Introduction
The gig economy refers to the market for short-term or freelance work where individuals are hired on a temporary basis to complete specific tasks or projects. In recent years, the gig economy has gained popularity in India, and it has become a significant source of employment for the country’s large and growing workforce. According to the Niti Aayog report, “India’s Booming Gig and Platform Economy”[1], there would be over 23.5 million gig workers by 2029. The research also highlights the fact that the gig economy is increasingly characterized by deficient safety standards, contractual disparities, lack of minimum labor costs and lack in employment benefits including worker’s compensation, overtime pay, and paid time off for medical conditions. The growth of the internet and the expansion of online platforms that link employees and clients have propelled the gig economy in India. These platforms, like Uber, Ola, Swiggy, and Zomato, offer a practical and adaptable option for employees to make money by carrying out activities at their convenience. The employees are free to decide whether they want to work full- or part-time, and they may determine their own schedules.
Recognition of Gig Economy Through legislations in India
There are currently no particular legislations in India that govern the gig economy in its entirety. There are, however, some laws and rules in place that relate to specific components of the gig economy. The only code that includes protections for gig workers, platform workers, and unorganized employees is the Code on Social Security (2020)[2]. The Code includes provisions for health and maternity benefits, old age security, education, provident funds, accident benefits, and other items. It also covers life insurance and disability insurance and several other benefits for workers in the gig economy.
As opposed to expanding the concept of “employee” as it is defined under different legislations, the Code on Social Security has distinguished between these three types of employees, i.e. “gig worker”, “platform worker” and “unorganized worker” under S. 2(35), S. 2(61), S. 2(86) respectively. However, the Code excludes gig workers from the social security legislation’s rules on salaries, workplace safety, or labor relations. Social security benefits are a good place to start, but they won’t be enough to fully safeguard the interests of gig workers. The capacity to create legally recognized unions, a national minimum wage that applies to all jobs, and job security are all requirements for gig workers. It’s strange that the government recognizes the need of providing life insurance and gratuity to gig workers but not the importance of workplace safety or minimum wage[3].
Employer – Employee relation and Gig Economy
In India, a contract of employment that outlines the terms and conditions of work often forms the basis for the employer-employee relationship. The type of the task to be done, the compensation, the working hours, and other terms of service should all be specified in this contract. Additionally, employers are expected to give workers a secure and healthy workplace. The line between an independent contractor and an employee is blurred as a result of the gig economy, which questions the fundamental idea of the employment contract. This difference is crucial because it specifies the labour laws that apply to gig workers and the responsibility of the employer towards gig employees in terms of pay, social security, working conditions, and the resolution of employer-employee disputes. Thus, the criteria used to evaluate whether a person is an employee or an independent contractor sometimes involve considerations of the employer’s level of control and the parties intentions. These assessments, which are still being developed across the world, can evaluate things like the nature of the work, the authority to hire and fire, the ownership of the equipment, the contract’s title, and the establishment of norms and standards.
The supreme court of India has, in several cases, accessed the concept of employee and an independent contractor. Prominent of them is the case of Dharangadhara Chemical Works v. State of Saurashtra (Dharangadhara)[4]. In this case the court said that the terms “workman” and “independent contractor” are not interchangeable. The workman completes the tasks allotted to him directly, whereas independent contractors hire others to work for them to carry out the tasks assigned to them. Further, in the case of Balwant Rai Saluja v. Air India Ltd.[5] the apex court provided the guidelines to be considered while determining the existence of an employer – employee relationship. The court said that “the relevant factors to be taken into consideration to establish an employer-employee relationship would include, inter alia, (i) who appoints the workers; (ii) who pays the salary/remuneration; (iii) who has the authority to dismiss; (iv) who can take disciplinary action; (v) supervision, i.e. whether there exists complete control and supervision.”
Conclusion
Although the COVID-19 outbreak has attracted attention to the suffering of gig workers and their lack of legal protection, their employment status was always a latent concern as the gig economy was only getting started. Going even farther back, these concerns may have been avoided (or at least reduced) if labour regulation had been formulated in a way that was more accepting of the advent of new types of labour that have been made possible by technological advancements. The difficulties in classifying gig workers correctly highlight the need to strike the right balance when creating laws to prevent a situation where the laws are constantly needed to be modified so as to catch-up with a rapidly changing world brought on by technological advancements, which is ultimately futile.
[1] NITI AAYOG. (2022, June 27). India’s Booming Gig and Platform Economy. In NITI AAYOG. Retrieved April 21, 2023, from https://www.niti.gov.in/sites/default/files/2022-06/Policy_Brief_India%27s_Booming_Gig_and_Platform_Economy_27062022.pdf.
[2] Code on Social Security, 2020.
[3] Can the new Social Security Code, 2020 help solve the Swiggy-Zomato labour law crisis? (2021). https://cll.nliu.ac.in/can-the-new-social-securitycode-of-2020-help-solve-the-swiggy-zomato-labourlaw-crisis/.
[4] Dharangadhara Chemical Works v. State of Saurashtra, AIR 1957 SC 264.
[5] Balwant Rai Saluja v. Air India Ltd., (2014) 9 SCC 407.
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