Context:
On December 31, gig workers across platforms logged off to protest exploitative working conditions and lack of social security. The issue highlights structural gaps in India’s labour regulation concerning the gig economy.
Key Highlights:
Nature of the Problem
- App-based aggregators avoid classification as employers.
• Gig workers treated as independent contractors/self-employed.
• Lack of formal contracts and grievance redress mechanisms.
• Algorithm-driven incentive and penalty systems.
Legal Framework
- Labour Codes (2020) recognize gig workers for limited social security benefits.
• No inclusion under:
– Minimum wage protections
– Collective bargaining rights
– Employment security - Some states (Rajasthan, Karnataka) introduced social security-focused legislation.
Structural Issues
- Workers bear risks of:
– Sickness
– Accidents
– Income volatility - Rapid growth of gig work due to unemployment.
• Urban consumers benefit from low-cost services.
Global Developments
- Countries like Mexico and Brazil moving toward employee recognition models.
• Debate on hybrid classification models (dependent contractor status).
Relevant Prelims Points:
- Gig Economy – Short-term, task-based employment model.
• Code on Social Security, 2020 – Recognizes gig and platform workers.
• Distinction between employee vs independent contractor.
• Concept of algorithmic management.
Relevant Mains Points:
- Raises issues of labour rights, social justice, and informalisation.
• Challenges traditional employer-employee legal definitions.
• Highlights need to balance:
– Innovation
– Platform economy growth
– Worker protection - Expanding gig work may deepen inequality without safeguards.
• State intervention crucial to prevent exploitation.
Way Forward
- Legally clarify employment status of gig workers.
• Ensure universal social security coverage.
• Mandate transparency in algorithmic decision-making.
• Establish tripartite dialogue mechanisms.
• Promote portability of benefits.
UPSC Relevance:
- GS 2 – Social Justice (Vulnerable Sections, Labour Rights)
• GS 3 – Economy (Platform Economy, Employment)
• GS 2 – Polity (Labour Codes)