Legal Rights of Gig Workers in India are becoming a pressing concern in today’s labour economy, especially with the rise of platform-based jobs.
Introduction
India’s gig economy has witnessed exponential growth over the past decade. With platforms like Swiggy, Zomato, Ola, Uber, and Urban Company, millions of individuals now earn their livelihood through gig and platform-based work. According to NITI Aayog’s 2022 report, India had around 7.7 million gig workers and this number is expected to grow to 23.5 million by 2029-30.
Despite the contribution of gig workers to India’s economic engine, their legal rights remain largely undefined and unenforced. Gig workers exist in a grey area — neither traditional employees nor fully independent contractors — leaving them vulnerable to exploitation and exclusion from basic labour protections. This blog explores the legal landscape for gig workers in India, recent policy changes, and the road ahead.
Who are Gig and Platform Workers?
The Code on Social Security, 2020 (yet to be fully enforced) offers a statutory definition:
- Gig Worker: A person who performs work outside of the traditional employer-employee relationship.
- Platform Worker: A gig worker who earns from an online platform or app.
Examples include delivery partners, ride-hailing drivers, freelance content creators, and app-based home service providers.
Gig work offers flexibility and autonomy. However, it lacks critical protections such as fixed wages, medical benefits, insurance, and grievance redressal mechanisms — all standard for regular employees.
Legal Framework Governing Gig Workers in India
Historically, Indian labour laws have not addressed the concept of gig or platform work. Gig workers fall outside the ambit of laws like the Industrial Disputes Act, 1947 or the Factories Act, 1948.
However, the Code on Social Security, 2020 is a step forward. Key provisions include:
- Creation of a social security fund for gig and platform workers
- Mandatory registration of gig workers on a central portal
- Contributions from aggregators based on their annual turnover
Yet, implementation remains sluggish. Without clear enforcement guidelines and budget allocations, these rights exist only on paper.
The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023
This landmark legislation made Rajasthan the first Indian state to formally legislate for gig workers. Highlights include:
- Mandatory registration of both gig workers and platform companies
- Creation of a Welfare Board and Social Security Fund funded by aggregators
- Gig workers to receive identity cards and access welfare schemes
While the Act sets a strong precedent, its success depends on consistent implementation, monitoring, and collaboration between stakeholders.
Key Issues Faced by Gig Workers
- No Fixed Wages or Job Security
Earnings fluctuate based on platform algorithms, demand, and location. There is no guarantee of minimum wage or continuity of work.
- Lack of Social Security
Most gig workers don’t get provident fund, health insurance, paid leave, or retirement benefits.
- Unfair Deactivation
Workers are often removed from platforms without notice or the ability to appeal, violating natural justice.
- Long Working Hours
Due to performance-based incentives and penalties, gig workers often work 10–12 hours daily with limited rest.
- No Formal Grievance Mechanism
Most platforms lack transparent complaint redressal channels, and there is no labour tribunal specifically for gig disputes.
Judicial Perspectives and Case Law
Indian courts are yet to decisively classify gig workers as “employees.” However, globally there are important precedents:
- UK Supreme Court (Uber Case, 2021): Ruled that Uber drivers are “workers” entitled to minimum wage and holiday pay.
- California’s AB5 Law (USA): Required companies like Uber and Lyft to treat gig workers as employees unless specific criteria were met.
While Indian courts have not made similar pronouncements yet, these rulings can influence future Indian jurisprudence.
Recommendations for a Fair Gig Economy
- Enforce the Social Security Code, 2020 with clear rules and a digital registration system
- Ensure aggregator contributions to the welfare fund are transparent and traceable
- Establish grievance redressal mechanisms at platform and state levels
- Recognize platform worker unions and ensure freedom of association
- Standardize minimum safety and income norms across platforms
Conclusion
India stands at a legal crossroads — between embracing a flexible digital economy and protecting the dignity of labour. Recognizing and enforcing the rights of gig workers is not just a legal obligation but a social imperative. As the gig economy grows, ensuring fairness and protection for its workers will define the future of labour justice in India.
Authored By: Manthan Kurmi ( University of Kalyani – 4th Year )
