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Section 109: Framing of schemes for unorganised workers

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter IX: Social Security for Unorganised, Gig & Platform Workers
Competent Labour Forum
Act No. 36 of 2020
Section 108 All 163 Sections of Code on Social Security, 2020 Section 110

Legal Commentary & Landmark Judgments: Section 109

Section 109 of the Code on Social Security, 2020 establishes the legislative foundation for the formulation of welfare schemes for unorganised workers by the Central and State Governments, covering essential social security domains including life, health, maternity, disability, and old-age protection.

  • Central Government Scheme Formulation Mandate: Mandates that the Central Government shall frame and notify, from time to time, suitable welfare schemes for unorganised workers on matters relating to: (a) life and disability cover; (b) health and maternity benefits; (c) old age protection; (d) education; and (e) any other benefit as may be determined by the Central Government.
  • State Government Concurrent Scheme Powers: Empowers State Governments to formulate and notify complementary welfare schemes for unorganised workers, including: (a) provident fund; (b) employment injury benefit; (c) housing; (d) educational schemes for children; (e) skill upgradation of workers; (f) funeral assistance; and (g) old age homes.
  • Universal Coverage of Informal Labor Categories: The operational scope embraces home-based workers, self-employed workers, daily-wage agricultural workers, street vendors, and waste pickers, ensuring that informal labor is systematically brought within the statutory social security net.
  • Integration with National Social Security Board: Requires schemes framed under Section 109 to be reviewed and monitored by the National Social Security Board for Unorganised Workers constituted under Section 6, ensuring uniformity and national minimum standards.
Key Landmark Precedents:
  • Bandhua Mukti Morcha v. Union of India (1984) 3 SCC 161: The Supreme Court held that the right to live with human dignity under Article 21 requires the State to ensure basic social security, humane working conditions, and economic protection for impoverished and unorganised workers.
  • In Re: Problems and Miseries of Migrant Labourers (2021) 7 SCC 774: The Supreme Court reaffirmed that social security schemes for unorganised workers are not charitable bounties but constitutional mandates flowing from Articles 14, 21, 38, and 41, directing the Union and States to frame and implement robust schemes immediately.
  • Consumer Education & Research Centre v. Union of India (1995) 3 SCC 42: The Supreme Court held that the right to health and medical care to protect the health and vigor of a worker is an integral part of the fundamental right to life under Article 21 of the Constitution.
Courtroom Practice & Strategic Litigation Guidance:

State Labour Departments and policy counsel must structure schemes under Section 109 to operate on automated Direct Benefit Transfer (DBT) rails linked to the e-Shram portal. Ensure that every scheme contains clear, objective eligibility criteria, self-declaration verification mechanisms, and simplified death/maternity claims documentation to prevent bureaucratic delay from choking welfare delivery to unorganised families.

Section 108 All 163 Sections of Code on Social Security, 2020 Section 110