The gig economy in India is booming, with platforms like Ola, Uber, Swiggy, and Zomato providing millions of gig jobs to the country’s youth. It is estimated that by 2024, India will have a staggering 350 million gig jobs, highlighting the significant role these platforms play in the country’s employment landscape. However, despite the rapid growth of the gig economy, gig workers in India face a myriad of challenges when it comes to basic employment rights and protections.
One of the key issues facing gig workers in India is their classification as “independent contractors,” which often excludes them from the rights and benefits afforded to traditional employees under Indian labor laws. This means that gig workers have limited access to essential benefits such as paid leave, health insurance, and social security. Additionally, since their terms of work are governed by service agreements rather than employment contracts, gig workers often lack rights related to work hours, grievance redressal, and termination benefits.
In an effort to address these challenges, the Indian government introduced the Code on Social Security in 2020, which includes gig and platform workers as eligible for specific benefits like health insurance, accident insurance, and retirement support. While this initiative marks a significant step towards recognizing the needs of gig workers, the implementation of the Code has been delayed and remains unclear. The Code relies on contributions from the government and digital platforms, rather than establishing a formal employer-employee relationship between gig workers and gig companies, posing challenges in creating sustainable social protections for gig workers.
One major hurdle in enforcing social security for gig workers is the unclear mechanism for funding and managing the Social Security Fund. The Code suggests contributions from platforms and government bodies, but there is limited clarity on specific contribution requirements and enforcement. To address this issue, the government could consider requiring gig platforms to make mandatory financial contributions toward social security for gig workers, based on specific metrics like hours worked or earnings generated.
Indian courts have also played a role in shaping the legal landscape for gig workers, with cases like All India Gig Workers Union v. Uber India Systems Pvt. Ltd highlighting the need for better protections for gig workers. The Indian Federation of App-based Transport Workers has filed a Public Interest Litigation in the Supreme Court, advocating for the classification of gig workers as “unorganized workers” to ensure they are eligible for social security benefits under existing labor laws.
Looking to international models for inspiration, countries like the United Kingdom and the United States have influenced India’s regulatory approach to the gig economy. The UK Supreme Court’s ruling that Uber drivers are ‘workers’ and entitled to basic rights like the minimum wage and holiday pay could serve as a model for India to ensure gig workers receive essential protections.
To create a more balanced gig economy, India could benefit from policies that promote portable benefits, allowing gig workers to carry benefits from job to job. Additionally, requiring mandatory contributions from gig platforms to the Social Security Fund and introducing portable benefits would ensure gig workers have access to essential protections like healthcare and retirement savings across different platforms.
As India continues to navigate the evolving gig economy, it is crucial to strike a balance between providing fair treatment, essential benefits, and security for gig workers while preserving the flexibility that defines gig work. By learning from international frameworks and strengthening domestic legal structures, India has the opportunity to create an inclusive system that protects gig workers’ rights and provides a stable foundation for this rapidly expanding sector.
