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Legal Framework For Unorganized Sectors In India

Legal Framework For Unorganized Sectors In India

Introduction:-

Indian Constitution provided to all citizens of the country justice- social, economic, political, liberty of thought, expression, belief, faith and worship under the preamble; and equality of status and opportunity regardless of their caste, creed, status, religion, race, sex as per Article 15. But the gap which existed between the organized and unorganized sectors in our country remains to exist and it’s totally wide.


Definitions:-
Unorganized sector and unorganized workers under the Unorganised Workers’ social insurance Act, 2008 –1
“Unorganised Sector means an enterprise owned by individuals or self- employed workers and engaged in production or sale of products or providing service of any kind whatsoever, and where the enterprise employs workers, the quantity of such workers is a smaller amount than ten.”

As per the report of the National Commission on Labour in 1969:-2

‘Unorganized workers’ are other groups of workers who don’t seem to be covered under the definition of the organized group of workers and which they’re such as-
• Casual nature of employment.
• Ignorance and illiteracy.
• Small size of establishment with the low capital invested per person employed.
• Scattered nature of establishments.
• Muscular strength of the employer operating either singly or together.

Unorganized workers mean:-
• Owned by individuals or;
• Self-employed worker or;
• Engaged in casual and production or sale of products providing any reasonable service and where any enterprise employs workers, the number of workers could be a smaller amount than ten.

Problems of Unorganized Sectors:-

The Majority of migrant workers fall within the unorganized sector. No working hours are fixed. They belong to the poorest sections of the population and inadequate access to basic amenities. People who migrate from rural to urban

areas have absolutely no rights once they arrive they lack bargaining power and are compelled to easily accept work for lesser wages.

Unorganized Social Security Act, 2008
In the time of liberalisation, globalisation, and privatisation the country has seen a drastic change within the nature of employment and business environment. These changes created many problems within the perspective of social insurance. In this context, the issue of social welfare to the growing sector of unorganized workers draws more attention in emerging India. The govt. enacted much social insurance legislation for the welfare of unorganized workers also formulated many schemes. Unorganized Workers Social security Act, 2008 is one of the many activities which is exclusively for the protection of unorganized workers.

The National Social Security Board:-
1. They furnish a recommendation to the Union Government about suitable schemes for the unorganized workers.
2. Advise the Union Government on matters arising out of the administration of the act.
3. To look at the Social welfare schemes which are formulated for unorganized workers.
4. Review the registration and issue identity cards to the unorganized workers.
5. Review the record of functions performed by the authorities at the state level.
6. Review the expenditure from the funds of the various schemes.
7. Undertake another work as assigned by the central Government.

State Social Security board

The government at the state level is empowered to constitute the social insurance Board for the target of proper implementation of the Act. The Function and Composition of State social insurance are identical because of the National social insurance Board. The social insurance Boards, which are entrusted with the responsibility of implementation of the act, are just advisory and don’t seem to be empowered to perform many functions except monitoring and review.

Conclusion

As many problems are faced by unorganized workers like low wages, exploitation of workers, bad conditions of workers, etc. that the legislative system of India protects the rights of the unorganized workers with the assistance of varied articles covered under the constitution of India. The Government of India took a step by enacted a legislation ‘Unorganized social insurance Act, 2008’ for providing Social Security to the unorganized workers who add an unorganized sector. In pursuance of this Act, the govt of India has implemented numerous schemes like Aam Admi Bima Yojana (Life Insurance), adulthood pension scheme, Rashtriya Swasthya Bima Yojana (health insurance), etc. The Central Government, under the requisite section and therefore the government under the required section, are empowered to create the principles for the graceful functioning.

Author: Shikha Mishra, Modi Law College

Sources:

  1. Unorganised Workers Social Security Act, 2008.Section 2(l)
  2. Government of India, Report of National Commission on Labour, (1969) p. 417.
  3. National Commission for Enterprises in the Unorganised Sector, Report on Social Security for Unorganised Workers, 2006 p. 22.
  4. The Minimum Wages Act, 1948 Act No. 11 Of 1948, [15th March, 1948.]

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