Gig Workers in India: Challenges and Regulatory Landscape

(General Studies III – Economy Section – Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Inclusive Growth and issues arising from it.)

• Gig workers are individuals who engage in short-term, flexible jobs or “gigs,” often facilitated by digital platforms or apps.
• These workers typically operate as independent contractors, performing tasks ranging from ride-sharing and food delivery to freelance writing and graphic design.

Issues Faced by Gig Workers –

1. Lack of employment status:  According to a 2020 survey by the Indian Federation of App-based Transport Workers (IFAT), 95.3% of gig workers are not registered as employees with the platforms they work for.
2. Income insecurity: A 2021 study by Fairwork India found that none of the 11 major platforms they evaluated could ensure that all their workers earned at least the local minimum wage after accounting for work-related costs.
3. Absence of social security benefits: NITI Aayog’s 2022 report on India’s gig economy revealed that only 23% of gig workers have access to any form of social security or insurance scheme.
4. Unregulated working hours: A 2021 survey by the Centre for Internet and Society found that 48% of ride-hailing drivers and 39% of delivery workers reported working more than 12 hours a day.
5. Limited collective bargaining rights: As of 2022, there are no officially recognized unions for gig workers in India, according to the International Labour Organization (ILO).
6. Occupational safety concerns: A 2022 study published in the International Journal of Health Services found that 90% of surveyed gig workers in India did not have any occupational accident insurance provided by their platforms.
7. Gender disparity: According to NITI Aayog’s 2022 report, women make up only 15% of the gig workforce in India.

Recent Legislative Efforts –

1. Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024
2. Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023
3. These bills aim to provide social security and welfare measures for gig workers through a welfare board model.

Limitations of the Bills –

1. Failure to address employment relations:
2. Both bills avoid classifying platform companies as employers, instead using the term “aggregators.”
3. This omission prevents gig workers from accessing key labor protections tied to employee status, such as minimum wage laws and collective bargaining rights.
4. Inadequate income security measures:
5. The Karnataka Bill, in Section 16, discusses income security only in terms of payment deductions but fails to guarantee a minimum income.
6. Neither bill establishes a minimum wage for gig workers or addresses the issue of fair revenue sharing between workers and platforms.
7. Limitations of the welfare board model:
8. Both bills adopt a welfare board model, which historically has shown poor implementation in other sectors.
9. For instance, the Construction Workers Welfare Act of 1996 and the Unorganized Workers Social Security Act have both struggled with fund utilization and benefit distribution.
10. Lack of regulation on working hours:
11. Neither bill addresses the issue of working hour limits for gig workers.
12. This omission leaves gig workers vulnerable to overwork, which can lead to fatigue-related safety issues, particularly for those in transportation services.
13. Ambiguity in social security provisions:
14. While both bills mention social security, they lack specifics on the extent and nature of these benefits.
15. There’s no clear provision for benefits like health insurance, accident insurance, or retirement benefits that are standard for regular employees.
16. Limited scope of worker protections:
17. The bills do not address key issues like occupational safety standards, leave entitlements, or protection against unfair termination.
18. This leaves significant gaps in the overall protection framework for gig workers.
19. Lack of clarity on dispute resolution:
20. While the bills mention grievance redressal mechanisms, they don’t provide clear, accessible processes for workers to address issues with platforms.
21. This could leave workers with limited recourse in cases of unfair treatment or contract violations.
22. Absence of data protection measures:
23. Despite the data-driven nature of platform work, neither bill adequately addresses data privacy and protection for gig workers.
24. This oversight leaves workers vulnerable to potential misuse of their personal and work-related data.

Case Study: United Kingdom’s Approach

In a landmark ruling, the UK Supreme Court declared Uber drivers as workers, not independent contractors. This decision applied existing UK labour laws to gig workers, ensuring they receive:

1. Minimum wage
2. Paid holidays
3. Rest breaks
4. Protection against unlawful discrimination

While the recent bills represent a step towards recognizing gig workers’ needs, they fall short of providing comprehensive protection. India could consider following the UK’s approach and address fundamental issues, which can create a more equitable and sustainable gig economy that balances flexibility with worker protection.