Published on: 25th October 2025
Authored by: Aastha
Shambhunath Institute of Law
Introduction
India’s gig economy has recorded unprecedented growth over the past decade, with millions of workers hiring platform based jobs ranging from food and food delivery to freelance advice and housing services. However, this rapid expansion has brought considerable legal and regulatory challenges to the light, particularly with regard to classifying and protecting gig workers. The legal status of these employees is complex and often vague, creating an urgent need for comprehensive political framework conditions that harmonize employee rights with the flexibility of the business book.
WHO ARE GIG WORKERS?
Gig employees are often embracing temporary, flexible work and encouraged by digital platforms. Gig workers are outside the association of traditional relationships between employer and employees, including but not limited to counterparts (Uber, Ola, etc.), food supplies (Zomato, Swiggy), and freelance services (graphic design, text, etc.). These employees usually act as independent contracting companies. There are inconsistent income, inability to work safety and limited access to benefits such as health insurance and paid leave.
A gig worker is an individual who engages in temporary or short-term work arrangements, often as an independent contractor, outside the bounds of traditional employer-employee relationships. According to the Code on Social Security, 2020 [Section 2(35)], a gig worker is defined as someone who performs tasks or participates in work arrangements and earns from such activities independently. This definition encompasses various roles, including ridesharing drivers, food delivery couriers, freelance writers, graphic designers, and other service providers who offer their expertise on a project-by-project basis.[1]
Understanding the Gig Economy in India
The gig economy, also known as the sharing economy or access economy, refers to the labor market. This is characterized by the prevalence of short – term contracts or freelance jobs, as opposed to permanent work. In this model, individuals earn money by providing on demand work, services, or products through a digital platform that acts as a mediator between service providers and consumers. In the Indian context, gig employees include numerous experts, including drivers, food delivery partners, freelance authors, tutors, supervisors, household heads and various other service providers. These employees work outside the traditional framework for employer employees, typically working as independent contractors or freelancers with multiple clients and platforms. India’s gig economy has evolved into one of the fastest growing sectors in the global workforce environment, fundamentally changing the way work is designed, executed and regulated. The rapid digitalization of services related to the distribution of smartphone technology and changing consumer preferences has created a robust ecosystem in which millions of Indians earn a living through non- traditional employment contracts. However, this transformation also revealed a significant gap in the existing legal framework. This underscores the urgent need for broader regulatory reforms to protect the rights and interests of gig workers. This transformation was particularly pronounced in India, where the gig workforce has grown exponentially, driven by platforms such as Uber, Ola, Zomato, Swiggy and many other service units. Despite this incredible growth, the legal status of gig workers remains ambiguous, creating a network of complex challenges that affect millions of employees across the country
The scope of India’s gig economy is surprising and continues to grow at an unprecedented rate. According to the latest estimates, India’s gig labor force was made up of around 7.7 million employees in 2020, which represents a significant portion of the country’s non- farm workers. However, the number is expected to grow exponentially, with experts predicting that the gig economy will include 23.5 million employees by 2029-30. Industry reports show that India could take on 350 million gig workstations by 2025, indicating the potential for a massive expansion of the sector. This growth is driven by several factors, including increased urbanization, increased smartphone penetration, improved internet connectivity, and changing consumer preferences for on-demand services.
Historical Context and Evolution
In India, the concept of flexible project- based work is not entirely new. The country maintains an informal economy of historical importance, with millions of employees being temporary, seasonal or contractual. Traditional gig operations included artisans, artisans, agricultural workers, and various service providers who worked outside of formal employment structures. While traditional informal employees often face challenges related to their customers, they negotiated fair compensation and access to a wider market, digital platforms address many of these issues by providing improved central markets, standardized pricing mechanisms and accessibility.Digital conversion and platform economy. These platforms use this technology to create efficient and appropriate systems between service providers and consumers, reducing transaction costs and expanding market access. The spread of smartphones and affordable internet connectivity have made these platforms accessible to a wider population group, including people who may not have traditional employment opportunities.
The platform industry is also introducing new forms of work organization, quality control mechanisms and payment systems. Digital platforms typically implement automated payment mechanisms that provide the structure and predictability of valuation systems, standardized processes, and other informal work contracts.
Current Legal Framework
Traditional Employment Laws and Their Limitations
India’s employment law has traditionally been made up of the perspective of binary classification of “formal” and “informal” workers with different regulatory frameworks in each category. Formal sectors are subject to comprehensive laws such as the Industrial Code, the Industrial Safety Code, Working Conditions, and Social Security Act. These laws provide a wide range of safeguards for employees, including minimum wage guarantees, working hours regulations, social security services and collective bargaining rights. Gig employees typically work as more independent contractors than employees, and therefore do not suit the existing legal categories properly. They work on multiple platforms at the same time and have flexible work contracts that are significantly different from traditional employment models. This regulatory gap creates uncertainty and contradictions in treating gig workers across various jurisdictions and platforms.
The Social Security Code, 2020: A Landmark Development
The most important legal developments for Indian gig workers were the orders of the Social Security Act of 2020. The act represents the first formal recognition of gig workers in Indian law, and represents the critical steps to address this regulatory challenge with growing workers. This definition is legal recognition for millions of employees working in the gig economy and determines the framework for expanding Social Security benefits to these previously unprotected workers. This definition explicitly addresses the role of digital platforms in promoting work contracts and determines the legal framework for regulating work through the platform. The code provides that beneficiaries must register organized employees, gig employees and platform members with relevant authorities. This registration process aims to create a comprehensive database of gig employees and to encourage the provision of Social Security benefits. The fund aims to provide a variety of social security benefits, including life and disability insurance, accident insurance, health and obstetric benefits, and age protection. For platform workers, this code also provides contributions from the aggregator (platform) that makes the work easier.
Legal Perspective
Four working codes have been employed to provide benefits to employees working in unorganized sectors. The Social Security Code, 2020 [hereinafter referred to as the Code] is one of four working codes introduced in the second National Labor Commission recommendation, mixing nine inclusions.
The Code also defines an “Unorganized Worker” under Section 2(86)12 , “self-employed worker” under Section 2(75), and “platform worker” under Section 2(61). Under Section 6 [mainly, Section 6(7)(a) and Section 6(7)(c)] of this code, a National Social Security Board is formed by the Central government which shall recommend the Central Government on framing suitable schemes for the for unorganised workers to exercise the conferred powers, and to perform the assigned functions etc. The board’s composition varies in different cases to make recommendations about the unorganized workers and Gig and Platform workers.[2]
The further codification of the Industrial Relations Code, the 2020 Act, which was streamlined and uniformly replaced, has replaced India’s current three working regulations. By regulating terms of employment, layoffs, layoffs, strikes, lockouts, collective bargaining, registration and approval of trade union federations, and worker solutions, the Code intends to simplify and harmonize India’s industrial relations system. All employees – defined as persons, including platform and gig workers who participate in work contracts other than traditional or contractual relationships between the employer and the employee, or participate in contractual relationships are subject to some provisions of the Code. However, since the code does not identify gig or platform workers as employees or employees, they do not have the same rights and the same protection as regular employees. The purpose of this protocol is to ensure protection measures in the gig economy. These protective measures include minimum wage requirements, social security benefits and accident compensation. Despite these developments, such protection measures are still forced impossible, especially due to the ever changing nature of the freelance economy. Nevertheless, full implementation of your applicability to the contract economy or judicial investigation remains difficult to grasp, which places a critical segment of the employed population of exploitation and basic disenfranchising.
Conclusion
The legal status of Indian gig workers remains a complex and further developed topic that requires urgent attention through political decisions. Social Security Code 2020 is an important step towards recognizing and protecting gig employees. However, there is still much work to create a comprehensive and effective regulatory framework. The rapid growth of India’s gig economy offers both opportunities and challenges. In the meantime, gigwork offers flexible income opportunities for millions of Indians to contribute to economic growth, economic growth and innovation. Different countries pursue different approaches based on a specific legal, economic and social context. India needs to develop its own approach. This reflects unique circumstances and what we learn from experiences from other jurisdictions. This balance requires continuous dialogue, experimentation and adaptation as the gig economy develops. Once we ensure that the legal framework can withstand these changes, it is important to protect the rights and interests of millions of Indians who rely on gig jobs for their livelihoods. The decisions made today regarding the legal status of gig workers will have a lasting impact on the future of Indian jobs and the holes in their workforce. If India is still connected to one of the world’s leading managers in the digital economy, treatment of gig workers serves as a final test of the country’s commitment to integrated growth and social justice. The challenge for the future is to create a regulatory framework that allows the benefits of a gig economy to be used, and at the same time ensure that the employees listing this economy are treated with dignity, justice and respect. The journey to comprehensive legal protection for Indian gig workers is still in its early stages, but the foundation was laid. With sustained efforts, innovative thinking and a true commitment to employee hole, India can create a legal framework. This serves as a model for other countries to address similar challenges. The time for countermeasures is now, and the mission is not high for millions of gig workers who will help build India’s digital future.
[1] Naveen Kumar, ‘Regulatory Framework and the Protection of Basic Rights of Gig Workers’ (Bar and Bench, 16 May 2024) https://www.barandbench.com/law-firms/view-point/regulatory-framework-and-the-protection-of-basic-rights-of-gig-workers accessed [July 11,2025]
[2] Naveen Kumar, ‘Regulatory Framework and the Protection of Basic Rights of Gig Workers’ (Bar and Bench, 16 May 2024) https://www.barandbench.com/law-firms/view-point/regulatory-framework-and-the-protection-of-basic-rights-of-gig-workers accessed [July 11,2025]
