The (Draft) Labour Code On Social Security 2018

Introduction

The Labour Code on Social Security 2018 ('Labour Code') is the Central Government's initiative to tackle following existing lacunae:

• almost 90% of the current workers are not covered under any social security;
• unorganized sector workers are largely excluded;
• prevailing schemes have very limited outreach;
• multiplicity of applicable laws, policies, schemes and governmental instrumentalities;
• current thresholds for wage and number of workers employed for a labour law to become applicable creates tenacious incentives for the employers to avoid joining the system which results in exclusions and distortions in the labour market.

To begin with, the Labour Code aims to simplify, rationalize and consolidate multiple statutes into one consolidated law, which will be easier in terms of understanding, implementation and enforcement. The Code finds its genesis in the Report of the Second National Commission on Labour (2002) and many other