Labor law Rights : Gig and Platform Workers’ Rights

Gig and Platform Workers’ Rights: Shaping the Future of Work.

The rise of the gig economy has transformed traditional employment models, offering flexibility but often at the cost of social security. Recognizing this, the Code on Social Security, 2020, marks a progressive step toward integrating gig and platform workers into the social security framework. This legislation aims to provide protections such as insurance, gratuity, and welfare schemes, ensuring a safety net for this rapidly growing workforce.

Who Are Gig and Platform Workers?

1. Gig Workers:

• Individuals engaged in work arrangements outside the traditional employer-employee relationship.
• Examples include freelancers, independent contractors, and temporary workers.

2. Platform Workers:

• Workers who provide services through digital platforms, such as food delivery personnel, ride-share drivers, and e-commerce delivery agents.

Key Features of the Code on Social Security, 2020

1. Definition and Recognition:

The Code formally recognizes gig and platform workers as distinct categories, ensuring they are eligible for specific social security benefits.

2. Social Security Schemes:

Includes provisions for life and disability cover, health and maternity benefits, old-age protection, and provident fund schemes.

3. Central and State Welfare Boards:

These boards are tasked with formulating and implementing social security schemes for gig and platform workers.

4. Funding Mechanism:

Contributions may come from aggregators, central and state governments, and workers themselves. Aggregators are mandated to contribute 1-2% of their annual turnover towards social security for gig workers.

5. Coverage Expansion:

Provisions extend to both organized and unorganized sectors, reflecting inclusivity.

Objectives of the Legislation

1. To address the vulnerabilities of gig and platform workers by providing a safety net.

2. To reduce disparities between traditional employees and gig workers in terms of benefits and protections.

3. To foster sustainable growth in the gig economy by promoting worker welfare.

Landmark Judgments on Gig and Platform Workers’ Rights

1. Ola and Uber Drivers v. United Kingdom Supreme Court (2021)

While not an Indian case, this judgment is significant globally. The UK Supreme Court ruled that Uber drivers are workers entitled to minimum wage and paid leave, influencing discussions on gig workers’ rights in India.

2. Food Delivery Workers’ Protests (Various States)

In recent years, protests by food delivery workers across India have highlighted issues like unfair pay, lack of job security, and absence of benefits, bringing gig worker rights to the forefront.

3. Zomato and Swiggy Drivers v. State of Karnataka (2022)

This case emphasized the need for legal recognition of gig workers, compelling state authorities to push for legislative reforms under the Code on Social Security.

Challenges in Implementation

1. Lack of Awareness:

• Many gig workers are unaware of their rights and entitlements under the Code.

2. Aggregator Compliance:

• Resistance from platform companies regarding financial contributions and accountability.

3. Enforcement Gaps:

• Weak monitoring and enforcement mechanisms hinder the effective implementation of the Code.

4. Informal Nature of Work:

• High turnover and informal work arrangements complicate the process of extending benefits. 

The Way Forward

1. Strengthening Policy Frameworks:

• Developing clear guidelines for implementing social security schemes for gig workers.

2. Public Awareness Campaigns:

• Educating gig workers about their rights and available benefits.

3. Collaboration with Aggregators:

• Encouraging platform companies to participate proactively in welfare initiatives.

4. Leveraging Technology:

• Using digital tools to streamline registration, contributions, and benefit disbursement.

5. Global Best Practices:

• Drawing insights from countries with advanced gig worker protections, such as the UK and Australia.

Conclusion

The inclusion of gig and platform workers under the Code on Social Security, 2020, is a significant milestone in India’s labor law reforms. By extending social security to these workers, the legislation acknowledges their economic contribution and addresses their vulnerabilities. However, effective implementation and collaboration among stakeholders are essential to realizing the full potential of these reforms. Protecting gig workers’ rights will enhance their livelihoods and ensure sustainable growth in the evolving world of work.