Section 3: Application of the Code

Overview

Section 3 of the Code on Social Security, 2020, doesn’t deal with a single benefit like Provident Fund or ESI. Instead, it defines the *scope* of the entire Code. This Code aims to consolidate and simplify various existing social security laws in India, covering benefits like Provident Fund, Pension, Gratuity, Maternity Benefits, and more. It extends coverage to include workers in the unorganised sector, gig workers, and platform workers, bringing a wider segment of the workforce under the social security net.

Who is Covered?

• Classes of employees and establishments covered: The Code applies to all establishments employing a specified number of employees (the exact number may be defined through rules). It covers both organized and unorganized sector workers. Critically, it also includes 'gig workers' (those working on short-term contracts) and 'platform workers' (those working through online platforms).
• Any eligibility conditions such as length of service or wage limits: While the Code aims for universal coverage, specific provisions *within* the Code relating to individual benefits (like gratuity or maternity benefit) may still have eligibility criteria like minimum length of service or wage ceilings. Section 3 itself doesn’t define these; it establishes *who the Code applies to*, and then individual chapters detail the specific requirements for each benefit.

Benefits and Contributions

• What benefit the employee gets: The benefits an employee receives depend on the specific scheme they are eligible for under the Code (e.g., pension, medical benefits, gratuity, maternity benefits). Section 3 doesn’t specify the benefits themselves, only the *population* eligible to potentially receive them.
• Contribution responsibilities of employer, employee and government: Contribution responsibilities vary depending on the specific scheme. Some schemes require contributions from both the employer and employee, while others may be funded entirely by the government or employer. The Code establishes a framework for these contributions, but the exact percentages and details will be determined through rules and regulations.

Procedure and Compliance

Section 3 itself doesn’t detail procedures for contributions, registrations, or claims. It establishes the legal basis for these procedures to be implemented. Establishments covered by the Code will need to register with the appropriate authorities. Contributions will likely be collected and remitted through designated channels (similar to existing systems for PF and ESI). Claim procedures will be outlined in the rules for each specific benefit.

Practical Examples

• Example 1 showing an employee becoming eligible for benefit: A delivery rider working for an e-commerce platform (a 'platform worker') becomes eligible for accident insurance and other social security benefits as defined under the Code, because the platform is now legally obligated to register and contribute to these schemes.
• Example 2 involving non-compliance by an employer: A factory owner fails to register their establishment under the Code and does not contribute to the Provident Fund for their employees. This constitutes a violation of the Code and can result in penalties and legal action.

Disclaimer

This article is for basic understanding of the Code on Social Security, 2020, and Section 3 specifically. It should not be treated as legal advice. For specific legal guidance, please consult with a qualified legal professional.