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Seventeenth Loksabha an> Title: Combined discussion on the Occupational Safety, Health and Working Conditions Code, 2020; Industrial Relations Code, 2020 and Code on Social Security, 2020 (Discussion concluded and Bill Passed).

The Second Code, of course, is the Code on Social Security.  Now, Clause 142 mandates Aadhar verification. This is something that we have all debated again and again. The Supreme Court has said that it can be done by legislation.  Now, this again does not do it by legislation necessarily because  you have left it to delegated legislation. So, you insist upon Aaadhar by delegated legislation. Please have a look at it because Odisha has set an example again.  During the COVID-19 pandemic, we exempted Aadhar verification for obtaining goods under the PDS system because many people did not have it.

The other thing that I need to show is that there is some delegated legislation again on some other issues, but I am not going into that as it is going to take too much time if I look into it.  What I would rather flag is that we have a serious problem with Section 100 (2) of this Social Security Code. These Sections 100(2) and 100(3) are something that the Odisha Government and all State Governments will have a serious problem with. One of the criticisms obviously of this legislation is going to be that there is a lot of encroachment upon the powers of the States.  The objective of the Building and Other Construction Workers’ Welfare Cess Act is to augment the resources of the State BoC Boards constituted under the Building and Other Construction Workers Act.  Here again, the Central Government has sought to move in and says, “as may be prescribed by the Central Government”.  Section 100(3) says, “or any other authority in such manner as may be prescribed by the Central Government”. I think this encroaches far too deep into the domain of the State Government. These are basic bulwarks of the State Government which the State Government uses for benefic social causes.  Therefore, I urge upon the Central Government to re-visit and re-look  into this at some point in time.   

          Sir, I start with the Social Security Code relating to the methodology of computation of PF and insurance contribution under clause 78. I suggest that these should be calculated on basic wages and not include commission or performance-based bonus, business expenses, leave encashment, etc. So, they may be removed from the definition of ‘wages’. It will help employees in taking more salary home.

          In Clause 2 (88), definition of ‘wages’ is inconsistent compared to our present definition of ‘wages’ under labour laws. This may lead to further liability to employers when calculated under different benefits. For example, definition of ‘wages’ under gratuity has been widened and has increased the gratuity liability of employers. In Clause 45, which is about unorganized workers, the Bill allows schemes for unorganized workers to be additionally funded by the Corporate Social Responsibility Fund defined under the Companies Act, 2013. However, this does not include provision on overriding effect of more beneficial welfare schemes already passed by different States. So, this could kindly be looked into.