The unorganized sector, often known as the informal sector, is defined under labor law as businesses or economic endeavors that are not officially registered with the government and do not follow regular labor rules or regulations. In contrast to workers in the official or organized sector, workers in this sector usually do not have formal contracts, job security, social security benefits, or other safeguards. In nations like India, where a sizable section of the labor force works in informal or unorganized employment, legal protection for workers engaged in the unorganized sector is essential. Businesses that are not registered under government laws are referred to as being in the unorganized sector. These businesses are frequently characterized by poor pay, no social security, unfavorable working conditions, and no formal contracts. The Indian government has put in place a number of laws and regulations to safeguard these workers, but there are still issues with how well they are being applied.
CHALLENGES FACED BY THE UNORGANIZED WORKERS
As mentioned above, the unorganized workers are often the weaker section of the society. They often face challenges such as:
- Low wages. Everybody we come across who is working, works for salary/ wages/ stipend or remuneration. Isn’t that an obvious thing to expect for if you’re working for someone? However, in this case, workers are unaware that they are exploited sub-consciously for extrapolating maximum capacity of work but doesn’t get ample wages in return. There is a statute called as the Minimum Wages Act, 19481, which refers to the legally established lowest amount of wage that employers are required to pay workers for the work performed during a specified period, such as per hour, day, or month. The primary goal of minimum wages is to protect workers, especially those in low-income or unorganized sectors, from exploitation by ensuring they receive fair compensation for their labor. Even the Indian Judiciary have taken into cognizance this matter and noted that “employing workers at low rates or low wages below the basic/ statutory minimum wage levels is considered as forced labour and is a clear violation of Article 23” of the Constitution of India.
- Lack of knowledge about hazardous work and occupational safety. The working conditions in the unorganized sector is a prime cause that leads to detrimental effect to the health of the said workers, given that they are unaware of the nature of work and whether that is hazardous or not. It is often in the news that workers are found injured or in severe critical health conditions during the course of their employment.
- Respiratory problems and unguarded machinery. The health problems are often related to respiratory issues vide inhaling of tobacco, dust, other harmful gases arising out of the work done in factories, or severe body aches that is caused due to a peculiar pose that has to be maintained throughout a longer period of time. Last but not the least, inhaling of dust, synthetic generation leads, dust lime, dust glaze often leads to the death of many unorganized workers.
- Living in dishonorable conditions. Most of the unorganized workers that are encountered with even minimal limelight, they are often found to be in the most shabby, dishonorable and deplorable conditions with absolutely no sanity at all, having to battle for daily water, seepage and drainage issues etc. The basic facilities like washroom, lavatories, wells, tanks and etc are found to be in a condition where no human would be able to sustain themselves.
- Lack of knowledge about Trade Unions or Labor Union. Mostly (not everyone) are aware or even have a knowledge about the concept of Trade Union and their rules. The quintessential motive behind the formation of Trade Union is to solve the disputes as soon as possible with amicable resolutions.
SOCIAL SECURITY TO UNORGANIZED WORKERS
Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM)2
The goal behind the aforementioned scheme is to to offer unorganized workers a pension at reaching the age of sixty. People who are unorganized workers having a monthly income of ₹15,000 or less who are between the ages of 18 and 40 are duly eligible for enrolling themselves under this scheme. However, the people who are willing to enroll under the said scheme are expected to modestly contribute monthly as per the government rules that usually ranges between Rs. 55 to Rs. 200, solely depending on the age of the said employee contributing towards it. The pension amount would be available them post retirement, that is after the age of 60.
Atal Pension Yojana (APY)3
Yet another pension plan designed for unorganized sector employees I.e., any Indian citizen with a bank account who is between the ages of 18 and 40 is eligible for enrolling themselves under the said scheme.The government offers a guaranteed pension after retirement, and employees contribute a certain sum determined by their age and preferred pension.
Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY)4
In order to realize the goal of Universal Health Coverage (UHC), the Government of India started Ayushman Bharat, a flagship program, as advised by the National Health Policy of 2017. The goal of this project is to achieve the Sustainable Development Goals (SDGs) and the fundamental pledge to “leave no one behind.” To offer vulnerable and low-income households—including those with unorganized sector employees—health insurance coverage.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)5
MGNREGA offers every rural family with adult members willing to perform manual labor that requires little expertise 100 days of pay employment every fiscal year. It seeks to enhance rural livelihoods and lessen poverty by providing jobs. The projects undertaken under MGNREGA are centered on developing long-lasting assets that raise agricultural output, save water, upgrade rural infrastructure, and generally improve rural communities’ quality of life.
UNORGANIZED WORKERS’ SOCIAL SECURITY ACT, 2008
The Unorganized Workers’ Social Security Act, 20086, was created to give social security benefits to workers in the unorganized sector. Given that unorganized workers sometimes do not have formal employment contracts, social security benefits, or the legal safeguards enjoyed by workers in the organized sector, it recognizes their vulnerability. With this Act, unorganized workers will be able to access social welfare programs including health insurance, old age pensions, and maternity benefits. The Act has defined an “unorganized worker” u/s 2(m) which means “ a home-based worker, self-employed worker or a wage worker in the unorganized sector and includes a worker in the organized sector who is not covered by any of the Acts mentioned in Schedule II to this Act.”
NATIONAL SOCIAL SECURITY BOARD
The National Security Board7 has been constituted by the Union Government under Section 6 of the Act to guarantee the payment of social security payments to India’s unorganized labor force. This Board is crucial in developing policies and suggesting different programs that are intended to give workers in the unorganized sector health, life, maternity, disability, old-age, and other social welfare benefits. The federal government receives advice on social security policies and initiatives for the unorganized sector from the NSSB. For unorganized workers, it offers guidance on the creation and administration of social security programs.
STATE SOCIAL SECURITY BOARD
The state government is duly empowered to formulate social security boards at the state level with the motive of properly implimenting the act. It is to be noted that the functions, working and the backbone of the State Social Security board8 is the same as that of National Social Security Board. The Unorganized Workers’ Social Security Act of 2008 created the State Social Security Boards to oversee the state-level implementation of social security programs for unorganized workers. Though they concentrate on state-specific concerns and the implementation of social security programs for unorganized workers within particular states, these boards function similarly to the National Social Security Board (NSSB).
The State Social Security Board (SSSB) is primarily responsible for ensuring that social security programs for the state’s unorganized workers are implemented effectively. The Board strives to expand the reach of programs such as health insurance, life and disability insurance, old-age pensions, maternity benefits, and other welfare programs to the state’s unorganized workers.
PRECEDENTS RECOGNIZING THE UNORGANIZED WORKERS
By now we often know that when there is a lack of statutes, or legislations the Hon’ble Judiciary comes forward to lay down rules or principles to recognize certain concepts.
In People’s Union for Democratic Republic v. UOI (popularly known as PUDR Case), the Hon’ble Apex Court held that the act of “beggar” is also a part and kind of “forced labour” is is evidently a clear violation of Article 23 that also encumbers right to live with dignity, respect and fundamental rights. If any body is taking the services duly without paying their deserving wages in return, then the said person can also be called to have been practicing forced labour, which again is a violation of Article 23.
In Bandhua Mukti Morcha v. UOI the court held that when a PIL is initiated claiming for the evil practice of bonded labour, the concerned government needs to accept it as the opportunities and to examine the issues of labour and make efforts to eliminate the said practice to protect and safeguard the labourers as well as their interests.
In Delhi Jal Board v. National Campaign for Dignity and Rights of Sewerage and Allied Workers, it was noted that neither the lawmakers nor the people taxed with the responsibility of implementing laws formulated for the welfare of the unorganized workers, have put in proper efforts for the safeguarding of persons employed by or through contractors to whom service is meant to benefit the public. Hence, judiciary is active to take all necessary steps for the protection of rights of unorganized workers and implementing social security welfare schemes.
1 https://clc.gov.in/clc/sites/default/files/MinimumWagesact.pdf
3 https://www.npscra.nsdl.co.in/scheme-details.php
5 https://nrega.nic.in/MGNREGA_new/Nrega_home.aspx
6https://www.indiacode.nic.in/bitstream/123456789/15481/1/the_unorganised_workers_social_security
7 https://www.indiacode.nic.in/show- data?actid=AC_CEN_6_0_00036_202036_1623221080799§ionId=54030§ionno=6&orderno
8https://www.indiacode.nic.in/showdata?actid=AC_CEN_6_6_00036_200833_1517807327317&ordern o=6
