India's gig economy has witnessed a remarkable surge in recent years, with the country now ranking as the fifth-largest globally for gig workers. This burgeoning sector, characterized by temporary and short-term work arrangements, has been hailed as a paradigm shift in traditional employment models, offering flexibility and autonomy to workers across various industries. However, the rapid growth of the gig economy, particularly in urban India, has exposed significant regulatory gaps and the urgent need for comprehensive legal protection for gig workers.
A recent multi-city survey conducted by the University of Pennsylvania and the Indian Federation of App-based Transport Workers has shed light on the harsh realities faced by gig workers in India. The survey, which covered over 10,000 cab drivers and delivery persons in major cities, revealed alarming statistics about the persisting issues in this sector. An astounding 41% of cab drivers and 48% of delivery persons reported an inability to take even a single day off in a week, while 86% of delivery personnel expressed their strong opposition to the 10-minute instant delivery model.
The lack of adequate rest and the pressure to meet unrealistic delivery targets have taken a severe toll on the physical and mental well-being of gig workers. The survey found that 99.3% of drivers reported one or more forms of physical health issues, such as body pain and working in harsh weather conditions. Similarly, 98.5% of respondents experienced mental health concerns, including anxiety, stress, panic attacks, and irritability, as a direct result of their work.
The financial hardships faced by gig workers are equally distressing. The survey revealed that over 70% of cab drivers and delivery persons struggle to manage their household expenses due to their monthly earnings falling below the basic pay scale. This economic vulnerability is further exacerbated by the informal nature of gig work, which is mediated through digital platforms and lacks substantive legal protection.
India's legal framework has made some strides in recognizing the unique challenges faced by gig workers. The Code on Social Security, 2020, defines various categories of workers, including gig workers, platform workers, and unorganized workers, and establishes a National Social Security Board to recommend suitable schemes for their welfare. However, the implementation of these protections remains inconsistent, primarily due to the ever-changing nature of the gig economy and the ambiguity surrounding the obligations of digital platforms towards their workers.
Moreover, the existing legal structure suffers from insufficient delineation and classification of gig work, leading to a lack of clarity regarding the rights and entitlements of gig workers. This ambiguity perpetuates gender inequalities, as women are often relegated to lower-paying sectors of the gig economy and remain underutilized. The absence of legislation specifically designed for the gig economy also leaves workers unaware of their rights and the mechanisms available to seek redress for their grievances.
The gig economy's legal landscape in India is gradually evolving, with pivotal litigation setting precedents for the protection and recognition of gig workers' rights. Gig workers, represented by the IFAT, have filed a Public Interest Litigation before the Supreme Court, asserting their right to social security benefits under existing laws. The petition highlights the exploitation faced by gig workers employed by platforms such as Zomato, Swiggy, Ola, and Uber, and seeks specific schemes for health insurance, maternity benefits, pension, and other forms of assistance.
As India's gig economy continues to expand, the urgent need for a comprehensive regulatory framework that safeguards the fundamental rights of gig workers becomes increasingly apparent. By addressing the existing legal vulnerabilities and drawing from relevant case laws, India has the opportunity to create a more secure and equitable digital labour market. The realization of the gig economy's full potential to drive economic growth and improve social welfare requires the collaborative efforts of legislators, digital platforms, and gig workers themselves.
