorities investigate and find the owner guilty of a violation. Under Section 75, the owner could face a fine, imprisonment, or both, depending on the severity and frequency of the non-compliance.

Disclaimer

This article is for basic understanding of social security law and should not be treated as legal advice. For specific legal guidance, please consult with a qualified advocate.