Draft rules on social security code suggests provisions for claims settlement

The Union Ministry of Labour has notified here on Tuesday the draft rules dealing with the compensation to employees under the Code on Social Security. The Ministry has sought responses from stakeholders on the notification within 45 days.

The notification lays down provisions on the manner of application for claim or settlement, rate of interest for delayed payment of compensation, venue of proceedings and transfer of matters, notice and manner of transmitting money from one competent authority to another and arrangements with other countries for the transfer of money paid as compensation.

The Code on Social Security, passed by both the Houses in 2020, is aimed at extending social security to employees and workers in the organised and unorganised sectors. Chapter VII of the Code deals with employee’s compensation with provisions on to employer’s liability for compensation in case of fatal accidents, serious bodily injuries or occupational diseases of workers.

The draft rules under the Code on Social Security, 2020 relating to Employees’ Provident Fund, Employees’ State Insurance Corporation, gratuity, maternity benefit, social security and cess in respect of building and other constructions workers, social security for unorganised workers, gig workers and platform workers and employment information were notified earlier in November 2020.

The trade unions had criticised the Centre for the “piecemeal approach” in releasing the rules and had asked the Centre to come up with complete rules for each code.

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