SC notice to Centre on social security cover for gig workers

What is the news?

The Supreme Court has agreed to examine the public interest litigation seeking social security benefits to “gig workers” and “platform workers” engaged by Uber, Ola Cabs, Swiggy and Zomato.

What is the case about?

A petition was filed in the Supreme Court arguing that “gig workers” and “platform workers” should be recognized as “unorganized workers” and not “independent contractors” as claimed by the companies.

They should also be entitled to social security benefits such as insurance, provident fund, gratuity, maternity benefits and other welfare schemes that are denied to them.

The petition referred to the recent United Kingdom Supreme Court judgment that has analysed the contract between Uber and the employee. It found that the contract is only a subterfuge (a clever method used to evade rule or hide something) and the real relationship between Uber and its employee is that of employer and employee.

What did the court say?

The Supreme Court pointed out that the new legislation Social Security Code 2020 passed by the Parliament in 2020 has a chapter dedicated for the welfare of ‘gig workers’.

The petitioner argued that the Social Security Code 2020 is yet to be implemented. Hence, what they are seeking is that the gig workers should be declared as “unorganized workers” even under the pre-existing laws.

The court has agreed to hear the petition and issued notice to the Central Government.

Source: This post is based on the article “SC notice to Centre on social security cover for gig workers” published in Livemint on 14^th Dec 2021.