CHALLENGES IN IMPLEMENTATION OF RETIRAL BENEFIT LAWS IN THE UNORGANIZED SECTOR IN INDIA

AUTHOR – PRITHIVI RAJ V S, STUDENT AT TAMIL NADU DR.AMBEDKAR LAW UNIVERSITY

BEST CITATION – PRITHIVI RAJ V S, CHALLENGES IN IMPLEMENTATION OF RETIRAL BENEFIT LAWS IN THE UNORGANIZED SECTOR IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (5) OF 2025, PG. 342-351, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

The unorganized sector constitutes more than 90% of India’s total workforce, yet remains largely excluded from the ambit of formal social security and retiral benefits. Despite the existence of legislative frameworks such as the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the Payment of Gratuity Act, 1972, and the recently enacted Code on Social Security, 2020, the implementation of retiral benefits for unorganized workers remains fragmented and ineffective. This research aims to critically examine the challenges hindering the implementation of retiral benefit laws in the unorganized sector in India. It explores key barriers including legal ambiguities, lack of awareness, weak enforcement mechanisms, and administrative inefficiencies. The study further analyzes judicial perspectives and government schemes aimed at expanding coverage to informal workers. Through a review of legal texts, policy documents, field reports, and case studies, this research identifies critical gaps and proposes targeted legal and policy reforms to ensure inclusive and effective protection of retiral rights for India’s unorganized workforce. The implementation of retiral benefit laws in the unorganized sector in India presents a myriad of challenges that hinder the effective provision of social security to a significant portion of the workforce. Despite the existence of various legislative frameworks aimed at safeguarding the rights of workers, the lack of formal documentation and identification among unorganized workers complicates their access to these benefits. Socioeconomic factors, including low wages and job insecurity, further impede workers’ ability to save for retirement, while gender disparities within the sector disproportionately affect women, limiting their access to essential benefits. This research aims to explore these multifaceted challenges, highlighting the urgent need for comprehensive policy reforms, targeted awareness initiatives, and the establishment of robust support systems to ensure that the unorganized workforce can effectively access their rightful retiral benefits, thereby enhancing their financial security in old age