Safeguarding the Rights of Unorganized Workers in India

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Unorganized workers form the backbone of India’s economy, accounting for around 90 percent of the country’s workforce. These workers include street vendors, domestic helpers, construction laborers, agricultural workers, delivery personnel, and countless others who operate outside the formal employment framework. Despite their significant contribution to the nation’s GDP, they have historically remained invisible in policy discussions, lacking access to basic social security benefits, written contracts, or legal protections. Understanding the rights of these workers and the legal mechanisms designed to protect them is crucial for building a more equitable society.

Table of Contents

Who are unorganized workers?

The term “unorganized worker” refers to individuals employed in the unorganized sector or those working in the organized sector without formal employment benefits. The Unorganized Workers’ Social Security Act, 2008 defines an unorganized worker as a home-based worker, self-employed worker, or wage worker in the unorganized sector. This includes agricultural laborers, beedi rollers, domestic workers, construction workers, handloom weavers, and many others who earn their livelihood through informal employment.

According to government data from the Economic Survey 2021-22, approximately 43.99 crore people worked in the unorganized sector during 2019-20. The sector is characterized by low wages, absence of job security, irregular employment, and lack of access to social security schemes that organized sector employees take for granted.

The Unorganized Workers’ Social Security Act, 2008

Recognizing the need to protect this vast workforce, the Parliament of India enacted the Unorganized Workers’ Social Security Act in 2008. This landmark legislation aimed to provide social security and welfare to unorganized workers, focusing on four key areas: life and disability cover, health and maternity benefits, old age protection, and any other benefits determined by the government.

Key provisions of the Act

National and State Social Security Boards: The Act established a National Social Security Board at the central level and State Boards at the state level. These boards recommend the formulation of social security schemes, monitor their implementation, and review the registration and welfare of unorganized workers.

Registration and identity cards: Every unorganized worker aged 14 years or above can register with the District Administration and receive a smart identity card with a unique identification number. This registration makes workers eligible to access various social security schemes.

Workers Facilitation Centers: The Act provided for the establishment of facilitation centers to help workers with registration, disseminate information about available schemes, and assist in processing applications.

Social security schemes for unorganized workers

Following the 2008 Act, the government launched several schemes to protect unorganized workers. The Ministry of Labour and Employment has detailed the current social security schemes available to this workforce.

Life and disability coverage

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) provides life insurance coverage of Rs. 2 lakh in case of death due to any reason. Available to individuals aged 18 to 50 years, the scheme requires an annual premium of Rs. 436.

Pradhan Mantri Suraksha Bima Yojana (PMSBY) offers accident insurance coverage of Rs. 2 lakh for accidental death or total permanent disability, and Rs. 1 lakh for partial permanent disability. This scheme is available to persons aged 18 to 70 years at an annual premium of just Rs. 20.

Health and maternity benefits

The Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana provides health insurance coverage of up to Rs. 5 lakh per family for secondary and tertiary care hospitalization, protecting unorganized workers from catastrophic health expenses.

Old age protection

The Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) pension scheme, launched in 2019, provides a monthly pension of Rs. 3,000 after workers reach 60 years of age. Unorganized workers aged 18-40 years with a monthly income of Rs. 15,000 or less can join this scheme. The worker contributes 50 percent of the monthly contribution, with the Central Government providing an equal matching contribution.

The Code on Social Security, 2020

In a significant reform, the Code on Social Security, 2020 replaced the 2008 Act and consolidated nine existing social security laws into a single comprehensive framework. This Code represents a paradigm shift in how India approaches social protection for its workforce.

Expansion of coverage

The Code extends social security coverage not just to traditional unorganized workers, but also to gig workers and platform workers for the first time in Indian legislative history. Gig workers are those outside the traditional employer-employee relationship, while platform workers access organizations or individuals through online platforms to provide services.

The Code received presidential assent on September 28, 2020, and various sections have been implemented in phases. It mandates the creation of a National Database of Unorganized Workers and requires all unorganized, gig, and platform workers to register on a National Portal, where they receive a unique identification number verified through Aadhaar.

Key features for unorganized workers

Social Security Funds: The Code establishes separate social security funds for unorganized, gig, and platform workers. These funds are financed through contributions from central and state governments, aggregators, corporate social responsibility, and penalties.

Universal EPF coverage: The Code extends the Employees’ Provident Fund to all establishments with 20 or more employees, regardless of industry type, bringing more workers under retirement savings protection.

Portability of benefits: Workers, especially migrant workers, can now carry their social security benefits across state boundaries, ensuring continuity of protection even when they relocate for work.

Expanded ESIC coverage: The Employees’ State Insurance Corporation coverage has been extended pan-India, removing previous geographic restrictions. Establishments with fewer than 10 employees can also opt for voluntary ESIC coverage.

Challenges in implementation

Despite comprehensive legal frameworks, significant gaps exist in implementation. Many unorganized workers remain unaware of their rights and available schemes. The registration process, while simplified, still poses challenges for workers with limited digital literacy. Ensuring that workers actually receive benefits requires robust monitoring mechanisms and administrative efficiency at the ground level.

The informal nature of employment in this sector makes it difficult to identify and register all eligible workers. As of July 2023, more than 28.96 crore workers had registered under the eShram portal, but this still represents only a portion of the total unorganized workforce.

The road ahead

The transition from the 2008 Act to the 2020 Code reflects the government’s evolving understanding of social security needs in a changing economy. However, laws alone cannot guarantee protection. Effective implementation requires sustained political will, adequate funding, simplified procedures, and extensive awareness campaigns to reach workers in remote areas.

Civil society organizations, trade unions, and workers’ collectives play a crucial role in educating workers about their rights and helping them navigate registration processes. The success of these legal frameworks ultimately depends on whether they translate into tangible improvements in the lives of millions of unorganized workers who keep India’s economy running.

What do you think? How can we bridge the gap between legal provisions and actual implementation to ensure that unorganized workers receive the social security benefits they deserve? What role should technology play in making these schemes more accessible to workers with limited digital literacy?

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References
  1. https://www.statista.com/topics/12207/unorganized-sector-in-india/
  2. https://vvgnli.gov.in/sites/default/files/UWSSA,%202008.pdf
  3. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1942079
  4. https://en.wikipedia.org/wiki/Unorganised_Workers%27_Social_Security_Act_2008
  5. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1986238
  6. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2035275
  7. https://www.pib.gov.in/FactsheetDetails.aspx?Id=150473&reg=3&lang=2
  8. https://en.wikipedia.org/wiki/The_Code_on_Social_Security,_2020
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Human Rights in India

1 Human Rights – Historical Traditions

  1. Ancient Indian Traditions
  2. Hinduism: Rights as Dharma
  3. Buddhism
  4. The Idea of Human Rights in Medieval India
  5. Gandhian Concept of Rights
  6. Environmentalist Traditions

2 Freedom Struggle and Civil Liberties Movement

  1. Liberty of the Press
  2. Struggle for Civil Liberties
  3. National Movement and Human Rights
  4. Indian Civil Liberties Union

3 Constitutional Vision – Fundamental Rights and Directive Principle

  1. Constituent Assembly and Rights
  2. Important Characteristics
  3. Scope of the Fundamental Rights
  4. Directive Principles of State Policy
  5. Fundamental Duties

4 Indian’s International Human Rights Obligations

  1. Nature of International Human Rights Obligations
  2. Domestic Status of International Human Rights Treaties
  3. India and the ICCPR
  4. India and the ICESCR
  5. India and the CEDAW
  6. Judiciary and International Human Rights Obligations

5 Rights of Women

  1. Kinds of Women’s Rights
  2. Rights of Women
  3. Monitoring of Rights of Women
  4. Different Forms of Violation of Rights of Women

6 Rights of Children

  1. Rights of Children: Different Dimensions
  2. Different Forms of Violation of Child’s Rights
  3. Rights of Children
  4. Implementation of Rights of Children
  5. Creating Awareness

7 Rights of Dalits and Tribes

  1. Problem of Untouchability and Social Exclusion
  2. Dalit Rights in the Indian Constitution
  3. Untouchability Abolition Laws
  4. Violations of Dalit Rights
  5. Rights of the Scheduled Tribes in the Constitution
  6. Violations of the Rights of Tribal People

8 Rights of Minorities in India

  1. Enabling Rights of Citizenship and Protection of Minorities
  2. Cultural Autonomy and Protection of Minorities
  3. Personal Laws and Cultural Rights of Minorities
  4. Freedom of Religion and the Protection of Religious Minorities
  5. Language Pluralism and the Protection of Linguistic Minorities
  6. Constitutional Instruments for the Protection of Minority Rights
  7. Affirmative Measures and the Protection of Minorities
  8. Problems Faced by the Minorities

9 Rights of Old and Disabled

  1. Disability: Definition and Causes
  2. Approaches to Disability
  3. Laws and Provisions dealing with Disability
  4. Disability Laws
  5. Role of NGOs and Civil Society
  6. The Elderly People
  7. Rights of the Elderly
  8. Government’s Initiatives
  9. Old Age Pension Benefits and other Privileges

10 Human Rights Enforcement- Role of Judiciary

  1. Limitations on State Power
  2. Doctrine of Judicial Review
  3. Writ Jurisdiction and Enforcement of Rights
  4. Theory of Emanation
  5. Public Interest Litigation
  6. Judicial Activism

11 Human Rights Commission- National, State and other Commissions

  1. The National Human Rights Commission (NHRC)
  2. Functions of the Commission
  3. Powers of the Commission
  4. State Human Rights Commissions
  5. Human Rights Courts
  6. Role of Human Rights Commission

12 Human Rights Movement

  1. The Human Rights Movement in Pre-independent India
  2. The Human Rights Movement in the 1960s
  3. The Emergency Phase and the 1980s
  4. Liberalization and the Human Rights Movement
  5. Concerns and Strategies of the Contemporary Human Rights Movement
  6. Challenges Faced by the Human Rights Movement

13 Human Rights- State and Society

  1. Human Rights and State
  2. Terrorism and Human Rights
  3. Caste and Human Rights
  4. Gender Discrimination
  5. Insensitivity towards Children
  6. Development and Human Rights

14 Human Rights- Terrorism and Fundamentalism

  1. Defining Terrorism
  2. Genesis and Growth of Terrorism in India
  3. Effects of Terrorism and Fundamentalism on Human Rights
  4. Response of the State to Growing Terrorism
  5. Response to Criticisms: National Human Rights Commission
  6. Relations between Terrorism and Human Rights

15 Human Rights and Environment

  1. United Nations and the Human Environment
  2. Human Rights and the Environment in the Context of India
  3. The Environmental Laws
  4. Civil Society and Environment
  5. Judiciary and Public Interest Environmental Litigations

16 Emerging Trends- Media, Internet, Globalization

  1. Access to Media Information and Human Rights Protection
  2. The Media as a Tool of Human Rights Abuse
  3. Internet and Human Rights
  4. Globalization and Human Rights
  5. Globalization Trade and Investment

17 Human Rights and Police

  1. Functions of Police
  2. Recording of Complaints (FIR)
  3. Investigation of Cases
  4. Arrest and Detention
  5. Demonstrations and Use of Force

18 Consumer Rights and Protection

  1. Consumer Protection Act (CPA) 1986
  2. Some Definitions and Terms
  3. Rights of Consumers
  4. Grievance Redressal Machinery
  5. Complaints Before the Consumer Courts

19 Accessing Rights of Women

  1. How to Seek Redressal?
  2. Dowry
  3. Personal or Family Laws
  4. Domestic Violence
  5. Sexual Harassment at Work Place
  6. Feticide

20 Accessing Rights of the Child

  1. How to Seek Redressal?
  2. Child Labour
  3. Bonded Labour
  4. Juvenile Justice System
  5. Child Sexual Abuse and Sexual Exploitation

21 Rights of Dalits, Tribals and Unorganized Laborers

  1. Implementation Mechanisms to Enforce the Rights of Dalits
  2. Problems of Dalit Women
  3. Rights of Unorganized Workers
  4. How to File Complaints of Violations with the Police and National Human Rights Bodies