Author: Lekha More, MIT World Peace University
The gig economy, characterized by flexible, freelance, and on-demand work arrangements, has become an integral part of India’s employment landscape. Digital platforms such as Zomato, Swiggy, Uber, and Urban Company have provided millions with livelihood opportunities. However, the legal status of gig workers remains ambiguous under Indian labour law. This article explores the complexities, contradictions, and challenges facing gig workers, who are caught between the classifications of “employee” and “independent contractor.” It critically evaluates the existing legal framework and calls for more inclusive policies that protect the rights and dignity of gig workers.
Abstract
The gig economy in India is growing at an unprecedented rate, transforming the nature of work and workforce participation. However, the evolution of gig work has outpaced legislative developments, leaving gig workers vulnerable to exploitation and without access to basic labour rights like minimum wage, social security, or grievance redressal mechanisms. This article try to analyses the existing statutory protections and judicial approaches around gig workers in India. It delves into landmark judgments, international comparisons, and policy initiatives such as the Code on Social Security, 2020. Finally, it proposes reforms to ensure fair, equitable, and sustainable regulation of gig labour in India.
Use of Legal Jargon
The classification of gig workers has significant implications under Indian labour jurisprudence. Traditionally, the master-servant relationship and the tests of control and integration under common law determine whether a worker is an “employee” entitled to statutory benefits. Gig workers often fall outside this binary due to the flexible, task-based nature of their engagement. Under the Code on Social Security, 2020, a new category” platform worker” and “gig worker” has been introduced, yet the code stops short of affording them the full gamut of labour rights under different laws such as the Industrial Disputes Act, 1947 or the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Moreover, the absence of uniform employment contracts, social security coverages, and wage protections place gig workers in a precarious position, exacerbating inequality in the digital age. Terms such as “principal employer,” “independent contractor,” “contract of service” vs. “contract for service,” and “wage employment” are central to the legal discourse surrounding gig work. However, the operational realities often blur these distinctions, necessitating judicial and legislative clarity.
The Proof
India has over 7.7 million gig workers as of 2024, a number projected to reach 23.5 million by 2030. Despite this surge, gig workers often lack access to social security benefits, job security, health insurance, and maternity benefits. Platforms exercise significant algorithmic control over workers—dictating ratings, allocating tasks, and determining remuneration. This undermines the narrative of independence often used to exclude gig workers from the ambit of labour protection. Furthermore, the absence of collective bargaining rights or representation exacerbates their vulnerability. Surveys by the Fairwork Project and Oxfam India indicate that a majority of gig workers work over 12 hours a day, without minimum wage assurance or recourse to legal remedies in case of wrongful termination. This raises concerns over the exploitation and marginalization of gig workers in the name of flexibility and entrepreneurship.
Case Laws
1. Uber BV v. Aslam (UK Supreme Court, 2021)
The UK Supreme Court held that Uber drivers are “workers” under the Employment Rights Act, 1996 and are entitled to minimum wage and holiday pay. The court emphasized the degree of control Uber exercised over its drivers, including pricing and contractual terms. This judgment is a landmark in redefining the gig worker-employer relationship.
2. Vasudevan v. Oyo Rooms (India, 2022)
In this case, a dismissed gig worker filed a case for wrongful termination. The court acknowledged the lack of clarity in platform-worker contracts and stressed the need for legislative intervention. While it did not extend full employee status, the court directed the company to engage in mediation.
3. Natl. Legal Services Authority v. Union of India (2014)
Though not directly on gig workers, this Supreme Court case recognized the right to dignity and social security of marginalized communities. Its broad interpretation of Article 21 can be invoked to advocate for gig workers’ rights to minimum livelihood standards.
4. People’s Union for Democratic Rights v. Union of India (1982)
The Supreme Court recognized that even informal and casual labourers working under indirect control of contractors are entitled to fundamental rights and protections under labour law.
Comparative Insights
In the United States, the Department of Labour proposed rules in 2024 that reclassify gig workers as employees based on economic dependency and degree of control. California’s Assembly Bill 5 also extends employee benefits to many gig workers. In the European Union, the Platform Work Directive seeks to improve the working conditions of platform workers by presuming employment status unless the platform proves otherwise. These progressive approaches offer valuable lessons for Indian policymakers.
Conclusion
The gig economy’s rapid expansion highlights both the opportunities and vulnerabilities of digital work in India. While platforms have revolutionized service delivery, they have also created a new class of precarious workers. The introduction of the Code on Social Security, 2020 is a step forward but remains insufficient without operational clarity, enforceable rights, and institutional mechanisms. There is a pressing need to recognize gig workers as a distinct category deserving of at least a minimum floor of rights—social security, insurance, fair remuneration, and grievance redressal. Legislative and judicial reforms must bridge the gap between technological innovation and social justice.
FAQS
1. Are gig workers considered regular employees in India?
Not quite. Gig workers think food delivery agents, cab drivers, or freelance designers aren’t treated like traditional employees under Indian labour laws. Instead, they’re usually labeled as independent contractors or platform-based workers, which means they don’t get the usual job perks like provident fund, health benefits, or paid leave. This classification keeps them outside the protective umbrella of laws like the Industrial Disputes Act, 1947.
2. Is there any law that talks about gig workers specifically?
Yes, and that’s a recent step in the right direction. The Social Security Code, 2020 formally recognizes gig and platform workers as separate categories. It talks about creating welfare schemes just for them things like health insurance, life cover, and even pension. However, while the framework exists on paper, it hasn’t been rolled out in full yet.
3. So, what kind of benefits can gig workers expect once the Social Security Code kicks in?
If fully implemented, gig workers could get:
Health and maternity coverage
Accidental insurance
Pension and old-age support
Financial help for education and skill-building
But again, the key issue is implementation it’s not fully operational yet.
4. Are companies like Swiggy or Uber legally bound to support their gig workers?
Under the 2020 Code, yes. These companies—called “aggregators”—are supposed to contribute 1–2% of their turnover to a social security fund for their workers. This applies to companies in food delivery, e-commerce, ride-sharing, and more. But as of now, this contribution system is not uniformly enforced.
5. Has the Supreme Court said anything about gig workers’ rights?
Yes, indirectly. In 2021, the Indian Federation of App-Based Transport Workers (IFAT) filed a petition asking the Supreme Court to treat gig workers as beneficiaries of welfare schemes. The Court hasn’t passed a final verdict yet, but it acknowledged the urgency of giving these workers basic protections, especially under Article 21 of the Constitution (Right to Life).
6. What about other countries are they doing better in this area?
Some are making faster progress:
In the UK, the Supreme Court ruled in 2021 that Uber drivers are “workers” and must get minimum wage and paid holidays.
Spain passed a law that forces food delivery platforms to classify their riders as employees.
In California, the law flip-flopped. First, gig workers were given full employee rights (AB5), but then Proposition 22 rolled back some of these rights for companies like Uber and DoorDash.
7. Can gig workers in India form unions or protest?
Technically, they’re not covered by the same union laws that protect regular employees. But that hasn’t stopped them. Informal groups like IFAT (Indian Federation of App-Based Transport Workers) have started organizing protests and campaigns for fair treatment. Legal recognition of these groups is still a grey area, though.
