GIG Economy: Good for company, not well for labours.

This weekend, you might hit “place order” for a meal delivery. Or jump in a ride share to meet friends. In both cases, you’ll be engaging a gig worker.

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“Gig worker” is a term?that generally refers to people who get work through Smartphone apps – think Uber, Ola, zomato, swiggy, and others.

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The emergence of platform businesses like Uber and Amazon revolutionized the buyer-seller matching concept. Service seekers in the market could now leverage technology to quickly broadcast their requirements which are matched with the most suited service provider. The whole process was made quick and convenient for both parties.

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Gig economy is the latest toast of the industry, especially in the post-pandemic job crisis scenario in India. According to industry estimates, India’s gig workforce comprises 15 million workers employed across industries such as software, shared services and professional services. This number is expected to grow to around 24 million in the near-medium term and to 90 million in the long term, as per a report earlier this year by the Boston Consulting Group. India's gig sector is likely to grow to US$455 billion at a CAGR of 17 per cent by 2024.

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On better side of Gigging- Whether or not gigging is India’s cup of tea depends on how well we can embrace it, on the employer and worker front. It is certainly proving to be a win-win for both the employers and gig workers and the proof is in the numbers.

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The gig economy is here to stay and the world of gigging packs in all the excitement you need. As the corporate world opens doors to it, the unorganized gig economy is evolving into a significant disruption that Indian company is beginning to embrace. Even amidst practical challenges such as a traditional mindset, lack of streamlined networking platforms, and the absence of a formal regulatory framework, the rise of the gig economy is under no threat.

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Gig economy is failing its labour force. The gig economy holds serious challenges in upholding labor rights. Gig workers are not covered under standard employee contracts. The absence of social security makes things worse for the gig workers.?

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The Code on Social Security, 2020, which also includes gig workers, was passed by parliament. Along with multiple other propositions on employment benefits and social security for gig/platform workers, the code talks about creating a social security fund for them. The code recognizes gig workers as eligible beneficiaries for certain social security benefits, but it does not provide any concrete mandate to ensure this.

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Thanks.

Sundarraj.S

Leadership Coaching, HR Strategist and Risk free HR Compliance.