TACKLING THE TUSSLE FOR LABOUR LAW PROCTECTION FOR GIG WORKERS
- Legal Services GNLU
- May 16
- 5 min read
Updated: Jun 9
By Saksham Gadia
Over the past ten years, India's gig economy has expanded rapidly, thanks to the growth of online marketplaces like Uber, Zomato, Swiggy, Amazon, and many more. Millions of people have had flexible work options because to this industry. However, serious labour legal issues associated with this increased freedom, putting gig workers in risky situations. Gig workers function as "independent contractors," which exempts them from most labour laws, unlike regular employees. They are denied vital safeguards like health coverage, pension plans, minimum wages, and collective bargaining rights because of this disparity.
A significant legislative attempt to address the issues gig workers confront is the Code on Social Security, 2020. Defining gig and platform workers makes them eligible for social security programs. This inclusion is still mainly surface-level, though. Since gig workers are not considered regular employees, they are not entitled to basic labour rights like job security, overtime compensation, and set working hours. Additionally, because the code's contributions are voluntary to gig workers, platform companies—many of whom put cost-cutting efforts ahead of employee welfare—are free to decide how to execute them. This omission, which essentially leaves gig workers' rights unprotected, highlights the inadequacy of the law in addressing their actual concerns.
The ambiguity surrounding gig workers' employment status causes a substantial legal void. Businesses use this uncertainty to evade responsibilities like offering pension benefits, paid time off, and health insurance. Platforms promote flexibility as a major benefit of gig employment.still, many gig workers feel great control over their jobs through performance reviews, fines, and deactivation procedures. Workers suffer the risks and expenses of employment, including petrol and car maintenance, without receiving the advantages that come with it because of this duality, which results in a pseudo-employment relationship. Gig workers have no recourse against unfair practices due to the lack of a standardised grievance redressal process.
Gig workers encounter difficulties with their working conditions in addition to legal problems. According to a recent poll,[SD1] gig workers in India frequently put in more than 10 hours a day, yet their pay is not enough to pay for necessities. Many workers' financial insecurity is exacerbated by arbitrary penalties and delayed payments. Another major worry is health hazards; gig workers frequently describe physical conditions like persistent back pain because of working long hours and getting little sleep. The absence of occupational health and safety regulations for gig workers highlights the urgent need for regulatory actions to guarantee respectable and safe working conditions.India may learn from other countries' experiences regarding gig worker rights. One significant precedent is the UK Supreme Court's decision to declare Uber drivers’ employees with the right to paid leave and minimum pay. Similarly, the original goal of California's AB5 legislation was to redefine gig workers as employees to guarantee that labour laws protect them. Although platform businesses have opposed these measures, they highlight the necessity for a global redefining of gig workers' employment status. These instances show that creative legal frameworks that guarantee sustainability and equality may be used to strike a compromise between the interests of platforms and workers.
Several Indian states have attempted to regulate gig employment. One example is the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023. This law aims to give gig workers access to social security benefits, including health insurance, disability coverage, and old age protection. However, its limited relevance to Rajasthan and its dependence on platforms' voluntary collaboration casts doubt on its efficacy. Furthermore, the absence of a centralised mechanism to ensure compliance highlights the difficulties of putting state-level measures into action in a gig economy controlled by national and international actors.
One common argument against offering comprehensive labour rights is the platform firms' financial viability.[SD2] Businesses contend that mandated labour regulations or social security contributions might raise operating expenses, which could result in lower worker wages or higher consumer prices. However, this argument must be balanced with gig workers' fundamental right to equitable treatment and financial stability. The foundational tenets of labour law—equity and justice—are compromised when gig workers are exploited for cost effectiveness.
The existing legal structure for the gig economy ignores the special characteristics of gig labour, which fall somewhere between autonomous contracting and regular employment. This necessitates the creation of a hybrid paradigm that guarantees access to fundamental labour rights while accommodating the unique features of gig employment. The implementation of grievance redressal procedures, minimum wage safeguards, and universal social security coverage should be given top priority in such a system. This approach can reduce the hazards of precarious employment while maintaining the flexibility that attracts gig workers by offering a safety net.
The lack of collective bargaining rights increases gig workers' vulnerability. Unlike regular employees, gig workers cannot organise unions to bargain for improved pay or working conditions. The current labour rules, such as the Trade Unions Act 1926, do not consider the difficulties that gig workers encounter. Platform businesses frequently resist unionisation because of the flexible nature of gig labour. Due to the power imbalance caused by this lack of representation, businesses can unilaterally set terms and conditions. To address this issue, labour laws must be changed to acknowledge gig workers' freedom to take collective action without fear of retaliation.
The influence of technology, especially algorithms, on working conditions is another crucial component of gig employment. Task allocations, payment schedules, and performance reviews are all decided by algorithms, sometimes in an opaque manner. This opacity may result in capricious judgements that negatively impact employees' incomes and job stability. To shield gig workers from unfair treatment, algorithmic accountability and transparency must be guaranteed. Platforms ought to be compelled to reveal the standards by which judgements are made and give employees a way to challenge unjust rulings.
It is impossible to overstate the gig economy's impact on India's labour market. Millions of people, especially those living in rural and semi-urban regions with few traditional job options, can find work thanks to it. Nonetheless, the rights and welfare of workers must not be sacrificed for this expansion. To develop a legal framework that balances between security and flexibility, policymakers, platform firms, and employees must work together.
In conclusion, the gig economy’s explosive growth has highlighted serious weaknesses in India's labour regulations. Although state-level programs like the Rajasthan Act and the 2020 Code on Social Security are positive milestones, they do not offer gig workers complete security. A national legislative framework defining gig workers' status and granting them fundamental labour rights and social security benefits is desperately needed. By tackling these problems, India can guarantee that the gig economy develops in a fair and long-lasting way. In addition to being required by law, defending gig workers’ rights is also morally right and consistent with the larger objectives of social fairness and economic growth.
Keywords: Gig workers, Labour Law, socio-economic rights, Code on Social Security
[SD1]Cited Chatgpt. Not reliable source or a website that can be cited. Chatgpt link not reachable as they are account specific and cannot be shared or opened by anyone else.
A few poll report links are here:
[SD2]citation unreachable
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