Published On: August 23rd 2025
Authored By: Kabhilakshya D V
Government Law College, Madurai
Introduction
The rise of the gig economy in India has brought millions of workers into a new form of employment relationship that challenges traditional labour law classifications. Platform workers delivering food through Swiggy and Zomato, drivers working with Uber and Ola. These workers are called gig workers ,people who take up short-term, flexible jobs instead of traditional 9-to-5 employment. According to NITI Aayog, over 7.7 million workers were engaged in the gig economy in 2020, and this number is expected to rise to 23.5 million by 2030.[1]Gig workers often enjoy flexibility and independence but may have little to no job security or traditional benefits like health coverage and paid vacation time.
Why Are Gig Workers Not Considered “Employees”?
In most Indian labour laws, protections are given to people who are considered “employees” or “workmen.” But these laws assume a traditional relationship where:
- An employer hires a worker directly,
- The employer controls working hours and pays a salary, and
- The worker is part of a company or organisation.[2]
Gig workers usually don’t fit this definition. For example, a Swiggy delivery partner is technically considered self-employed, even though the company decides how many orders they get, their pay per order, and when they can be removed from the platform.
This legal gap means they don’t get benefits like minimum wages, paid leave, social security, or protection from unfair termination. Traditional laws like the Industrial Disputes Act 1947 and the Factories Act 1948 simply don’t apply to them.
Recognition of Gig Workers
Gig and platform workers often find themselves excluded from the traditional employment framework. Instead of hiring them as employees, companies often hire gig workers as “independent contractors”, which allows the companies to bypass statutory obligations under Indian labour laws.[3] The Code on Social Security, 2020 represents a significant development in recognising gig workers. Section 2(35) defines “gig worker” as:
“a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship.”[4]
Section 60 of the code defines “platform work” as a form of work arrangement outside of a traditional employer employee relationship where organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment.[5] Section 114 provides for the constitution of a Social Security Fund for gig workers.[6] Chapter IX provides social security schemes for gig workers, platform workers, etc. However, the whole availability and working of the schemes such as life and disability cover, accident insurance, health and maternity benefits, etc. is dependent on the notification of the Government and would be subject to change[7].
State initiatives
The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023[8] This bill passed in July 2023, can be seen to extend the benefits of social security and Code on Social Security, 2020 to the state of Rajasthan. The Act provides for establishment of a welfare board which will register and administer welfare cess. Moreover, the act also makes it mandatory to register employees, gig workers and aggregators and imposes requirements of data sharing by aggregators.[9]The Act also mandates a transaction fee as decided by the State government on each gig-related transaction, of 1-2% per transaction.
Karnataka Gig Workers (Conditions of Service and Welfare) Bill, 2024 The bill is still in the recommendation stage, this bill very aptly covers all the definitions like gig worker, platform and aggregators etc. The bill talks about the establishment of welfare board and registration of gig workers as well as their aggregators. Section 6 of the bill lays importance about the engagement with workers associations.[10] The Greater Chennai Corporation inaugurated Tamil Nadu’s first mobile AC lounge for gig workers in Anna Nagar: a 200 sq ft rest area for 25 workers, with amenities like eating, mobile charging, toilets, and drinking water. Ten such lounges are planned across Chennai[11]
Recommendations
- Comprehensive Legal Framework: Enact legislation recognizing gig workers as a distinct labour category, ensuring minimum earnings guarantees, social security contributions, and occupational safety standards.
- Algorithm Accountability: Mandate transparency in algorithmic decision-making, with regular audits to prevent bias and discrimination.
- Paid Leave and Benefits: Introduce policies ensuring paid sick leave, maternity/paternity benefits, and emergency financial assistance during crises.
- Union Representation and Collective Bargaining: Empower workers to form unions and engage in meaningful negotiations with platforms.
- Implementation of Safety Measures: Platforms must provide safety training, protective gear, and mental health resources, along with season-specific (summer, monsoon, and winter) and pollution-related health supports.
- Grievance Redressal Mechanisms: Establish transparent, independent systems for resolving worker disputes, including appeals against deactivation.
- A tripartite committee should be established at both the national and state levels to address the challenges faced by gig and platform workers. This committee should comprise representatives from the National Human Rights Commission (NHRC), workers’ unions, and aggregator companies. The committee should convene every three months to ensure consistent dialogue, review progress, resolve disputes, and collaborate effectively in formulating policies to safeguard the rights and welfare of gig and platform workers.[12]
The UK Supreme Court’s Approach
The UK Supreme Court’s decision in Uber BV v. Aslam[13]provides valuable comparative insight. The court held that Uber drivers were “workers” (not independent contractors) under UK employment law, finding that:
- Uber controlled the key information (passenger contact details and destination)
- Uber set the fare and drivers had no say in pricing
- Uber imposed contractual terms and drivers had no opportunity to negotiate
- Uber exercised significant control through its rating system and could effectively dismiss drivers
While UK law differs from Indian law, the reasoning demonstrates how courts can look beyond contractual labels to examine the substance of working relationships. The emphasis on practical control and economic reality aligns with evolving Indian jurisprudence on employment classification.
Case Laws
In All India Gig Workers Union v. Uber India Systems Pvt. Ltd., where gig workers have taken a stand against Uber’s practices, challenging the company’s refusal to provide minimum wages and social security benefits. This underscores the ongoing struggle for fair compensation and benefits in the gig sector, aiming to redefine the employer-employee dynamics within these digital platforms.[14]
Piyush Pandey vs. Unacademy, In this case, a gig worker at Unacademy claimed employee status to receive labour protections. The court decided against this, emphasizing that the worker was an independent contractor. The decision was based on the level of control the platform exercised specifically, the worker had the freedom to choose work hours and assignments, indicating a high degree of independence. This ruling highlights how control and autonomy are crucial factors in determining employment status and illustrates the difficulty of applying traditional employment laws to gig work.[15]
Conclusion
The legal status of gig workers in India is evolving, but change is happening slowly. The Code on Social Security, 2020 represents progress, but it needs to be implemented effectively. India should learn from international examples while developing solutions that fit its unique context.[16] The goal should not be to fit gig workers into old legal categories, but to create new frameworks that address their unique needs. This will require cooperation between government, platforms, workers, and civil society. Only then can India ensure that the benefits of the gig economy are shared fairly between companies and the workers who make it possible. The time for action is now. As the gig economy continues to grow, the legal system must evolve to protect the millions of workers who depend on it for their livelihoods. Their economic security and dignity depend on getting this right.
References
[1] NITI Aayog, India’s Booming Gig and Platform Economy: Perspectives and Recommendations on the Future of Work (June 2022) https://www.niti.gov.in/sites/default/files/2022-06/Report_Gig_Economy_28_June_final.pdf accessed 11 July 2025.
[2] Industrial Disputes Act 1947, s 2(s); see also Factories Act 1948, s 2(l).
[3] Yamini Aiyar and Ajay Shankar, Gig Work and Labour Market Regulation in India (Centre for Policy Research 2021).
[4] The Code on Social Security 2020 (36 of 2020) s 2(35).
[5] The Code on Social Security 2020 (36 of 2020) s 60.
[6] The Code on Social Security, 2020 (36 of 2020) s 114.
[7] The Code on Social Security, 2020 (36 of 2020) s 114.
[8] The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023 (29 of 2023).
[9] The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023 (29 of 2023) s 8, 9.
[10] The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024 cl 6.
[11] ‘In a first for TN, GCC unveils AC mobile lounge for gig workers’ (The Times of India, 25 May 2024) https://timesofindia.indiatimes.com/city/chennai/in-a-first-for-tn-gcc-unveils-ac-mobile-lounge-for-gig-workers/articleshow/121786992.cms accessed 11 July 2025.
[12] National Human Rights Commission, Proceedings of the Open House Discussion on Rights of Gig Workers (17 December 2024) 14 https://nhrc.nic.in/sites/default/files/revised_Proceedings%20-GIGworkers_171202024_17012025_2_0.pdf accessed 11 July 2025.
[13] Uber BV v. Aslam [2021] UKSC 5.
[14] Naveen Kumar, “Regulatory Framework and the Protection of Basic Rights of Gig Workers” (Bar & Bench, 16 May 2024) https://www.barandbench.com/view-point/regulatory-framework-and-the-protection-of-basic-rights-of-gig-workers accessed 11 July 2025.
[15] Komal Ahuja, Legal Status of Gig Workers Under Indian Labour Laws: A Comprehensive Analysis (Bhatt & Joshi Associates, 8 October 2024) https://bhattandjoshiassociates.com/legal-status-of-gig-workers-under-indian-labour-laws-a-comprehensive-analysis/ accessed 11 July 2025
[16] International Labour Organisation, World Employment and Social Outlook 2021 (ILO 2021).
