Gig Workers

Gig Workers

News: The fifth annual study conducted across 12 e-commerce platforms by Fairwork India, presents a grim picture of working conditions for India’s gig workers.

Who is a Gig Worker?
• The Code on Social Security, 2020 [Section 2(35)] defines a gig worker as ‘a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationships.’ There are 2 groups of Gig workers – Platform workers and non-platform workers.

What are the key findings of the study?

Minimum Wage Policy
• The study highlights that only three platforms, including Bigbasket, Flipkart, and Urban Company, have minimum wage policies to ensure workers earn at least the local minimum wage.
• No platform guarantees that workers earn a living wage.

Safety, Contract clarity and Worker protection
• Some platforms also offer accident insurance coverage and compensation for income loss due to accidents or medical reasons.
• Additionally, companies have taken measures to ensure contract clarity, data protection, and processes for handling worker issues, such as appealing disciplinary actions.
• Unfortunately, no platform received points for Fair Representation, indicating a lack of recognition for collective worker bodies despite increased worker collectivization in recent years.

Issues faced by Gig workers
• Lack of job security, uncertain future, irregular wages. For example, Earlier in the year in blinkit controversy, per delivery amount was slashed by almost 10 rupees. The cumulative loss for workers is huge.
• As the relationship is outside the scope of traditional, full-time employment gig workers lack basic rights such as minimum wages, overtime pay, medical leaves etc.
• Gig workers are often excluded from social security and labor legislation due to their ambiguous employment status.
• Limited access to internet and digital technology can be a restrictive factor for workers willing to take up jobs in the gig and platform sector.

Government initiatives
• The Code on Wages, 2019 provides for universal minimum wage and floor wage across organised and unorganised sectors. It also includes Gig workers.
• The Code on Social Security, 2020 recognises gig workers as a new occupational category and provides them with life and disability cover, accidental insurance, health & maternity benefits old age protection and other. It also proposed to establish a Social Security Fund and a National Social Security Board to ensure wellbeing of Gig workers.
• E-Shram Portal – It creates database on unorganized workers including Gig workers.

Way Forward
• Define clear guidelines for the classification of gig workers (e.g., independent contractors, employees) to ensure they receive appropriate legal protections and benefits.
• Proper estimation of Gig workers. What is the exact number. NITI aayog also recommended it.
• Enhance access to institutional credit through financial products specifically targeted for platform workers.
• Focus on skilling for platform jobs