Imagine a freelancer creating signs for visitors halfway over the world, a hack driver hooked onto an app while waiting for the incoming lift, or a food delivery rider navigating through business under the blazing sun. They are all a part of India’s rapidly expanding gig economy, which is driven by apps, lack of flexibility, and immediate job vacancies. However, the promise of freedom and rapid income belies a more significant query: what about their labour rights?
Gig workers, in contrast to traditional labourers, sometimes lack job stability, a small salary, and social security. Debates about the future of labour rights have been triggered by the tension between fairness and rigidity as India becomes one of the world’s biggest gig workers’ hub. Gig workers are building the unnoticeable backbone of the ultramodern frugality-flexible for everyone but themselves, erecting a system that frequently forgets to make for them.
Who are Gig and Platform Workers?
A statutory definition is provided by the 2020 Code on Social Security, which is not yet fully enforced:
• Someone who works outside of the conventional employer-employee relationship is known as a gig worker.
• Platform Worker: An independent contractor who makes money via an app or web platform.
Gig workers were initially included in the legal framework by the 2020 Social Security bill. “A person who participates in a work arrangement and earns from such conditioning outside of a regular employer-employee relationship” is the definition of a gig worker under Chapter I, Section 2(35).
“A work arrangement outside of a traditional employer-hand relationship in which organizations or individuals use an online platform to pierce other organizations or individuals to break specific problems or to give specific services or any similar other conditioning which may be notified by the Central Government, in exchange for payment,” is how the Code defines platform work.
Although this definition distinguishes between formal and informal orders, it is not clear what a gig worker is or what gig employment entails. As stated in the 2022 study “India’s booming Gig and Platform Frugality” by NITI Aayog, by 2029–2030, the gig pool is expected to grow to 23.5 million. The PLFS, India’s main source of labour data, nevertheless accepts gig work despite previous proclamations and strives to characterize it, using ambiguous terms like “tone-employed,” “own-account workers,” or “casual labour.” There are immediate repercussions for this statistical invisibility.
The Central Government shall create a Social Security Fund for the social security and welfare of unorganized workers, gig workers, and platform workers, according to Clause 141 of the 2020 Social Security Law. Additionally, the National Social Security Board, which was established in accordance with Section 6 of the 2020 Social Security law, is tasked with designing and managing welfare programs for platform and gig workers. Similar work boards and legislators rely on the PLFS for “substantiation-grounded policy,” but its genuine goal is compromised by the lack of a specific order for gig and platform workers.
In primary datasets, access to schemes becomes unequal and discriminatory when the bracket itself is ambiguous. Even while gig workers play a significant role in India’s economy, their legal rights are still mostly unclear and unprotected. Due to their status as neither fully independent contractors nor typical employees, gig workers are susceptible to exploitation and lack of access to fundamental labour laws. This blog examines recent regulatory changes, the legal environment for gig workers in India, and the future.
The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023
With a comprehensive legal framework known as the “Rajasthan Platform Grounded Gig Workers (Registration and Welfare) Act, 2023 (Act),” which was introduced before the Rajasthan Legislative Assembly on July 21, 2023, and passed on July 24, 2023, Rajasthan has taken the lead as the first Indian state to regulate and support the growing gig economy. The Act seeks to provide crucial social security and important benefits to the affected class of workers through its provisions. Even while the Social Security 2022 law acknowledges gig and platform workers and aims to provide them with a central role in the benefits system, its implementation is still ongoing. Rajasthan has taken a bold effort to address these challenges from a state perspective in the meantime.
The Growth Story of the Gig Economy in India
India’s digital revolution, brought in by the country’s rapid internet adoption, has made smartphones and inexpensive data accessible to a sizable working population and a pool that is constantly expanding by an astounding four million, the introduction of gig economy has had a significant impact on India’s labour demand. Therefore, India’s gig economy is driven by digitization, internet penetration, a digitally savvy workforce, information technology developments, and a thriving incipiency culture.
In recent years, we have witnessed the rapid expansion of online service-providing applications like Uber, Ola, Swiggy, and Zomato, which have seized various segments of the Indian market. These businesses are the biggest employers of gig economy workers in India. Consequently, India has emerged as one of the world’s leading hubs for gig economy frugality (Radhakrishnan A. 2020).
In wealthy nations, between 20 and 30 percent of the workforce works independently, according to a McKinsey assessment (Manyika et al. 2016). According to a different study called “perceptivity into the freelancer’s ecosystem,” which was carried out by PayPal in 2017 with 500 Indian freelancers, 41 of them have seen notable growth, with 80% of them working with both domestic and foreign clients. App-based technology has made it easier for buyers and merchandisers to contract labour directly, and it has gradually supplanted intermediaries.
In terms of gig work, platforms like Upwork, Flexing It, and Team Lease are settlers at the Indian van. The India Team Lease study (2019) states that approximately 1.3 million workers participated in the gig economy in the second half of 2018. which, in comparison to the first half, increased growth by 30%.
Challenges Associated with Gig Work
Gig labour has several risks and questions in addition to independence and rigidity. The internal strain of working in equally harsh situations has been largely ignored by gig labour proponents. Many respondents claimed that because of the question that arises from the nature of the employment, this line of work could not be regarded as a viable career choice. The lengthy hours and demanding working circumstances that gig workers are subjected to are mentally taxing. Driving under business conditions for more than twelve hours a day might cause a great deal of internal stress and annoyance in a metropolis like Bangalore. These are elements that are often overlooked.
An X Representative said: “We are quite concerned about the drivers’ internal stress. Driving is generally thorny in business-oriented metropolitan cities like Bangalore. They arrive mentally irritated, which may result in further problems. We attempt to address this by providing consoling sessions for the drivers; however, this isn’t as successful as we would like it to be.
The Silent Cry of Gig Economy
• Inconsistent earnings and no job stability
Gig workers are not paid on a regular basis. The app’s system, user demand, and the industry they operate in all effect how much they make. This implies that neither a minimal wage nor a steady work is guaranteed.
• Lack of Social Security
The majority of gig workers do not receive benefits like health insurance, paid holidays, provident funds, or retirement assistance like normal employees do.
• Unexpected Deactivation of Accounts
In violation of fundamental justice, many workers lose access to the platforms they rely on without receiving a thorough explanation or an opportunity to defend themselves.
• Prolonged Working Hours
Due to stringent regulations, fines, and incentives based on performance, gig workers frequently force themselves to work 10–12 hours a day with no time for adequate relaxation.
• No Complaint Mechanism
Employees typically don’t have a clear or trustworthy mechanism to file grievances. Additionally, there isn’t a designated labour body or tribunal to handle gig work related claims.
Judicial Perspectives and Case Laws on Gig Economy
Gig workers have not yet been definitively classified as “employees” by Indian courts. Nonetheless, there are significant examples worldwide:
• Uber Case, 2021: The UK Supreme Court ruled that Uber drivers are “workers” with the right to holiday pay and the minimum wage.
• California’s AB5 Law (USA): Unless certain requirements were fulfilled, businesses such as Uber and Lyft were required to treat gig workers as employees.
These decisions may have an impact on future Indian jurisprudence even if Indian courts have not yet issued equivalent declarations.
Recommendations for a Fair Gig Economy
• Implement a digital registration system and clear regulations for the Social Security Code of 2020;
• Verify the transparency and traceability of aggregator donations to the welfare fund;
• Create state and platform-level grievance redressal procedures;
• Ensure freedom of association and acknowledge platform worker unions;
• Establish uniform minimum safety and income requirements for all platforms.
Conclusion
India is at a pivotal juncture, with the promise of a digital, flexible economy on one side and the need to protect workers’ dignity. Ensuring social justice and fairness is equally as important as enacting legislation to defend gig workers’ rights. Millions of people have benefited from the gig economy’s flexibility and opportunity, but workers are now more susceptible to job insecurity and fluctuating wages. Although recent initiatives like Rajasthan’s 2023 law and the Social Security Code, 2020, are positive, India has to make more persistent and robust efforts to genuinely ensure the future of gig workers.
This is a guest post submitted by Deshbandhu Meena who is a student of law from National Law University, Sonipat.
