Section 95: Protection for Actions Taken in Good Faith

Overview

Section 95 of the Code on Social Security, 2020, doesn’t directly deal with a specific social security benefit like Provident Fund, ESI, gratuity, or maternity benefit. Instead, it provides a crucial safeguard for those administering and enforcing the entire Code. It’s a procedural provision designed to ensure smooth implementation of all the schemes covered under the Code without undue fear of legal repercussions for officials acting responsibly.

Who is Covered?

• This section covers all government officers, agencies, and authorities involved in the implementation and enforcement of the Code on Social Security, 2020. This includes inspectors, adjudicating officers, and any other official tasked with duties under the Code.
• There are no eligibility conditions related to employees or establishments here; the protection applies to the *officials* enforcing the law, not the beneficiaries of the social security schemes.

Benefits and Contributions

This section doesn’t relate to employee benefits or contribution responsibilities. It’s about protecting those who *administer* the benefits and contributions outlined in other sections of the Code.

Procedure and Compliance

Section 95 doesn’t establish a procedure for employees or employers. It simply states that if a government officer takes an action believing it to be correct under the Code, they are protected from legal challenges even if it’s later found to be an error in interpretation. This encourages officials to enforce the Code diligently without being overly cautious due to fear of personal liability. The focus is on ‘good faith’ – meaning honest intention and reasonable care – not necessarily perfect accuracy.

Practical Examples

• Example 1: An inspector, while conducting a routine check of an establishment, reasonably believes that the employer is underreporting the number of employees for Provident Fund contributions. The inspector issues a notice for potential penalties. Even if a later investigation reveals a minor discrepancy in the inspector’s initial assessment, the inspector is protected under Section 95 as long as they acted in good faith based on the information available at the time.
• Example 2: An adjudicating officer, hearing a dispute regarding gratuity payment, makes a decision based on their understanding of the Code. A subsequent amendment to the law clarifies a different interpretation. The officer is still protected under Section 95, as their decision was made in good faith based on the law as it stood at the time of the ruling.

Disclaimer

This article is for basic understanding of the Code on Social Security, 2020, and Section 95 specifically. It should not be treated as legal advice. For specific legal guidance, please consult with a qualified legal professional.