The Draft Social Security Code, 2019: Illusion of Benefits for India’s Workforce?

By Abhiudaya Verma, Research Associate, Policy

With layoffs and pay-cuts starting in various firms all over the world, most economists are of the view that the economic crisis due to corona could be as bad as the 2008 financial crisis and that recession is inevitable. Experts also urged various Indian companies to avoid layoffs and pay cuts on humanitarian grounds and to provide a sense of security to their employees. But the neo-liberal world has imperilled the Welfare State values and in a pro-market economy it seems highly unlikely that firms would adopt the humane approach and face greater losses. In such times, it is the labour and social security laws that provide relief to the workforce of the country. The Government of India aims to bring a new labour legislation that would merge 44 labour laws under four categories– wages, social security, industrial safety & welfare, and industrial relations. The recent Social Security Code Bill, 2019 is one among the four consolidated laws.  (more…)