Anjali Yadav
INTRODUCTION
Recently, India has become the 4th largest economy by surpassing Japan and is projected to overtake Germany as well in recent years. However, does this really contribute to the overall development of the people in India? The gap between the rich and the poor has widened exponentially over the years. Approximately 90% of India’s population is engaged in the informal sector and is deprived of their basic rights. The “precarity” in the Indian labour force market has increased over the years, which has led to the vulnerable situation of workers. Over the years, various methods have been instituted by the government for the betterment of workers in the informal sectors, but somehow, the results are not promising as such.
In the year 2020, the government introduced four new labour codes with the aim of improving the conditions of workers. The Social Security code 2020 has made significant changes by expanding its definition of “employees” with the inclusion of Gig and platform workers. Under section 2(60) of the code, it has defined platform workers as “the organisations or individuals that use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment”.[1]
Furthermore, section 114(6) of the code provides a mechanism for the social security board, which ensures the welfare of the platform and gig workers in terms of life and disability cover, accident insurance, health and maternity benefits, and old age protection.[2] Additionally, the establishment of various schemes funded by both the central and state governments for the workers. Despite the effective measures towards the welfare of the workers, it somehow lacked in the procedural and implementation aspects. In India, where more than half of the population works in unorganised sectors, it becomes imperative to cater for the needs of these people because they are not only a backbone to the economy but an advantageous asset to the country.
EXPLORING THE PRECARIOUS CHALLENGES FACED BY THE GIG AND PLATFORM WORKERS
The Indian economy works on the principle of dual labour theory, which states that there is a dual classification of workers, i.e secondary and primary sectors. The primary sector has shown a large number of informal workers. The Informal sectors often lack job security and are at a heightened risk of indigent working conditions.
LACK OF LEGAL ENFORCEMENT MECHANISMS
With the advent of technology and new methods, service-based jobs have increased the employment, but the conditions still remain the same. The technology has increased the “Platform Capitalism” which, at a certain level, has fuelled the gig economy, but it has also posed some of unprecedented challenges to the workers. Some of the examples, such as Ravi Kumar, a Swiggy delivery rider in Haridwar, highlight the fragile nature of gig work. He said that “If I fall sick, I lose my entire income for the day. There’s no backup”.[3] Even though most of the time workers were fired abruptly without any explanation, and they left with no legal recourse as they are outside the ambit of traditional employees.
In the case of All India Gig Workers Union vs Uber India Systems Pvt. Ltd., the court has clarified the status of gig workers and provided appropriate relief regarding minimum wages. However, the new labour codes have only benefited the workers to a certain extend as there is no inclusion in the code on wages 2019 and the Occupational Safety and Health Working Conditions Code 2020.
It has often been noticed that employers took advantage of the helplessness of the workers. They have exploited them in multiple ways. The central government in the Social Security Code, 2020 have made announcements of the schemes which contribute to the welfare of the worker but it often lacks clear deadlines and funding mechanisms. It has mentioned how the allocation of the funds will be by the central and state governments, but has failed to maintain a fund allocation for the workers. The schemes are also not of a mandated nature, which means that it is up to the government to formulate of schemes. This approach has made schemes of a lackadaisical nature.
MARKET DYNAMICS AND INSTITUTIONAL CHALLENGES
Changes in the labour markets in India have seen shifts take place in what were previously formal employment relationships due to changes in the overall economy, technological change and subsequent policies. The Periodic Labour Force Survey (PLFS) report for 2022-23, shows while there was slight decrease in the unemployment rate, a large part of the labour force is still employed in informal low low-productivity jobs. Furthermore, the advent of gig work, platform work or some hybrid of both, is undermining the traditional employer-employee relationship and paving the way for new types of precarious work without adequate social security mechanisms. While the NITI Aayog’s “India’s Booming Gig and Platform Economy” report shows gig work could account for upwards of 23 million jobs in India by 2030, this transformation should remind us that labour policy must also transform and redefine its missions to adjust to the changing nature of work, which includes policy changes not only focused on regulation, but also skilling individuals to prepare them for a modern world of work in a digitized, service and experience, innovation-led economy. A report highlighted that the introduction of labour codes makes little difference in the informalisation of the workforce. Thus, with the increased potential for jobs in future, there is a need for skill development amongst the workers because a lot of times, there is an availability of work but a lack of skilled workers who can acquire that job.
ACCOUNTABILITY CHALLENGES BY THE AGGREGATOR
Today’s time has glorified freelance work by the people as it gives freedom to the employees and the employer is also free from his accountability towards workers, but it often ignores the unstable and insecure nature of the work, such as irregular income, long working hours and no sick leaves. This creates pressure on the employees to work under unfavourable conditions because of their poor financial conditions and develops mental health problems due to huge accumulating debts and health care costs. A report noted that 41 % of cab drivers and 48 % of delivery persons have reported an inability to take even a single day off in a week. In addition, 86 % of delivery personnel also said that the 10-minute instant delivery was completely unacceptable to them. The lack of time off has been leading to burnout and negatively impacts the mental and physical well-being of these workers.[4] Certain measures were also taken in this regard but have not been able to make a remarkable impact.
The government has also mandated registration in the E-Shram Portal, but there is an absence of accountability by the aggregator. Most of the gig and platform workers lacked technological understanding and were unaware of their rights. Despite the new labour codes, most of the workers are unaware of their rights, and due to insufficient Grievance Redressal Mechanisms and a lack of accountability by aggregators, the relief is harder.
INNOVATIVE AND EFFECTIVE SOLUTIONS FOR GIG AND PLATFORM WORKERS TO MITIGATE FUTURE RISKS
After the onset of COVID-19 in India, the prevalence of technology has significantly increased. More employers desire for independent contractors, freelance workers and platform workers. To protect the rights of the workers, several measures must be taken in this regard for their betterment.
- Creation of an Independent Organisation
There must be an organisation which caters for the needs of the workers, independent of the government. It should work for the purpose of providing legal assistance to the workers in case of a violation of their rights. On a parallel note, the US has established the largest hub of freelancers in partnership with the Mayor’s Office of Media and Entertainment (MOME). This hub solely works for the independent contractors and provides them with a platform for raising their concerns and hosting various meetings, workshops to foster the development of people.
- Establishment of grievance mechanisms and enforceable minimum standards
Every employer must form a grievance redressal committee consisting of 3 members, of whom one is to be from an independent labour union. In cases of termination of a platform or a gig worker, the employer must be answerable to the grievance redressal committee with a reasonable justification and a minimum 30-day notice period to be provided. The Platform workers must be provided with a mandatory minimum wage provision, and a lower rating for workers should not be used as a tool for exploitation. There must be a dedicated cell which caters for the complaints of workers with regard to wages, customer exploitation, and within 3 months issue needs to be resolved for speedy justice.
- Codification of comprehensive law for gig workers
In India, there is a need for a comprehensive law exclusively for gig and platform workers, as the growing market has shown a rising trend of workers from the informal sector. It is estimated that around 2029-30, 4.1% of the total workforce will consist of gig and platform workers.[5] In India, Rajasthan became the first state to launch a codified law for gig and platform workers. Thus, a centrally binding law all over India can help in bringing uniformity and development. Recently, the European Union has launched its European Union’s Platform Work Directive in March 2024, which ensures favourable working conditions and protection of personal data irrespective of their contractual relationship with their aggregator.
- Ensuring mandatory aggregator accountability on E- Shram Portal
India could greatly expand the utility and strength of the E-Shram Portal by building off aspects of Singapore’s National Trades Union Congress with a Freelance and Self-Employed model, which provides holistic assistance to platform workers for registration, interest in social security, and legal representation. In India, one of the main constraints on the E-Shram initiative is that it is largely reliant on voluntary registration. In order to address this, registration must be mandated for all aggregators performing registration of gig and platform workers on the E-Shram and verified through proper labour department channels. Furthermore, the online registration capability of the portal should be foothold by creating multiple beacons of offline registration through the previously established network of Common Service Centres (CSCs) and local labour office accreditations to ensure that even those workers residing in rural or remote areas can very easily register for E-Shram and obtain their entitlements. Additionally, a system of audits & penalties outlined by the state for those aggregators failing to comply with registration obligations would provide further accountability.
CONCLUSION
While India strives towards its goals of becoming an economic superpower, inclusive growth cannot ignore gig and platform workers who are essential for its informal economy. While the new labour codes and social security measures are a positive step and should be welcomed, there are several areas that are unclear in terms of the legal framework, accountability and implementation. If India is going to leverage global best practices and introduce customised reforms such as proper laws, aggregator accountability and independent grievance mechanisms, employers delivering technology work should follow the principles of long-lasting fair work and the dignity of all humans. A future-ready labour framework must prioritise workers’ welfare and its core.
[1] Code on Social Security, 2020, § 2, cl. 60, No. 36, Acts of Parliament, 2020 (India).
[2] Code on Social Security, 2020, § 6, No. 36, Acts of Parliament, 2020 (India).
[3] Naina Bhargava,The Plight of Gig Workers in India, The Wire (May 6, 2025, 10:00 PM), https://thewire.in/labour/the-plight-of-gig-workers-in-india.
[4] Naveen Kumar, Regulatory Framework and the Protection of Basic Rights of Gig Workers, Bar And Bench (May 6, 2025, 10:00 PM), https://www.barandbench.com/view-point/regulatory-framework-and-the-protection-of-basic-rights-of-gig-workers.
[5] Alok Prasanna, A Model Law For Platform Based Gig Workers, Vidhi Centre For Legal Policy (May 6, 2025, 10:00 PM), https://vidhilegalpolicy.in/research/a-model-law-for-platform-based-gig-workers/.