Gig work economy have increased in a tremendous rate in the rapidly developing economical
society. Gig work means short term employees who are hired to work virtually for an online
platform. The scenario of working as freelancer have now become very common practise in
the group of the employed salaried people, retired people, students, researchers etc.
The gig working helps in many ways towards the economy of the country like increase in
productivity, rapid growth of market, decreasing unemployment especially people who are
educated unemployed, credential unemployment, graduate unemployment, underemployed
etc. Even after being such a big employment industry in India, the employees working in gig
are deprive of benefits, compensation, schemes and safeguarding their interests for which
they face instability in job security, safety disparities, no stable income etc.. as there is no
prevalent provision in labour law of India for their interest. It was mentioned in the Social
Security Code, 2020 but clear definition and rights of gig workers and obligations of their
employers were mentioned in ambiguity.
Further, in this paper it has been examined the suggestions and remedies to the problems
faced by the gig workers which includes recommendation to government such as various
schemes for the employees, acts which would specifically safeguard the interest and rights of
the employees without any ambiguity, investment in digital spheres , laws for maternity
benefits etc., recommendations to the individual such as understanding the classifications
made in the social security code of 2020, advocate for fair treatment, be aware of his rights
and obligations. Etc. and recommendations for the employer such as complying with the
code, maintaining transparency with the employees, collaboration with government and
invest for the benefit of the employee.
Key words: gig economy, unemployment, employer- employee, reccomendations, remedies
CHAPTER 1 INTRODUCTION
The employment domain is undergoing fourth industrial revolution where the technology
advancement has taken over the era. The technology advancement and digital revolution have
enhanced where now the artificial intelligence can work with least assistance of the human
beings. This collaboration has led to inventing of many engaging opportunities, inventive
strategies, innovative opportunities towards international market and different career
positions yet to be created. India is transforming into this advancing market. But, along with
the advancement of the digital world many people jobs are in jeopardy. Mainly, this have
given rise to a situation of job displacement due to automation or technology employment
The international economy will be influenced in assortment of ways as whole families under
employment are gotten to be more computerized wholly transforming the work and
reclassifying the traditional workloads making minute classes of job roles which led to the
expansion of the advancement of modern occupations. According to the report in EY because
of such radical change gig economy have emerged where people are employed for short term
in a non-traditional manner.
The Indian labour industry is gradually up-taking participation in this gig economy and have
made a significant remark on this industry. The employment strategies in India have changed
substantially due to the augmentation of technology and e commerce. There is a change in the
pre-determined schedule of employment and presently millions of labour force are indulge as
freelancers, short term contract employees, self -employed, as well as renters and individuals
involved in Uber, Zomato are all coming under the gig economy as independent employees.
The Cambridge dictionary defines gig economy as the persons having transitory occupation,
each paid independently working under an employer on a specific assignment or work within
a stipulated time period fort different clients. With the rise in startups and entrepreneurs
giving rise to the expansion of business industry, these kinds of contractual work have
become popular and have grown at a rapid rate. Also, due to recession the firms and other
LPO’s are hiring the freelancers and contractual workers as maintain the cost of the
permanent workers are challenging. The people are engaging more in it as because of
consistent flow of work, learning opportunities, employing freshers etc. in India. In a study it
has been revealed that in the year of 2025 the gig economy has grown to 20-30 million of
USD. 31st march,2019 Arun Jaitley in his mentioned in his web journal mentioned that the
emerging e-commerce companies such as OYO, Uber have created a substantial impact both
in direct and indirect employment. 1 In the metamorphosing phase of the digital advancement
in the market many opportunities of self-dependent workers have unfold –
A. The traditional worker who wants to become independent
B. The population who are educated unemployed, credential unemployed, graudate
unemployed etc.
C. The requirement of the market and the organisation 2
CHAPTER -II METHODOLOGY OF STUDY
1 Arun Jaitley compares NDA govt’s economy report card with UPA’s in blog, refutes Opposition’s ‘fake’
campaign on economic data, FIRST POST, (June 3, 2019), https://www.firstpost.com/india/arun-jaitley-
compares-nda-govts-economy-report card-with-upas-in-blog-refutes-oppositions-fake-campaign-on-economic-
data 6294501.html.
2 McKinsey 2016
The research is a conceptual research paper based on literature, jurisprudence, legal text
analysis and interpretations. This research highlights stages from legal doctrinal point of view
in order to arrange them lawfully conceptualise them in the best conceivable manner. This
interpretation specifically focuses on the framework of contemporary jurisprudence of labour
law and compelling arguments in respect of the rights and interests of the gig workers in the
current labour jurisprudence. The fundamental research was to address about the Chac
eristics of the platforms for the new generated independent worker and about their special
legal treatment as the present legal labour jurisprudence do not fit into the requirement.
Firstly, here is discussed about the gig worker and there working environment. Secondly,
discussed about the statue which is governing the independent workers currently. The laws
and the relationship of the employer and employee in the gig working environment. The
investigation that how the traditional work environment is deviate from the gig work
environment. Thirdly, in this research it is discussed about the pros and benefits of the gig
work environment. The features of the gig work employment. Fourthly, the challenges of the
gig work economy and suggestions towards such challenges. Fifthly, the conclusion in toto.
CHAPTER-III REVIEW OF LITERATURE
In their paper Ernst & Youthful (EY) looks closely at five businesses: 3 IT/ITES, retail, money
related administrations, material & attire, and auto. It analyses the impacts of three primary
variables: statistic shifts, globalisation, and the take-up of exponential innovations by Indian
businesses. It embraces a well-informed viewpoint on the future based on speculations made
through auxiliary inquire about and their affirmation by experts, trade titans, and academics
through coordinate intuitive. Agreeing to the report, how India responds to the unavoidable
affect brought on by the interaction of three primary powers – globalization, statistic shifts,
and the selection of Industry 4.0 exponential innovations by Indian companies – will
characterize the future of employments in India in 2022. These three’s combined impact.
In “Future of Working a Computerized Era: 4 The Potential and Challenges for Online
Outsourcing and Smaller scale working India” assesses the development of miniaturized
scale work and online outsourcing in India, a chance to work freely and on a transitory
premise made conceivable by the rise of web-based platforms that interface ability with
companies. Online Outsourcing and Miniaturized scale work have advanced as fulfilling
prospects of what is primarily India’s casual work showcase. Along the continuum of simple
to complex trade forms, the carefully enabled work constrain finds opportunity for business
and maximizing efficiency. Stages have moreover recognized getting teeth issues related to
payments, offering and exploring websites – algorithmic up degrees are focused on towards
disentangling the utilize of stages for clients and freelancers.
Concurring to the McKinsey Worldwide Institute’s report, 5 “, 20 to 30 percent of individuals
in working age in the EU-15 and the Joined together States, or up to 162 million individuals,
lock in in free work. This is based on assessment of current information as well as a careful
MGI workforce overview conducted in six countries. The investigate claims that free
business is recognized by three characteristics: a tall degree of independence; instalment by
work, task, or deals; and a brief working relationship with the client. The investigate
investigates the focal points of autonomous work for the economy, counting how it seem
decrease unemployment, increment work drive support, increment request, and boost
efficiency. Laborers who choose to be autonomous esteem the independence and adaptability.
3 “Future of Jobs in India: A 2022 Perspective,” Ernst & Young (EY)
4 Kathuria R, Kedia M, Varma G, Bagchi K, Khullar S (2017) i
5 McKinsey Global Institute’s report, “Independent Labor: Choice, Necessity and the Gig Economy
In spite of its benefits, free work includes a few trade-offs. There is more work to do on
issues such as benefits, pay security measures, get to to credit, and preparing and
qualifications. Some of these may call for approach changes; others seem be fathomed by
trailblazers and new intermediaries.
Rd. Pooja Nagpal | ISME] -Gig specialists regularly confront pay irregularity due to the
project-based nature of the work. This makes budgeting and sparing for crises troublesome,
with reports highlighting the need of social security nets like wellbeing protections and paid
time off 6 .
The legitimate status of gig specialists remains dinky, clearing out them defenceless to
misuse. Articles point out the nonattendance of conventional labour law securities against out
of line treatment, segregation, or hazardous work situations. 7
6 Report: Gig Economy in India: Drivers, Challenges & Street Ahead
7 Article: The Gig Economy: Challenges and Openings for Specialists.
CHAPTER-IV METHOD
The gig economy encompasses a range of activities where individuals work on a part-time or
project basis, often utilizing digital platforms or apps to connect with clients or customers.
Gig workers, also known as independent contractors or freelancers, typically operate as their
own business entities and are responsible for managing their work, schedule, and earnings.
Persons coming under the gig work employment and the different kinds of gig work
employment: 8
Part-time work: A individual who as it were works for a few hours of the day is
comparatively lesser than the full-time worker of the company. There are locked in
with the association for as it were a brief period of time. These labourers aren’t
qualified for benefits like wellbeing protections or retirement plans like any other
non-standard worker.
On-call labourers: A worker which is gathered to report to the association at whatever
point required by the company is known as an on-call worker. They don’t have settled
hours of work. These representatives are paid on premise of the hours that they work
and aren’t given a compensation.
Platform specialists: It implies a specialist working for an association that gives
particular administrations utilizing an online stage specifically to people or
associations.
Dependent self-employment: It is a shape of business that lies between self-
employment and business. These labourers as it were gain pay from one boss advance
the labourer is too given by one boss.
IV.I COMPARISON OF THE TRADITIONAL WORK EMPLOYMENT WITH THE
GIG EMPLOYMENT
here, are some insights that how the prescheduled work employment of 9-5 deviates from the
gig work employment.
- TRIFARTILE RELATIONSHIP: As there is always a trifacial relationship in every
act of labour law which establish the relation for example- the tripartite relation in
8 Analysis of Labour Laws with respect to gig workers – impleaders
Workmen Compensation Act, 1923 constitutes relation between employee-employer-
insurance provider. So, as in the industrial dispute act, 1947 the parties involved are
the employer-employee and the government. But, as the Gog worker are involved in
platforms that provided services they are not directly linked with clients and the
employer-employee relation changes continuously. Hence, as in other labour laws,
there can be found to whom they can claim the losses and damages, it cannot be
established here as the platforms provide the employment. Even, they do not have the
direct interaction with clients. The platforms are considering as intermediaries and not
the employers due to which they are not liable under the Lauber laws to provide
benefits, rights and compensation in case of any losses occurs to the gig worker. The
gig workers are considered as independent contractors this led to decrease in the
obligations of platforms towards them. This uncertainty due to which the gig workers
are deprive of any benefits and facilities. They even do not have the authority to claim
their interests. As, an independent contractor they have certain rights and duties
discussed below:
An independent contractor is a worker who provides services to a client or customer
under a contract for services.
The key characteristics of an independent contractor include:
The contractor has control over how the work is performed. The contractor
provides their own tools, materials, and equipment.
The contractor has the opportunity to profit or bear a loss from the work.
The contractor operates independently and is not integrated into the client’s
business.
Rights and Protections for Independent Contractors Independent contractors have a
limited set of rights and protections compared to employees. These may include:
The freedom to negotiate rates and terms of service.
Flexibility in choosing clients and projects.
Payment for services rendered based on the terms of the contract.
The ability to work for multiple clients simultaneously.
Obligations of Independent Contractors Independent contractors have certain
obligations, including:
Meeting contractual obligations and delivering the agreed-upon services.
Paying their own taxes and social security contributions.
Providing their own insurance coverage, if necessary. Following applicable
health and safety regulations while performing services
These, are different from the traditional employee’s relation as employees are some amounts
exempted from taxes, they get other benefits under the labour law, the insurance coverage is
provided by the employer etc. In some cases, companies may misclassify workers as
independent contractors to avoid providing benefits and protections associated with employee
status. This practice is known as “sham contracting” and is generally considered illegal. Legal
disputes regarding worker classification often involve factors such as the level of control
exerted by the employer, the degree of independence of the worker, and the nature of the
work relationship.
- The data control: as, the platform as intermediaries the work is done by algorithms
and not by individuals. The work-related information is with them and they have the
full knowledge about both the employer side as well as the employee side which in
result in having a dominant position over them and manipulate both of the sides and
influence them in their decision mainwheels, in traditional work environment there
was direct interaction hence the employee-employer relation was accustomed without
any intervention of third party. They do not have such dominant or somewhat
controlling position over the both hence, any dispute between them the employee and
employer were dissolved within less time through collective bargaining and
settlement.
IV.II LAWS RELATING TO GIG ECONOMY IN INDIA
Indian legislature looking at the need of the house and after various issues raise in many cases
such as:
App-based Transport Workers v. Government of NCT of Delhi & OR’s, 9
In this case it was held by the supreme court which instructed the government to direction of
providing social security to the gig workers and other benefits required by them and establish
a social security by them.
Ram Singh and OR’s. V. Union Territory, Chandigarh and OR’s 10
The specialist was considered as an employee since the employer had control over his
activity, the employer was paying his wages. Hence the court interpret and establish they
have employer-employee relationship.
The Code of Security, 2020 is the solo enactment made for the gig employees engaged in the
GiGi employment to safeguard their rights and interprets. the employees in the code
constitutes of all kinds of gig employee’s independent worker, platform workers etc. most
importantly this code provided benefits such as maternity benefit, health and life insurances,
pension securities, educational benefits, provident funds, compensation on any loss and
damage or accident occurs extend to disability. Etc. The definition of gig worker under the
code prescribes as the workers who are employed in non-traditional work employment with
earning a living from such work.
This was introduced by the influence of the decision of Rajasthan High Court on the
Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023” (Act),
the Bill for which was brought before the Rajasthan Legislative Assembly on 21 July 2023
and passed on July 24 2023. 11 They instructed for a board to be established and had made an
allocation of rupees 200 crore at an initial stage towards acknowledging the rights , interests
and benefits of the employee.
9 20 December 2023 + W.P.(C) 13239/2022 & CM APPL. 401
10 7 NOVEMBER 2003
11 https://indiacorplaw.in/2023/09/rajasthans-gig-workers-legislation-paving-the-way-for-transformation.html
Esha Rathi is a final year B.B.A. LL.B. (Hons.) student at Jindal Global Law School
There are challenges as mentioned later in the topic where the loopholes of the code are
discussed. Also, discussed about the rights of the worker they should get along with
what they are getting.
Chapter- V CHALLENGES
- Minimum Wage and Working Hours Gig workers, like employees, are entitled to
earn at least the minimum wage set by local labour laws.
This section delves into the legal requirements for paying gig workers, as well as any
exemptions or variations that may apply. Moreover, it explores the regulation of working
hours and the importance of ensuring fair compensation for gig workers. - Employment Benefits and Entitlements gig workers often do not receive benefits
such as health insurance, retirement plans, or paid time off.
However, there are emerging legal discussions around providing certain benefits to gig
workers. This section examines the current status of benefits and entitlements for gig
workers, including discussions on portable benefits, collective bargaining rights, and the
evolving legal landscape. - Discrimination and Harassment Protections Gig workers, like all workers, should
be protected from discrimination and harassment based on various
characteristics, such as race, gender, or sexual orientation.
This section explores the legal frameworks surrounding discrimination and harassment in
the gig economy, including the responsibilities of platform companies to address these
issues and protect the rights of gig workers. - Legal Remedies and Dispute Resolution
When disputes arise between gig workers and platform companies, understanding the
available legal remedies and dispute resolution mechanisms is crucial. This section
discusses the avenues for gig workers to assert their rights, such as filing complaints with
labour agencies or pursuing legal action. It also examines alternative dispute resolution
methods, including arbitration and mediation, that may be mandated by platform
companies. - Future Trends and Considerations
The gig economy is constantly evolving, and with it, the rights and protections for gig
workers. This section highlights emerging trends and considerations, such as calls for
legislative reforms, the impact of new technologies, and ongoing debates surrounding the
classification of gig workers. It encourages learners to stay informed about the evolving
landscape of gig work and its labour laws.
Chapter-VI SUGGESTIONS
The security code of 2020, mention gig economy workers in an ambiguous
manner. They did not specifically mention the kinds of rights and benefits to be
provided to the kinds of the gig economy employee. There must specifically
benefits to safeguard the interest of specific category of the gig worker. Like some
of the benefits given to the independent contractor are not same as platform
specialists. Due to which the companies are not clear about the adaption of the
code and hence are unable to follow the rules and regulations.
As, an individual who is engaged in the gig economy he should be aware of his
rights and advocate for himself and his ingests as in which specific category he is
employed to grab that specific benefit. As employer, he should provide the benefit
and follow the rules and regulations of the provided code.
As per say, there is no code which would specifically applies for the platforms
which are providing the employment. The online platforms are governed by the IT
Act and consumer act. But there is no specific act incorporated for them due to
which they are working in shadows and avoiding the Code.
There should be a separate code which would specifically mentions about the
interests and benefits of the gig workers. As well as with strict that regulatory body
would look after whether the employment platforms and the authorities are abiding
with the laws and with serious punishments and heavy penalties.
Chapter -VII CONCLUSION
In conclusion, the topic of classification of gig workers as employees or
independent contractors in the Gig Economy in relation to labour law in India has
shed light on the complexities of determining worker status in the gig economy.
This understanding will assist in ensuring compliance with labour laws and
providing fair treatment to gig workers.
This has emphasized the importance of ensuring fair treatment and adequate
protections for gig workers. It has examined the existing legal framework and
explored potential avenues for strengthening worker rights in the gig economy.
Armed with this knowledge, are better equipped to advocate for gig workers’ rights
and contribute to the ongoing discussions surrounding their protections