Author: Tanvi Vikrant Kate, a student of Dr Babasaheb Ambedkar college of law
To the Point
Gig workers—like food delivery riders, cab drivers, online service providers—are the backbone of today’s fast-moving digital world. But while they work hard and keep the economy running, they often do not get basic rights like minimum wages, health insurance, or job security. These workers are not officially called “employees” by the companies they work for, which means they are not protected under most Indian labour laws.
As the number of gig workers increases, India needs to make laws that protect them. This article explains who gig workers are, what laws protect them (or don’t), what courts and states have said, and what can be done to improve their working conditions.
Use of Legal Jargon
Gig Economy: A kind of work where people do short jobs or tasks, not regular full-time jobs.
Platform Work: Jobs where people offer services through apps or websites like Zomato, Uber, etc.
Independent Contractor: A person who is not an employee but works on their own terms. Companies say gig workers are independent contractors.
Employee: A person who works for a company and is protected by labour laws.
Social Security: Benefits like health insurance, pension, or maternity leave that help workers in difficult times.
Code on Social Security, 2020: A new Indian law that talks about giving benefits to workers, including gig workers, but only if the government creates schemes for them.
Welfare Board: A group that looks after the needs and rights of a certain group of workers.
Algorithmic Penalty: When a worker is punished or removed from a platform by a computer system, not a human.
The Proof
India currently has more than 7.7 million gig workers and this number is expected to go up to 23.5 million by 2030 (NITI Aayog Report, 2022). These people work for well-known apps like Zomato, Swiggy, Ola, Uber, Urban Company, Blinkit, and more.
Here’s what many of them face:
No fixed salary or working hours.
No paid leave, health insurance, or accident cover.
They use their own bikes, fuel, and phones but are not reimbursed.
If they refuse to work or make a mistake, the app can remove them without warning.
They are not allowed to form proper unions or raise complaints.
Even though they work regularly and depend on these platforms for income, they are not called “employees”, so they don’t get the rights that normal workers do under Indian law.
Abstract
The gig economy gives people flexible work and quick income, especially those who cannot find full-time jobs. But this flexibility comes at a cost—gig workers don’t have legal protection. They face uncertainty, poor working conditions, and unfair treatment.
This article explains the current legal position of gig workers in India, the steps taken by the government, and important court cases. It also looks at examples from other countries and suggests how Indian laws can be improved to protect these new-age workers.
Case Laws
1. Indian Federation of App-Based Transport Workers v. Union of India (2021)
This was a Public Interest Litigation (PIL) filed in the Supreme Court asking the government to give gig workers social security like health benefits and insurance under the Social Security Code, 2020. The case is still going on, but it has made many people and lawmakers think more about gig worker rights.
2. Delivery Workers Union v. Zomato (2021, Telangana High Court)
Here, the workers wanted the court to treat them as employees so they could get benefits. Zomato said they were not employees but independent workers. The court didn’t give a final decision but showed interest in their issues.
3. Uber BV v. Aslam (2021, UK Supreme Court)
In the UK, Uber drivers went to court and said they were not independent but should be treated as workers. The UK Supreme Court agreed with them and said they should get minimum wages and holiday pay. This decision is important for India too, as it shows that gig workers can be protected by law even if companies call them “independent.”
4. Ola and Uber Driver Cases (Delhi, 2022)
Drivers of Ola and Uber went to court saying they should be treated as employees under Indian transport laws. The matter is still going on, but it shows that gig workers are starting to speak up and ask for their rights.
Conclusion
Gig workers are the backbone of the modern digital economy, but they are treated like invisible hands. They face many problems—no job security, no safety, and no say in how they are treated by the companies.
India has taken some good steps like the Social Security Code and Rajasthan’s law, but much more needs to be done. Gig workers may not be traditional employees, but they deserve basic protections and dignity of labour.
A good solution may be to create a middle path—not calling them full employees but still giving them benefits like social security, accident insurance, and clear rights.
The future of work should be fair, flexible, and secure for all.
FAQs
- Who are gig workers?
They are people who work short jobs or tasks, usually through online apps or platforms like Zomato, Uber, Swiggy, etc.
- Are gig workers employees?
No, they are called independent contractors, so they do not get benefits like paid leave, pension, or insurance unless special laws are made.
- What does the Social Security Code, 2020 say?
It recognizes gig and platform workers and allows the government to create welfare schemes for them. But it doesn’t guarantee any benefits unless schemes are created.
- What is the Rajasthan Gig Workers Law?
It’s a state law that gives gig workers a Welfare Board, registration, and grievance support. It also sets up a fund to help them.
- Can gig workers form unions?
Yes, they can form informal unions or collectives, but they do not have the same rights as traditional trade unions under Indian law.
- What reforms are needed?
Basic protections like minimum pay, health cover, and accident insurance.
Rules for fair treatment by platforms.
Legal identity and the ability to raise complaints.
