Gig and Platform Workers

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Gig and Platform Workers

News Highlight

Code on Social Security, 2020 envisages benefits for gig and platform workers.

Key Takeaway

  • Maintaining excellent industrial relations has been delegated to the Central Industrial Relations Machinery (CIRM).
  • In addition, workers’ interests in establishments under Central Government supervision are protected. 
  • The respective State Governments have control over concerns concerning delivery employees.
  • For the first time, the definitions of “gig worker” and “platform worker” are included in the Code on Social Security, 2020.

Gig and Platform Workers

  • Gig Workers
    • Gig workers work hourly or part-time in jobs ranging from catering to software development.
    • They have an unusual work arrangement with their employers and a unique employer-employee relationship.
    • The task is usually temporary and must be completed within a certain time.
    • The Code on Social Security, 2020 [Section 2(35)] defines a gig worker as a person.
    • They perform labour or participate in a work arrangement and earn money from such activities outside of traditional employer-employee relationships.’
    • Gig workers include freelancers, contingent employees, and independent contractors.
    • A part-time professor can also be considered a gig worker.
  • Platform Workers
    • A platform worker works for a company offering online services to individuals or businesses.
    • Platform workers include Ola or Uber drivers, Swiggy or Zomato delivery agents, etc.
    • A platform worker is defined as “a person engaged in or undertaking platform work” by the Social Security Code.
    • Platform work is defined in Section 2(55) of the Code as a type of employment in which organisations or individuals use an online platform.
      • It is to access other organisations or individuals in exchange for payment to solve specific problems or provide specific services.
    • This work also falls outside of the typical employee-employer relationship.

Gig & Platform Work

  • Pros
    • It provides workers freedom by allowing them to work for many businesses simultaneously and, in certain situations, set their salary.
    • It allows professionals to put their skills to the test in an area of interest to them. 
    • For example, independent writers can try a part-time job before committing to it full-time.
    • This type of labour also allows for the employment of remote people.
  • Cons
    • Such workers are typically denied advantages that companies provide to regular employees, such as health insurance and paid leave.
    • Such work generallyIssues faced by the Platforms Workers suffers from variable remuneration and a lack of job stability.
    • While it is true that gig and platform workers have greater employment freedom.
    • They are still bound by control mechanisms wired by the platforms’ algorithms. 
    • This impacts work hours, cost, and so forth.
    • Furthermore, access to vehicular assets is required for entry into on-demand platform work such as ride-sharing and food delivery.
    • It is insufficient for the average Indian worker
    • Such workers rely on intense financing plans to enter the platform economy.
    • Platform aggregator corporations frequently enable them.

Issues Faced by the Platforms Workers

  • Classification as Employees
    • One platform workers’ biggest challenge is that they are frequently classed as independent contractors rather than employees.
    • As a result, they are ineligible for minimum wage, overtime pay, and workers’ compensation benefits.
  • Low Wages
    • Many platform workers in India are paid very little, frequently less than the minimum wage. 
    • This is partly due to platform companies competing on pricing and a vast pool of people ready to accept low-paying jobs.
  • Long Working Hours
    • Platform employees must frequently work long hours to sustain themselves and their families. 
    • This can result in exhaustion and burnout.
  • Lack of Social Protection
    • Platform workers cannot access social security benefits like pensions or insurance
    • This puts them in danger of an accident or illness.
  • Discrimination
    • Some platform firms have been accused of discriminating against specific worker groups, such as women or workers from lower castes.
    • Dalit gig workers endure prejudice regarding limited employment opportunities, low earnings, and social marginalisation.
    • After learning about the faith of Muslim delivery drivers, some clients may refuse to use their services or cancel their purchases.

Way Forward

  • The most critical lesson from China is the surge of public opinion, which has resulted in government regulation and changes in corporate policies.
  • Customers in the United States have been urged to remove the Instacart app as a sign of solidarity until requests for better working conditions are realised.
  • Indians should learn more about how platforms work by approaching delivery personnel and inquiring about their working conditions and the difficulties they experience. 
  • We will then be aware of the cost that a person, who appears just as a small bike on our apps, pays for our convenience.

Pic Courtesy: Gigonomy

Content Source: PIB

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Created on By Pavithra

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Consider the following statements:

1. Platform workers make a living outside the typical employer-employee relationship.

2. The NITI Aayog has released a paper titled 'India's Booming Gig and Platform Economy' on

3. India's gig-platform economy.

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