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Social Security for Women Workers in Unorganized Sectors in India: A Critical Analysis

Paper Details 

Paper Code: RP-VBCL-21-2024

Category: Research Paper

Date of Publication: April 20, 2024

Citation:  Mr. Rakesh Kumar Maurya, “Social Security for Women Workers in Unorganized Sectors in India: A Critical Analysis", 1, AIJVBCL, 328, 328-338 (2024), <https://www.vbcllawreview.com/post/social-security-for-women-workers-in-unorganized-sectors-in-india-a-critical-analysis>

Author Details: Mr. Rakesh Kumar Maurya, Senior Research Fellow-UGC, Department of Law, University of Lucknow, Lucknow, UP.




  

ABSTRACT

This research paper aims to explore the complex landscape of ‘social security for women’ working in unorganized sectors in India and their specific vulnerabilities faced by women in unorganized labour including inadequate wages, lack of job security, and limited access to ‘social security benefits’. The unorganized sector, constituting a substantial portion of workforce, often leaves women workers vulnerable to economic uncertainties, health risks, and social disadvantages. The paper analyses exiting legislation, judicial precedents and ‘social security schemes for women’ working in unorganized sector in India with a focus on their accessibility and effectiveness. The paper examines the existing social security schemes, identifies the challenges faced by women in unorganized labour, and proposes policy recommendations to strengthen ‘social security measures’ and promote gender equality. The challenges faced by women workers namely; lack of awareness about social security measures, gender discrimination in accessing benefits, economic hardship and lack of pension schemes, inadequate coverage for maternity benefits etc. The paper compares ‘social security measures for women’ in unorganized sectors in other countries. The paper proposes for expansion and improvement of existing ‘social security schemes to address the specific needs’ of women workers. The paper examines the collaborative efforts between the Government agencies and non-governmental organizations to implement and monitor social security measures.

Keywords: Social Security Legislation, Unorganized Sector, Women Workers, Vulnerable, Gender Discrimination


Introduction

In India, the unorganized sector is a ‘significant contributor’ to the economy, comprising a large portion of workforce. Within this sector, women constitute a substantial part, often engaging in various informal and precarious jobs. Despite their significant contributions, ‘women workers in the unorganized sectors’ face numerous challenges, including inadequate social security coverage. Social security plays a crucial role in safeguarding the well-being and livelihoods of women workers in the unorganized sector. It provides them with financial stability, access to healthcare, and protection against various risks such as illness, injury, unemployment, and old age. For many women, particularly those in vulnerable occupations like domestic work, agriculture, and informal manufacturing, social security benefits serve as a lifeline, ensuring basic economic security for themselves and their families. “Equal remuneration for equal work” one of main challenges faced by women workers. There is doctrine of ‘equal pay for equal work’. SC observed that it is not expressly written as fundamental right but it is derived from Article 14 and Article 39(d) of Indian Constitution.[2]

Many challenges faced by women workers in unorganized sectors. Despite the significance of social security, women workers in the unorganized sectors encounter several barriers in accessing adequate protection. While working, many time they suffered occupational diseases. SC held that right to health, medical assistance to worker to protect their health is fundamental rights.[3] Many women in the unorganized sector work in informal arrangements, such as daily wage labour or home-based work, which often lack legal recognition and formal employment contracts, making it challenging to access social security benefits. A lack of awareness about existing social security schemes, coupled with administrative complexities, deters many women from enrolling in these programs. Moreover, cultural and socio-economic factors may further impede their participation. Women often face gender-specific risks such as maternity-related expenses, caregiving responsibilities, and gender-based violence, which are inadequately addressed by existing social security frameworks. Existing social security schemes primarily target formal sector workers, leaving a significant portion of the unorganized sector workforce, including women, without adequate coverage.

To address these challenges and improve “social security for women workers” in India's unorganized sectors, several strategies can be considered. Efforts should be made to extend the coverage of “social security schemes” to include a broader spectrum of informal workers, including home-based workers, street vendors, and agricultural laborers. SC held that pension is not mere compensation for service given in the past but it is social welfare mechanism by providing it promoting economic security during fall of life when person become physically weak.[4]

“Social security schemes” should be designed with a gender-sensitive approach, taking into account the specific needs and vulnerabilities of women workers. This includes provisions for maternity benefits, childcare support, and protection against gender-based violence. Government agencies, civil society organizations, and grassroots-level institutions should collaborate to raise awareness about existing social security schemes and facilitate enrollment processes, particularly targeting women in remote and marginalized communities. There is a need to streamline administrative procedures, simplify application processes, and enhance grievance redressal mechanisms to ensure effective implementation of social security programs. Encouraging the formation of women's collectives, such as self-help groups and cooperatives, can empower women workers to advocate for their rights and collectively negotiate for better social security provisions.

For women “workers in the unorganized sector” in India, various ‘social security schemes’ have been introduced to provide them with financial assistance, healthcare benefits, and other forms of support. There are many schemes made and implemented Central Govt. which is for welfare of ‘women workers in unorganized sector. These are as follows[5]:

i)        Swadhar Greh Scheme: In this scheme, women who suffering from crime, violence, mental stress, family disputes etc. are being provided food, shelter, clothing, training, vocational and skill related education so that women in financially become independent.

ii)      Indira Gandhi National Widow Pension (IGNWP) Scheme: In this scheme, widow age between 40-79 years who belong to below poverty line households are provided three hundred per month and age eighty years or above get five hundred rupees per months. IGNWP scheme is covered by National Social Assistance Programme (NSAP).

iii)    PM Jan Arogya Yojana (PMJAY): It provides five lakh health cover to poor and vulnerable families. First time introduced in Sept. 2018.

iv)    Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MNREGA): It provides employment at least one hundred days to women. At least one third of total employment accrue will give to women.

v)      PM Shram Yogi Maan-dhan (PM SYMD): In this yojana, pension give to unorganized workers who are not covered by any other pension scheme whose age is between eighteen to forty years and monthly income fifteen thousand or less per month.

vi)    PM Mudra Yojana (PMMY): Under this scheme, loan up to ten lakh provided for self-employment for micro or small businesses.

vii)  PM Awas Yojana (PMAY): In this scheme, financial assistance provided to the poor households to people of rural and urban areas for making their pucca households.

viii)      Deendayal Antyodaya Yojana: This scheme is for both rural and urban poor. This is poverty alleviation program by improving their livelihood. The objective of scheme to achieve four goals namely- (a) social mobilization and strengthening of poor women, (b) financial inclusion, (c) sustainable livelihoods and (d) social inclusion.

ix)          Atal Pension Yojana (APY): This yojana provides monthly pension rupees one thousand to five thousand to the unorganized workers who has age sixty years or more depending upon the contribution made by subscriber. The age of subscriber should between eighteen to forty years and having saving bank account.[6]

x)            Annapurna Scheme: In this scheme, ten kg grain has been given to destitute free of cost who has completed age of sixty-five or more but they do not get benefit of old age pension scheme for any reasons.[7]

xi)          Nari Arthik Sashaktikaran Yojana: Ministry of Social Justice and Empowerment provide financial support to scheduled caste, single women or widow for income related activities.

xii)        Vocational training to widows of ex-serviceman: Defense Ministry assist financially for vocational training to widows.

These schemes, among others, aim to address the social security needs of women workers in the unorganized sector by providing them with financial assistance, healthcare coverage, and opportunities for skill development and empowerment. However, there is ongoing effort to improve the reach and effectiveness of these schemes to ensure comprehensive coverage and support for all vulnerable sections of society. Payment of low wage to women is one of significant issue. Indian Constitution under 43 provides living wage. A fair wage is mean between minimum wage and living wage.[8] Living wage and fair wage depend upon the capacity of industry. SC made distinction between living and fair wage.[9] Besides schemes, there are many legislations which protects women worker in unorganized sector in India. Equal Remuneration Act, 1976 is one of the significant one which are as follows:


Equal Remuneration Act, 1976 (referred as ERA, 1976)

ERA, 1976 provides for “equal remuneration for men and women” and also prevents discrimination on basis of sex. In this Act, ‘employer’ means same as definition provided in Payment of Gratuity Act. It provided that any establishment, oilfield, factory, plantation, mine, shop, railway company, port etc. belong or under control of central govt. or state govt., person or authority appointed in this behalf for supervision or control, if no person or authority appointed, head of Ministry or head of department, if belong or control under local authority, person appointed for supervision and control of employee, if no person appointed CEO of local authority, and in other cases owners themselves as manager, MD etc. ‘Remuneration’ means basic salary or wage and additional emolument payable in cash or kind to the person employed, if fulfilled contracts of employment. ‘Same work or work of similar nature’ means it performed under similar working conditions in which same skill, effort and responsibility are required to be performed by man and woman, and differences if any for man and woman are not practical importance.

Chapter II of ERA, 1976 provides regarding payment of remuneration at equal rates to men and women. The employer is duty bound to pay to “men and women equal remuneration” whether payable in cash or kind for work of similar nature or same work.[10] The employer cannot discriminate with worker in payment that is payment at less rates for same work or similar work. While following provisions of ERA 1976, employer cannot reduce the remuneration of any workers. If differences in the remuneration exist before passing this Act on basis of sex, then higher remuneration of existed remuneration shall be payable by employer. The employer shall not discriminate while recruiting both men and women for same or similar work and also no discrimination in training, transfer and promotion or conditions of service against women unless and until there is statutory provisions.[11] The employer may give priority or reservation to scheduled caste or scheduled tribe, retrenched employees, ex-servicemen of any category or class. Appropriate govt. may constitute advisory committees to advise to which extent women may be employed in establishments. Advisory committee shall not less than ten persons of which one half will women. Advisory committee will work on number of women employed in establishment, hours of work, nature of work, suitability of women for employment, provide increasing opportunity for women in establishment, part-time employment for women and other relevant factors considered. Advisory Committee will tender its advice to govt., on receiving advice, the govt. after giving opportunity to being heard persons in establishments, issue directions in for employment of women workers. The Govt. may appoint labour officer for resolving claims and complaints in the jurisdiction specified regarding non-payment of equal wages to men and women. On receiving complaints regarding non-payment of equal wages to men and women for same or similar work done, the authority, after giving opportunity of being heard to applicants and employer, direct “employer to pay to women worker” amount should actually pay. The authority has of civil court under C.P.C. 1908 for taking evidences. Any person whether employer or worker is aggrieved by decision of authority, may prefer appeal to authority appointed by Govt. in this behalf within thirty days. The appellate authority may confirm, modify or reverse the order appealed. The decision of appellate authority will final. The appellate authority may give thirty more days, if reasonable cause exist and appeal will not prefer within thirty days.

Chapter III of ERA, 1976 provides miscellaneous provisions. The employer will maintain a register of workers.[12] The Govt. may appoint such person as Inspector who will see that employer must comply with the provisions of ERA, 1976 and rules made under this Act within jurisdiction specified. Inspector will be public servant. If any employer is not maintaining register of employees, not producing register of workers whenever requires, not giving evidence when it requires to do so, or not giving information, will punish with imprisonment up to one month and fine up to ten thousand or both. If any employer makes payment equal rates or makes discrimination between men and women, will punish with minimum three months and maximum one years and fine minimum ten thousand and maximum twenty thousand for first time and for subsequent offences imprisonment maximum two years. If any employer does not give information to inspector, refuse to produce documents, will punish with fine up to Rupees five thousand. No court lower than judicial magistrate first class will take cognizance. Central Govt. will make rules in regard.


Judicial Approach Towards “Women Workers in Unorganized Sector”

In 2020, Supreme Court (SC) gave famous judgement in the case Bandhua Mukti Morcha Vs. Union of India[13] regarding social security of unorganized workers. Fact of the case is after lockdown in march 2020, there was huge migration of labours through different mode of transport due to the stoppage of work of many workers and fear of pandemic. They went their home by foot, truck carry goods and many other ways without eating food and with facing many problems. SC took suo motu cognizance regarding the problem faced by the worker while they went to their native place and issues notice to Central Govt. concerning steps taken by Govt. of India. SC issued eight directions to Central Govt., State Govt. and Union Territories (UTs) while hearing petition:

i)        All states and UTs will take steps to identify workers and make proper arrangement for return to their native place.

ii)      The railway will provide shramik trains for workers to return their homes.

iii)    Central Govt. provide details of schemes for unorganized workers who returned their home.

iv)    State Govt. and UTs give details of schemes that can be availed by workers including employment.

v)      State will establish help desk in district to inform about the schemes of Govt. and identify avenue of employment.

vi)    The details regarding skill, nature of work, earlier place of work of workers who reached their native place will be prepared villege wise, block wise and district wise.

vii)  Helping desk of district provide necessary assistance to the workers who have returned to their native place and who want return again their place of work.

viii)      All state and UTs will withdrawal of cases filed against workers for the violations of section 51 of Disaster Management Act 2005 during lockdown.

Around thirty-eight crores nearly one-fourth population of India engaged in the unorganized sector. They do not have any permanent source of income. They engaged in small time vocation and work at different places away from native places. They significantly contribute to the economy. Indian Constitution provides that for promoting welfare by securing social and economic justice to weaker sections so as to minimize the inequalities in income.

Besides this, SC made observation on following matters:

i)        Workers who do not possess ration card and not covered under National Food Security Act (NFSA), 2013 issue dry ration card to them;

ii)      State and UTs implement ‘One Nation One Ration Card’;

iii)    Extend coverage of NFSA, 2013 to rural and urban areas;

iv)    Proper implementation of Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979

v)      Registration of unorganized workers

vi)    State and UTs provide community Kitchen for workers;

vii)  Direct to Benefit Transfer to unrganised workers.

In 2022, K Umadevi Vs. Govt. of Tail Nadu[14], SC decided famous case relating to maternity benefit. Fact of case is that there was an English Teacher in Govt. Higher School. She joined the service in December 2012. Before joining, she had two children born in 2007 and 2011. But unfortunately she got divorce from her husband in 2017 and custody of children remain with her husband. After sometime she got remarried and become pregnant. She applied for maternity leaves but authority concerned rejected it by saying you have already two children; you cannot avail the benefit of maternity leaves as per the Govt. policy. Before court it was contended that SC has adopted the doctrine social justice on the basis of Universal Declaration of Human Rights (UDHR) and follow the convention of the elimination of all the forms of discrimination against women (EAFDAW). Article 11 of EAFDAW[15] provides that all state parties will ensure to eliminate the discrimination against women in the employment and ensure equality of men and women and also:

a)      Right to work is alienable rights of human beings;

b)      Right to equal employment opportunities and same process of selection;

c)      Right to free choice of profession, right to promotion and job security;

d)     Right to equal remuneration;

e)      Right to social security during retirement, sickness, old age and incapacity to work;

f)       Right to protection of health and safety and good working conditions;

All parties concerned will prevent discrimination against women on ground marriage or maternity and also:

a)      Provide benefit paid leaves during pregnancy;

b)      Provide protection during pregnancy while performing harmful work;

SC justified the two child norm because it is matter of public policy and family planning. Two child reasonable because of two reasons; first one is it prevent third pregnancy with two living child is more in the interest of pregnant women, and second one is to control population explosion.


Conclusion

Enhancing “social security for women workers” in India's unorganized sectors is essential for promoting gender equality, reducing poverty, and fostering inclusive economic growth. By addressing the unique challenges faced by women in informal employment and implementing targeted interventions, policymakers can ensure that all women, regardless of their occupational status, have access to adequate social protection. Empowering women through social security not only benefits them individually but also contributes to building a more resilient and equitable society as a whole.


[1] Senior Research Fellow-UGC, Department of Law, University of Lucknow, Lucknow, UP

[2] Randhir Singh Vs. Union of India and Others, 1982 AIR 879

[3] Consumer Education & Research Centre Vs. Union of India, AIR 1995 SC 922

[4] D S Nakara Vs. Union of India, AIR 1983 SC 130

[5] Schemes for Welfare of Women, PIB, New Delhi, dated 22 July 2022

[6] National Portal of India, https://www.india.gov.in/spotlight/atal-pension-yojana

[7] Department of Civil Supplies & Consumer Affairs, Govt. of Kerala, https://civilsupplieskerala.gov.in/index.php/content/index/annapoorna-scheme

[8] M P Jain, Indian Constitutional Law (8th edition, Lexis Nexis, Gurgaon, 2018)

[9] All India Reserve Bank Employee Vs. Reserve Bank, AIR 1966 SC 305

[10] Section 4 of ERA, 1976

[11] Section 5 of ERA, 1976

[12] Section 8 of ERA, 1976

[13] Bandhua Mukti Morcha Vs. Union of India, MANU/SC/0860/2021

[14] K Umadevi Vs. Govt. of Tamil Nadu and others, MANU/TN/1918/2022

[15] Article 11 of Elimination of All the Forms of Discrimination Against Women

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