Refocus on gig workers

The recent strike by Zomato-owned Blinkit delivery agents has once again brought to the forefront the issues plaguing the gig economy in the country and the reforms required to stop the exploitation of such workers.

Who is a ‘gig worker’?

• Gig workers refer to workers outside of the traditional employer-employee relationship.
• There are two groups of gig workers—
  • Platform workers: When gig workers use online algorithmic matching platforms or apps to connect with customers, they are called platform workers
  • Non-platform workers: Those who work outside of these platforms are non-platform workers, including construction workers and non-technology-based temporary workers.

Are gig workers ‘employees’ or ‘independent contractors’?

• Whether gig workers should be categorised as ‘employees’ or as ‘independent contractors’ has been a frequent debate. 
• However, given the unique nature of gig work, gig workers display characteristics of both employees and independent contractors and thus do not squarely fit into any rigid categorisation.
• As a result, gig workers have limited recognition under current employment laws and thus fall outside the ambit of statutory benefits.

What is the proposed law for gig workers?

• In keeping with the National Commission on Labour’s recommendation to consolidate central labour laws, the Ministry of Labour and Employment introduced the Code on Social Security, 2020 which brings gig workers within the ­ambit of labour laws for the first time.
• Definition: Under Section 2(35) of the Code, a ‘gig worker’ is defined as a person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship’.
• Benefits: Although the Code recognises ‘gig workers’ including platform workers, it distinguishes between such workers and employees.
  • While employees have benefits such as gratuity, employee compensation, insurance, provident fund, and maternity benefits, the Code only stipulates that Central and State Governments must frame suitable social security schemes for gig workers on matters relating to health and maternity benefits, old age security, education, provident funds, accident benefits, life insurance, disability insurance among others.
• Compulsory registration: The Code also mandates the compulsory registration of all gig workers to avail of benefits under the social security fund for gig workers.
  • National Social Security Board: The Code also envisages the constitution of a National Social Security Board by the Central government to monitor the implementation of such schemes.

What are the major concerns?

• Exclusion from major security codes: Out of the four new labour codes proposed, gig work finds reference only in the Code on Social Security. As a result, gig workers remain excluded from vital benefits and protections offered by other Codes such as minimum wages, occupational safety and health benefits, and overtime pay.
• Limited rights: They cannot create legally recognised unions and access a national minimum wage that applies to all forms of employment.
• No guarantee on minimum wages: The proposed law does not guarantee minimum wages for gig workers.
• No remedy for grievances: Gig workers also remain excluded from accessing the specialised redressal mechanism under the Industrial Disputes Act, of 1947, thus denying them an effective remedy for grievances against their employers.