Subject: GS 03: International Relations
Context: India abstained from voting on the ILO’s Convention No. 193 on Decent Work in the Platform Economy.
- The platform economy is an economic system built on digital networks, where tech platforms act as intermediaries to connect buyers, sellers, and service providers
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About ILO Convention No. 193
- The Convention extends basic labour rights to all platform workers, irrespective of whether they are classified as employees or independent contractors.
- Minimum Labour Standards: Provides for: Minimum wages (statutory or negotiated), Timely payment of wages, Occupational safety and health, Social security benefits comparable to similar workers
- Algorithmic Accountability: Requires digital platforms to:
- Disclose significant automated decisions affecting workers.
- Provide written explanations for algorithmic decisions.
- Ensure human oversight in key employment decisions.
- Correct Worker Classification: Worker classification should be based on the actual nature of work performed, rather than contractual labels.
Voting Outcome on ILO Convention No. 193
- Countries Supporting the Convention: China, Brazil, Germany, France, South Africa, and Japan.
- India’s Voting Position: India abstained from voting on the Convention. Under the ILO’s tripartite voting system, each country votes through three delegates:
- Government delegate: Abstained.
- Employer delegate: Voted in favour.
- Worker delegate: Voted in favour.
Reasons for India’s Abstention
- Domestic Law First Approach: India ratifies ILO Conventions only after domestic laws are in full conformity with their provisions.
- Federal Concerns: Labour is a Concurrent List subject, requiring coordination between the Centre and States before assuming international obligations.
- Existing Domestic Framework: The government argues that the Code on Social Security, 2020 already provides a framework for gig and platform workers.
- Established Ratification Policy: India has similarly not ratified ILO Conventions No. 87 (Freedom of Association), No. 98 (Right to Organise and Collective Bargaining), and No. 190 (Violence and Harassment at Work), reflecting its practice of endorsing principles but withholding binding obligations until domestic laws are aligned.
Status of Gig Workers in India
- Expanding Workforce: India’s gig workforce grew from 7.7 million (2020–21) and is projected to reach 23.5 million (2.35 crore) by 2029–30 (NITI Aayog).
- Gig workers are expected to constitute 6.7% of India’s non-agricultural workforce.
- Moderate Income Levels
- Around 39% of gig workers earn ₹10,000–25,000 per month.
- About 34% earn ₹25,000–40,000 per month.
- Limited Social Security: Only about 15% of gig workers have access to social security benefits.
- The majority lack essential protections such as accident insurance, paid sick leave, pension benefits, and overtime protection.
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Existing Legal Framework in India
- Legal Recognition: The Code on Social Security, 2020 recognises gig workers and platform workers.
- It mandates aggregators to contribute 1–2% of their annual turnover (subject to a prescribed ceiling) towards a social security fund.
- Implementation Gaps: Social security benefits remain largely undefined.
- The contribution mechanism has not been fully operationalised.
- Welfare schemes continue to remain largely notional.
- State-Level Initiatives: Rajasthan Platform-Based Gig Workers Act, 2023 provides a dedicated legal framework for gig workers.
- Karnataka and Telangana have initiated welfare board-based measures for gig workers.
Concerns over India’s Abstention
- Delayed Labour Protection: Gig workers remain without internationally recognised minimum labour standards.
- Weak Social Security: Existing legal provisions are yet to translate into enforceable benefits.
- Lack of Algorithmic Transparency: No binding obligation on platforms to explain automated decisions or account deactivations.
- Continued Misclassification: Platforms may continue classifying workers as independent contractors, limiting labour protections.
- Missed Opportunity: India, despite being a founding member of the ILO, did not support the first global labour standard for platform workers.
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Way Forward
- Operationalise the Social Security Code: Implement the Code on Social Security, 2020 by defining benefit entitlements, operationalising social security schemes, and ensuring timely implementation.
- Strengthen Worker Protection: Introduce enforceable standards on fair wages, occupational safety, and social security for gig workers.
- Improve Algorithmic Transparency: Establish safeguards for automated decision-making, including algorithmic explainability and effective grievance redressal.
- Harmonise Centre–State Efforts: Build on State-level initiatives to create a uniform national framework for gig workers.
- Align with Global Labour Standards: Review and reform domestic labour laws to progressively align with evolving international labour standards while addressing federal concerns.
30 Jul 2026
