The Gig Economy: A Double-Edged Sword for Workers in the Post-COVID Era
The COVID-19 pandemic, which led to unprecedented lockdowns five years ago, transformed the landscape of work, particularly for gig workers. As people were confined to their homes, the demand for delivery services surged, positioning gig workers as essential frontline warriors. However, despite their critical role, these workers faced a paradox: while their services were in high demand, their wages and benefits dwindled as the pandemic progressed.
The Gig Economy: A New Kind of Workforce
Gig workers, often referred to as "partners" by the platforms that employ them, operate outside the traditional employer-employee framework. The e-Shram portal of the Ministry of Labour and Employment classifies them as contract workers, which places them outside the purview of conventional labor laws. This classification creates a murky situation for gig workers, who lack the protections afforded to traditional employees.
During the pandemic, platforms emphasized stringent hygiene standards to reassure customers about safety. Yet, gig workers themselves were highly vulnerable to infection, often without adequate support or resources. Communication with platform management was challenging, leaving many workers unable to voice their concerns. As a result, wages stagnated or even decreased, forcing workers to rely on family support to navigate this uncertain period.
The Impact of the Pandemic on Gig Workers
The lockdown severely impacted contact-intensive sectors like beauty services and taxi operations, leading to significant job losses. Despite the surge in online activity, many gig workers found themselves in precarious situations, struggling to make ends meet. The pandemic highlighted the vulnerabilities of gig workers, who, while essential to the functioning of the economy, were often overlooked in discussions about worker rights and protections.
As the pandemic progressed, customers began tipping delivery workers more frequently, a small gesture of appreciation that underscored the workers’ struggles. However, this reliance on tips did little to address the systemic issues facing gig workers, such as job insecurity and lack of benefits.
A Glimmer of Hope: Government Initiatives
Recently, the gig economy has gained renewed attention, particularly with the inclusion of gig workers in the 2025-26 Budget under a government health scheme. This initiative aims to provide some level of security to gig workers, who have historically been left out of social safety nets. Additionally, plans for registration are underway, which could help gather better data on this growing workforce.
Manpower consultancies predict a significant uptick in the hiring of temporary workers in the coming months, particularly in sectors like quick commerce, e-commerce, and hospitality. While this surge in demand is promising, it is essential to recognize that these positions are often temporary and lack the security of permanent employment.
The Need for Comprehensive Welfare Provisions
The uncertain nature of gig employment has prompted the government to extend a public health scheme to gig workers, aiming to alleviate some of their financial burdens. However, this is just the beginning. A 2022 study by the Niti Aayog estimated the gig workforce at 7.7 million, projecting it to rise to 23.5 million by 2029-30. Despite the growing numbers, the 2020 Code on Social Security, which includes provisions for gig workers, has yet to be fully implemented.
Online platforms have expressed concerns about excessive regulation, arguing that they provide flexible job opportunities and benefits without legal mandates. While it is true that temporary workers cannot be treated the same as permanent employees, there is a pressing need for platforms to acknowledge the realities of gig workers’ lives.
Addressing the Realities of Gig Work
The experiences of gig workers during the pandemic serve as a cautionary tale. Many consumers have witnessed the exhaustion of delivery workers, some even providing food to famished drivers. The pressure to take on multiple assignments often leaves gig workers sleep-deprived and overworked, highlighting the need for better working conditions.
To ensure the dignity and security of gig workers, the government must collaborate with online platforms and traditional industries to develop comprehensive welfare provisions. While health insurance is a positive step, discussions must also encompass disability coverage, accident insurance, maternity benefits, and sustainable wage levels.
Conclusion: A Path Forward
The gig economy has become an integral part of the modern workforce, but it is essential to address the challenges faced by gig workers. As the demand for temporary and gig employment continues to rise, the need for a robust framework that protects these workers is more critical than ever. By implementing comprehensive welfare measures and fostering collaboration between stakeholders, we can create a more equitable and secure environment for gig workers, ensuring they receive the respect and support they deserve in their vital roles.
