SOCAIL SECURITY IN EMPLOYMENT

Group-05

BYA.ARJUN

T.LUXSHINIT.JESINTHA

Contents of our Presentation

01.Introduction of Social Security in Employment. 02.Elemts of Social Security03.Socail security Under International Human Rights Instruments.04.ILO Conventions on Social Security05.ILO Conventions ratified by Sri Lanka and implementation mechanism.06.Italy’s practice in Social security System.07. Sri Lanka’s National legislations deal with Social Security in employment. 08.Socail Service Board of Sri Lanka09.Recommnadations10.Conclusion

BARACK OBAMA

“We will keep the promise of Social Security by taking the responsible steps to strengthen it - not by turning it over to Wall Street”.

What is mean by Social Security in Employment ?

Social Security is not a new concept to the world it begins form the very early stage even not from the thought of human rights but started from Natural Rights.

“The most perfect system of government is that which produces the greatest amount of happiness, the greatest amount of social security and greater amount of political stability”.--Simón Bolívar (1819)

Social security in Employment is admire as a basic human right involves access to health care and income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a main income earnerThe structure of the Social Security maintained by respective states through Social Insurance Programs.

Only 20 per cent of the world’s population has adequate social security coverage and more than half lack any coverage at all.

We can divide the social security schemes as contributory and non contributory schemes.

Contributory schemes means the employee ( Beneficial Owner) Should contribute a monetary contribution to assure his future and sudden benefits.

Non Contributory Benefits are relied on employer’s contribution for employees and largely depend on state's contribution. The developed states forward this method and promote the Social Security schemes in Social Security mostly in case of Unemployment benefits.

Social SecurityScheme

Contributory Scheme

Non-Contributory Scheme

ELEMENTS OF SOCIAL SECURITY

Social Security

Health service

Maternity benefits

Family and Children Support

Injury Benefits

Unemployment Benefits

Old age Benefits

Disability benefits / Protection

Provisions for Survivors and Orphans

Social Security Under International Human Rights Instruments.

UDHR article 25 (Right to social Security)

Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control

ICCPR Article 9 ( The right of every one for Social Security including Social Insurance)Convention on elimination of All Forms of Racial Discrimination ( Article 5)Convention on elimination of all forms of discrimination against women (Article 11) Convention on the Rights of Children (Article 26)

SOCIAL SECURITY IN EMPLOYMENT ENRICHED IN ILO

ILO is an international Body which works to protect and promote the labour standards in all over the world. Therefore it has numerous legal instruments to protect labour interest including to promote Socail Security all over the world. We have summarized some vital instruments which directly deal with the concept of Social Security in Employment.

Sri Lanka’s Ratification on ILO Conventions in Socail Security Ratio.

40%

60%

Conventions of ILO

Ratified By Sri Lanka

Not Ratified By Sri Lanka

C102 - Social Security (Minimum Standards) Convention, 1952

We mentioned this ILO convention on Social Security in Employment because it is the very fundamental convention in all of other Social Security conventions but the vital consideration is until now it never ratified by Sri Lanka.

This convention convened on Thirty Fifth Session at Geneva on 4th June 1954.The convention contains many elements of Social Security as the same time provides the flexible measures based on the satisfactory discretion to the Director General of ILO.

Article 07 of the Convention require the contracting party to provide adequate medical assistance and health care systems for their employees. Article 14 speaks about Sick Benefits and require the contracting states shall cover including incapacity for work resulting from a morbid condition and involving suspension of earnings, as defined by national laws or regulations.Article 20 Speaks about the unemployment benefits the contracting states should take adequate measures to protect the persons on unemployment.

Article 25- All contracting states according to their capability should maintains Old age benefit to its nationals.

Article 31- All contracting countries should maintain the standard of safe and healthy work placer and pave the way to Employment Injury Benefit

Article 39- Contracting parties provide Family Benefit to its employees including matrimonial and Child care benefits.

Article 46- All contracting States provide Maternity Benefit further pre and post pregnancy care.

Article 53- All contracting parties maintain the Invalidity Benefit and continues proper care those who fell in purview of Invalidity.

Article 59- All contracting parties give successive rights for dependents and make

schemes. Survivors’ BenefitArticle 68- Require the states to give equal status on social Security Schemes for Non- Residents

ILO V SRI LANKAElement ILO Convention Ratifying Status Relevant National Legislation

Health Benefit C130 - Medical Care and Sickness Benefits Convention, 1969 Medical Wants Ordinance

Unemployment C168 - Employment Promotion and Protection against Unemployment Convention, 1988

Janasaviya Act (No. 4 of 1989) and Samurdhi Authority of Sri Lanka Act (No. 30 of 1995)

Family and Child Support C156 - Workers with Family Responsibilities Convention, No provisions in National level.

Maternity benefits C103 - Maternity Protection Convention (Revised), 1952Maternity Benefits Ordinance of 1939 and Shop and Office Employees Act and Health Services Act, 2000

Old Age Benefit C128 - Invalidity, Old-Age and Survivors' Benefits Convention, 1967The Pension Fund, ETF Act No 46 of 1980, EPF Act No 15 of 1958 and Payment of Gratuity Act No 12 of 1983

Injury Benefits C121 - Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980]

Workmen's Compensation Ordinance, 1934 and Shop and Office Employees Act, 1954, Factories ordinance.

Disability benefit and Protection C159 - Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983

Workmen's Compensation Ordinance, 1934 and Shop and Office Employees Act, 1954

Provisions for Survivors and Orphans C128 - Invalidity, Old-Age and Survivors' Benefits Convention, 1967The Workmen Compensation ordinance, The Public and Private Sector benefits through pension and Lump Sum

Social Security in Other Jurisdictions

Italy

The Italian Social Security system is managed by the National Social Security Institute which provides benefits to employees and the self-employed in case of illness, maternity/paternity or unemployment. It also oversees family allowances and provides benefits for the elderly and disabled.

Switzerland The social Security in employment administered by different canton and Federal Agencies. The schemes are devolved as compulsory and voluntary. Most of the key benefits include with compulsory and supplementary benefits categorized as voluntary.

Sri Lankan Standard on Socail Security in employment

When comparing with other East Asian countries Sri Lanka has the good approach towards the labour protection and effective promotion on social security in employment

But while comparing the international standards and developed countries’ standard, we still exist in back ages.

Constitutional Guarantee in Sri Lanka for Social Security

We have no direct provisions dealing with Social Security under fundamental rights Chapter but through 12(4) the advancement of Women and Children ensured. It may useful to consider the basic social protection for valuable group in community.

Further 14(g) and 14(d) ensure the rights respectively to engage in any lawful occupation and trade union freedom.

Further under Directive principles of State policy, Article 27(9) express that The State ensure social security and welfare. In addition article 27(2) (b) and (c ) speaks about the state’s responsibility to provide the basic standards of living.

Last but not least section 27(15) speaks about the responsibility to obey the International Instruments. It was ensured by Eppawala Case

Sri Lankan National legal Perspective in Social Security

Under Sri Lankan legal perspective many laws cover different areas of Socail Security in Employment. Most of them are Labour legislations and some of them covered under final regulations.

Under the respective acts legislature of Sri Lanka established and entrusted different governmental bodies to monitor the social security for an example. For Private Sector Benefit under EPF system Central Bank of Sri Lanka is responsible for the good returns to its members. (The Employees federation of Sri Lanka very recently blamed on that the returns for EPF members)

The Self employment system, the Socail Security Board of Sri Lanka has the responsibility towards protect its members.

Sri Lankan Laws to Cover the Socail Security

1. Employee’s Provident Fund Act No 15 of 1958“it covers some class of employees and the contributory fund administered jointly by labour department and CBSL. It has the responsibility to give proper higher returns to its members.

2. Employee’s Trust Fund Act No 46 of 1980the truest fund give the status to the employee as administrator, the Contributory ratio is 3% on his salaries. The minimum period of return eligibility is 5 years.

3. Payment of gratuity Act No 12 of 1983 The gratuity can be claimed by the employee who worked for five or more. The labour tribunal has the power through Industrial dispute Act section 31b (1) (b) to settle the gratuity for workmen.

In Devanayagam case the labour tribunal held the due is not consider as legal but relief on just AND EQUTABLE. In Silva V southern freighters Ltd 74 NLR 239, Court held that 8 year service period is long enough to calming the gratuity

The national Union of WORKERS v Scottish Ceylon tea company ltd 78 NLR 133

In this case supreme court of Sri lanka finally clear the issues on gratuity claims and said that, uninterrupted service for 5 years is give entitlement for gratuity benefits but domestic servants and the pensioners under non- contributory schemes excluded from the benefit of gratuity.

4.Termination of Employment (Special provisions) Act no 15 of 1971

Socail Security in employment in Different sectors

1.Social Security Schemes for public sector workers2.Social security schemes for private sector workers3.Social security schemes for workers in the

informal economy

Social Security Schemes for public sector workers

Public servants covered by Public,01.Public Servants’ Pension Scheme (PSPS), Establish in 1901and make compulsory and financed by public treasury fund.02.the Public Servants’ Provident Fund (PSPF) was established in 1942 as a mandatory contributory old-age benefit scheme for government employees not eligible for coverage under the PSPS03.Widows and Orphans Pension (W&OP) scheme.

Socail Security for Private Sector employees

The main schemes covering private sector workers are

01.the Employees’ Provident Fund(EPF)02.the Employees’ Trust Fund (ETF) 03. the Approved Private Provident Funds (APPFs).

Socail Security for Self Employed personal

There is no strict regulations to cover the benefit for self employed personal. But government of Sri lanka implanted some schemes to protect self employees.01.Farmers pension and social benefit scheme 198702.Fishermen pension and social benefit scheme 1990(Eriyagama V Rannan Eliya)03.Pension and social security for self employed personal

MATERNITY BENEFITSSri Lanka has two different approach toward public and private sector.

01. Maternity benefits ordinance no 32 of 1939 covers the public service Full pay for 84 working days, and thereaftera further 84 working days on half pay, and yet another84 working days without pay.

02.Shop and office employees act No covers the private employees84 working days leave in respect of the first two live births42 working days leave in respect of the third and subsequent births for confinements resulting in the issue of a viable fetus.

Criticism on Sri Lankan maternity benefits

When Comparing with other countries the develop countries allows the paternity benefits in Italy father entitle for unpaid 13 weeks leave for all birth. But in the spectrum of Sri Lanka there is no legislative back born\ for paternity benefits.

Further the option given to employee to break the legal facility for leave and return the work after mandatory leave period.

Social security Board of Sri Lanka(SSB)In Sri Lankan Purview there is no compulsory old age or pension benefits for informal sector workers. Some specific targeted social insurance schemes are in active like agriculture insurance schemes but those not cover a large quantity of Category.

This board Establish under the Social Security Board Act 1996 as amended by 1999 under Ministry of finance and Planning.

This board enlarged its services under “Mahintha Chinthana” .

At present the Social Security benefits schemes are operational for those in self-employment, private sector employees, foreign employees, professionals, arts and craftsmen and industrialists.

Under this board’s Scheme the benefits on Life time monthly pension, Total Disablement Benefits, Partial disable benefit and Death Gratitude.

They have different social Insurance Schemes called Surakuma and Arassawa any employee can join under the scheme with the minimum subscription amount SLR 1000.

Recommendations1. Sri Lanka Should ratify and implement the ILO Convention C102 - Social Security (Minimum Standards) Convention, 1952

and related instruments.

2. While take a little satisfaction on other elements of Socail Security but the unemployment benefits and paternity benefits are in very low level. The Termination of employment of workers act (TEWA) . So the legislature should take forwarding's to cure this gaps.

3. The health Care insurance should be maintained as compulsory by the government and the financial allocation also should increased. (Like Switzerland)

4. Right to health should be constitutionalized (Like South Africa)

5.Existing Beneficial system should be decentralized and give proper awareness to the particular target group.

6.The allocation of Budget financing ratio in Social welfare and Social Security should be increased. (Like Singapore)

7.A corporation link should be established between Asian nations to coordinate the social security benefit scheme like European Union Coordination.

ConclusionWhile Concluding, we want to consider the Non-legal Factors because we admire that the concept of social security depend not only the black letter approach rather than the reality in Society.

The first thing is corruption should be framed and erased in effective way, because any benefit or insurance schemes are mostly relied on contributory in Sri Lanka, so the government has the responsibility to make all handlings make in transparent manner then only people believe in such schemes.

IF any thing we proposed in our recommendations within the legal spectrum the arrangement of social security especially in the non- contributory schemes largely depend on government’s pocket. So the national economic capacity of the state definitely reflect in its Social Security schemes.

The people’s attitude towards the Social Security System is important when people realize their dignity in their work, hence they pave their own way to create a sufficient social security schemes of them. ( In Switzerland the people feel uncomfortable to enjoy the Socail security because they hate free lunch)

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