Section 142 of COSS: Can Retainers and Gig Workers Claim Gratuity and Other Benefits Now?

Implementation of Section 142 of COSS

So, it appears that Section 142 of COSS has already been implemented from the 1st of May 2021. Doesn't this imply that appeals in the form of ESI, Gratuity, etc., are to be entertained by the principal employer without using false terms such as "consultant" among others to deny them such benefits?

Challenges in Winning Cases Against Employers

Although repetitively asked on various forums, there is no strong case in which an individual who has been marked as a "consultant" in their hiring contract, by being lured into signing it with the promise of no PF and higher net take-home pay, has been seen winning the case against the employer when statutory benefits have been denied. However, Section 142 clearly states "any person," indicating even gig workers, such as driver "partners" of app-based platforms, are obliged to provide social security benefits on demand by the "any person."

Where did you get the news that part of the new labor code has been implemented? I am assuming COSS is the Code on Social Security?

The notification dated 3rd May 2021 brought into force provisions of Section 142. The Notification is given below: The notification S.O. 1730 (E) reads:

“In exercise of the powers conferred by sub-section (3) of section 1 of the Code on Social Security, 2020 (36 of 2020) read with section 14 of the General Clauses Act, 1897 (10 of 1897), the Central Government hereby appoints the 3rd day of May, 2021 as the date on which the provisions of section 142 of the said Code shall come into force.”

Sec 142 Application of Aadhaar of the Code on Social Security, 2020

“(1) An employee or unorganised worker or any other person, as the case may be, for—registration as a member or beneficiary; or seeking benefit whether in kind, cash or medical sickness benefit or pension, gratuity or maternity benefit or any other benefit or for withdrawal of fund; or availing services of career centre; or receiving any payment or medical attendance as Insured Person himself or for his dependants under this Code or rules, regulations or schemes made or framed thereunder, shall establish his identity or, as the case may be, the identity of his family members or dependants through Aadhaar number and for such purpose, the expression “Aadhaar” shall have the meaning as defined in clause (a) of section 2 of the Aadhaar (The Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016:

Provided that any foreigner employee shall obtain and submit the Aadhaar number for establishing his identity, as soon as possible, on becoming a resident within the meaning of clause (v) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

(2) For the purposes of sub-section (1), the Aadhaar number issued to an individual shall be in accordance with the provisions of section 3 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.”

As the heading of the Section indicates, it is for linking the Aadhaar details of beneficiaries with the social security schemes to establish their identity. With this notification, the Government is enabled to amass and aggregate details of beneficiaries under the many social security schemes therein. As per news report, the Code is yet to be enforced. So the interpretation given by the querist appears to be premature.

Mr. Singh, Thanks for the link. I did not realize it was released. However, the notification clearly states that they have only activated that particular section to allow government agencies to collect Aadhar data of all workers. It has not activated the code.

Sorry, the forum doesn't allow deletion. I once again read the government notifications and figured out that, as of now, only the AADHAAR linking aspect is functional. Many news articles were giving misleading titles and interpretations of Section 142.