Gig workers merit a better deal

A new legal framework that balances the growth of platform businesses with welfare of workers is needed

Gig workers are a highly visible group of professionals in urban India today. As per the Economic Survey 2020–21, India has emerged as one of the world’s largest countries for flexi staffing, or gig workers. The Code on Social Security, 2020, defines a gig worker as “a person who works and earns from such activity outside the traditional employer-employee relationship.” Platform-based workers, such as the delivery partners for Zomato and Swiggy and drivers from Ola and Uber, fall within the definition of gig workers.

India is a fertile ground for platform-based businesses due to its demography; thus, an exponential rise in such businesses is evident. While platform-based businesses have created unprecedented employment opportunities in the country, these jobs remain highly precarious.

Read | Digital platforms fail empathy test in gig workers’ jobs

Despite being the future of the working world, gig workers are often excluded from social security and labour legislation due to their ambiguous employment status. Ahead of India’s presidency in the G-20, wherein social security for gig workers has been identified as one of the priority areas for discussion, it becomes imperative to underscore the emerging role of gig workers in India’s economy and the precariousness associated with their jobs.

Given that social security and other basic labour rights like minimum wage, limits on working hours, etc. hinge on “employee” status, the independent contractor status of gig workers excludes them from getting such benefits and legal protections. Some of the biggest challenges associated with platform work are the lack of job security and uncertainty attached to the continuity of income due to the nature of the job being demand-based. The platform decides the consideration, and most of the platforms do not even provide them with the statutory minimum wage. The arbitrary algorithmic management practices and performance-based evaluation ratings further add to the woes as workers are under constant pressure to appease their clients for better reviews.

Additionally, platform-based models pose a significant hindrance to unionisation, thereby reducing the collective bargaining power of the workers. Unlike a traditional employment setup, platform workers do not work in physical proximity of each other, which hampers their collectivisation. In spite of such significant barriers, Indian gig workers have made tremendous efforts for unionisation. For instance, unions like the Sarvodaya Drivers’ Association and the Indian Federation for App-Based Transport Workers have led protests for better working conditions and wages in the transport sector. However, these unionisation efforts have not led to a significant increase in their bargaining power, as the platforms have not recognised this collective body of workers.

Considering ground realities, categorising platform workers as employees would provide them with legally protected employment benefits that are provided to ‘employees’ under the new labour law regime as well. There is a ray of hope as the government has recognised them and made provisions to protect them under one of the four newly introduced labour codes, the Code on Social Security, 2020. However, their exclusion from the other three codes cannot be ignored. Despite their large numbers, they are not guaranteed minimum wages, occupational safety, or regulated working conditions under the new labour codes. While a lack of legal protection and regulatory uncertainty surrounding gig work strengthen exploitative practices, ‘employees’ status may be detrimental to the business models of platform companies and reduce flexible job opportunities for gig workers as well.

What is needed is to categorise them as a separate class to ensure basic social security benefits and access to decent working conditions. The UK has adopted a similar model by categorising gig workers as “workers,” which is a category between employees and the self-employed. This secures them a minimum wage, paid holidays, retirement benefit plans, and health insurance. Similarly, in Indonesia, they are entitled to accident, health, and death insurance.

There is an urgent need to focus on the regulation of gig work in India, as it is expected to engage more than a million people in the coming decade, surpassing the Indian Railways, which is the world’s eighth largest employer. Further delay in instituting a regulatory framework for gig workers will impact India’s booming digital economy and its workers. The government must engage in tripartite consultations to understand the nuances of the gig economy and formulate an appropriate legal framework that balances the economic growth of businesses with the welfare of gig workers.

(The writer is a labour law enthusiast and works as a project fellow at the Vidhi Centre for Legal Policy.)