As per the recent notification with respect to section 142 of the Social Security Code dated 30th April, 2021 issued by the Ministry of Labour and Employment covers applicability of Aadhaar and shall be enforceable effective from 03^rd May, 2021.

The notification S.O. 1730 (E) reads:

“In exercise of the powers conferred by sub-section (3) of section 1 of the Code on Social Security, 2020 (36 of 2020) read with section 14 of the General Clauses Act, 1897 (10 of 1897). the Central Government hereby appoints the 3^rdday of May, 2021 as the date on which the provisions of section 142 of the said Code shall come into force.”

Sec 142 Application of Aadhaar of the Code on Social Security, 2020  states:

“ (1) An employee or unorganised worker or any other person, as the case may be, for—

1. registration as member or beneficiary; or
2. seeking benefit whether in kind, cash or medical sickness benefit or pension, gratuity or maternity benefit or any other benefit or for withdrawal of fund; or
3. availing services of career centre; or
4. receiving any payment or medical attendance as Insured Person himself or for his dependants

under this Code or rules, regulations or schemes made or framed there under, shall establish his identity or, as the case may be, the identity of his family members or dependants through Aadhaar number and for such purpose the expression “Aadhaar” shall have the meaning as defined in clause (a) of section 2 of the Aadhaar (The Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016:

Provided that any foreigner employee shall obtain and submit Aadhaar number for establishing his identity, as soon as possible, on becoming resident within the meaning of clause (v) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

(2) For the purposes of sub-section (1), the Aadhaar number issued to an individual shall be in accordance with the provisions of section 3 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.”

The Indian workforce stands over millions however scarcely any workers, organised or unorganised, are cutting it with a bare minimum or no social security benefit. The purpose of this notification is to weed out duplication and fake data hence wastage of resources. This provision is aimed at preventing misuse of benefits. The aim is at giving to the underprivileged during this crisis amid the pandemic including unemployment benefits, medical and sickness benefits, pension, gratuity, maternity benefit or any other benefit or for withdrawal of fund, among others.

This notification helps facilitate the Ministry to amass and aggregate details of individual’s Aadhaar for beneficiaries under the many social security schemes available like Garib Kalyan Rojgar Abhiyan, Pradhan Mantri Svanidhi Scheme, Atma Nirbhar Bharat, etc.

The National Database of Unorganised Workers (NDUW) is proposed by the Ministry of Labour and Employment, will be a comprehensive database of unrecognised workers including unorganized workers, including building, other construction workers and migrant workers. It is at a progressive stage of development by the National Informatics Centre (NIC). It will have details of name, occupation, address, occupation type, educational qualification, skill types & family details etc. for optimum realization of their employability and extend the benefits of the social security schemes to them. An inter-state migrant worker can register himself on the portal simply by submitting Aadhaar alone. No benefit will be withheld for want of Aadhaar.

Historic Recap –

The Code on Social Security is a code introduced in year 2020 to amend and consolidate 9 central labour legislations relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors. It brings unorganised sector, gig workers and platform workers under the ambit of social security schemes, including life insurance and disability insurance, health and maternity benefits, provident fund and skill upgradation, etc.

PS: Please note that other provisions of the Social Security Code have not been notified yet.

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