[Answered] What are the challenges faced by gig workers in the absence of traditional employer-employee relationships, and how can the proposed national law address these challenges? (250 words)

The gig economy, characterized by flexible work arrangements and independent contractors, has seen a significant rise in recent years. However, the lack of traditional employer-employee relationships has led to several challenges for gig workers.

Challenges Faced by Gig Workers in the Absence of Traditional Employer-Employee Relationships

• Ambiguous Employment Status: Gig workers are often classified as independent contractors rather than employees, which excludes them from the traditional protections provided under labor laws.
• Lack of Social Security: Gig workers do not have access to comprehensive social security benefits such as health insurance, retirement savings, or maternity leave that are available to formal employees under institutional social security systems.
• Limited Rights and Protections: As gig workers are excluded from the Industrial Relations Code 2020, they are not covered by minimum wage laws or occupational safety regulations.
• Unclear Contracts and Dispute Resolution: Gig work is characterized by flexible contracts with limited legal obligations from the employer (aggregator), which complicates dispute resolution, leading to uncertainty about wages and work conditions.
• Absence of Job Security: Gig workers are often subject to arbitrary terminations or changes in work conditions without notice.

How Does the Proposed National Law Addresses These Challenges?

• Incorporation into Social Security Schemes: The proposed law mandates that aggregators contribute 1%-2% of their revenue to a social security fund, offering gig workers access to health insurance, retirement savings, and other benefits.
• Defining and Expanding Worker Classification: The government is revising the definitions of gig and migrant workers to make them more inclusive.
• Mandatory Registration and Transparency: The law will require aggregators to register gig workers on the e-Shram portal, ensuring that workers are eligible for social security benefits such as life and accidental insurance. Additionally, aggregators must give a 14-day notice with valid reasons before terminating workers, and maintain transparency in automated systems, addressing job security and dispute resolution issues.
• Welfare Board Model: The creation of a welfare board will ensure that gig workers have access to a social security fund.
• Dispute Resolution Mechanism: The proposed legislation includes the introduction of formal dispute resolution mechanisms to protect gig workers’ rights and provide them with an avenue to contest unfair treatment by aggregators.

Conclusion

Addressing these challenges through a national law can lead to a more equitable and sustainable gig economy, where workers receive proper protection and are empowered.