Concept of Social Security

8/2/2019 Concept of Social Security

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LABOUR LAW - II

PRIYESH MISHRA

A8108309072

B.A. LL.B (H) VI Semester

AMITY

LAW

SCHOOL

THECONCEPTOFSOCIALSECURITY


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THE CONCEPT OF SOCIAL SECURITY LABOUR LAW - II

AMITY LAW SCHOOL 2

ACKNOWLEDGEMENT

Upon the successful completion of this assignment, I would wish to thank Dr. Sharma for imparting me

with crystal clear concepts regarding Social Security. Your insight helped me appreciate the concept of

social security in a better way, and helped this submission take its course.


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Article 43 of the Indian Constitution speaks of state's responsibility to provide social security to the

citizens of this country.

The social security strategies in India include the following:

Social insurance with the participation of the beneficiary pooling risks and resources. Social assistance financed from general revenues and granting benefits on the basis of means

test.

Employers liability schemes where there is an identifiable employer and within the economiccapacity of the employer.

National Provident Funds. Universal schemes for social security.

The following few legislative measures have been adopted by the Government of India to promote

social security schemes for industrial workers.

Workmens Compensation Act, 1923: The Workmens Compensation Act was passed in March1923, and was put into effect on 1st July 1924. This Act followed the British model, but was

adapted to suit Indian conditions. Was-time injuries were also covered by the Act. The 1962

Amendment raised the wage limit covered under the Act to Rs.500 per month. It also amended

the clauses bearing on industrial diseases, and revised the rates of compensation. With effect

from 1st October 1975, the wage limit coverage under this Act has been raised from Rs.500 to

Rs.1000 per month.

Employees State Insurance Act, 1948: Two conventions on health of workers in industry,commerce and agriculture were adopted in 1927 by International Labor Conference. The

question about health insurance was also discussed by the Royal Commission on Labor, and a

tentative scheme of health insurance was proposed in its comprehensive report in 1931. Its

recommendations on the adoption of a health insurance scheme were not accepted by the

Government of India because of financial difficulties. All these built up a lot of pressure on the

government.


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The one-man committee of Professor B.P. Adarkar, set up in March 1943, submitted its report on a

scheme of health insurance for industrial workers in August 1944. It recommended a compulsory and

contributory health insurance scheme for workers in perennial factories in three groups of industries,

namely textiles, engineering and minerals and metals. Bearing all these modifications andrecommendations in mind, the Government of India passed the Employees State Insurance Act in April

1943, which provides cash benefit in contingencies of sickness, maternity and employment injury, but

did not provide security in such contingencies as unemployment and old age. The dependents of

workers who died as a result of any employment injury were paid compensation in the form of a

pension.

The E.S.I. Scheme stated with coverage of about 1.20 lakh industrial workers in Kanpur and Delhi on

24th February 1952. It has continued to progress over all these years. By the end of March 1976, there

were 388 centers covering nearly 22 million beneficiaries under this scheme. The total number of

employees and insured persons under the scheme at the end of 1995-96 was respectively 66.13 and

73.03 lakh insured persons.

The ESI Scheme offer both direct and indirect medical care. The direct method is called the Service

System by which the ESI Corporation provides medical care, either through its own Employees State

Insurance Hospital or through reservation of beds in State Government hospitals. The indirect method is

known as the Panel System, under which medical care is provided through private doctors selected by

the State Government with the approval of the ESI Corporation.

The benefits provided by the Act are:

Sickness Benefits; Maternity Benefits; Disablement Benefit; Dependents Benefit; Funeral Benefit; and Medical Benefit.

All workers, earning less than Rs.3000 per month and employed in power-run factories employing 20 ormore persons are covered by this scheme. However, it does not cover workers employed by seasonal

factories. An insured person under ESI Scheme is not eligible for similar benefits under the Workmens

Compensation Act and State Acts relating to maternity benefits.


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INTERNATIONAL LABOUR ORGANIZATION AND SOCIAL SECURITY

The International Labor Organization was founded in 1919 for the primary purpose of promoting social

justice and improving the living and working conditions of workers thought out the world. It made a

beginning in this field by emphasizing the importance of comprehensive social security measures in the

Preamble to its Constitution, in which it promised protection of the worker against sickness, disease

and injury arising out of his employment, the protection of children, young persons and women,

provision for old age and injury

In order to implement these measures, the ILO took certain steps:

It formulated international standards by way of recommendations regarding the definition ofsocial security.

It collected and spread the information about social security schemes in various countries. Its provided technical assistance and guidance so that social security schemes might be properly

formulated by means of co-operation with other social organizations.

For this purpose, an International Social Security Association was established in 1927.

The 1952 ILO Convention on Social Security (Minimum Standard) divided social security into nine

components:

Medical Care: This should cover pregnancy, confinement and its consequences and any disease which

may lead to a morbid condition. The need for pre-natal and post-natal care, in addition to

hospitalization was emphasized.

Sickness Benefit: This should cover incapacity to work following morbid condition resulting in aloss of earnings. This calls for periodical payments based on the convention specification.

Unemployment Benefit: This should cover the loss of earning during a workers unemploymentperiod when he is capable and available for work, but remains unemployed because of lack of

suitable employment.

Old age Benefit: This benefit provides for the payment the quantum depending upon anindividuals working capacity during the period before retirement.


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Employment Injury Benefit : This should cover the following contingencies resulting fromaccident or disease during employment :

(a) Morbid condition;

(b) Inability of work following a morbid condition, leading to suspension of earnings;

(c) Total or partial loss of earning capacity which may become permanent; and

(d) Death of the breadwinner in the family, as a result of which the family is deprived of financial

support.

Family Benefit: This should cover responsibility for the maintenance of children during the entireperiod of a contingency.

Maternity Benefit: This benefit should cover pregnancy, confinement and their consequencesresulting in the suspension of earnings. Provision should be for medical care, including pre-natal

confinement, post-natal care and hospitalization if necessary.

Invalidism Benefit: This benefit, in the form of periodical payments should cover the needs ofworkers who suffer from any disability arising out of sickness or accident and who ware unable

to engage in any gainful activity.

Survivors Benefit: This should cover periodical payments to a family following the death of itsbreadwinner and should continue during the entire period of contingency.

The ILO has suggested various methods of organizing, establishing and financing various social security

schemes. For the benefit of the less developed countries, it has fixed the level of benefits fairly low, so

that the schemes may be practicable.


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CONCLUSION

Hence we see that social security is an indispensable factor for any labor scenario.

The purpose of any social security measure is to give individuals and families the confidence that their

level of living and quality of life will not erode by social or economic eventuality. A worker works not

only for the economic motivation but also for the sense of belongingness and security within his

workplace.

Hence, it is the duty of the employer to ensure as best as he can that his workers have this psychological

satisfaction that their as well as their families lives are socially secure and cared for. Indian legislations

have gone a long way in strengthening this cause and because of this and many other factors, today in

the world of labour and employment, the employee and employers interest is at par with each other

and the principal focus is on the combined interest and satisfaction of both. If these conditions are

fulfilled with a joint effort and contribution from both the employer and the employee then theworkplace to a great extent will become a home of sorts.

Concept of Social Security

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