Gig workers get legal recognition under new labour laws
What's the story
The Indian government has officially granted legal recognition to millions of gig and platform workers under its new labour laws. This comes more than five years after Parliament approved the laws in 2020. The recognition falls under the Code on Social Security, one of four labour codes notified on Friday. However, despite this step forward, ensuring real access to social security for these workers remains a major challenge.
Law details
New labor laws and their implications for gig workers
The new labor laws define gig and platform workers in statute and mandate aggregators to contribute a small percentage of their annual revenue to a government-managed social security fund. This is intended to provide these workers with access to benefits such as the Employees's State Insurance, provident fund, and government-backed insurance. However, the specifics of these benefits are yet to be clarified by future rules and scheme notifications.
Board establishment
Social security boards: A key component of new labor laws
A major element of the new labor laws is establishment of Social Security Boards at both central and state levels. These boards will be responsible for designing and implementing welfare schemes for gig and platform workers. The central board will have five representatives each from gig/platform workers and aggregators, and senior government officials, experts, and state representatives. However, there's still uncertainty about how decisions will be made or who will have final authority over funding decisions and benefit delivery.
Access issues
Concerns over uneven access to social security benefits
The implementation of the new labor laws also raises concerns over unequal access to social security benefits. This is because state governments are responsible for designing and implementing many of the schemes required under the Code on Social Security. Some states may be quick to set up social security boards and implement schemes, while others may delay or deprioritize this process due to political or fiscal constraints.
Corporate reactions
Platform companies' response to the new labor laws
Platform companies have welcomed the reform but are still assessing its implications. An Amazon India spokesperson said they support the Indian government's intention behind the labor overhaul and are evaluating what changes they will need to implement. Zepto's spokesperson also welcomed the new labor codes as a step toward clearer rules that protect workers while supporting ease of doing business.
Registration hurdles
Challenges in registering for benefits under the new law
One of the biggest challenges for gig workers seeking benefits under the new law will be registering on the Indian government's E-Shram portal. The portal, launched in 2021 as a national database of unorganized workers, had registered more than 300,000 platform workers by August-end. However, many trade unions are working to help gig workers enroll so they can access these benefits.
Union demands
Trade unions demand more protections for gig workers
Trade unions often resort to strikes to compel platforms to address immediate concerns such as fluctuating earnings, account suspensions, and sudden terminations. However, these actions can disrupt all parties involved and put workers at further risk as they are not paid while striking and may even face termination for participating. Shaik Salauddin of the Telangana Gig and Platform Workers Union called for a minimum wage and an employer-employee relationship for gig/platform workers yet to be established by the government.