Globally and especially in India, the gig economy has drastically changed the nature of work. The gig economy is a movement away from traditional full-time occupations and towards more flexible, freelance, and short-term contracts, driven by the growth of internet platforms. Deliveries, ride-hailing drivers, independent contractors in the fields of design and information technology, in layman’s terms- the delivery executives of Zomato/Swiggy/Myntra/Flipkart and many more are also one of the prime examples of gig workers in India. India’s growing technological sector, high unemployment rate, and sizable population that is open to flexible work schedules have all contributed to the country’s remarkable success in this area. Although the gig economy gives workers new options, it also brings up important issues like social security, labor rights, and whether current labor regulations are sufficient to safeguard this new group of workers. The growth of the gig economy in India, its effects on the workforce, and how Indian labor laws are changing in response to this development are all covered in detail in this article.
GROWTH OF PLATFORMS
With the growth of online marketplaces like Uber, Ola, Swiggy, Zomato, UrbanCompany etc., India’s gig economy has grown. With the help of these platforms, employees can operate as freelancers without any long-term commitment that comes with regular employment skipping the long lost way of monotonous work-life culture. These platforms’ flexibility has drawn a diverse workforce, including workers from smaller towns and rural locations as well as millennials seeking extra cash. Keeping everything apart, the concept of Gig Employment is not only flexible but also is helpful for the students/ part time job seekers who use to make fruitful use of their spare time instead of sitting idle.
The freedom to select their own work schedule and tasks is what attracts gig workers in India. Many people find gig labor to be an alluring substitute for traditional employment, particularly those who have other commitments or family responsibilities. However, the main issues these workers face are the absence of social benefits, standard pay, and job stability.
CHALLENGES FOR GIG WORKERS IN INDIA
Lack of Social Security. In India, gig workers are frequently categorized as “independent contractors” as opposed to employees. According to labor rules, they are therefore not eligible for benefits like health insurance, paid time off, or pensions that are normally granted to regular employees. Gig workers are exposed to health and financial hazards because to the absence of social security.
Absence of Job Security. Since gig workers typically don’t have long-term employment contracts, their positions are extremely precarious. Without warning or explanation, platforms have the right to cut off or cancel employment possibilities, depriving employees of a reliable source of revenue.
Uncertainty of Income. Gig workers don’t have a set monthly salary as salaried workers do. Their pay is determined on how many jobs they finish or how many hours they put in, and these might change depending on platform algorithms and demand.
Working Conditions. Gig workers frequently put in long hours in difficult circumstances, particularly those employed by delivery and ride-hailing services. The absence of safety precautions, such as defense against harassment and mishaps, is a cause for worry.
INTERNATIONAL REGULARISATION OF GIG ECONOMY
With the point of view of recognizing and safeguarding the rights and interests of the Gig Workers, there are a few international recognition for the same.
UNITED DECLARATION OF HUMAN RIGHTS
It is explicitly mentioned under Article 231 of the UDHR that, “every person is entitled to have right to just and favorable working conditions.” While coming forward to remunerating the workers, it should be made and judged on the basis of equity as everyone irrespective of their race, nature of work, place of birth is entitled to live with dignity and social protection.
INTERNATIONAL CONVENANT ON ON ECONOMIC, SOCIAL AND CULTURAL RIGHTS
Under the said Convention, it mandates the State under Article 72 to award certain rudimentary rights to everyone which also include the Gig Workers. Those rudimentary rights can be briefly penned down as- remuneration to all workers in exchange of the service they provide (quid pro quo), furnishing a decent standard of living, provision of proper resting hours (hours where no professional work has to be done) along with leisure hours. Furthermore, under the said convention Article 83 also accords the workers to form a trade union/ association.
INTERNATIONAL LABOUR ORGANIZATION (ILO)
The gig economy has brought both possibilities and difficulties, and the International Labour Organization (ILO) has been actively involved in tackling both. The ILO is tasked with advancing social justice and globally acknowledged human and labor rights as a specialized agency of the UN. The preservation of workers’ rights, job stability, and social security have become worldwide concerns due to the gig economy’s emergence. To address these concerns, the ILO has been conducting research and developing policies.
- Equality of Treatment: The ILO convention named The Equal Remuneration Convention, 19514 states that any individual or a person should be remunerated solely based on the nature and calibre of their individual work and not on any favoritism basis, moreover, no discrimination shall be based distinguishing men and women irrespective of their calibre.
- Working hours and other standard protection for workers: The ILO has recommended its recommendation No. 182 on this notion that the interest and rights of the gig workers shall be safeguarded by establishing the working hours and the work time along with leisure time of a worker solely based on the needs, expectations and nature of work for which they are recruited for. Workers with Family Responsibilities Recommendation under Recommendation No. 1655 have also penned down to provide adequate, proper and safe working conditions alongwith flexible hours of work.
- Social Insurance: The ILO Part Time Work Convention, 1994 I.e., Convention No. 1756 makes sure workers have an insurance especially who are working with multiple employers; meaning one delivery executive might be working with Zomato as well as Swiggy and likewise. The said insurance would be accorded on the basis of hours of working and their earning.
- Unemployment Insurance: It is a general notion that for people who are duly employed, are provided with an insurance or are entitled to get an insurance, however what about those who are unemployed currently and do not have a job per se. Under the Employment Promotion and Protection against Unemployment Convention, 1988 I.e., Convention No. 1657 it is mentioned that, it is the duty of the state to provide vocational training, awareness calls and etc to improve the skills of the people who are currently unemployed, encouraging them to brush up their calibre for being eligible for a job and boosting their confidence.
- Collective Bargaining and Forming Association: Under the Private Employment Agencies Convention 1997 I.e., Convention No. 1818 it is stated that workers are free to demand for collective bargaining and are equally free to form associations or formulate trade unions. This convention is yet another employee centric convention that imposes a duty on the employer to facilitate or benefit the employee with these provisions.
LEGALITY OF GIG ECONOMY IN INDIA
Even though there is no explicit legislation which reflects that India has officially recognized the notion of Gig Economy, there are various precedents every now and then which proves the same. In a 1956 case of Dhrangadhara Chemical Works v. the State of Saurashtra9 the Hon’ble Apex Court laid down various set of principles on conducting a test in order to verify the control and supervision of the employer- employee relationship. We all must have noticed, there was a sudden wave on rising of the notion of Gig Workers in India especially during the COVID-19 pandemic for the sudden unfortunate recessions many MNCs had to perform, there was no new recruitment conducted for the world going to work from home methods and companies had to operate on lesser than 50% of working staffs, hence to protect and safeguard the said Gig workers the Social Security Code, 202010 was enacted after being assented by the then President of India. The very act got the name and title of “Social Security Code” for its provisions safeguarding the interests and rights of the Gig Workers. Under the said Act, a “Gig Worker” has been defined u/s 2(35) that “a gig worker means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship.”
POSSIBLE SOLUTIONS FOR PROTECTION OF GIG WORKERS IN INDIA
The first and foremost solution being the update of labor laws, putting new social protection mechanisms in place, and making sure that working conditions are fair and transparent are all part of India’s multifaceted strategy to safeguard gig workers. Establishing protections for the rights and welfare of gig economy workers is essential, especially in industries like delivery, ride-hailing, freelancing, and home services, where the number of workers is increasing. Gig workers are typically classified as independent contractors, which limits their access to benefits provided to traditional employees. India could explore creating a new category of workers, such as “dependent contractors” or “platform workers,” who would be entitled to certain protections and rights while maintaining the flexibility that gig work offers. Gig and platform workers are currently recognized under Social Security Code, 2020, but the government may make this stronger by establishing more specific rules for their job status. Without necessarily classifying them as full-time workers, these classifications ought to grant them access to specific safeguards.
It may become essential for platforms to offer insurance coverage, such as health and accident insurance. This would provide coverage for gig workers in the event of an accident or emergency, particularly for those working in high-risk industries like delivery and ride-hailing.
Platforms could be required to guarantee that gig workers get a minimum wage while working. This might be paying employees during periods of low demand or guaranteeing that they get a minimal base salary for every activity performed, independent of the algorithm or the needs of the client.
The government may set up a separate regulatory agency or ombudsman to handle grievances from gig workers and make sure platforms are held responsible. This committee might assist in impartially and equitably resolving conflicts between platforms and employees.
1 https://www.humanrights.com/course/lesson/articles-19-25/read-article-23.html
2 https://www.ohchr.org/en/instruments-mechanisms/instruments/international-covenant-economic- social-and-cultural-rights
3 https://www.ohchr.org/en/instruments-mechanisms/instruments/international-covenant-economic- social-and-cultural-rights
4 https://normlex.ilo.org/dyn/nrmlx_en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C100
5 https://normlex.ilo.org/dyn/nrmlx_en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:R165
6https://normlex.ilo.org/dyn/nrmlx_en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_INSTRUME
7https://normlex.ilo.org/dyn/nrmlx_en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_INSTRUME
8https://normlex.ilo.org/dyn/nrmlx_en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_INSTRUME
9 https://indiankanoon.org/doc/1996477/
10 https://labour.gov.in/sites/default/files/ss_code_gazette.pdf
