Draft Code on Social Security (Central) Rules, 2020

Nov 17, 2020 | by TeamLease RegTech Legal Research Team

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Labour ComplianceThe Ministry of Labour and Employment (MoLE) on November 13, 2020 has issued the Draft Code on Social Security (Central) Rules, 2020 suspending the following rules:-

• Employees’ State Insurance (Central) Rules, 1950; 

• Tribunal (Procedure) Rules, 1997; 

• Employees’ Provident Funds Appellate Tribunal(Conditions of Service) Rules, 1997; 

• Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1960; 

• Maternity Benefit (Mines and Circus) Rules, 1963; 

• Payment of Gratuity (Central) Rules, 1972; 

• Cine-Workers Welfare Fund Rules, 1984; 

• Building and Other Constructions Workers’ Welfare Cess Rules, 1998; and 

• Unorganised Workers’ Social Security Rules, 2009;

The draft rules provides the following:-

• Provisions relating to Employee’s Provident Fund Organisation (EPFO), Employees’ State Insurance Corporation (ESIC), and National Social Security Board for unorganised workers, gig workers and platform workers outlined in the Code on Social Security.

• Aadhaar-based registration including self-registration by unorganised workers, gig workers and platform workers on the portal of the Central government.

• Aadhaar-based registration of building and other construction workers (BOCW) on the specified portal of the Central government and the state government or the State Welfare Board so that when a building worker migrates from one state to another, he shall be entitled to get benefits in the state where he is currently working.

• Provision regarding gratuity to an employee who is on fixed-term employment. 

• Provision regarding single electronic registration of an establishment, including cancellation of the registration in case of closure of business activities.

• The manner and conditions for exiting an establishment from EPFO and ESIC coverage, it said.

• The procedure for self-assessment and payment of cess in respect of BOCW. For the purpose of self-assessment, the employer shall calculate the cost of construction as per the rates specified by the State Public Works Department or Central Public Works Department or on the basis of return or documents submitted to the Real Estate Regulatory Authority, the statement said.

• The assessing officer can visit the construction site only with prior approval of the secretary of the Building and Other Construction Workers Board. The rules also provide for the manner of payment of contribution by the aggregators through self-assessment.

Furthermore, the assessing officer’s power for indefinitely stopping of construction work has been withdrawn in the draft rules.

Objections and suggestions, if any, may be addressed to Shri Rahul Bhagat, Director, Ministry of Labuor and Employment, Room No. 302, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001 or by e-mail – [email protected].

[Notification No.: G.S.R. 713 (E)]


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