Legal Status of Gig workers in India

INTRODUCTION

With the advent of digitalization, the Indian economy instead of taking the old course is taking a new turn. Changing the stereotypical notion of employment pattern that exists in society where employee are subordinates of their employer, gig workers act independently and act as their own bosses rather than following any commands. One of the reasons for surge in gig economy is the rise of digital Platforms like Ola, uber, Swiggy, Zomato, Fiverr and many in the Indian market. They are conveniently accessible and are user friendly which connect workers instantly with the job opportunity. for example- Food delivery through platforms like Eat sure, Swiggy.

 In 2019, when the storm of COVID 19 began, it had a significant effect on the Indian economy causing many people lose their jobs. To sustain themselves people started to have gig work as an alternative revenue stream. During the pandemic while the Indian economy was making a transformational shift from conventional economy to gig, it also bought some underlying challenges to gig worker. For instance- limited welfare benefits, fixed working hours, minimum wages etc. Indian labour laws provide the recognition through new reforms but failed to provide full protection to the gig workers in India. Although the government has created welfare schemes for gig and platform workers the implementation lacks momentum.

WHO ARE GIG WORKERS?

According to NITI Ayog’s 2022 report titled ‘India’s Booming Gig and Platform Economy’, the gig workforce in 2020-21 was 7.7 million which is expected to reach 23.5 million by 2029-30. Gig in layman term refers to a task or job which is temporary in nature that an individual do to earn money rather than employer of any company. Examples of gig can be delivering food through a platform like Zomato or Swiggy, to provide for home services through digital platforms like urban company. Gig work allow freedom to work at your convenience like choosing which type of client, type of tasks and also the timings it is mainly done through apps or digital platforms. The people taking up these gigs are known as gig workers.

WHY SUDDEN SHIFT IN INDIAN ECONOMY?

India’s gig economy is rapidly expanding for a number of social, financial and technological reasons. Here’s a simple and straightforward explanation of the gig economy growth in India: –

1. Gig jobs have a low entry-barriers, meaning these jobs do not require any fancy degree or qualification. All it requires is a mobile phone or a vehicle to become a gig worker, making it accessible to a wide range of people and thus open to all.
2. Gig jobs are another reason for women empowerment. More women are able to join the workforce because of work from home opportunity it provides making her financially independent from their home comfort.
3. MNCs are now preferring freelancers or contractual workers over permanent workers to reduce expenses like provident funds, life and health insurance. The gig workers are paid according to the amount of work they have completed.
4. Along with making an individual financially independent, gig jobs also offer you the freedom to choose like working hour, work type etc. factors like flexibility, accessibility and quick income opportunities makes it different from the tradition working structure.
5. One of the core reasons for increase in gig economy is digitalization and widespread use of mobile phones with accessibility of internet platforms like Zepto, UrbanClap, Ola, Big Basket connect employer with workers immediately.

LEGAL RECOGNITION OF GIG WORKERS IN INDIA

Before 2020, gig workers were not legally recognized in India, however this changed when the Indian law “Code on Social Security, 2020” become the first law which formally acknowledged the gig workers and platform workers in India. The code recognizes gig workers and platform in a separate category and provided them with certain social security benefits such as:

• Accident insurance
• Life and disability cover
• Old age protection
• Health and maternity benefits
• Education etc.

However, the majority of these benefits are not fully implemented, and the center government is currently working on creating appropriate schemes. These codes fail to provide these workers the status of “employees” thus leaving them with labor rights like minimum wages, or job protection.

According to Section 2(35) of code on social security ‘gig workers’ means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship.

2(61) define ‘platform worker’ means a person engaged in or understanding platform work.

 And gig market is defined as a market where a large population of the county is engaged either in freelancing, temporary or contract- based jobs rather than working nine to five ecosystems. Another reason for rise in gig economy is because the working population comprising of millennials and Gen z acknowledge Work-life balance and gig work is a great way to bring the concept of ‘work-life’ into reality.    

Apart from Code on Social Security,2020 which recognize gig workers and platform workers and provide social security benefits to all employees and workers irrespective of the sector (organized or unorganized). Some states of India like Rajasthan and Karnataka have passed laws such as Rajasthan Platform Based Gig Workers (registration and welfare) act,2023 and Karnataka platform-based Gig workers (social Security and Welfare) Bill,2024 with the aim to provide welfare schemes to gig workers such as minimum wages, accident insurance etc. at state level.

Countries like USA, UK, and Spain have started to recognize and grant gig workers the status of full or partial employee while in India it is still restricted to social security. In the case of Uber BV V/s Aslam (2021) UK Supreme Court held that Uber drivers are ‘workers’ rather than independent contractor, and are therefore entitled to minimum wages.

Despite this as a foreign judgement, this case had the influence on Indian law as courts began to look more closely the platform based work.

CONCLUSION

In a growing economy like India, the gig economy has changed in the working methodology. The legal status of gig workers in India is still transforming. While the new reform (Social Security, 2020) is a promising start, more strategic actions are required to make sure that gig workers be entitled to dignity, protection, and safety just like any other worker or employer. The gig workers should be informed about their rights and government should take effective measure for implementation of these schemes. Legislators, Judges, companies and society at large have a responsibility to ensure that the future of work not only depends on profit but also on security and fairness.

REFERENCES

1. https://www.niti.gov.in/sites/default/files/2023-06/Policy_Brief_India%27s_Booming_Gig_and_Platform_Economy_27062022.pdf
2. https://labour.gov.in/sites/default/files/ss_code_as_introduced_in_lok_sabha.pdf
3. https://www.lawrbit.com/article/gig-workers-in-india-analyzing-the-legal-framework/
4. https://www.supremecourt.uk