Four Labour Codes 2020 — Set 4

Correct Answer: B. Gig workers, platform workers, and unorganised sector workers

The Code on Social Security 2020 extends social security coverage to gig workers, platform workers, and unorganised sector workers for the first time under a comprehensive framework. Earlier laws largely excluded these categories from formal social security. The code requires aggregator platforms to contribute 1-2% of their annual turnover (up to 5% of wages paid) to a social security fund for gig workers.

Correct Answer: B. A person who works outside a traditional employer-employee relationship

The Code on Social Security 2020 defines a gig worker as a person who works outside of a traditional employer-employee relationship, typically through digital platforms or on an assignment or task basis. Examples include app-based delivery persons, cab drivers, and freelancers. This is the first time Indian law formally recognised and defined gig workers as a category deserving social security protection.

Correct Answer: B. 10

The Code on Social Security 2020 reduced the ESIC coverage threshold from 20 employees to 10 employees, significantly extending health insurance and social security coverage to workers in smaller establishments. Additionally, the code allows ESIC coverage to be extended to hazardous establishments regardless of the number of workers employed. This expansion is expected to benefit millions of additional workers.

Correct Answer: C. 20

The EPF threshold of 20 employees has been retained under the Code on Social Security 2020, unchanged from the earlier Employees' Provident Funds and Miscellaneous Provisions Act 1952. Establishments employing 20 or more workers are required to register for EPF. While the ESIC threshold was reduced to 10, the EPF threshold remained at 20.

Correct Answer: B. Proportionate to their period of service

The Code on Social Security 2020 provides for proportionate gratuity to fixed-term workers based on their actual period of service, removing the requirement of completing 5 years of continuous service. This is a significant change from the Payment of Gratuity Act 1972, where a minimum of 5 years of continuous service was mandatory. It ensures that fixed-term workers who may be employed for less than 5 years are not denied gratuity benefits.

Correct Answer: C. Career Centres

The Code on Social Security 2020 replaces Employment Exchanges (established under the Employment Exchanges Compulsory Notification of Vacancies Act 1959) with Career Centres. Career Centres are envisioned to provide more comprehensive services including career counselling, skill development guidance, and job placement assistance. This modernisation reflects the changing nature of the labour market.

Correct Answer: B. National Social Security Board

The Code on Social Security 2020 provides for a National Social Security Board for unorganised workers, which will recommend welfare schemes for this sector. State-level boards are also to be constituted for scheme implementation. The board's recommendations cover areas like life insurance, disability benefit, health, maternity, and old-age protection for unorganised workers.

Correct Answer: B. 20

The OSHWC Code 2020 applies to factories using power and employing 20 or more workers. For factories not using power, the threshold is 40 or more workers. These thresholds are consistent with those under the earlier Factories Act 1948. The code also covers mines, docks, construction, contract labour, and other establishments.

Correct Answer: C. 12 hours

The OSHWC Code 2020 prescribes a maximum of 12 hours per day including overtime. The normal working hours are 8 hours per day, and overtime can extend up to 4 additional hours. Workers cannot be required to work more than 12 hours in a day, and overtime must be compensated at double the ordinary wage rate.

Correct Answer: C. 20 days

The OSHWC Code 2020 prescribes annual leave at the rate of 1 day for every 20 days of work for adult workers in factories. This is consistent with the provision under the earlier Factories Act 1948. Unused leave can be carried forward subject to a maximum limit, and workers are entitled to encashment of leave upon separation.