Open Access Research Article
GIG ECONOMY WORKERS RIGHTS AND CHALLENGES - AN EFFECTIVE ANALYSIS
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Article Details
GIG ECONOMY WORKERS RIGHTS AND
CHALLENGES – AN EFFECTIVE ANALYSIS
AUTHORED BY - S SUBASHINI
Assistant Professor of Law
Mother Terasa Law College, Pudukkottai
ABSTRACT:
This research paper is on the
analysis of gig workers rights and challenges faced by them in India. It also
focuses on the law of England, California on this gig worker. It focuses on how
far this gig economy has been developed in India and what are the advantages
and challenges of gig economy. This paper also gives a rough chart on how far
there is a growth of gig economy over the last decade. It explains the laws
that are prevalent for the gig workers in India.
KEYWORDS: Gig
economy, Workers, India, England, Challenges, Advantages.
INTRODUCTION:
Gig workers are self employed workers
who work for online platforms such as Ola, Swiggy, Zomato, Lyft, Uber, etc. A
gig economy is a free and global market where companies and contractors set
short-term and on-demand professional relationships that are both flexible and
skill-based. In other words, digital platforms allow freelancers or people with
a fulltime job wanting to make extra money to show their skillset. At the same
time, businesses can choose specialized staff from all over the world. This
allows them to afford expensive skills for a short period or to have low
recruitment and selection costs as there’s a large pool of candidates to choose
from.[1]
They do not have same employment rights as how traditional workers have. They
are paid as per their work completion. Once their task is completed they are
paid for it. Gig workers do work as they like. They can have their own flexible
choices of work, time period of work. They earn extra money apart from their
normal work. Though gig workers have flexibility in work yet they face
challenges. In this article we will discuss in detail the rights and challenges
faced by the gig workers. According to the Social Security Regulations (India),
2020, “Gig is a worker who works outside the traditional employer-employee
relationship or participates in a labour contract and earns income from such
activities.
GROWTH DRIVERS OF THE GIG ECONOMY IN INDIA:
Rise of the Internet Technology:
The widespread acquisition of
smartphones and the availability of high-speed internet has made it easier for
workers and businesses to connect through online platforms, facilitating the
growth of the gig economy.
Rising levels of education and skills:
As more people in India attain higher
levels of education and develop specialized skills, they are increasingly
seeking out opportunities to apply their knowledge and expertise through gig
work.
Urbanization and rising consumer demand:
Rapid urbanization in India is making
middle class to continue grow, has created a large demand for gig workers in
various sectors such as transportation, delivery, home services, and
e-commerce.
Entrepreneurship:
The gig economy has also given rise
to a new breed of entrepreneurs who use digital platforms to start their own
businesses and offer their services to customers around the world.
Supportive government policies:
The Indian government has been
supportive of the gig economy and has taken several initiatives to promote it,
such as the Digital India program, Start-up India, and Skill India.
Economic Liberalisation:
The Indian government's economic
liberalisation policies have led to rise in competition and a more open market,
which has encouraged the growth of the gig economy.
Increasing Demand for Flexible Work:
The gig economy is particularly
mesmerizing for Indian workers who are looking for flexible work arrangements
that allow them to balance both their personal and professional lives.
Demographic Factors:
The gig economy is also managed by
the large and growing number of young, educated and aspiring Indians who are
seeking to improve their livelihoods with side income generation.[2]
ADVANTAGES OF GIG ECONOMY FOR WORKERS AND BUSINESSES:
ü Cost Effectiveness
ü Support for Short – term projects
ü Positive correlation to output
production.
ü Ability for the business to scale up
fast
ü Diverse pool of talent
ü Wide range of job
ü Independence
ü Flexibility of work[3]
CHALLENGES FOR THE WORKERS:
ü The lack of job security, proper
contracts, medical coverage and workplace benefits
ü The lack of transparency and
predictability in working conditions
ü The increasing isolation of gig work
ü Income instability
ü Retirement planning
ü Setting boundaries at work
ü Lack of Formalization
ü Limited opportunities for up skilling
and career advancement.
ü Unequal bargaining power
LAWS FOR THE GIG WORKERS:
In India, the labour laws are
primarily designed to protect traditional employees, leaving gig workers. Gig workers
are often divided as independent contractors, which exempts them from various
labour laws such as the Employees’ Provident Fund Act, the Employees’ State
Insurance Act, and the Industrial Disputes Act. This lacuna in legal protection
makes it difficult for gig workers to seek recourse in case of unfair
treatment, discrimination, or exploitation.
Minimum Wages and Fair Remuneration:
Many gig workers earn wages below the
minimum wage declared by the government, which is a violation of labour laws. There
is a need for transparent and fair wage-setting systems that consider factors
such as distance, time spent, and effort required for each gig task. Together
with it gig workers should have access to information about the payment
structure and calculation methods used by platforms, and any changes to payment
algorithms should be open and communicated in advance.
Social Security and Benefits:
Gig workers should have access to
social security benefits, including health insurance, disability and maternity
benefits. The existing social security schemes should be enabled so as to cover
gig workers, considering their fluctuating incomes and irregular working hours.
Platforms must contribute to social security funds on behalf of gig workers,
and workers should have the flexibility to choose and change between different
schemes based on their needs. Furthermore, gig workers should be provided with
paid leave, including sick leave, annual leave, and maternity/paternity leave,
to ensure their well-being and work-life balance.
Occupational Safety and Health:
Gig workers, particularly those
involved in ride-hailing and food delivery, face occupational hazards such as
accidents, injuries, and health risks. Platforms should make sure that gig
workers are provided with adequate safety measures, training, equipment, and
insurance coverage. Platforms should also establish systems for gig workers to
report for safety concerns and incidents, and take prompt action to address
them. Occupational health and safety rules should be enforced, and gig workers
should have access to medical care and compensation in case of work-related
injuries or illnesses.
Grievance Redressal and Dispute Resolution:
Gig workers should have access to
fair and productive grievance redressal and dispute resolution systems.
Platforms must establish clear pathways for workers to raise concerns, report
grievances, and seek resolution. Platforms should appoint unbiased and
independent dispute resolution committees to handle disputes between gig
workers and platforms. Workers should also have access to judicial remedies and
should be protected against retaliation or discrimination for exercising their
rights.
Collective Bargaining and Representation:
Gig workers should have the right to
organize, form trade unions, and take part in collective bargaining to
negotiate better working conditions and benefits with the platforms. The
current labour laws in India do not expressly recognize gig workers’ right to
union and there are challenges in organizing gig workers due to their scattered
and short – term nature of work. Yet, there is a need to recognize and protect
the collective bargaining rights of gig workers, as it can give them with a
stronger voice and bargaining power in negotiations with platforms. Platforms
should also involve in meaningful dialogue and consultation with gig workers
and their representatives to address their concerns and improve their working
conditions.[4]
In recent years, there have been
ample of legal developments aimed at addressing the challenges faced by gig
workers in India. In 2020, the Ministry of Labour and Employment issued a draft
code on social security, which proposed extending social security benefits to
gig workers, including access to
Ø Health insurance
Ø Disability benefits
Ø Maternity benefits.
Ø Old age protection
However, the implementation of these
proposals is yet to be finalized, and the legal status of gig workers remains
uncertain.[5]
CASES RELATING TO GIG WORKERS:
POSITION IN UNITED KINGDOM:
Uber BV v. Aslam[6]
The UK Supreme Court upheld that Uber
drivers are “workers” within the meaning of the statutory definition under
labour laws (which incorporates anyone employed under a contract of employment
and also extends to some individuals who are self-employed) and ordered that
Uber must pay its drivers the national living wage, paid annual leave and other
benefits provided to employees, from the time that drivers log into the Uber
app, and are ready and able to work.
In this regard, the PIL argues that
Uber drivers around the world work in similar conditions, and thus, this
principle should apply in the Indian context as well.
POSITION IN CALIFORNIA:
Dynamex Operations W. v. Superior Court and Charles Lee, Real Party in
Interest[7]
A class of drivers for a delivery
company called Dynamex contented that they were mis-sorted as independent
contractors and thus were unlawfully deprived of employment protection under
California’s wage orders. The California Supreme Court held that the drivers
are employees and the burden is on the hiring body to establish that a worker
is an independent contractor not subject to wage order protections.
Subsequently, in 2019, the State of
California passed the California Assembly Bill 5 which entitles some gig
workers to be organized as employees with labour protections, such as minimum
wage laws, sick leave, and unemployment and workers’ compensation benefits.[8]
POSITION IN INDIA:
Balwant Rai Saluja v. Air India Ltd.[9]:
In this case, the Supreme Court held
that several factors have a bearing on the question of employee status, such as
(a) who is the nominating authority; (b) who is the paymaster; (c) who can
discharge; (d) how long alternative service exists; (e) the extent of power and
supervision; (f) the nature of the job e.g. whether it is professional or
skilled work; (g) nature of establishment; (h) the right to reject. The court
also held that the extent of control required for an employee was ‘effective
and absolute control’. Although the exact applicability of these factors upon
gig workers would need judicial scrutiny, the shift to the ‘effective control’
standard could mean that gig workers would not be classified as employees in
India.
All India Gig Workers Union v. Uber India Systems Pvt. Ltd. case[10]:
Where the union filed a complaint
against Uber for the flaw to provide drivers with minimum wage, social
security, and other benefits. The case is still pending, and the result could
have significant implications for the entire gig economy sector in India.
Indian Federation of App-based Transport Workers v. Government of NCT of
Delhi & Ors[11]:
The Delhi High Court ordered the
government to provide social security benefits to gig workers. The court
observed that gig workers were entitled to social security benefits such as
health and disability insurance, and instructed the government for the
establishment of a social security scheme for gig workers.
In another case, the Indian labour
ministry instructed food delivery company Swiggy to provide social security
benefits to its delivery executives, as they were considered to be employees
rather than independent contractors. This judgment marked a significant change
in the Indian legal system, as it identified the rights of gig workers and
their eligibility for social security benefits.[12]
CONCLUSION:
The situation of gig workers in India
is complex, with challenges and opportunities. While gig work provides
flexibility and income-generation opportunities for many, gig workers face
significant vulnerabilities and lack adequate legal protections. The recent
legal developments and court rulings have recognized the need to provide
protection to gig workers, but there is a need for further reforms to address
the unique challenges posed by the gig economy.
Thus under the code on Social
Security, some welfare measures for gig workers have been incorporated such as
minimum wages, maternity benefits, etc. However, the other three codes are
quiet on the policies towards gig workers. Gig workers do not have protection
related to occupational health & safety under the current labour law rule,
which needs to be addressed. The law with respect to gig workers is currently
in an embryonic stage. At this stage, employers need to protect their interests
first by remaining attentive of the evolution of law. Secondly, great attention
should be endowed for drafting the contract for the gig workers, and terms
indicating employer-employee relationship, such as ‘control’, ‘supervision’
‘and ‘non-compete’ should be avoided. Thirdly, a vigorous sexual harassment
policy should be implemented with respect to gig workers to ensure conformity
with the Sexual Harassment Act.
Article Information
GIG ECONOMY WORKERS RIGHTS AND CHALLENGES - AN EFFECTIVE ANALYSIS
Authors: S SUBASHINI
- Journal IJLRA
- ISSN 2582-6433
- Published 2025/03/11
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
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