The ten-minute progression: Protecting the gig workers from exploitation and providing social security through labour laws.

The ten-minute progression: Protecting the gig workers from exploitation and providing social security through labour laws.

The gig economy has been on the rise in India in recent years, with the advent of various online platforms that connect gig workers with consumers. Gig work refers to short-term, project-based, or freelance work where individuals work independently and are not bound by traditional employer-employee relationships. Gig work has gained popularity due to its flexibility, allowing individuals to work on their own terms, set their own hours, and have control over their work-life balance. However, the situation of gig workers in India is complex, with many facing challenges in terms of job security, fair wages, and legal protections as the present laws present a certain vacuum on the issue of gigs. It is not even the fault of law because the growth of gig workers was unprecedented and as it is linked to technology, its ever-changing dynamics also add to the answer as to why there is no legislation on such type of employment.

The gig economy in India is dominated by platforms such as Uber and Zomato, which provide ride-hailing and food delivery services respectively. These platforms have created opportunities for millions of gig workers in India, allowing them to earn a living by using their own vehicles or bicycles to provide services to consumers. However, gig workers often face significant challenges, including low wages, lack of job security, and limited access to social security benefits. Additionally, gig workers are often classified as independent contractors, which leaves them without the legal protections afforded to regular employees and though being a full time service provider but are unable to secure any benefits as by traditional means they are not on roll- list of employees and are not considered employees by the parent company hiring their services.

One of the key issues faced by gig workers in India is low wages. Many gig workers are paid based on a piece-rate system or a commission-based model, where their earnings are determined by the number of rides or deliveries completed. This often results in unpredictable and low incomes, with gig workers struggling to earn a decent living wage. In some cases, gig workers have reported earning wages below the minimum wage set by the government, which is a violation of labour laws. Another set of problem is late payment of their fees as the principal money which is collected through app is paid after a long time.

The next big challenge faced by gig workers is job insecurity. Gig workers are not entitled to regular employee benefits such as paid leave, health insurance, and retirement benefits. They are often at the mercy of the platform’s algorithms and can be deactivated or banned from the platform without any notice or explanation. This lack of job security leaves gig workers vulnerable to sudden income loss and financial instability.

Moreover, gig workers are often not provided with the same legal protections as regular employees. In India, the labour laws are primarily designed to protect traditional employees, leaving gig workers in a legal grey area. Gig workers are often classified as independent contractors, which exempts them from various labour laws such as the Employees’ Provident Fund (EPF) Act, the Employees’ State Insurance (ESI) Act, and the Industrial Disputes Act. This lack of legal protection makes it difficult for gig workers to seek recourse in case of unfair treatment, discrimination, or exploitation.

In recent years, there have been several 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 health insurance, disability benefits, and maternity benefits. However, the implementation of these proposals is yet to be finalized, and the legal status of gig workers remains uncertain.

The situation of gig workers in India has also been the subject of several high-profile court cases, particularly in relation to Uber and Zomato. In March 2021, the Supreme Court of India ruled that Uber drivers should be classified as “workers” and not as independent contractors. The court held that Uber drivers are entitled to employment benefits such as minimum wages, social security, and other labour protections. Similarly, in July 2021, the National Company Law Appellate Tribunal (NCLAT) ruled that Zomato delivery partners should be treated as “workers” and are entitled to social security benefits under the Employees’ Provident Fund and Miscellaneous Provisions Act.

These court rulings have been seen as significant milestones in recognizing the rights of gig workers in India and acknowledging that they deserve legal protections similar to regular employees. However, implementation and enforcement of these rulings are still ongoing, and the situation of gig workers in India remains complex.

Despite the legal developments and court rulings, there is a need for further reforms to ensure adequate protection for gig workers in India. Here are some key areas that can be addressed to safeguard the rights and well-being of gig workers, drawing from the Uber and Zomato case studies:

Employment Status and Classification: One of the fundamental issues for gig workers is their employment status and classification. Many gig workers are currently classified as independent contractors, which exempts them from labour laws and deprives them of important benefits. There is a need for clearer guidelines and criteria to determine the employment status of gig workers, taking into account the level of control, dependency, and integration they have with the platform. Workers who are economically dependent on the platform and do not have the autonomy to set their wages, working hours, and conditions should be recognized as employees and entitled to the benefits and protections under labour laws.

Minimum Wages and Fair Remuneration: Ensuring that gig workers receive fair remuneration for their work is crucial. Many gig workers earn wages below the minimum wage set by the government, which is a violation of labour laws. There is a need for transparent and fair wage-setting mechanisms that consider factors such as distance, time spent, and effort required for each gig task. Additionally, 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 transparent and communicated in advance.

Social Security and Benefits: Gig workers should have access to social security benefits, including health insurance, disability benefits, and maternity benefits. The existing social security schemes should be adapted to cover gig workers, considering their fluctuating incomes and irregular working hours. Platforms should contribute to social security funds on behalf of gig workers, and workers should have the flexibility to choose and switch between different schemes based on their needs. Additionally, 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, especially those involved in ride-hailing and food delivery, face occupational hazards such as accidents, injuries, and health risks. Platforms should ensure that gig workers are provided with adequate safety training, equipment, and insurance coverage. Platforms should also establish mechanisms for gig workers to report safety concerns and incidents, and take prompt action to address them. Occupational health and safety standards 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 effective grievance redressal and dispute resolution mechanisms. Platforms should establish clear channels for workers to raise concerns, report grievances, and seek resolution. Platforms should appoint impartial and independent dispute resolution committees to handle grievances and disputes between gig workers and platforms. Workers should also have access to judicial remedies and be protected against retaliation or discrimination for exercising their rights.

Skill Development and Upskilling: Platforms should invest in skill development and upskilling programs for gig workers to enhance their employability and career growth. Platforms should provide training, education, and certification programs to help gig workers acquire new skills, improve their earning potential, and transition to other forms of employment if desired. Platforms should also promote diversity and inclusion, and provide equal opportunities for gig workers regardless of their gender, caste, religion, or other characteristics.

Collective Bargaining and Representation: Gig workers should have the right to organize, form trade unions, and engage in collective bargaining to negotiate better working conditions, terms, and benefits with the platforms. The current labour laws in India do not explicitly recognize gig workers’ right to unionize, and there are challenges in organizing gig workers due to their dispersed and transient nature of work. However, there is a need to recognize and protect the collective bargaining rights of gig workers, as it can provide them with a stronger voice and bargaining power in negotiations with platforms. Platforms should also engage in meaningful dialogue and consultation with gig workers and their representatives to address their concerns and improve their working conditions.

Data Privacy and Algorithmic Transparency: Gig workers’ data, including their personal information and work-related data, is collected and used by platforms for various purposes, such as rating, ranking, and matching tasks. There is a need for robust data privacy laws that regulate the collection, use, and sharing of gig workers’ data by platforms. Gig workers should have control over their data and be informed about how their data is being used by the platforms. Additionally, there should be transparency in the algorithms used by platforms for task allocation, payment calculation, and performance evaluation. Gig workers should have the right to understand and contest the algorithms that impact their work and earnings.

Access to Information and Education: Gig workers should have access to information about their rights, entitlements, and responsibilities as workers. Platforms should provide clear and transparent information to gig workers about their terms of engagement, payment structure, and dispute resolution mechanisms. Gig workers should also be educated about their legal rights, including avenues for redressal in case of grievances or disputes. Access to information and education can empower gig workers to assert their rights and navigate the complex gig economy landscape.

Collaboration among Stakeholders: Ensuring protection for gig workers requires collaboration among various stakeholders, including the government, platforms, gig workers themselves, and civil society organizations. There is a need for dialogue and cooperation among these stakeholders to develop and implement policies and measures that protect the rights and well-being of gig workers. Platforms should proactively engage with gig workers and their representatives, seek their feedback, and incorporate their perspectives in decision-making processes. The government should create an enabling environment for gig workers’ protection through appropriate regulations, enforcement mechanisms, and social security schemes. Civil society organizations should advocate for the rights of gig workers and raise awareness about their issues among the public.

In 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. Drawing from the Uber and Zomato case studies, reforms should focus on employment status and classification, minimum wages and fair remuneration, social security and benefits, occupational safety and health, grievance redressal and dispute resolution, skill development and upskilling, collective bargaining and representation, data privacy and algorithmic transparency, access to information and education, and collaboration among stakeholders.

It is imperative to create a regulatory framework that balances the interests of gig workers and platforms, while ensuring that gig workers are not left vulnerable to exploitation and unfair treatment. The gig economy is rapidly evolving, and it is crucial to keep up with the changing dynamics and provide timely and effective protections to gig workers. By adopting a multi-stakeholder approach and implementing comprehensive reforms, India can strive towards creating a fair and inclusive gig economy that respects the rights and dignity of gig workers.