Answer

India’s gig economy is rapidly expanding—from 7.7 million workers in 2020–21, the number is projected to rise to 23 million by 2030, forming 7% of the non-agricultural workforce. Yet, the platformisation of labour has created a new class of workers who, despite flexibility and access to work, continue to face old vulnerabilities like income insecurity, lack of legal protection, and absence of social benefits.

Implications of the Gig Economy Growth on Labour Rights and Employment Security in India

Implications on Labour Rights 

• No Minimum Wage Protection: Gig workers are not covered under the Minimum Wages Act, 1948, resulting in income volatility and wage suppression.
  Eg: A Fair Work India 2023 study found that  gig workers earn between ₹15,000 and ₹20,000 per month, below statutory minimum wages.
• No Collective Bargaining Rights: Gig workers cannot unionise or negotiate pay, leaving them vulnerable to arbitrary pay revisions.
  Eg: The All India Gig Workers Union (AIGWU) formed in 2020 faces significant resistance from platform companies.
• Extended Work Hours: Lack of work-hour regulations forces many to work long, exhausting hours.
  Eg: The “Prisoners on Wheels” study showed that 83% of gig workers work more than 10 hours daily.
• High Occupational Hazards: Workers face road accidents, harsh weather, and health risks with no platform-provided safety net.
  Eg: Delivery workers for Zomato and Swiggy often ride in extreme heat without accident insurance or health benefits

Implications on Employment Security

• No Legal Recognition as Employees: Gig workers are classified as self-employed, excluding them from major labour laws like Factories Act and Industrial Disputes Act.
  Eg: Platforms like Uber and Ola avoid employer responsibilities by calling drivers as “partners”.
• No Access to Social Security: Gig workers are not covered under EPF, ESI, or pension schemes, increasing vulnerability during crises.
  Eg: 2024 V. V. Giri National Labour Institute (VVGNLI) report stated 90% of gig workers had no savings or retirement fallback.
• Algorithmic Management Without Oversight: Workers face opaque task allocation and deactivation by AI-based systems without grievance redressal.
  Eg: In 2023, Urban Company workers protested ID blocking for ratings below 4.7/5, citing lack of human review or appeal mechanism.

To address the deepening precarity and exclusion in India’s growing gig economy, a rights-based, inclusive, and enforceable framework is essential to protect workers’ welfare, dignity, and long-term security.

Way Forward

• Introduce Central Legislation: Enact a dedicated law defining gig work and ensuring fair wages, working hours, and protection from dismissal.
  Eg: Spain’s 2021 Rider Law reclassified delivery workers as employees with full rights.
• Ensure Implementation of Social Security Code: Fully implement the Social Security Code, 2020, ensuring benefits like accident insurance and pensions.
  Eg: The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act of 2023 requires employers and aggregators to deposit a monthly welfare cess for gig workers.
• Enforce Algorithmic Accountability: Mandate platforms to disclose how tasks and pay are determined, with appeals for deactivation.
  Eg: EU’s 2023 Platform Directive makes platforms prove a worker is self-employed and ensures AI transparency.
• Facilitate Collective Bargaining: Legally enable union formation and dialogue forums for workers to negotiate better terms.
  Eg: Denmark’s tripartite boards ensure balanced negotiations between platforms, workers, and the state.
• Promote Skilling and Mobility: Offer training through platforms for career advancement and higher-skilled roles.
  Eg: Urban Company opened skilling centres in Delhi NCR (2023) for digital and safety training.
• Promote Cooperatives: Support the formation of platform cooperatives to enhance worker autonomy and earnings.
  Eg: Gujarat’s Sahakar Taxi cooperative offers profit-sharing and social security benefits to gig workers.
• Develop Unified National Database: Use platforms like e-SHRAM to integrate gig workers into policy planning and welfare access.
  Eg: As of 2025, over 30.58 crore workers, including gig workers, registered on the e-SHRAM portal.

The gig economy has reshaped India’s workforce, but without safeguards, it risks deepening informality and inequality. To realise the vision of a $5 trillion economy, India must ensure that growth does not come at the cost of worker rights. A fair, secure, and rights-based gig economy will be crucial for building inclusive, resilient, and sustainable development in the digital age.

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