The Invisible Workforce: Protecting the Rights of Gig Workers in India
Ramesh* used to be a taxi driver with a fixed monthly income. Now, he navigates the chaotic streets of Delhi as a rideshare driver for a popular app. While the flexibility allows him to pick up his daughter from school, the constant pressure to meet daily quotas and the unpredictable income leave him anxious. Ravi's story reflects the growing gig economy in India, a land of opportunity and precarity for millions.
India’s economic landscape is undergoing a silent revolution, serviced by the rise in the gig economy. Gig workers are those engaged in livelihoods outside the traditional employer-employee arrangement and can be broadly classified into platform-based and non-platform-based employees. Platform-based gig workers are those whose work is based on online software or platforms (e.g. Zomato, Swiggy, UrbanClap, etc.) and non-platform gig workers are casual wage workers mostly working in conventional sectors full-time or part-time. Although freelancing is not new and has long existed in the informal sectors (the earliest reference can be dated back to the 13th century), ?it has gained momentum due to platform-based companies' widespread usage. The explosion of internet access and smartphone penetration has supercharged the gig economy, creating a platform-driven ecosystem for flexible work. According to the data reported in 2020, India had 15 million independent freelancers contributing to the economic growth. The exact latest numbers vary but estimates suggest that a flexible workforce could reach over 23.5 million by 2030, highlighting its growing importance to the Indian economy. Further, the number of jobs can rise to 90 million contributing as much as 1.25% to the GDP.
Despite India's booming gig economy offering flexibility, higher unit pay, and increased efficiencies, it has raised questions about occupational health and safety and worker protection. Millions may be contributing to the nation’s economic engine but the engine lacks sufficient guardrails. This lack of safeguards exposes gig workers to various human rights concerns, which could hurt the very system these workers help to run. In October 2021, Urban Company was called out and it was followed by what might be India’s first women-led gig workers’ strike. Approximately 100 women were protesting against low wages, high commissions, and poor working conditions.
Along with this, these workers face other challenges daily which directly or indirectly deprive them of their survival and empowerment rights-
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1.???? Job insecurity and lack of benefits-
Gig workers lack guaranteed incomes. Their income hinges on factors beyond their control like the fluctuating demand, competition, and policies of the platform that they are associated with. Unlike traditional employees, They are not entitled to benefits like provident funds, retirement schemes, paid time off, insurance, etc. This makes it difficult to plan for the future, and secure mortgages or loans and creates a cycle of financial instability
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The Joy built upon successful slaughter is not the right kind of joy, it will not do, it is fearful and it is trivial. - Ursula K. Le Guin
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2.???? Lack of protection-
Current labor laws leave gig workers vulnerable to exploitation. Without sufficient legal protections, they have limited options to address unfair treatment or working conditions. The very nature of gig work makes it difficult to form unions, further weakening the bargaining power. While the POSH (Prevention of Sexual Harassment) Act defines a workplace broadly, its applicability to digital platforms remains unclear leaving a gap in protection against harassment.
3.???? Job Instability-
A report by BCG found that 20% of all gig workers are dissatisfied with the lack of job stability highlighting the importance of job assurance. This is particularly true for unskilled workers with 30% citing job stability as a key factor. Unfortunately, ad hoc short-term government measures and regulatory changes are unlikely to lead to long-term labor market changes and the empowerment of gig workers.
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While the challenges faced by these workers are significant, the state governments are taking steps to address them. Recognizing the crucial role played by this economy, several initiatives aim to improve their working conditions and basic rights. For example, the Rajasthan government has established a board for welfare and a dedicated social security fund for gig workers - Rajasthan Platform – Based Gig Workers (Registration and Welfare) Act, 2023. The bill aims to address the?lack of protection and social security benefits for gig workers,?who were?previously classified as ‘partners’?rather than?employees?when working for app-based companies like Ola, Uber, Swiggy, and Zomato. In other news, the Karnataka government has announced that all gig workers in the state will receive free life and accidental insurance of Rs 4 lakhs each.
Organizations like Zomato have introduced benefits like Rest Points. These rest points are shelters on the way where the delivery executives will be able to rest and recharge. These points will have phone charging stations, washrooms, and clean drinking water and can be used by delivery executives of other companies as well. In addition to 2 rest points in Gurugram, Zomato recently established a new rest point in Bengaluru.
Another way platform-based companies can take care of their “partners” (read: employees) is by integrating it as a CSR activity. Organizations can ensure transparent payment procedures, living wage commitment, access to employee benefits, and ethical algorithm design.
The recently enacted The Code on Social Security 2020 paves the way for government-designed social security schemes for gig workers, but it has not been made effective yet. This code, once in action, will enable the government to formulate social security schemes for the gig workers in the form of health care, and income security that can arise due to unemployment, old age, work injury, sickness, loss of breadwinner, invalidity and maternity and provide regulations but there is a flip side to it. If these regulations are stringent, it will be difficult to attain the very goal gig economy has set to achieve- provide flexibility to workers. Although there is a provision in the code that penalizes any deductions by the employers from the worker’s income, the increased cost concerning the benefits will impact hiring.
Parting words
Striking this balance is crucial for the sustainable growth of India’s gig economy. Having guidelines for minimum wages, pension services, insurance, and clear work classifications without refraining from actively participating in the economy will go a long way in securing the livelihoods of millions.
An open dialogue among policymakers, employers, and worker representatives can pave the way for a future where the gig economy empowers individuals and also upholds their basic rights.
References-
IIM K | Campus Fund | Drashta Power Consultants | Bits Pilani - Goa
8 个月Gig workers have it bad but the migrant contract workers are heavily exploited. Labour laws are so complex that most companies prefer contractual workforce rather that direct employees.