Section 8: Coordination, Inspection and Dispute Resolution

Overview

Section 8 of the Code on Social Security, 2020, doesn’t deal with a specific benefit like Provident Fund or ESI directly. Instead, it establishes the framework for how *all* social security schemes (including Provident Fund, ESI, gratuity, maternity benefit, building and construction cess, etc.) will work *together*. It aims to create a unified and efficient system for administering these various welfare measures, ensuring better coordination and reducing overlaps.

Who is Covered?

• This section applies to all social security organisations established under various laws, and consequently, to all employees and establishments covered by those laws. This includes workers in the organised sector, unorganised sector, and now, importantly, gig and platform workers.
• Eligibility for specific benefits (like Provident Fund or ESI) remains governed by the individual laws under which those schemes operate. Section 8 focuses on how these schemes interact, not on defining who qualifies for them.

Benefits and Contributions

Section 8 itself doesn’t create new benefits or contributions. It ensures that existing benefits are administered more effectively and that contributions are properly collected and utilized across different schemes. The benefits and contribution rates remain as defined in the respective Acts (e.g., EPF & MP Act, ESI Act).

Procedure and Compliance

Section 8 outlines the following key procedures:

1. Information Sharing: Social security organisations can share information with each other to ensure accurate records and prevent fraud.
2. Joint Inspections & Audits: Authorities can conduct joint inspections and audits of establishments to verify compliance with all applicable social security laws.
3. Enforcement of Contributions: The Code strengthens the enforcement of contribution payments from employers.
4. Dispute Resolution: A streamlined dispute resolution process is established to settle disagreements between employers, employees, gig workers, and implementing agencies. This likely involves a hierarchy of authorities for resolving disputes at different levels.

Compliance involves employers ensuring they are registered under all applicable social security schemes and are accurately contributing as required by each scheme. Employees should verify their contributions are being made correctly.

Practical Examples

• Example 1: An employee working for a company covered by both EPF and ESI. Previously, coordinating information between these two organisations might have been difficult. Under Section 8, these organisations can now easily share data to ensure the employee’s records are accurate and benefits are administered correctly.
• Example 2: An employer fails to deposit ESI contributions for their employees. Under Section 8, the ESI Corporation can collaborate with other relevant authorities (like the Labour Department) to conduct a joint inspection, enforce the payment of outstanding contributions, and potentially impose penalties.

Disclaimer

This article is for basic understanding of social security law and should not be treated as legal advice. For specific legal guidance, please consult with a qualified legal professional.