Author: Dishita Singh, Amity University Mumbai
TO THE POINT:
The term ‘gig’ originated from the music industry which performs would take up short engagements, short term job or assignment. In context of labour field gig workers, they are individuals that engage in temporary, flexible and task-based work, they are not the permanent employees which have a fixed salary. Instead, they earn the income by completing specific task for multiple client or customers. There are types of gig workers, Platform based workers and other Non-Platform Workers. The first one states the work done through digital apps or online platforms like Zomato, Swiggy, Ola etc and other non – platform workers means self-employed workers in traditional sectors may be a part or full time like part time tutors, freelance, domestic helpers, construction labours. The moving gig economy in India. They don’t have the fixed employer-employee relationship or any kind of appointment letter, no set of working hours they can choose when to work, no guarantee of continuous work or an income, workers during the work have to use their own equipment or vehicles, they can engage multiple platforms at the same time, they don’t have fixed term employee benefits like PF, ESIC, gratuity or paid leave like system.
When it comes Gig Economy in India, it has emerged a wide hub for gig employment. In 2020 – 21 reportedly approx 77 lakh workers were engaged in the gig economy and is expected to expand more in future. The growth derived from technological advancements, expansion of gig related platforms, the employment market fluctuated like in COVID-19, the startup culture and government initiatives like Startup India etc. The Benefits of this is accessibility to labour participation apart from their other work they can access gig related employment and major benefit to rural area allowing them to sell their products in broader market and also work in it to support their livelihood. Previously they were not introduced in Labour law but new labour codes have recognized the gig workers and also given them other benefits with the help of law.
USE OF LEGAL JARGON:
Indian labour law was contextually was very complex leading to inefficiency in implementing it and was designed looking at industrial workforce which was quite old for upcoming changing nature of work. Thus, new labour codes were introduced which consolidating existing laws into four labour codes categorised into Codes on Wages 2019, Industrial Relations Code 2020, Occupational Safety, Health and Working Conditions Code 2020, Social Security Code 2020.
In which Code on Social Security, 2020 consist of 9 laws that includes Employee’s Compensation Act 1923, Maternity Benefit Act 1961, EPF Act 1952, ESIC Act 1948, Payment of Gratuity Act 1972 and first formally defines and includes gig workers and platform workers too under Code on Social Security, 2020.
Section 2(35) defines the ‘Gig worker’ for the first time.
Section 2(61) states the person engaged in platform work through digital field.
Section 109 and 110 – defines the funding mechanism for life like health, accident etc.
Section 113 – gives the mandatory registration of gig workers, platform workers via Aadhaar link databases.
Section 114- Directs the Central Government to formulate schemes for gig and platform workers and check on dedicated social security fund.
Section 141 – Administration and auditing of social security fund at both levels central as well state.
As to situation before the new labour code there was no legal recognition or protection to gig workers. Platforms did engage in arbitrary exploitation of gig workers like deactivation of worker ID without any notice, making wages as minimum, no hygiene facilities, most studies do find the gig workers working more than 8 hours a daily still cannot take a single day off.
THE PROOFS:
Government now have taken initiatives firstly be implementing the new labour codes from complex to systematically with welfare and benefits schemes as well.
Initiative by NITI AAYOG – they are framing to give this sector about 4.1% livelihood by 2030 and report submitted by Niti Aayog emphasized wide female labour force and employment to person with disabilities targeting platforms that only hire good number of women and person with disabilities. There will be social security to them which plan to provide like paid sick leave, retirement plans etc. Mostly important is the skill update and development, a good skill-based platform which would skill the workers and accessibility with higher paying job opportunities and reduce skill mismatches.
E-Shram Portal- The website provides Universal Account Number (UAN) to unorganised and gig workers which they can access to government welfare schemes which includes:
-Ayushman Bharat- PMJAY: which provides free health coverage of 5 lakhs per family for secondary and tertiary hospital care.
-Pradhan Mantri Suraksha Bima Yojana: Offers monetary help regarding accidental death with 2 lakhs for permanently disability also 1 lakh for partial disability.
-Pradhan Mantri Jeevan Bima Yojana: This helps in covering life insurance.
-PM Shram Yogi Maan- Daan – This is a voluntary pension scheme about Rs 3000 to unorganised sector at age 60.
-NPs for Traders and Self-Employed Persons – This is a contributory pension scheme for matching beneficiary contribution to 50% through the central government.
Other schemes for housing and employment upon meeting the criteria and registration. These schemes and welfare do support the constitutional provisions like Article 14 – Right to Equality, Article 21- Right to life and Dignity, Article 23- Prohibition on forced or bonded labour, Article 41 DPSP- Right to work directing the states to secure about work condition giving decent standard living of life and should be applicable to gig workers.
Article 43 A DPSP – Right of workers to voice out for relevant demands.
There’s also state related policies enforcing regarding gig workers and framing of laws.
ABSTRACT
When it comes to current situation the gig economy is one of the fastest growing sectors lastly over 1 crore people employed in it while government taking initiative. This sector majorly contributes to urban employment and those area transitioning from rural to urban. Legal framework has already been into main labour law codes and union budget of 2025-26 announced formal identity cards for 1 crore gig workers and PM-JAY health coverage.
Well still the challenges remain that includes:
– The status confusion still gig workers are not employees under any of code denying the minimum wage, collective bargaining and termination remedies.
– Still the welfare funds yet to be operationalized at ground level.
– Limitation on E- Shram uptake the reach is limited only approx gig workers registered and others yet left.
– No minimum wage guarantee, they cannot legally receive it without any formal employee status.
-The gaps in codes which is the occupation safety, health and working condition implies no meaningful protection against workplace hazards.
– Algorithmic states vague, no legal requirements for transparency, deactivation and earnings decision that states with only one person that is the employer and no transparency to even outline the framework been followed or not.
– Maternity benefit not yet implemented which women face safety.
– Target Pressure of delivery the production under a stipulated time that is 10 mins.
– State implementation is unfixed which some of states recognizing while other do not.
– The great advancement of AI which still can take up their jobs, examples the robot delivery from drone or robots in restaurants etc.
CASE LAWS:
1)All India Gig workers Union Vs Uber India System Pvt.Ltd
– They demanded the scope of minimum wages and social security benefits labelling as independent contractor rather than traditional employee but due to no recognition as classified employee a gap and no proper compliance cannot give them automatic benefit without proper operationalized schemes. It’s still an ongoing matter.
2) Kavita vs Uber System Pvt Ltd 2022
She missed a flight because driver arrived late and took long route and she held liable to Uber but they dismissed saying it’s a driver fault and third party and is a independent contractor so he is responsible. To which Uber India was held liable because they are once handling application, transaction not the driver so the term independent contractor was removed. In which the companies even though not recognizing them as employee but still will be held liable for consumer grievances.
CONCLUSION:
While the government do have taken initiatives to make a reform but still the challenges do prevail in implementation, advancements and many more. The legal recognition to them is yet to be given and benefits funds are there but actually it’s been efficient at ground level is main concern here. Like the 10 minutes delivery pressure was so in present debate that concerns the working condition for them. Government is still yet to fix the regulatory framework and administration regarding labour instead of including this in mixed concepts, this topic should have individual legal stand because the world has changed so the work type and hence changes in society have to be accepted which can be any forms, so this type of work might need clean and clear framework.
FAQ:
1)Which state have recognized the gig workers?
-The clear answer to this only four states till now which has clear legislation to this that includes Rajasthan, Karnataka, Bihar and Jharkhand.
2) What Initiatives taken by the Rajasthan and Karnataka?
-Karnataka passed the Karnataka platform based- gig workers to protect right of workers that includes established of welfare board, establishment of Social Security and Welfare Fund and Rajasthan becomes the first state to guarantee social security to gig workers.
3)Can gig workers in India collectively strike or protest?
-No, when it comes to collective action they cannot do so because legally not classified as employee in the industrial relations code, as they cannot enjoy the statutory framework to protest.
