MODULE I

INTRODUCTION TO SOCIAL
SECURITY

-YAMINI SREEDHAR
B.A.LL.B(Hons.), L.L.M(LABOUR LAW AND ADMINISTRATIVE
LAW)
Faculty ,SOEL, TNDALU.
 INTRODUCTION
▪ Social security refers to protection provided by society to its members
against providential mishaps over which a person has no control. The
idea of social security is that the state shall make itself responsible for
ensuring a minimum standard of material welfare to its citizens and cover
all the main contingencies of life.
▪ It is a human right that responds to the universal need for protection
against certain life risks and social needs.
▪ In the life of a man there are two stages of dependency childhood and old
age, the social security system aims to help individuals in such times of
dependency. So social security is a basic need of all people regardless of
the employment sector in which they work and live.
▪ It is an important form of social protection that begins with birth and
should continue till death. In short social security refers to protection
extended by the society and state to its members to enable them to
overcome various contingencies of life.
 MEANING
“Social security is a dynamic concept. Being a dynamic subject no rigid limit can be laid down
for all time to come. It varies from time to time and country to country”
▪ Social security may provide for the welfare of persons who became incapable of working because of
old age, sickness, and invalidity and are unable to earn anything for their livelihood.
▪ It has been considered essential for workers, though with their development of the idea of a welfare
state, its scope should be widened to cover all sections of society.
▪ The quest for social security and freedom from want and distress has been a consistent urge of man
through the ages. This urge has assumed several forms, according to the needs of the people and their
level of social consciousness, the advance of technology, and the pace of economic development.
▪ It is a major aspect of public policy and the extent of its prevalence is a measure of the progress made
by a country towards an ideal of a welfare state.
▪ Freedom from “want” may be a modern slogan but the aspiration for such freedom is as ancient as
mankind itself. The degree of success achieved in reaching this goal has varied from time to time and
country to country according to the means available and adapted.
▪ The need for social security is because the advent of Modernization and urbanization have resulted in
radical socio-economic changes and given rise to new conflicts and tensions consequent upon the
erosion of age-old family and fraternal security. The transition from an agricultural economy to an
industrial economy brought in special accompanied problems that called for social security.
 DEFINITION
▪ To understand the nature and concept of social security it is necessary to examine the meaning given to it from
time to time
▪ According to Oxford Advanced Learners’ dictionary “Social security means money that the government pays
regularly to people who are poor, unemployed, sick, etc. to live on social security”. This definition clearly says it
is a system in which people can receive payments from the government when they are unable to work, especially
when they are sick or too old to work.
▪ According to Lord Beveridge, social security “is an attack on five giants- wants, disease, ignorance, squalor and
idleness”. Lord Beveridge in his report on Social Insurance and Allied Services used the term 'social security'
meaning thereby the security of an income to take the place of earning when they are interrupted by
unemployment, sickness or accident, to provide for retirement through age, to provide against loss of support by
the death of another person, and to meet exceptional expenditures, such as, those connected with birth and death.
The definition logically speaking, is too wide and comprehensive both since it does not specify the protection to
be provided for labour community in modern industrial structure.

▪ Friedlander defines social security as “program of protection provided by society against these contingencies of
modern life…sickness, unemployment, old age, dependency, industrial accidents and invalidism – against which
the individual cannot be expected to protect himself and his family by his own ability or foresight”
CON….
▪ Cassidy defines “social security as a scheme that connotes particularly measures of income maintenance is income
security”. This definition stresses on income security and maintenance or income through social security measures.
▪ ILO Social Security (Minimum Standards) Convention 1952 defines “social security” to mean: “The result achieved
by a comprehensive and successful series of measures for protecting the public (or a large sector of it) from the
economic distress that, in the absence of such measures, would be caused by the stoppage of earning in sickness,
unemployment or old age and after death; for making available to that same public medical care as needed; and for
subsiding families bringing up young children”.

▪ In India, the National Commission on Labour has endorsed the ILO definition of social security and observes: “Social
Security envisages that the members of a community shall be protected by collective action against social risks causing
undue against social risks causing hardship and privation to individuals whose prime resources can seldom be adequate
to meet them”.

▪ Punjab & Haryana High Court in Indian News Chronicle Ltd. v. Mrs. Luis Lazarus defined "injury as an aspect of
social security as, Actual Physical hurt to the body of the employee must appear in order to make an injury
compensable”. So injury included within the scope of social security.
 EVOLUTION OF SOCIAL SECURITY
• In early days when human needs were limited and livelihood was based primarily on agriculture, joint families,
and craft guilds. Churches, charitable, philanthropic and other religious institutions, provided these securities. In
some countries poor houses were also established. However, the system based on voluntary charity proved to be
inadequate and unsatisfactory later on. In some countries these were supplemented with mutual benefit schemes
and state aid.

• Today when the world is passing through an industrial era and life is becoming more and more individualistic,
yet complex and complicated because of industrial and scientific advancement, the risks of life have been
increased manifold. With the introduction of industrialization and the growth of the society, it has been
increasingly felt that the institution of social security should be established.

• The term social security is first coined by Abraham Epstein, essentially a term of Atlantic origin. In 1883,
Germany became the first nation in the world to adopt an old-age social insurance program, designed by Otto-
Von-Bismarck, the German Chancellor. He was motivated to introduce social insurance in Germany to promote
workers’ well-being and starve off calls for more radical socialist alternatives."
CON…
• “The historic sources of social insurance idea are found in the genesis of industrial revolution in the 12th century in Europe. Social insurance
scheme were also found in the guild benefit societies.” Leaving out under developed countries, the reactions of governments to this new
realization varied depending, inter alia, upon the particular political situation existing in the country and the country’s economic development.
It is true that all democratically elected governments are under constant pressure from the electorate to extend the scope of their service but the
response of the governments can vary according to their political philosophy.

• The Social Reform Act of 1933 of the Social Democratic government in Denmark codified, simplified and extended social insurance and
social assistance legislation.

• The Labour Government’s Social Security Act, 1938, in New Zealand provided the most comprehensive interpretation of social security at
that time.

• The right of social security is one of the significant rights that have been set out in the Universal Declaration Human Rights, which the
general assembly of the UN adopted and proclaimed on December 10, 1948.

• Earlier in May 1955 was laid down the grand charter of Labour, popularly known as the Declaration of Philadelphia, by the member states of
the ILO. A Significant milestone in acceptance and promotion of the right of social security was earlier reached with the establishment of the
ILO in 1919. The need for providing social security benefits was recognized by the International labour organization since its inception of the
Twenty-Eight Social Security Conventions, Convention (No.102) concerning Minimum Standard of Social Security is significant.
 INDIAN HISTORY
▪ In India social security measures to product industrial workers against sickness, old age, invalidity, unemployment
etc., are of recent origin. The Workmen's Compensation Act, 1923 is perhaps the first legislation which may be
described as a social security measure in a broad sense.
▪ Sri V. V. Giri has rightly remarked that social security, as currently understood, is one of the dynamic concepts of the
modern age which is influencing social as well as economic policy.
▪ Way back in 1931, Royal Commission on Labour made comprehensive survey of almost all the problems relating
to labour (including social security) and made a number of recommendations for sickness benefits and old age.
Though India became independent on 15th August 1947 transfer of power took place in 1946 when an interim
government formulated a five year programme for the welfare of the labour class. The Significant features of the
Programmes were: Organisation of health insurance scheme, applicable for workers to start with; Revision of
workmen's compensation act; Central law for maternity benefit; and Extension to other classes of workers, or the
right, within specific limits, to leave with allowance during the sickness.
▪ Social security received new vigour and strength in the hands of Professor B. P. Adarkar who framed a scheme to
provide for health insurance to workers. The scheme was later modified by ILO experts, Mr. M. Staok and Mr. R.
Rao (who were invited by the Government of India to examine it), which culminated in the enactment of the
Employees State Insurance Act, 1948.
CON…
▪ The movement of Social Security Measures in India can be studied under the following phases:
a. Social Security in Pre-Independence Phase
- Ancient India
- Medieval India
- British era / colonial era
b. Social Security in Post-Independence Phase
c. Social Security in Present Scenario
a. Social Security System in Ancient India
The concept of social security has been mentioned in the early Vedic hymn which wishes everyone to be
happy free from ill-health, enjoy a bright future and suffer no sorrow. Dr. R.C. Majumdar gives a list of about thirty
such groups. Kautilya Arthashastra is a guiding example of the introduction of the philosophy of social security in
Ancient India. Kautilya has mentioned a number of pension schemes in his work, such as educational pension, public
poor relief, etc. He says that state itself should provide support to poor, pregnant women to their new born offspring, to
orphans, to the aged, to the infirm, to the affected and to the helpless.
CON…
▪ Social Security during Medieval India (1206 to 1853 AD)

▪ During this period the development and promotion of social security was much below the satisfaction level.
Sher Shah Suri was the first ruler, which considered the welfare of the people as essential for the interests of
the state. Great Akbar also looked after the people, by providing various amenities and services to the society.

▪ British era / colonial era

▪ The influence of industrial revolution and renaissance developed large factories system in India since 1858.
This resulted in the rapid increase in the industrial institutions and industrial workers. The working conditions
and other hardships of the workers became a subject of serious concern. The modern factory system of
production is of recent origin in India until early twenties, there was no worker organization of all India level
and in absence of a well-organized forum; the workers could not ventilate their grievances against working
conditions, remuneration. Thus, the study of social security in India may be taken to have started from 1920.

(i) Pre-1920: The Period of Unconcern - Large scale factories began to develop in India from 1850 onwards
but the industrial development was slow, being confined mainly to the textile industry. The government also did
not show any concern for the amelioration of workers' conditions.
CON…
▪ The first labour unrest registered at the Empress Mills, Nagpur in 1877, related to the improvement of
wages. This unrest started the much awaited awakening and agitation against the British hegemony in
industry. The continued agitation saw the passing of the first Factory Act in 1881. The first trade union
organization was formed in the year 1890 by Narayan Meghajee Lokhande, named as the Bombay Mill
Hand's Association.
(ii) From 1921 to 1941: The Period of Haphazard Growth - A Permanent Industrial Labour force started
emerging with workers settling down near the industries. The establishment of International Labour
Organisation in 1919 greatly influenced the public opinion in favor of social security measures for workers
based on the principle to secure universal peace based on social justice. For example, the appointment of the
Royal Commission on labour (also know Whitely Commission) was influenced ILO, powerful All India
Trade Union Congress was established to send a trade union representative to ILO. This period saw two
enactments in the field of social security namely, the Workmen's Compensation Act, 1923, and the various
Maternity Benefit Acts, passed.
CON..
▪ (iii) From 1942 to 1951: The Period of Conscious Planning - This period saw many significant
developments in the field of social security on a firm and sound footing. The outbreak of the World War II,
however, created an acute shortage of man and material. The appointment of Dr. B.R. Ambedkar as
labour member of the Viceroy's Council infused courage in Government Labour Policy. Further, the
constitution of Standing Labour Committee, and the Indian Labour Conference provided a forum for the
discussion of labour matters. a multi-directional attack was launched by the Government of India on the
burning problem of social security as the Rege Committee was constituted to investigate; the Adarkar
Commission (The Adarkar Commission submitted its report on 15th August 1944 proposed by to cover
three major groups of industries, namely, the Textiles, Engineering and Minerals and Metal) to prepare the
blue print, the Bhore Committee to plan for medical care and health services.
(b) Social Security in Post-Independence Phase
The enactment of the Employees' State Insurance Act in 1948 marked the beginning of the era of
social insurance of labour in India. ILO helped up to a very large extent. After incorporating certain
modifications in existing Indian Factories Act, 1934, the legislature in 1948 enacted the Act under the
nomenclature "The Factories Act 1948". also enacted Minimum Wages Act in 1948, Employees' Provident
Fund and Miscellaneous Provisions Act, 1952.
CON..
(i) Period from 1952 to 1957: The Period of Concrete Action - The Adoption of the constitution in 1950,
the beginning of the planned era, etc. greatly influenced the social security efforts of state and central
governments. The Employees’ State Insurance Scheme, the Employees Provident Fund Scheme, the Coal
Mines Provident Fund and Bonus Schemes Ordinance which were later on replaced by an Act are some of
the major achievements of this period.
(ii) From 1958 Onwards: The Period of Planning for Coordination Attempts - A significant development
of this period was the setting up of study groups, committees and commission on social security to analyze
and "study how these schemes (of social security) and any other privileges given to workers could be
combined in a comprehensive social security scheme“. In due course social legislation, e.g. Payment of
Wages, Minimum Wages, Unemployment benefits, Industrial Dispute Act, Maternity Benefit Act,
Factories Act, Payment of Bonus Act, 1965, Payment of Gratuity Act 1972, Employees Provident Fund
Act 1952.
(c) Social Security in Present Scenario
According to the present day conditions, social security covers up programmes of protecting the old, invalid
victims, widow, sickness, occupational risks, maternity medical care, etc. though the National Commission on
Labour, 2002 recommend to adopt social security as a fundamental human right."
CON…
▪ Apart from the legislative efforts, committee and commission have played a key role. Planning is the process of formulating a plan. In India,
the Planning Commission of India is the core of the planning mechanisms. The Planning Commission helped and guided by several other
policy-making at the center and state levels. Soon after independence, India started its development with the motto "Growth with Social
Justice". India stepped into the era of Economic Planning in 1951, by launching its five year plan.
▪ First Five Year Plan – labour and industrial relation with humanistic approach

▪ Second Five Year Plan – employment aspects (opportunity)

▪ Third Five Year Plan – social security was taken into consideration

▪ Fourth Five Year Plan - analyzed ESI schemes, training upliftment, PF scheme

▪ Sixth Five Year Plan – unorganized workers

▪ Seventh Five Year Plan – manpower planning and labour policy

▪ Eighth Five Year Plan – treating employment generation and economic growth as compulsory to one another

▪ Tenth Five Year Plan – 10 million employment opportunities

▪ Eleventh Five Year Plan – social security as an inclusive concept concerning housing safety, drinking water, sanitation, health, education
and cultural facilities
▪ The four labour codes which is comprehensive of more than 40 labour legislation on which one is The code of social security 2020. NITI
AYOG (JUNE 2022) called on business platform to institute measures to provide paid sick leave and extension of measures to gig workers.
 LABOUR LAW CODES
▪ The new labour codes are aimed at facilitating ease of doing business in the country and seek to
replace 29 cumbersome laws. The objective is to encompass over 500 million organized and
unorganized sector workers—90% of the workforce which has been outside labour laws.

▪ For ensuring workers’ right to minimum wages, the Central Government has amalgamated 4
laws in the Wage Code, 9 laws in the Social Security Code, 13 laws in the The Occupational
Safety, Health and Working Conditions Code, 2020 and 3 laws in the Industrial Relations Code.

▪ Social security code 2020 Comprises of the following/below mentioned legislation Employees’
Provident Funds and Miscellaneous Provisions Act, 1952; Employees’ State Insurance Act,
1948; Employees’ Compensation Act, 1923; Employment Exchanges (Compulsory
Notification of Vacancies) Act, 1959; Maternity Benefit Act, 1961; Payment of Gratuity
Act, 1972; Cine-workers Welfare Fund Act, 1981; Building and Other Construction
Worker’s Welfare Cess Act, 1996; and Unorganized Workers Social Security Act, 2008.
 CODE ON SOCIAL SECURITY, 2020
• The definition of employees has been widened to include inter-state migrant workers, construction
workers, film industry workers and platform workers/ gig workers. It subsumes nine laws and
empowers the Centre to notify various social security schemes like the EPF, EPS and ESI for the
benefit of workers in all sectors. The facility of ESIC would now be provided in all 740 districts. At
present, this facility is being given in 566 districts only. It also empowers the Centre to frame any other
schemes for the self-employed, unorganized workers, gig workers and platform workers and the
members of their families.

• The Code has a provision for the creation of a social security fund for workers in the unorganized
sector. The Code proposes the establishment of a National Social Security Board for recommending to
the central government the formulation of schemes for the various sections of unorganized, gig and
platform workers. With the aim of making a national database for unorganized sector workers,
registration of all these workers would be done on an online portal and this registration would be done
on the basis of Self Certification through a simple procedure.
 CHARACTERISTICS OF SOCIAL SECURITY
▪ One of the basis of meanings of social security the schemes should contain certain essential characteristics as per V.
V. Giri. Generally, there are four main requirements namely

1. The scheme of social security should guarantee income in case of involuntary loss of all or a large part of income
from work.
2. The system must be initiated by legislations so as to define obligations upon public or other organizations to ensure
the same.
3. The system must be administered by public or private organisation.
4. The system must assure that the benefit will be available when required and the protection will be adequate both in
quantity and quality.

▪ Generally social security measures vary from country to country but the common characteristics are:

i. They are established by law.

ii. They provide some form of cash payment to individuals to replace at least a part of lost income that occurs due to
such contingencies as unemployment, maternity, work injury, invalidism, sickness, old age and death.
iii. The benefits or services are provided in 3 major ways social insurance and social Assistant public service
 CONSTITUENTS OF SOCIAL SECURITY

CONSTITUENTS OF SOCIAL
SECURITY

TRADITIONAL CONSTITUENT OF MODERN CONSTITUENTS OF

SOCIAL SECURITY SOCIAL SECURITY

SOCIAL SOCIAL ASSISTANCE

INSURANCE
 TRADITIONAL CONSTITUENT OF SOCIAL SECURITY
▪ The concept of social security as indicated earlier, is the product of 1930’s. Before this concept certain
security measures were in operation without referring to the term ‘social security’ as such. The term refers to
set of measures designed to provide medical care and income security to the members of the society entitled
to. In actual practice, there are the following two constituents of social security viz Social Insurance and
Social Assistance which are explained below.

A. SOCIAL INSURANCE

▪ The ILO defines social insurance as a scheme that provides benefits for persons of small earnings granted as
of in amounts which combine the contribution of the insured with subsidies from the employee and the state.
The social insurance protects persons of small earnings. The purpose of social insurance is rendering the wage
earner as independent of poor relief as possible on the principal that his wage should include an insurance
premium conversion the risk of its involuntary loss, the inability of the State being mere subsidy.

▪ Shri K N Vaid defines social insurance as the “giving, in return for contribution benefits up to subsistence
level, as of right and without means test so that an individual may build freely upon it. Thus, social insurance
implies that it is compulsory and that men stand together with their fellows.
CON..
▪ Characteristics

i) A common fund is established by employer, state and the worked out of which all the benefits in cash or kind are paid.

ii) The contribution of the workers is nominal which generally does not exceed their paying capacity, whereas the
employer and the state provide the major portion of the finances.

iii) The object of the benefit is ensuring the maintenance of a minimum standard of living to the beneficiaries during the
period of partial or total loss of income.

iv) Benefits are granted as a matter of right and without any means test thus, they do not touch the self-respect of the
beneficiaries.

v) It is provided on compulsory basis so that its benefit might reach to all the needy persons of the society who are
sought to be covered by the scheme.

vi) Lastly, social insurance reduces the sufferings arising out of the contingency faced by an individual. Contingencies
which they cannot prevent.
CON….
B. SOCIAL ASSISTANCE

The ILO defines social assistance scheme as one that provides benefits to persons of small means granted as of right in amounts
sufficient to meet a minimum standard of need and financed from taxation. Social assistance programs provide benefits sufficient to
meet the minimum needs of persons of small means. The special characteristic of these measures is that they are financed wholly from
general revenues of the state. Thus, it is the state which takes the initiative to adopt these measures for the benefits of common men.
The first risk to be covered was that of old age, but gradually noncontributory benefits were introduced for invalids, survivors and
unemployed persons as well. Today social assistance programs cover programs like unemployment assistance, old age assistance and
national assistance.

▪ Characteristics

1. Social assistance programs are financed wholly from the general revenues of the state and hence, it is purely a governmental
affair.
2. The object of the benefits is to meet the minimum needs of the presence of small means.

3. The benefits are granted as a matter of right.

4. The benefits provided free of cost; provider certain prescribed conditions are fulfilled.
5. The benefits provided and means tests applied differ from country to country.
 MODERN CONSTITUENTS OF SOCIAL SECURITY
▪ With the completion of the industrial revolution the traditional institutions of social security become inadequate on
account of numbers of factors. Some of the important factors are:

1. The worker’s dependence on money wage became complete because of the alienation from agriculture.

2. The workers who still retained and link with village had to fight on two fronts because of the divided and
scattered family in the village and the town. It resulted into the deterioration in agriculture. But on the whole the
tendency was towards the emergence of permanent industrial worker’s class.

3. In view of this growth of labour laws, child labour as a source of additional income ceased to be useful institution
for the industrial workers.

4. With the growth of industries under capitalism chronic unemployment with periodical accentuation came to stay
as future of the economy.

5. With increased intensification of labour and/or the depletion of plants and inadequate working conditions,
increasing number of industrial hazards and accidents came to be regarded as a common and almost unavailable
risk for industrial workers
 OBJECTIVES OF SOCIAL SECURITY
▪ The aim of all social security measures is three- fold in nature.

A. Compensation - Compensation leads to income security to the workers and is based

upon the idea that during spells of risks, the individual both destitution and loss of
health, limbs, life or work.
B. Restoration - Restoration implies, cure of the sick and the invalid re-employment
and rehabilitation and in a way, extension of the earlier concepts of the functions of
social security, and
C. Protection - These measures implied to avoid the loss of productive capacity due to
sickness, un-employment or invalidity and render the available resources which are
used up by avoidable disease and illness and thus increase the material, intellectual
and moral wellbeing of the community.
 AIM OF SOCIAL SECURITY
▪ The Social security has wider aims than prevention or relief of poverty. Its
purpose is also to give individuals and families, the confidence that their level
of living and quality of life will not in so far as is possible be greatly eroded by
and social and economic eventuality, this involves not just meeting needs as
and when they arise but also individuals and families to make the best possible
adjustment could not be prevented. In short, its main purposes have been
widened class.
 BENEFITS PROVIDED UNDER SOCIAL SECURITY
The various benefits normally provided under a social security scheme are as follows:

▪ Medical Care-Free medical care is provided as and when needed.

▪ Sickness Benefit - Cash benefit is provided in the ever of sickness. This is often conditional which is given on fulfilling certain contribution conditions and is
usually limited in duration.

▪ Maternity Benefit - Cash benefit is paid to insured women or even to the wife of an insured man in the event of confinement. This is usually payable for six
weeks before and six week after the delivery rates which vary from half of the wages to full wages. In some countries some additional lump sum alone are
also paid to enable the family to buy new clothing toilet equipment and other things for the baby.

▪ Accident Benefit - Cash benefit is paid for accidents a work. This may be in the forms of Temporary Disablement benefit payable while the disablement lasts
or if may be in the form of pension for life, the amount of benefit depends on the extent of permanent Disablement. The benefit may also be the form of
pensions for varying duration to dependents of decease insured person.

▪ Unemployment Benefit - The Benefit is payable to able bodied workers who are willing and available for employment but are unable to find any work.
Entitlement to this benefit is also conditional on having paid certain contribution and is usually limited to certain number of day or weeks.

▪ Old Age and Invalidity Benefit -Pension is also payable in the event of invalidity, retirement or death of the employee, Invalidity and retirement pensions are
payable to the worker and the survivorship pension are payable to his dependents. For all these pensions, different qualifying conditions are attached.

▪ Family Benefit - Lastly, in some of the western countries it is now recognized that it is the responsibility of the state to support the family in bringing up
children. The Others benefits are disablement benefit, Survivorship benefit, Dependants benefit, Funeral benefit and Minor benefits.
 LABOUR WELFARE
▪ Labor welfare means setting up of minimum desirable standards and provisions of facilities like health,
food, clothing, housing, medical assistance, education, insurance, job security, recreation and so on.
▪ Labor welfare means all those efforts to make life worth living for workman. -Oxford dictionary
▪ The Encyclopedia of Social Sciences defines, “Labor welfare is a voluntary effort of the employer to
establish within the existing industrial system, working, living & cultural conditions of employees
beyond what is required by the law.”
▪ IMPORTANCE : Labor welfare contribute towards the maintenance of the morale and self respect of
the employees. Welfare services should be regarded as Wise-Investment. In order to get best out of the
worker in context of production the working conditions needs to be improved.
▪ E.g. Adequate Light, Proper Ventilation and Provision for fresh air, Control of heat and humidity in the
factories, Prevention of Industrial Hazard, Prevention of occupational disease, Provision for lunch, rest
and change rooms, Maximum Working hours, Minimum wages, Comfortable working conditions,
Provisions for group activities e.g. gymnasiums and playground etc., Workers and officer clubs,
Cooperative Stores and Housing schemes
 CLASSIFICATION OF SOCIAL SECURITY LEGISLATIONS
▪ Social Security legislation in India is classified based on the nature and scope of benefits provided,
coverage of workers, and statutory obligations on employers and employees. Broadly, these legislations
can be categorized into the following types:
1. Social Insurance Legislation - These laws require contributions from employers, employees, or both
and provide benefits in cases of contingencies such as illness, injury, unemployment, maternity, and old
age. Examples include: ESI ACT, EPF ACT 1952, Unorganized Workers' Social Security Act, 2008
2. Social Assistance Legislation - These legislations provide benefits without requiring direct
contributions from the beneficiaries. The government funds these programs to support economically
weaker sections. Examples include: National Social Assistance Programme (NSAP), MNREGA
2005.
3. Workers’ Compensation and Employment Injury Benefits - These laws compensate employees or
their dependents in cases of work-related injuries, disabilities, or death. Examples include: Employees’
Compensation Act, 1923, Factories Act, 1948.
4. Maternity and Family Welfare Legislation - Laws providing maternity benefits and support for
family welfare: Maternity Benefit Act, 1961, Child Labour (Prohibition and Regulation) Act, 1986
CONN…
5. Old Age and Pension Schemes - Legislations and schemes targeting income security for
retired individuals: Payment of Gratuity Act, 1972.
6. Labour Welfare Legislation - These laws aim to improve the general welfare of workers in
specific industries or sectors: Beedi and Cigar Workers (Conditions of Employment) Act,
1966, Building and Other Construction Workers (Regulation of Employment and
Conditions of Service) Act, 1996
7. Legislation for the Protection of Vulnerable Groups - Special provisions for certain
marginalized groups: Bonded Labour System (Abolition) Act, 1976
8. Health and Hygiene Legislation - These focus on workplace safety, health, and hygiene:
Factories Act, 1948
9. Sector-Specific Social Security Legislation - Certain sectors have specialized laws to
address the unique needs of workers: The Plantation Labour Act, 1951, Mines Act, 1952
 SOCIAL SECURITY AND CONSTITUTION

INDIAN CONSITUTION

FUNDAMNETAL RIGHTS (PART DPSP (PART IV)

PREAMBLE III)

SOVEREIGN, ARTICLES 38, 39(d) (e) (f),

SOCIALISTIC,DEMOCRATIC, ARTICLES 14,16,21,23,24 41,42,43,43A
SECULAR ,REPUBLIC
 CASE LAWS
▪ The term “Socialist” has not been defined in the Constitution. Still, the Supreme Court in Minerva Mills
Ltd. v Union of India, considered the meaning of socialism as to crystallize a socialistic state securing
its people’s socio-economic justice by interplay of the Fundamental Rights and Directive Principles.
▪ In the State of Karnataka v Ranganatha Reddy, the Supreme Court stated that socialism means
distributive justice to distribute the material resources of the community in such a way as to subserve the
common good.
▪ The apex court in the case of Randhir Singh v. Union of India Held the view that, “It is true that the
principle of “equal pay for equal work” is not expressly declared by our Constitution to be a
fundamental right, but it is a Constitutional goal under Article 39 (d). Holding the words 'Socialist' and
'Equality' would mean nothing if equal work does not mean equal pay.
▪ In the case of Olga Tellis & Ors v. Bombay Municipal Corporation, the Court held: “No person can
live without the means of living or a way for livelihood and the easiest way of depriving a person his
right to life would be to deprive him of his means of livelihood to the point of abrogation. Such
deprivation would not only denude the life of its effective content and meaningfulness but it would make
life impossible to live.
CON..
▪ The Health hazards faced by the workers in the Asbestos factories were brought to the attention of the
Supreme Court in Consumer Education Research Centre v. Union of India, in which after taking note
of the cases in which it has been held that the right to life in Art. 21 includes “right to human dignity”,
the Court now held that: “right to health, medical aid to protect the health and vigor of a worker while in
service or post-retirement is a Fundamental Right under Article 21, read with the Directive Principles in
Articles 39(1), 41, 43, 48A .
▪ In C.E.S.C v Subhash Chandra Bose, the Supreme Court held that the right to social justice is a
fundamental right. Right to social and economic justice was held to be a fundamental right so was the
right of workers to medical care and health for protection against sickness.
▪ In Sanjit Roy v. State of Rajasthan, it was held that when a person provides labour or service to another
for remuneration which is less than the prescribed minimum wages, the labour so provided clearly falls
within the ambit of the words ‘forced labour’ under Article 23. The rationale adopted was that when
someone works for less than the minimum wages, the presumption is that he or she is working under
some compulsion.
CON..
▪ In State of Kerala v. B. Renjith Kumar, the Court said that although the doctrine of “equal pay for
equal work” was originally propounded as part of the directive principles of State policy in Article 39(d),
having regard to the constitutional mandate of equality and inhibition against discrimination in Articles
14 and 16, in service jurisprudence, the doctrine of “equal pay for equal work” has assumed the status of
a fundamental right.
▪ In Bandhua Mukti Morcha v. Union of India, the Supreme Court read Article 21 and 23 with Article
39(e) and (f) and Articles 41 and 42 to secure the release of bonded labour and free them from
exploitation. The Court has observed in this connection: “This right to live with human dignity enshrined
in Article 21 derives its life breath from the Directive Principles of State Policy and particularly Articles
41 and 42.
▪ In D.S. Nakara v. Union of India, the Constitution Bench of the Supreme Court has held that pension is
not only compensation for loyal service but also is a sign by border significance rendering socio-
economic justice by providing economic security in the fall of life when physical and mental prowess is
ebbing corresponding to the aging process and, therefore, one is required to fall back upon savings.
CON..
▪ In Vishaka Vs State of Rajasthan the Principle laid down by the court decided that the consideration of
"International Conventions and norms are significant for the interpretation of the guarantee of gender equality,
right to work with human dignity in Articles 14, 15 19(1)(g) and 21 of the Constitution and the safeguards
against sexual harassment implicit therein.“
▪ In Air India v. Nagesh Mirza and Others the Principle laid down that the provisions on retiring age implied
that the normal age of retirement of an air hostess is 35 years, or on marriage, if it took place within four years
of service, or on first pregnancy whichever occurred earlier. In this case Supreme Court observed that this was a
most unreasonable and arbitrary provision to terminate the services of Air hostess on first pregnancy. It is
unconstitutional, void, and is violative of Article 14 of the Constitution.
Thus, Social security in India is inconclusive and is designed to step against deprivation; to protect
individuals from uncertainties of income. The state holds the responsibility for developing systems for providing
protection and assistance to its workforce. The Concept of Social Security has not been defined in the
Constitution, but its spirit is deeply wired in Part III and Part IV of the Constitution. Judicial pronouncements
have traditionally been one of the ways to break the silence on this topic of social security and Courts have an
active involvement in the promotion of the same. In the modern-day Social Security is constructed as basic
facilities like food, livelihood, and education among others which does not directly relate to income supplements
 ILO ON SOCIAL SECURITY
▪ The ILO has played a major role in developing an internationally defined normative framework
that guides the establishment, development, and maintenance of social security systems across the
world and has become the world’s leading point of reference for efforts to this end. Further, it
establishes the International Labour Standards throughout the world in the form of Conventions
and Recommendations.
▪ Following its establishment in 1919 and being the first to recognize the right to social security in
1944 through the Declaration of Philadelphia, now appended to the ILO Constitution. The
organization’s tripartite constituents have elaborated and adopted a series of Conventions and
Recommendations establishing social security as a separate branch of international law and providing
a framework to enhance and extend social protection in countries from all regions of the world. The
main aim and purpose of the ILO was envisaged and redefined in Art. 427 of the Declaration of
Philadelphia; it says that long-lasting peace will be enumerated through social justice.
▪ ILO set ideal standards for its universal application to the working conditions of the workers and to
ensure social justice to them. The universal standards are in the form of Conventions and
Recommendations. The ILO has adopted the following Conventions and Recommendations
concerning social security.
 FLOWCHART
ILO CONVENTIONS AND
RECOMMENDATIONS

Conventions Conventions
Conventions Conventions Conventions Conventions
relating to relating to Old
relating to relating to relating to relating to
Sickness and Age and
Employee’s Unemployment Maternity Comprehensive
Medical Care Invalidity
Compensation Benefits Benefits Standards
Benefits Benefits
 CONVENTIONS RELATING TO EMPLOYEE’S
COMPENSATION:
(i) C.No. 12-Workmen's Compensation (Agriculture) Convention,1921 (India not ratified this
Convention. But to attain the purpose of the Convention it enacted the Workmen Compensation Act, of
1923 to compensate the employee who is suffering from an injury caused by an accident arising out of
and in the course of employment.)
(ii) C.No. 17-Workmen's Compensation (Accident) Convention, 1925
(iii) C.No. 18-Workmen's Compensation (Occupational Disease) Convention, 1925
(iv) C.No. 19-Convention on Equality of Treatment (Accident Compensation), 1925
(v) C. No. 42-Workmen's Compensation (Occupational Disease) (Revised) Convention, 1934
(vi) Employment Injury Benefits Convention, 1964
(vii) R. No. 23 of 1925 - Workmen's Compensation (Jurisdiction) Recommendation, 1925
(viii) R. No. 25 of 1925 - Recommendation on Equality of Treatment (Accident Compensation), 1925
(ix) R. No. 181 - Employment Injury Benefit Recommendation, 1964
 CONVENTIONS RELATING TO UNEMPLOYMENT
(i)
BENEFITS
Unemployment Provision Convention, 1934 - This convention was adopted to ensure
benefits or allowances to involuntary unemployed persons. This convention was ratified
by the countries but later revised in 1988 and the former one is not open for ratification
now. The convention deals with various aspects of providing unemployment benefits, the
condition for eligibility the period for which such employment benefits are payable, and
also the event on the happening of which such unemployment benefit ceases to continue.
(ii) Convention on Employment Promotion and Protection against Unemployment, 1988
(iii) R.No. 44 of 1934 - Unemployment Provision, Recommendation, 1934
(iv) R.No. 176 - Employment Protection and Protection against Unemployment,
Recommendation, 1988
CONVENTIONS RELATING TO SICKNESS AND
MEDICAL CARE BENEFITS
(i) C.No. 24 - Sickness Insurance (Industry) Convention, 1927
(ii) C.No. 25 - Sickness Insurance (Agricultural) Convention, 1927
(iii) C.No. 130 - Medical Care and Sickness Benefits Convention, 1969
(iv) Medical Care Recommendation, 1944
(v) Recommendation No. 134 of 1969 - Medical care and Sickness Benefits
Recommendation, 1969
 CONVENTIONS RELATING TO MATERNITY
BENEFITS
(i) Convention on Women, 1919
(i) Maternity Protection Convention, 1952
(ii) Maternity Protection (Agricultural) Recommendation,1921
 CONVENTIONS RELATING TO OLD AGE AND
INVALIDITY BENEFITS
(i) Convention No. 35 - Old-age Insurance (Industry, etc.) Convention, 1933
(ii) Convention No. 36 - Old-age Insurance (Agriculture) Convention, 1933
(iii) Convention No. 37 - Invalidity Insurance (Industry, etc) Convention, 1933
(iv) Convention No. 38 - Invalidity Insurance (Agriculture) Convention, 1933
(v) Convention No. 39 - Survivors’ Insurance (Industry, etc.) Convention, 1933
(vi) Convention No. 40 - Survivors’ Insurance (Agriculture) Convention, 1933
(vii) Convention No. 48 - Maintenance of Migrants Pension Rights Convention, 1935
(viii) Invalidity Age and Survivor and Benefit Convention, 1967
(ix) R.No. 131 - Recommendation Concerning Invalidity, Old Age and Survivor's Benefit,
1967
(x) R. No. 162 - Old Workers Recommendation, 1980
 CONVENTIONS RELATING TO
COMPREHENSIVE STANDARDS
(i) C. No. 118 - Equality of Treatment (Social Security) Convention,1962
(ii) C. No. 157 - Convention on Maintenance of Social Security Rights,1982
(iii) R. No. 67 and 69 - Income Security Recommendation, 1944
(iv) R. No. 202 - Social Security (Armed Forces) Recommendation, 1944
(v) Maintenance of Social Security Rights, Recommendation 1983
 SOCIAL SECURITY (MINIMUM STANDARDS) CONVENTION, 1952 (NO.102)

▪ The ILO adopted Convention No.102 in its 35th session held at Geneva on 4th June, 1952. It is a very comprehensive convention consisting of 87
Articles divided into fifteen parts and deals with the Minimum Standards of Social Security. It is ratified by 41 member countries. Part-I consists of
General Provisions and deals with certain definitions like wife, widow, child, qualifying period etc. It also requires that each member for which this
convention is in force shall comply with Part-I and at least three of Part-II to Part-X including at least one of Parts-IV, V, VI, IX and X. It should also
comply with Part-XIV of the Convention. Some concession is provided in the compliance of this convention to the members with insufficiently
developed economy.
▪ The principles in this Convention are: Guaranty of defined benefits, participation of employers and workers in the administration of the schemes,
General responsibility of the state for the due provisions of the benefits and the proper administration of the initiatives, Collective financing of the
benefits, by way of insurance contribution or taxation. It is the only International Instrument that sets worldwide agreed minimum standard for all
nine branches of social security. The member states are allowed to ratify the convention partially. The notion of social security in the Convention
classifies the of social security systems into nine standard branches, namely:
a. health care
b. sickness
c. old age, survivors and orphans
d. unemployment
e. employment injury
f. family and child support
g. maternity
h. disability
CON…
▪ For each of these branches, Convention No. 102, complemented by other conventions and
recommendations setting higher standards, also specifies how the systems are to be set up, namely:
i. what circumstances each branch is meant to protect
ii. who should be protected
iii. what type of benefit should be provided; how do persons become eligible for benefits
iv. for how long the benefit should be granted.
The development of social security as a term and concept reveals the fact that it evolved as a protective
measure for the benefit of the poor, and the acceptance of poverty as a social problem placed the burden
on the government to protect its citizens from economic distress. Because the working class contributes
towards the development of society, as the guardian of the community, the state is duty bound to protect
workers in case of disruption of their income arising out of disablement, accident, death or old age. In the
Indian context, social security should be in essence, a measure for ensuring social justice and human
dignity as envisaged in the constitution of India. The International community accepts social security as a
human right and ILO has come forward to guide member states to ensure social security to workers in the
countries.
 CONCLUSION
• Thus the modern society, being a welfare society, has assumed this responsibility of providing social
security against these risks by social insurance supplemented by quasi-social insurance and social
assistance or by combination of all or any of these devices.

• In a modern welfare state, comprehensive social security schemes take care of persons from “Womb to
tomb”. Social security has now become a fact of life for millions of people throughout the world and its
measures “introduce and element of stability and protection in the midst of the stresses and
strains of modern life”.