Author: Hitesh, Chandigarh University
Linkedin Profile: https://www.linkedin.com/in/hitesh-dixit-b01604349?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app
To the Point
The gig economy, characterized by short-term contracts and freelance work, has witnessed a massive surge in India, primarily driven by digital platforms like Swiggy, Zomato, Uber, Ola, and Urban Company. While these platforms offer flexible employment and economic opportunities, they have also blurred the lines between employer and contractor, leading to legal ambiguity and denial of fundamental labour rights. The recent push for labour law reforms, including the Code on Social Security, 2020, has attempted to provide a framework for recognizing platform workers. This article critically examines the current status, legislative efforts, judicial insights, international trends, and the road ahead for legally recognizing platform workers in India.
Use of Legal Jargon
Gig Worker: Someone who works or takes part in a work arrangement and makes money doing so outside of the conventional employer-employee relationship.
Platform Worker: A subset of gig workers who engage in platform-mediated work, usually through digital apps.
Code on Social Security, 2020 The Indian government introduced a unified code to provide social security to all workers, including platform and gig workers.
Principal Employer: The main entity that hires or uses the services of the worker.
Triangular Relationship: A work arrangement involving a worker, a user enterprise, and an intermediary platform.
Independent Contractor: A worker who provides services under terms defined by a contract, without being a formal employee.
The Proof
According to NITI Aayog (2022), there are currently over 7.7 million gig economy workers in India, and by 2030, that number is expected to rise to 23.5 million. The growth is driven by technology, digital platforms, and the promise of flexibility. However, these benefits come with challenges like job insecurity, lack of medical insurance, no paid leaves, and zero pension benefits.
Traditionally, labour laws in India were designed for factory and organized sector workers. They were ill-equipped to address the nuances of digital labour. This marks a significant policy shift.
Key features of the Code include:
Definitions for “gig worker” and “platform worker.”
Provision of welfare schemes funded by aggregators and government.
Voluntary contributions from workers to specific welfare schemes.
Yet, despite the law being enacted, its implementation remains pending, awaiting notification from the central government.
Abstract
This article explores the transformation of labour in India due to the rapid expansion of the gig economy. It focuses on the status of platform workers, their exclusion from formal labour protections, and efforts through the Social Security Code, 2020 to address this gap. It evaluates key judicial decisions, policy recommendations, and global approaches to protect gig workers. The piece highlights the complexities in classifying these workers, debates on their rights, and concludes with actionable solutions for inclusive labour reform in the digital age.
Case Laws
1. Uber BV v. Aslam (UK Supreme Court, 2021)
Although not an Indian case, this judgment is globally relevant. The UK Supreme Court held that Uber drivers are not independent contractors but “workers” entitled to minimum wage and holiday pay. The Court emphasized the unequal bargaining power between platforms and workers.
3. Delivery Executives Union v. Zomato & Swiggy (Petition filed, 2023)
This case, filed in the Delhi High Court, seeks recognition of delivery partners as employees and demands inclusion in state-run welfare schemes.
4. Vishal Singh v. Food Delivery Companies (Delhi HC, 2022)
Although dismissed at the interim stage, the petition highlighted concerns about denial of accident compensation and health benefits to delivery workers during the pandemic.
Comparative Legal Approaches
United States
There is no uniform rule. In California, the AB-5 Law classifies gig workers as employees. However, Proposition 22, passed later, allowed companies like Uber to continue treating them as independent contractors with limited benefits.
European Union
The European Commission proposed a Directive on Platform Work (2021) that introduces a legal presumption of employment in certain conditions, thereby extending full labour rights to platform workers.
China
Chinese courts have ruled in favor of food delivery workers, mandating companies to provide occupational injury insurance and adhere to basic labour standards.
Legal Loopholes and Challenges
Ambiguous Legal Identity: Platform workers occupy a grey area between employee and contractor, leaving them outside the purview of labour laws.
Delayed Implementation: Despite the 2020 Code, lack of rules and schemes makes the legal recognition of platform workers ineffective.
No Collective Bargaining Rights: Gig workers are often prohibited from forming unions or negotiating terms.
Data and Surveillance Control: Algorithmic control through apps dictates their tasks, pay, and ratings, further limiting their autonomy.
Lack of Legal Remedies: Disputes are often settled through platform-generated terms of service, which lack transparency and due process.
Constitutional and Human Rights Perspective
Gig workers are entitled to rights under:
Article 14 – Equality before law
Article 19(1)(c) – Right to form associations/unions
Article 21 – Right to life includes the right to livelihood and dignity
Denying them protection amounts to social injustice, violating the Directive Principles of State Policy (Articles 38 and 43) which mandate the State to ensure social security and a decent standard of life for all workers.
Expert Reports & Recommendations
NITI Aayog Report (2022)
Emphasized the creation of a platform worker registry
Recommended a portable benefit system (health, insurance, pension)
Proposed mandatory aggregator contributions to welfare funds
International Labour Organization (ILO)
Advocated for a hybrid model recognizing dependent contractors
Urged governments to ensure minimum wages, fair contracts, and social security for gig workers
Recent Developments
E-Shram Portal: Launched by the Ministry of Labour and Employment, the portal allows unorganized workers, including gig workers, to register and avail benefits.
Gig Worker Protests: Increasing protests across cities demand better working conditions, transparent pay structures, and accident insurance.
Policy Suggestions
Notification and Enforcement of Social Security Code: The government must implement the code urgently with clear rules.
Clarity in Legal Classification: Enact laws distinguishing between employees, contractors, and platform workers with appropriate protections.
Portable Welfare Benefits: Create plans where employees are covered for accidents, health insurance, and pensions across all platforms.
Minimum Work Standards: Ensure minimum wages, maximum working hours, and mandatory leave provisions.
Establishment of Dispute Resolution Forums: Specialized tribunals for digital labour to resolve platform-related conflicts.
Algorithmic Transparency: Mandate platforms to disclose how algorithms determine work assignments, pay, and ratings.
Formalization of Unions: Promote the establishment of gig worker unions and their legal recognition for collective bargaining.
Conclusion
India’s gig economy has provided flexibility and income opportunities to millions, but it also exposes workers to job insecurity, lack of social benefits, and legal ambiguity. Though its impact is limited by its delayed implementation, the Social Security Code, 2020, provides hope by formally recognizing platform workers.
To ensure justice and dignity for these workers, India must act swiftly by notifying and enforcing existing laws, clarifying worker classifications, and introducing fair work standards. Comparative global models show that legal protection for gig workers is both necessary and achievable.
Recognizing gig workers is not just a policy need but a constitutional responsibility. As India advances technologically, it must ensure that the rights and well-being of its digital workforce are protected and upheld.
equity, and digital efficiency with dignity. Platform workers are no longer the fringe—they are central to the urban economy—and must be treated as such under the law.
The recognition of platform workers is not merely a legal necessity but a constitutional mandate and moral imperative. In the journey toward a just digital economy, ensuring the rights of those who power it must be the foremost priority.
FAQS
Q1. Who are platform workers?
Platform workers are individuals who provide services through digital platforms like Uber, Zomato, Swiggy, Ola, etc., often under flexible work conditions.
Q2. Are gig workers considered employees under Indian law?
Currently, they are not considered formal employees but are defined under the Code on Social Security, 2020, which is yet to be fully implemented.
Q3. What rights do platform workers currently have?
Limited rights. They have no guaranteed minimum wage, social security, or job protection unless the new Code is implemented.
Q4. Can platform workers form unions?
Although they are legally permitted to establish associations under Article 19(1)(c), they encounter real-world obstacles and do not have official recognition.
Q5. What is the global trend regarding gig worker rights?
Countries like the UK and Spain have extended employee benefits to gig workers, while others like the US vary by state. India is slowly moving toward recognition through policy reforms.
