Application of Unorganised Sector

Abstract

To protect the rights of this segment of workers, the first of its type; Unorganized Workers’ Social Security Act, 2008 was passed by the parliament. The Act is claimed to cover six crore unorganized workers, and in turn their family members of 30 crore people. Funds and Miscellaneous Provisions Act, 1952; the Maternity Benefit Act, 1961; The Payment of Gratuity Act, 1972; and The Worker’s Compensation Act, 1936. Some legislation, such as the Workers Compensation Act, Maternity Benefit Act, and Building and Other Construction Workers Acts, were directly or indirectly applicable to workers in the unorganized sector also. But the application and implementation of these laws have been mostly limited and ineffective. India has had a long tradition of State-sponsored social security initiatives. However, these initiatives have been fragmented, their coverage has been limited in terms of both workers and contingencies, and their delivery has often been ineffective. The Commission proposed legislation in this regard, which after prolonged discussion and deliberations, culminated in the enactment of the Unorganized Workers’ Social Security Act in 2008. Before discussing the contents of the Act it is pertinent to highlight the main features of the recommendations of the NCEUS, since the idea of a national minimum was put forward by that Commission for the first time and also because it provided the basis for the new legislation in 2008.