Section 111: Record keeping and registration of 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

Legal Commentary & Landmark Judgments: Section 111

Section 111 of the Code on Social Security, 2020 establishes the nationwide electronic registration and record-keeping regime for unorganised workers, institutionalizing the Aadhaar-seeded e-Shram database and granting universal portable social security identity numbers.

  • Universal Eligibility and Electronic Registration: Enacts that every unorganised worker who has completed sixteen years of age (or such other age as prescribed) shall be eligible for registration under Chapter IX by submitting an electronic application on the designated national portal accompanied by self-declaration and Aadhaar authentication.
  • Deemed Verification and Self-Certification Mechanism: To eliminate bureaucratic red tape, Section 111 relies on self-certification by the unorganised worker regarding their informal occupation, wage bracket, and residential status, subject to algorithmic database verification.
  • Issuance of Universal Account Number (UAN) and Portable Card: Mandates the issuance of a digital identity card bearing a unique Universal Account Number (UAN), guaranteeing nationwide portability of social security entitlements regardless of migration across state boundaries.
  • Periodic Updation and Demographic Record Maintenance: Imposes an obligation on registered unorganised workers to update their employment status, mobile number, current address, and banking details periodically on the portal to maintain active beneficiary status.
Key Landmark Precedents:
  • Justice K.S. Puttaswamy (Retd.) v. Union of India (2019) 1 SCC 1: The Constitution Bench of the Supreme Court upheld the constitutional validity of Section 7 of the Aadhaar Act, ruling that Aadhaar authentication can be made mandatory for targeting and disbursing statutory subsidies, benefits, and social security services funded from public revenues.
  • In Re: Problems and Miseries of Migrant Labourers (2021) 7 SCC 774: The Supreme Court issued historic directions mandating the Union Ministry of Labour to operationalize the national e-Shram portal for the registration of all unorganised and migrant workers, holding that the absence of a national registry had crippled relief delivery during national emergencies.
  • National Campaign Committee for Central Legislation on Construction Labour v. Union of India (2018) 5 SCC 218: Reaffirmed that registration of informal workers is a statutory right, and administrative authorities must deploy electronic portals to achieve 100% saturation without demanding onerous physical proofs.
Courtroom Practice & Strategic Litigation Guidance:

Employers engaging informal, seasonal, or contract labour must establish dedicated HR onboarding kiosks to register all incoming informal workers on the e-Shram portal prior to deploying them on sites. Ensure the worker's Aadhaar is linked to an active bank account enabled for DBT (Direct Benefit Transfer) to guarantee that any insurance or relief disbursals flow directly to the worker without corporate liability.