How Gig Workers Struggle Between Flexibility and Insecurity

The Union government has for the first time allowed the use of bike taxis through aggregators, subject to state government approval. 

• The move is seen as bringing some relief to bike taxi operators, especially in states like Karnataka where a recent ban on bike taxis had reportedly stripped thousands of gig workers of their primary source of income.

About Gig Workers

• Gig workers are individuals engaged in temporary, task-based work, often facilitated by digital platforms. 
• The World Economic Forum (WEF) defines gig work as the exchange of labour for money between individuals or companies via digital platforms that actively connect providers with customers on a short-term and payment-by-task basis.

Gig Workers In India

• Gig workers are typically classified as “self-employed”, meaning they do not fall under traditional labour laws.
  • They offer services like driving, food delivery, plumbing, beauty services, and content writing.
• In 2020, India had approximately 3 million gig workers.
• By 2030, this number is projected to rise to 23 million, making up about 7% of the non-agricultural workforce.

Types of Gig Work

• Web-based gig work: Virtual tasks like content writing, software development, and digital marketing.
• Location-based gig work: Physical services like ride-hailing (e.g., Uber, Ola), food delivery, and home services (e.g., Urban Company).

Reasons For the Rise Of Gig Work

• Work-Life Balance: Freedom to choose working hours, especially useful where formal jobs are limited.
• Income Accessibility: Provides livelihood opportunities in regions with scarce formal employment.
• Empowerment of Vulnerable Groups: Gig work significantly enhances employment opportunities for economically weaker sections and women.
  • Women can adjust work hours around domestic duties and often find better earning potential without traditional payment discrimination.
• Formalisation of Work: Payments are typically digital, bringing a segment of the workforce into the formal economy, making it easier to track work and plan social security measures.

Challenges Associated With Gig Workers

• No Labour Rights: At present, the Indian labour regulations only recognise three primary categories of employees, i.e. public sector undertakings (PSUs), government employees, and private sector employees.
  • Hence, gig workers are not covered under major labour laws such as the Minimum Wages Act of 1948, which guarantees minimum wage protection to formal employees.
• Disguised Self-Employment: Platforms classify them as independent contractors to avoid responsibilities. This results in low pay and job insecurity.
  • Self-employment in India does not necessarily imply “independence” or freedom.
• Vulnerability to Risks:
  • Environmental Hazards: No protection during harsh conditions, such as extreme heat.
  • Road Accidents: High-risk delivery schedules with inadequate insurance.
  • Arbitrary Deactivation: Workers can be deactivated without reason or due process, leading to sudden income loss.
• Discrimination: Many face caste or class-based discrimination.
  •  Example: Denial of access to buildings and basic facilities.
• Lack of Collective Bargaining: Workers have no voice or union support. Platforms can change pay structures or decommission accounts without consultation.

Current Legislative Efforts For the Benefit Of Gig Workers

• Union Government:
  • The Code on Social Security (2020) proposes benefits such as life and disability cover, accident insurance, health and maternity benefits, old age protection, and creche and other benefits.
  • The Code further mandates the formation of a National Social Security Board, which is tasked with recommending welfare schemes for gig workers.
  • Despite these provisions, the implementation in reality has been poor.
• State-Level Initiatives:
  • Rajasthan: The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act of 2023 requires employers and aggregators to deposit a monthly welfare cess for the benefit of gig workers in the state.
  • Telangana: Drafted a bill for registering gig workers to extend social security.
  • Karnataka: Also introduced legislation to support gig workers.

Way Forward

• Develop Nationwide Data: Build a comprehensive national database to understand gig workers’ socio-economic conditions through surveys such as Periodic Labour Force Survey.
• Reassess Worker Classification: Reassess the “self-employed” label to include them under labour protections.
• Ensure Social Security: Provide minimum wages, health coverage, and insurance on a mandatory basis.
• Empower Workers: Enable unionisation to enable collective bargaining power and protection from algorithmic biases and establish grievance redressal mechanisms.
• Foster Shared Responsibility: Encourage collaboration between the State and platforms to protect workers from health and environmental risks.

Conclusion

Gig workers are the backbone of the growing digital economy. However, without adequate protections, flexibility becomes a cover for exploitation. 

• A truly inclusive and just gig economy must balance innovation with rights, ensuring no worker is left behind in India’s technological advancement.