Context:
Recent draft rules issued under refreshed labour codes aim to extend social security to gig workers. However, the exclusion of wage protection and working condition safeguards has triggered widespread concern, culminating in a nationwide strike involving nearly one lakh gig workers on December 31.
Key Highlights:
- Policy Developments
- Labour Ministry released draft rules for public consultation to operationalise labour codes.
- Focus remains on social security coverage, not on employment rights.
- Gig workers are treated as a distinct category, separate from traditional employees.
- Gaps in Wage and Work Protections
- Code on Wages excludes gig and platform work from minimum wage guarantees.
- No safeguards against algorithmic pay cuts, fluctuating incentives, or opaque ratings.
- Working hours, occupational safety, and job security remain unregulated.
- Compliance and Registration Mechanism
- Gig workers must register on a designated portal.
- Aggregators must upload worker data quarterly.
- Eligibility requires:
- 90 days with a single aggregator, or
- 120 days across multiple platforms annually.
- Structural Concerns
- OSH&WC Rules rely on employer self-compliance via the Shram Suvidha Portal, unsuitable for app-based work.
- Social Security Fund obligations exist, but benefits are undefined.
- No clarity on dispute resolution, claim timelines, or minimum fund contribution.
Relevant Prelims Points:
- Gig Workers: Individuals engaged in short-term, task-based work via digital platforms.
- Aggregators: Digital platforms connecting workers with consumers.
- Social Security Fund: Financial mechanism to provide protection against old age, illness, disability, or unemployment.
- Shram Suvidha Portal is a digital compliance platform, not tailored for platform labour issues.
Relevant Mains Points:
- Exclusion from wage protection perpetuates structural precarity in the gig economy.
- Algorithmic management creates power asymmetry between platforms and workers.
- Registration-based eligibility risks exclusion errors, especially for informal and migrant gig workers.
- Social security without labour rights results in partial formalisation.
- Way Forward
- Redesign rules to ensure universal, portable, and accessible social security.
- Clearly specify benefits for illness, maternity, accidents, and income shocks.
- Mandate transparent earning statements and grievance redress mechanisms.
- Introduce minimum standards for fair pay and predictable working conditions.
UPSC Relevance:
GS Paper II – Governance, Social Justice
GS Paper III – Economy, Labour Reforms