INTRODUCTION

• A gig economy is a labour market characterised by the prevalence of short-term contracts or freelance work instead of permanent jobs.

• The gig workforce in India is rapidly growing, NITI Aayog's policy paper projects that this sector will reach 23.5 million workers by 2030. As traditional employment opportunities decline, gig work is becoming a crucial livelihood option, a trend also seen globally.

WHAT IS GIG ECONOMY?

• The gig economy refers to a labour market characterised by short-term, flexible, and freelance work rather than traditional, long-term employment. 

• Example: Startups like Ola, Uber, Zomato, and Swiggy have established themselves as the main source of the gig economy in India.

WHO IS GIG WORKER?

• According to the Code on Social Security, 2020 (India), “A gig worker is a person who performs work or participates in work arrangements and earns from such activities, outside of the traditional employer-employee relationship.”

• They are independent contractors, online platform workers, contract firm workers, on-call workers and temporary workers.

CONDITIONS OF GIG WORKERS IN INDIA

• Size:

• NITI Aayog study on “India’s Booming Gig and Platform Economy”, said that the gig workforce in India is expanding. As of 2019-20, here’s what the following sector employed:

• Average Age/Income of Gig Workers in India

• The median age of Indian gig workers is 27 and their average monthly income is Rs 18,000.

• Of these, about 71 per cent are the sole breadwinners of their families. Additionally, gig workers operate with an average household size of 4.4.

WHY RECENTLY IN NEWS? (GURU prasad box)

• Karnataka introduced a new Bill, called the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, seeking to provide social security and welfare measures for platform-based gig workers in the State.

• A similar law was also enacted by Rajasthan called the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023.

• Issues with these laws:

• These model does not address employment relations as such and is more appropriate for self-employed informal workers.

PROBLEMS FACED BY GIG WORKERS 

• Job Security: 

• Gig workers lack job security as their work is often temporary and dependent on market demand. 

• A survey by Flourish Ventures found that 90% of gig workers reported a decline in income during the COVID-19 pandemic.

• Health Issues:

• A report by the Observer Research Foundation (ORF) states that the combination of long working hours and a heatwave results in heightened vulnerability for gig workers as they are exposed to extreme temperatures for extended periods while cycling or riding motorbikes.

• Lack of Benefits: 

• Gig workers typically do not receive benefits such as health insurance, retirement plans, or paid leave. 

• A study by the Fairwork India project revealed that most gig platforms do not provide adequate benefits to their workers.

• Income Volatility: 

• According to a report by the Centre for Monitoring Indian Economy (CMIE), the average monthly income of gig workers in India is around INR 18,000, but it can vary significantly based on the type of work and location.

• Workplace Safety: 

• The International Labour Organization (ILO) reported that gig workers, particularly in delivery services, face high risks of accidents and injuries.

• Regulatory Challenges: 

• There is a lack of clear regulations governing gig work. 

• In India, gig and platform workers are included in Code on Social Security 2020 as a kind of informal self-employed workers but no mention of such workers has been made in the other three new labour codes, namely Code on Wages, Industrial Relations Code and Occupational Safety, Health and Working Conditions Code. 

• The NITI Aayog's policy paper highlights the need for better regulatory frameworks to protect gig workers' rights.

• Skill Mismatch: 

• Many gig workers are overqualified for the tasks they perform. 

• A report by the Observer Research Foundation (ORF) noted that a significant portion of gig workers hold higher education degrees but engage in low-skilled jobs due to lack of better opportunities.

MEASURES TO PROTECT GIG WORKERS 

• Rajasthan Government:

• Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023,  which makes Rajasthan the first state in India to regulate gig workers at the legislative level. 

• It creates a Labour Minister led Welfare Board and welfare fund for platform based gig workers.

• It provides registration for platform based gig workers and facilitates guarantee of social security.

• Employers who violate the provisions of the law may also incur heavy penalties.

• The Government of Karnataka has also come up with a draft Gig Workers Bill aimed at providing social security benefits to gig workers. 

• Recently in Gurugram, Haryana the deputy commissioner issued an order directing employers and RWAs societies to arrange for water, coolers, and medical coverage for workers apart from limiting the outdoor work done at noon-time for daily wagers, gig workers, and domestic helpers.

WAY FORWARD

• Regulatory Framework:

• Establish clear legal definitions for gig and platform workers.

• Create dedicated laws addressing the unique needs of gig workers, ensuring their rights and protections.

• Social Security and Benefits:

• Extend social security benefits such as health insurance, pensions, and maternity benefits to all gig workers.

• Implement portable benefit schemes that gig workers can carry across different platforms and jobs.

• Ensure gig workers receive a fair and minimum wage for their services.

• Improved Working Conditions:

• Set guidelines for reasonable working hours and rest periods.

• Enforce safety standards and provide necessary training for gig workers, particularly in high-risk jobs.

• Skill Development:

• Provide ongoing training and skill development programs to enhance the employability of gig workers, also offer certification for skills acquired, improving job prospects and opportunities.

• Aggregator Accountability:

• Fair Practices: Hold aggregators accountable for fair practices in terms of employment conditions and benefits.

• Worker Representation: Encourage the formation of worker associations or unions to represent gig workers' interests.

• Addressing Mental Health: 

• Companies should offer access to wellness articles, mental health information, and employee assistance programmes (EAPs). 

• Partnering with relevant organisations can help them give discounted services to gig workers. 

• Stakeholder Collaboration:

• Foster collaboration between the government, industry stakeholders, and worker representatives to address issues in the gig economy..

• Legal Assistance: 

• Provide legal assistance and support to gig workers to help them navigate disputes and grievances.

NITI Aayog Recommendations On Gig Workers in India

• Proper Estimation of Gig Workers in India: Have separate enumeration exercises to estimate the size of the gig economy and characteristic features of gig workers. 

• This can be done by collecting information during official enumerations (PLFS, NSS or otherwise). 

• Catalyse Platformization: Introduce Platform India initiative (similar to Startup India), built on the pillars of Accelerating Platformization by Simplification and Handholding, Funding Support and Incentives, Skill Development, and Social Financial Inclusion.

• This platform can help self-employed individuals to sell their produce to wider markets in towns and cities; Ferrying of passengers for hire etc. 

• Accelerate Financial Inclusion: Enhance access to institutional credit through financial products specifically designed for platform workers and those interested to set-up their own platforms. 

GLOBAL BEST PRACTICES

• UK:

• Countries like the UK have established specific legal frameworks for gig workers, such as the Employment Rights Act.

• The United Kingdom Supreme Court also ruled that Uber is an employer and that the existing labour laws of the U.K. do apply to Uber drivers.

  
  

  SHORT TAKE 

  • Code of Social Security, 2020:

  • The Code aims to regulate the organised/unorganised (or any other) sectors and extend social security benefits, during sickness, maternity, disability, etc. to all employees and workers across different organisations.

  • The Code undertakes integrating the following 9 labour laws relating to social security into one integrated Code:

  • The Employees Compensation Act, 1923.

  • The Employees State Insurance Act, 1948.

  • The Employees Provident Fund and Miscellaneous Provisions Act, 1952

  • The Employees Exchange (Compulsory Notification of Vacancies) Act, 1959

  • The Maternity Benefit Act, 1961

  • The Payment of Gratuity Act, 1972

  • The Cine Workers Welfare Fund Act, 1981

  • The Building and Other Construction Workers Cess Act, 1996

  • The Unorganized Workers’ Social Security Act, 2008

CONCLUSION

The gig economy in India is rapidly expanding, offering both opportunities and challenges for workers.While the government has started integrating gig workers into the formal economy, more efforts are needed. India can adopt global best practices to devel

Tags:
Polity

Keywords:
GIG ECONOMY