Published on: 01st January 2026
Authored by: Pragati Meena
Rajiv Gandhi National University of Law, Patiala, Punjab
Introduction
The rise of the platform economy worldwide has significantly transformed the nature of work. In India, the increasing use of digital platforms for ride‑hailing, food delivery, logistics, freelancing and other services has created a large cohort of so‑called “gig workers” or “platform workers”. These workers perform tasks outside the traditional employer‑employee relationship, often via apps, and enjoy flexibility but also face serious challenges in terms of labour protections, social security, and legal status. This article examines the legal status of gig workers in India, the protections (and lack thereof) afforded by existing labour law and social security law, the regulatory reforms underway, and the key issues and way forward.
Defining “gig workers” and the scale of the phenomenon
The term “gig worker” broadly refers to a person who performs work or participates in a work arrangement and earns from such activities outside a traditional employer‑employee relationship. For example, the Code on Social Security, 2020 defines a “gig worker” as a person who “performs work or participates in a work arrangement and earns from such activities outside of a traditional employer‑employee relationship”. Similarly it defines a “platform worker” as a person engaged via an online platform.[1]
In India, the growth of platform‑based work has been rapid. For example, according to a report, India had an estimated 7.7 million gig workers in 2020, and that number is projected to nearly triple to about 23.5 million in 2029-30.[2] This is driven largely by app-based services (what we often refer to as “on-demand” services), including ride-hailing, food-delivery, logistics, and freelancing, which depend on independent contractors. While there is usually a convenient emphasis on flexibility, autonomy, and income generation, many gig workers experience the instability of erratic earnings; the absence of a minimum wage; the unpredictability of working at all; and no social security of any kind.[3]
Legal Status: Traditional labour law and where gig workers stand
Under Indian law, labour protections have been mainly developed for the employer-employee relationship, and similarly for contract labour and unorganised workers. The designation of “employee” allows workers to assert rights established by statutes including the Industrial Disputes Act, 1947,[4] Minimum Wages Act, 1948[5] and others. In contrast, gig workers are typically classified as independent contractors or “partners” by platforms, resulting in them having limited access to protections. While Nyaaya points out that the Contract Labour (Regulation & Abolition) Act, 1970 (CLRA) might be applicable to workers through third-party agents, platform workers are often classified as independent contractors instead of employees/contract labour in a strict sense
.Because of this, many gig workers are denied access to key protections such as:
- minimum wages / guaranteed wage
- fixed working hours
- paid leave or termination protections
- statutory social security (PF, ESI, etc)
- right to collective bargaining or unions in a meaningful way
Key legal reforms relevant for gig workers
1. Code on Social Security, 2020
The Code on Social Security, 2020 (CoSS 2020) is the first national law to explicitly recognise both “gig workers” and “platform workers”.
Under Section 2(35) and Section 2(36) of the Code, these definitions are embedded.
The Code empowers the Central Government to frame schemes for life cover, disability cover, health/maternity benefits, old age protection etc for gig/workers. However, the Code does not automatically convert gig workers into employees or entitle them to minimum wages under the Code itself. [6]
2. Code on Wages, 2019
The Code on Wages, 2019 seeks to extend minimum wage and timely payment protections across formal and informal sectors. However, since gig workers are not classified as “employees” under many statutes, applying the minimum wage provisions in the code to gig workers remains uncertain in practice.[7]
3. Industrial Relations Code, 2020
The Industrial Relations Code, 2020 replaced three existing labour regulations and includes platform and gig workers within its definition of individuals who carry out work outside conventional employment relationships. However, critically, the Code does not identify gig workers as either “labourers” or “employees,” thereby denying them the same rights and protections as ordinary employees, including collective bargaining rights, strike protections, and dispute resolution mechanisms.[8]
4. State‑level legislation and initiatives
Since the national law is general and enabling, several Indian States have begun to take specific steps.
- The Rajasthan Platform‑Based Gig Workers (Registration & Welfare) Act, 2023 is a landmark state law that mandates registration of platform‑based gig workers and setting up a welfare board.[9]
- The Karnataka Platform‑based Gig Workers (Social Security & Welfare) Ordinance, 2025 (and/or Bill) provides for registration, welfare fund, grievance redressal mechanism for gig workers in Karnataka.[10]
These state laws illustrate how the regulatory framework is evolving from the bottom up, but they also show the fragmentation of protections across states.
Major challenges and gaps in protection
Despite the enactment of legal recognition and reform, gig workers in India continue to face serious challenges. Key challenges include:
a) Employment status / classification ambiguity
Platforms often refer to the gig worker as an “independent contractor” or “partner” instead of an employee in order to avoid many statutory obligations.
This ambiguity around employment status creates a wall around the applicability of traditional labour protections (such as minimum wage laws, retrenchment rules, and union rights).[11]
b) Minimum wage and job security
While the Code on Wages and other labour statutes provide for minimum wages, gig workers’ exclusion from “employees” makes actual enforcement difficult.
Many gig workers lack guaranteed income or wage floor, face variable pay or piece‑rate pay, and are subject to algorithmic deactivations or platform‑specified rates without negotiation.
- c) Social security and welfare
Although CoSS 2020 promises schemes for gig/platform workers, actual implementation is pending in many cases. The board and schemes to register gig workers and provide benefits are yet to be operationalised at full scale.
d) Algorithmic management, deactivation, transparency
Gig workers are often managed by algorithms (task allocation, ratings, deactivation) and may face arbitrary termination or deactivation with little recourse. Lack of grievance redressal and transparency of platforms’ decision‑making processes remains a concern.[12] - e) Collective bargaining and representation
Gig workers are generally outside the ambit of trade union rights or collective bargaining frameworks under labour law. This weakens their bargaining power when dealing with platform terms and conditions.[13]
Fragmentation and inconsistency across statesThe absence of one standard approach to enforce protections through regulations and complex statutory functions establishes both fragmentation and inconsistencies among states. Gig workers continue to experience very different rights and welfare depending on which state they live and work in.
Implications for stakeholders
For gig workers: Acknowledgment of and enrollment in welfare schemes could enable some social protections (health insurance, maternity benefits, old age pensions). Still, without wage security, job security or collective bargaining, these protections remain partial.
For platforms: The changing regulatory framework may impose additional obligations on platforms to register gig workers, contribute to welfare funds, and establish transparency and grievance processes. Platforms who are not proactive, and do not keep records, or withhold a workers’ information may be subject to liability down the line.
For policymakers: A significant challenge is to reduce insecurity while still providing the flexibility that gig work provides (which many workers value). Type and geographic uniformity and a national framework would be beneficial in decreasing disparity. [14]
Way forward: policy recommendations
Based on the above, some suggestions for strengthening protection of gig workers in India are:
- National dedicated legislation: While CoSS 2020 is a step forward, a dedicated law (or comprehensive amendment) specifically for gig and platform workers, clarifying their status, rights and obligations of platforms, would reduce fragmentation and uncertainty.
- Minimum wage or guaranteed floor income for gig work: An important protection would be guaranteeing that gig workers will earn at least a living wage/floor, irrespective of classification unfortunately, this may require a statutory scheme or minimum rates per platform.
- Mandatory registration and social security contributions:Platforms should be mandated to register gig workers, contribute (or share contribution) to welfare funds, and enable workers to access benefits (health, maternity, retirement) without undue delay. The state‑level models (Rajasthan, Karnataka) illustrate possible frameworks.
- Transparent algorithmic management & grievance redressal: Platform business models often rely on algorithms — bringing in standards for transparency (about deactivation, ratings, task allocation), grievance mechanisms and human review would protect workers from arbitrary decisions.
- Collective representation and voice for gig workers: Providing a vehicle for gig workers to organise, whether through platforms or by sector, and requiring platforms to participate in good faith processes will help to counterbalance the power asymmetry existing between workers and platform companies.
- Harmonisation across states and national‑state coordination: Given the patchwork regulation at the state level, a national framework, and guidance to states, would address disparities and ensure a minimum set of rights to gig workers across India.
Conclusion
The platform economy in India offers both opportunities and challenges. For millions of individuals, gig work offers flexibility, independence, and a pathway into the labour market. But for many of these workers, they have neither legal protections that provide a shield from low pay, insecure work, access to social protection nor effective agency. India’s legal infrastructure has begun to recognise gig and platform workers (under CoSS 2020), while individual states are engaging in various experiments around welfare boards and registration laws (e.g., Rajasthan, Karnataka). However, important areas continue to be obscured, these include enforcement, wage protection and clarity of classification, as well as collective worker rights. A national framework is a next important step towards establishing some degree of minimum wage, social protection contributions, algorithmic transparency and strong enforcement to ensure gig-work in India is decent work, not precarious.
[1] National Board for Workers Education & Development, “THE CODE ON SOCIAL SECURITY, 2020” <https://dtnbwed.cbwe.gov.in/images/upload/The-Social-Security-Code_T1Z6.pdf> Accessed 9 November 2025
[2] International Labour Organization, Expansion of the Gig and Platform Economy in India: Opportunities for Employer and Business Member Organisations (Geneva: ILO, 2024) <https://www.ilo.org/publications/expansion-gig-and-platform-economy-india-opportunities-employer-and> Accessed 9 November 2025
[3] Nyaaya, “The Law for Gig-Workers in India – Nyaaya” (Nyaaya, March 21, 2022) <https://nyaaya.org/guest-blog/the-law-for-gig-workers-in-india/> Accessed 9 November 2025
[4] Government of India, THE INDUSTRIAL DISPUTES ACT, 1947 (1947) <https://www.indiacode.nic.in/bitstream/123456789/17112/1/the_industrial_disputes_act.pdf> Accessed 9 November 2025
[5] India, Minimum Wages Act, 1948 (1948) <https://clc.gov.in/clc/sites/default/files/MinimumWagesact.pdf> Accessed 9 November 2025
[6] “THE CODE ON SOCIAL SECURITY, 2020” <https://dtnbwed.cbwe.gov.in/images/upload/The-Social-Security-Code_T1Z6.pdf> Accessed 9 November 2025
[7] “THE CODE ON WAGES, 2019” (2019) legislation <https://labour.gov.in/sites/default/files/the_code_on_wages_2019_no._29_of_2019.pdf> Accessed 9 November 2025
[8] Parliament and Ministry of Law and Justice, “THE INDUSTRIAL RELATIONS CODE, 2020,” vol PART II (2020) legislation <https://labour.gov.in/sites/default/files/ir_gazette_of_india.pdf> Accessed 9 November 2025
[9] Jeswant B, “Rajasthan Passes Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023 | India Corporate Law” (India Corporate Law, August 30, 2023) <https://corporate.cyrilamarchandblogs.com/2023/08/rajasthan-passes-rajasthan-platform-based-gig-workers-registration-and-welfare-act-2023/> Accessed 9 November 2025
[10] “Bills States” (PRS Legislative Research) <https://prsindia.org/bills/states/the-karnataka-platform-based-gig-workers-social-security-and-welfare-bill-2025> Accessed 9 November 2025
[11] Legal N, “The Legal Dimensions of Gig Economy in India: Rights of Gig Workers and Regulatory Challenges” (Naya Legal, September 7, 2024) <https://www.nayalegal.com/the-legal-dimensions-of-gig-economy-in-india-rights-of-gig-workers-and-regulatory-challenges> Accessed 9 November 2025
[12] Jain S and Mudgal D, ‘GIG Workers in India: Analyzing the Legal Framework’ (Lawrbit, 26 October 2024) https://www.lawrbit.com/article/gig-workers-in-india-analyzing-the-legal-framework/ Accessed 9 November 2025
[13]Centre J, “Rules and Regulations Governing Gig Workers in India” (Juris Centre, September 10, 2024) <https://juriscentre.com/2024/09/10/rules-and-regulations-governing-gig-workers-in-india/> Accessed 9 November 2025
[14] ICRIER, “Regulation of Gig Work – ICRIER” (ICRIER, February 13, 2025) <https://icrier.org/policy_bank/regulation-of-gig-worker/> Accessed 9 November 2025
