Understanding the Gig Economy: Worker Rights and Legal Protections

Gig Economy is a free market system in which temporary positions are common and organizations contract with independent workers for short-term engagements. A Gig Worker, otherwise also known as Platform workers form a majority sect of who are considered to be gig worker universe. Platform work is a form of employment that uses online platforms such as Uber, Zomato and Urban Clap that enable organizations or individuals in order to perform services^. Platform workers are hence often involved in small tasks that require general or a very low level of skill sets. Hence, population groups without much access to skill development avenues and modern job markets are primarily involved in such work.

Issues Related to Gig Workers in India

• 1. Lack of Job and Social Security: Many gig workers in India are not covered by Labour codes and do not have access to benefits such as health insurance and retirement plans.
  2. They do not receive the same level of protection as traditional employees in the event of injury or illness.
  3. The gig economy heavily relies on technology and internet access, this creates a barrier for those who lack access to these resources, and further exacerbates income inequality.
  4. There is a lack of data and research on the gig economy in India which makes it difficult for policy makers to understand its size, scope, and impact on the economy and workforce
  5. The Gig workers in India are often paid less than traditional employees and may not have the same legal protections. Some companies may also exploit gig workers by misclassifying them as independent contractors to avoid liability and avoid paying taxes.

Worker Rights

1. The gig workers should have access to social security programs such as pension schemes and health insurance to ensure financial security for older workers and hence, they need to be covered under social security programs/regulations.
2. They should be granted the same Labour rights as traditional employees, including the right to organize and form unions.
3. The government should invest in education and training programs for gig workers to improve their skills and increase their earning potential.
4. The Government & Enterprises should encourage fair competition by having regulations that prevent companies from misclassifying workers as independent contractors and by enforcing fair trade practices.

Legal Protections

The regulatory framework governing the gig economy in India is gradually evolving to address these challenges. The introduction of the Code on Social Security, aimed at extending social security benefits to gig workers, marks a significant step forward. While the Code falls short of providing all benefits accorded to traditional employees, such as gratuity and employee provident fund, it lays the groundwork for state-specific rules and welfare schemes tailored to the needs of gig workers. The Contract Labour (Regulation and Abolition) Act, 1970 tries to provide scope for platform workers, by extending the definition of contract Labour to encompass platform Labour as well. But this extension is not something the legal system has recognized considering the various “platforms” do not extend benefits guaranteed to contract laborer’s to

Legal precedents and ongoing litigation highlight the efforts of gig workers to secure recognition and protections under existing laws. The case of All India Gig Workers Union v. Uber India Systems Pt. Ltd. exemplifies this struggle, where gig workers have contested Uber’s classification practices and demanded fair compensation and social security benefits.

The regulatory framework governing the gig economy in India is gradually evolving to address these challenges. The introduction of the Code on Social Security, aimed at extending social security benefits to gig workers, marks a significant step forward. While the Code falls short of providing all benefits accorded to traditional employees, such as gratuity and employee provident fund, it lays the groundwork for state-specific rules and welfare schemes tailored to the needs of gig workers.

By Sudeep Kumar Sen, Vice President at Gi Group Holding