Issues faced by Gig workers

Source-This post on Issues faced by Gig workers has been created based on the article “The problem with the Karnataka gig workers Bill” published in “The Hindu” on 15 July 2024.

UPSC Syllabus-GS Paper-3- Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context -The Karnataka government has introduced the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill. Similarly, Rajasthan passed the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023. Both laws use a welfare board model, focusing on self-employed informal workers rather than employment relationships.

The number of gig workers, particularly in app-based transportation and retail delivery, is rising. NITI Aayog projects the gig workforce will reach 23.5 million by 2030, offering livelihood opportunities amid low overall employment growth.

What are the challenges faced by Gig Work?

1) They face issues like revenue sharing, working hours, and working conditions. This results in accidents involving overworked app cab drivers during late-night or early-morning shifts, putting their lives and those of passengers at risk.

2) Existing legal frameworks struggle to address these issues due to complicated or non-existent employment relations in the gig economy.

3) Aggregators consider themselves technology providers and gig workers as independent contractors.

4) Workers see aggregators as employers because they set service conditions and terms of employment. For ex- in app-based cab services, the aggregator determines ride prices and overall working conditions.

5) In India, gig workers are considered informal self-employed under the Code on Social Security 2020 but are not covered by other labor codes. In contrast, the UK Supreme Court ruled that Uber is an employer, applying labor laws to its drivers.

What are the issues with recently introduced bills?

1) Lack of Employment Definition -The Karnataka Bill and Rajasthan Act, like the Code on Social Security 2020, avoids defining employment relations in gig work by using “aggregator” instead of “employer,”. This prevents the application of protective labor laws to gig workers.

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2) Unresolved Issues -Issues such as minimum wage, occupational safety, working hours, leave entitlements, and collective bargaining rights remain unresolved. For ex- Section 16 of the Karnataka Bill addresses payment deductions but does not guarantee a minimum income or wage entitlement.

3) Limitations of Welfare Board Model –

A) The model provides some welfare schemes but doesn’t replace institutional social security benefits like provident fund, gratuity, or maternity benefits.

B) Historically, welfare board models have been poorly implemented, as shown by the Construction Workers Welfare Act of 1996 and the Unorganized Workers Social Security Act, where available funds were underutilized.

Way ahead-There is a need to recognize aggregators as de facto employers and establish clear employment relations to ensure protection and benefits for gig workers.

Question for practice

What are the challenges faced by Gig Work? What are the issues with recently introduced bills?