Section 51: Inspector-cum-Facilitators: Powers and Functions

Overview

Section 51 of the Code on Social Security, 2020, doesn’t deal with a specific social security benefit like Provident Fund or ESI directly. Instead, it focuses on the *enforcement* of all the benefits covered under the Code. This includes provisions relating to Provident Fund, Employees’ Deposit Linked Insurance Scheme (EDLI), Employees’ State Insurance (ESI), gratuity, maternity benefit, and other social security schemes. It establishes the role of Inspector-cum-Facilitators who ensure employers are complying with their obligations under these various schemes.

Who is Covered?

• This section applies to all establishments and employees covered under the various social security schemes consolidated by the Code on Social Security, 2020. This broadly includes factories, shops, establishments employing a specified number of workers (the exact threshold varies depending on the scheme), and other entities as defined in the respective schemes.
• Eligibility for the *benefits* themselves (Provident Fund, ESI, etc.) remains governed by the specific rules of each scheme, including requirements related to length of service, wage limits, and employment type.

Benefits and Contributions

Section 51 itself doesn’t define benefits or contributions. It’s the enforcement mechanism for ensuring that the contributions are made and benefits are provided *as per the rules of each individual scheme*. For example, under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (now part of the Code), employers and employees contribute a percentage of the employee’s wages to the Provident Fund. The Inspector-cum-Facilitator ensures these contributions are being made correctly.

Procedure and Compliance

The Inspector-cum-Facilitators play a crucial role in ensuring compliance. Here’s a simplified breakdown:

1. Registration: Establishments covered under the Code must register with the appropriate authorities.
2. Contribution Remittance: Employers are responsible for deducting contributions from employees’ wages and remitting them to the designated funds (Provident Fund, ESI, etc.) within the prescribed timelines.
3. Record Keeping: Employers must maintain accurate records related to employee details, wages, contributions, and benefit payments.
4. Inspection: Inspector-cum-Facilitators can conduct inspections to verify compliance with these requirements.
5. Facilitation: They are also mandated to assist employers and employees in understanding their obligations and rights.
6. Digital Tools: The Code encourages the use of digital platforms for compliance, making processes more transparent and efficient.

Practical Examples

• Example 1: An employee, Ramesh, works for a company for five years and meets the eligibility criteria for Provident Fund. The Inspector-cum-Facilitator ensures the company has been regularly contributing to Ramesh’s Provident Fund account and that the contributions are accurately reflected in his account statement.
• Example 2: A factory owner, Suresh, fails to remit the ESI contributions for his employees for three consecutive months. An Inspector-cum-Facilitator identifies this non-compliance during an inspection. They issue a notice to Suresh, explaining the consequences of non-compliance and providing guidance on how to rectify the situation. The Inspector may also recommend appropriate penalties as per the Code.

Disclaimer

This article is for basic understanding of the Code on Social Security, 2020, and Section 51 specifically. It should not be treated as legal advice. For specific legal guidance, please consult with a qualified legal professional.