ABSTRACT
Gig workers are someone who make money by doing short term , flexible jobs generally through digital platforms like Uber, Swiggy, Zomato without having a proper employer – employee relationship. There has been significant increase in gig workers throughout various countries worldwide. By offering a flexible on demand employment through digital platform, the gig economy has revolutionised the traditional labour market. On a global scale, according to World Bank the online gig economy accounts for up to 12% of the global labour force. In 2020-21, India’s gig economy comprised of 7.7 million workers and is estimated to grow to 23.5 million by 2029-2030while in United Kingdom, the Natcen Panel found that approximately 4.4% of the population, which is around 2.8 million people, had participated in gig economy. The fact is that most of the legal system does not consider gig workers who frequently perform services like food delivery, ride sharing, housekeeping and freelancing to be official employees. This exclusion raises significant concern regarding their access to fundamental labour rights and protection. This paper explores the legal status, challenges and right of the gig workers while analysing the ongoing reforms that aims at regulating the gig economy in India and the United Kingdom.
Keywords: Gig Economy, On demand employment, Digital platform, Labour rights, Reforms
INTRODUCTION
There has been a rapid expansion of gig economy, which is reshaping the global labour market, blurring the lines between traditional employment and freelance work. Typically mediated by digital platforms, Gig work is characterised by its task oriented, flexible and often short duration nature. Gig work offers flexibility and autonomy but also raises critical concerns regarding the job security, social protection, fair wages. Despite its increased growth, the gig economy continues in legal grey area which falls outside the boundary of established labour legislation. One of the central legal challenges posed by the gig economy is the classification of workers. Gig workers tend to fall into hybrid category that complicates the rigid classification of labour relationships.
The author compares India and the United Kingdom partly due to their shared legal legacy, as much of India’s labour legislation was historically derived from British colonial framework. The Indian Parliament undertook a significant legislative reform by consolidating 29 labour legislations into four comprehensive labour codes including Code of Social security, 2020 which for the first time defined the term “gig” and “platform workers.” Moreover, the four labour codes have not been brought into effect, leaving gig workers without any legal safeguard.
In United Kingdom, its tripartite classification system distinguishing between employees, workers and self-employed offers a nuanced basis for regulating gig workers than Indian binary classification. Recent judicial decision observed that the uber drivers qualify as workers under UK labour law and they are entitled to national living wages and paid annual leave.
This paper undertakes a comparative analysis of the regulatory landscape governing the gig economy in India and the United Kingdom, focusing on the classification of workers and legislative frameworks. The paper explores how each jurisdiction has responded legislatively and judicially to the evolving nature of work and assesses the effectiveness of these responses in ensuring fairness, dignity and security for gig workers.
REVIEW OF LITERATURE
Several scholars have explored the evolving dynamics of gig work, particularly the legal uncertainty surrounding worker classification and the absence of adequate protections.
- Vedant Choudhary & Shireshi, (2022)
This paper examines the Indian context, highlighting that current labour laws struggle to fit gig workers into traditional categories like ‘employee’ or ‘contractor’. They argue that without a dedicated regulatory structure, platform workers remain vulnerable to exploitation.
- Vaibhav Rane (2024)
Vaibhav Rane also focuses on Indian law, identifying loopholes in the Code on Social Security, 2020. He notes that though the Code recognizes gig workers, it doesn’t clearly define their entitlements or hold platforms accountable.
- Tonia Novitz (2020)
On a broader scale, this study examines international trends. Novitz argues that digital platforms have transformed the employer–worker relationship, making conventional labour laws outdated.
- Maria Julia Simões Reis 2019)
Reis focuses on the UK’s legal challenges surrounding gig workers’ protection from unfair dismissal. She outlines structural barriers like misclassification, absence of continuity in employment, and lack of procedural fairness in “deactivation.”
- Stewart & Stanford (2017)
Andrew Stewart and Jim Stanford offer a comparative view, analyzing how different legal systems from Canada to Europe have dealt with the gig economy. They suggest hybrid worker categories and enforceable standards as a possible solution.
RESEARCH METHODOLOGY
This study adopts a qualitative, descriptive and analytical methodology relying primarily on secondary sources to examine the regulatory landscape of the gig economy. The information included in this study was gathered from secondary sources. A comprehensive literature review was conducted using wide ranges of sources including academic journals, government reports, policy briefs, legislative documents, newspaper articles and online databases. While focused on secondary sources, the methodology provides a strong basis for understanding the challenges and innovations in regulating the gig economy both in India and UK and suggests future scope for field based empirical validation to assess the practical impact of these legal development.
RESEARCH ANALYSIS
- UNDERSTANDING GIG ECONOMY
The term “gig” traces its origin back to 1915 when jazz musicians used it for the first time. Later, the word was used to refer to live music performances and recordings. The modern usage of gig became popular only in the last few decades. Overtime, the word was adopted to describe more flexible and task-based employment arrangements. The gig economy refers to Labour market characterized by prevalence of short-term contracts or freelance work as opposed to permanent jobs. Enabled by digital platforms like Swiggy(2014), Zomato(2008), Uber(2009), Ola(2010), Fiverr(2010), TaskRabbit(2008), Airbnb(2008), Urban Company(2014) etc. allows the gig workers to engage in income generating activities without formal employment contract.
2. LEGAL STATUS AND CLASSIFICATION
The Legal Categorization adopted by each jurisdiction determine the extent of protection that gig workers can claim under their respective laws.
2.1 India
In India, the status of Gig workers is not settled some argues that they occupy a new and distinct classification of labour and some believes that they fall under independent contractors. The Code on social security, 2020 was a landmark step that introduced for the first statutory definition for the term “gig worker” and “platform worker”.
Section 2(35) of the Code of social security , 2020 defines gig workers as
“a person who performs work or participates in work arrangement and earns from such activities outside of traditional employer- employee relationship”
Section 2(60) of the CSS defines the term platform work as:
“ a work arrangement outside of a traditional employer employee relationship in which organizations or individuals use an online platform to access other organizations or individuals to solve specific problems or to provide specific services in exchange for payment”
This definition includes key elements identified as central to gig work such as role of technology, absence of long-term contract, exchange of payment for specific services.
Section 109 of the Code deals with framing schemes for unorganized workers whereas the Section 114 of the code empowers central government to frame schemes for gig and platform workers. This obviously clarifies that the gig and platform workers will not fall under unorganized workers but creates distinguished and unique position in Indian labour law.
2.2 United Kingdom
In United Kingdom , Employment law categorizes working individuals into three main categories: Employees, workers , self-employed. These classifications carry differing degree of employment rights and protection. This tripartite system determines access to protections like national minimum wages, paid holiday, unfair dismissal rights and pension contribution.
Employees receive full suite protection and Workers are entitled to core protection like minimum wages, holiday pay, rest breaks and anti-discrimination rights whereas Self-employed individuals are outside most employment legislation. This classification relies on judicial interpretation of various factors rather any dedicated statute. The key determinants include degree of control exercised, mutuality of obligation, personal performance
The United Kingdom has not enacted specific legislation exclusively to regulate or protect gig workers. Instead, most of the recognition and protection for gig workers has come through judicial decisions, especially from the Supreme Court .One important case was Uber BV v Aslam [2021] UKSC 5. Uber drivers wanted to be considered as “workers” under the Employment Rights Act 1996, which would give them things like minimum wage and time off. The Supreme Court said that Uber drivers weren’t independent contractors but were actually “workers”. Five key points helped the court make its decision
- Uber set the drivers’ pay without asking them.
- Uber decided the rules and conditions for the work.
- Drivers got punished if they refused to take a ride.
- Uber controlled how drivers behaved and how well they performed, through things like vehicle standards and customer reviews.
- Uber limited how drivers could talk directly with passengers.
But the UK still has an uneven system for classifying workers, as seen in another case, IWGB v Central Arbitration Committee & Roo Foods Ltd (Deliveroo) [2023] UKSC 43. In this case, the court decided that Deliveroo riders were self-employed because they could choose to work with other riders, which meant they had the freedom to provide their own service.
3. LEGISLATIVE FRAMEWORKS AND REFORMS
Countries across globe are navigating the challenges of regulating gig and platform workers. In this paper, India and UK are examined to understand the legislative status of gig workers.
3.1 India
3.1.1 Code of Social Security, 2020
The CSS proposes a dedicated social security framework for gig and platform workers:
- Section 6 empowers the central government and state government to constitute social security board to advise the governments for framing suitable schemes for gig and platform workers and monitor such social welfare schemes.
- Chapter IX of the code primarily deals with social security for unorganized workers, gig workers and platform workers.
- Section 110 of the code empowers the government to setup and administer a fund for welfare of unorganized , gig and platform workers and contributions to this fund come from central or state government, Aggregators, CSR funds, donations or from any other source.
- Section 113 provides that Every gig worker and platform workers must be registered with government to avail benefit schemes.
- Section 114 empowers the Central government to frame schemes for gig and platform workers on matters relating to life and disability cover, accident insurance, health and monetary benefits, old age protection, creche and any other notified matter. This section also mandates that the aggregator must contribute 1% to 2% of their annual turnover to welfare fund.
3.1.2. Rajasthan Platform Based Gig Workers(Registration and Welfare)Act, 2023
Rajasthan became the first state to regulate gig and platform workers at state level. This Act is exclusively made for platform and gig workers.
- This Act mandates the registration of the aggregators with the state government and the aggregator shall provide to the state government its database of all platform-based gig workers on boarded or registered with them.
- The act also provides for constitution of welfare board and creation of welfare fund. One of the portions of this funds is raised from “Platform based gig workers welfare fee” which is charged from the aggregator. If any aggregator fails to contribute to the welfare fee , then the aggregator is liable to pay simple interest on amount due at the rate of 12% per annum.
- Section 14 of the Act provides for grievance redressal mechanism for gig worker allowing the registered gig workers to file petition and even appeal for non-payment or denial of benefits.
- Section 18 establishes Central transaction management system(CTIMS) which ensures real time mapping and tracking of all transactions involving gig workers.
3.1.3 Karnataka platform-based gig workers ordinance 2025
- This ordinance also has provisions relating to registration, welfare fund creation and establishment of welfare board. A new note on this ordinance is that it requires 14 days prior written termination notice and the contract between the aggregator and gig workers must include exhaustive list of grounds of termination , fair contractual terms and weekly or monthly payouts.
- This ordinance also has provision on income security of gig workers and also obligates the aggregator to provide reasonable working conditions for gig workers.
3.1.4 Other Reforms in Indian states
- Rest centres for gig workers were Launched in Thiruvananthapuram, by the Labour Department and Municipal Corporation to provide seating, restroom facilities, and charging stations. The state is actively drafting a comprehensive “Kerala State Platform-Based Gig Workers (Registration & Welfare) Bill 2024”, set to be introduced in the October assembly session.
- The Tamil Nadu Platform-Based Gig Workers Welfare Board was officially established in December 2023. Despite an estimated gig workforce of 1.5 lakh in the state, only around 7% (approx. 10,000 workers) had registered as of 2025. In July 2025, The Greater Chennai Corporation (GCC) has launched air-conditioned mobile lounges at Anna Nagar and T. Nagar, offering gig workers amenities such as restrooms, seating, power outlets, and bike parking.
3.2 United Kingdom
United Kingdom government has not introduced standalone legislation that specifically deals with gig workers. Instead gig workers’ rights are interpreted through judicial decisions. The status is not clearly settled. Some of the efforts taken by UK towards Gig economy includes:
3.2.1 Right to work check extended to Gig sector
UK government had announced in March 2025 that people working in zero hours and gig economy jobs will now be legally required to complete Right to work check which were previously necessary for employees. This aims to curb illegal employment and bring gig economy practices into compliance with broader labor laws.
3.2.2 Taylor Review and Recommendations
Taylor Review of Modern Working Practices (2017) led to policy changes that focused on making things clearer and making sure they were followed. Suggestions included making written employment terms clear from the start, making pay more transparent, making gig workers’ hours of work clearer, and raising the fines for employers who don’t follow the rules. Even so, these ideas were not made into law.
3.2.3 Government warns on bogus employment
In January 2025, the government warned gig economy platforms like Young Ones and Temper that their operations might involve illegal employment or recruitment practices. This comes as concerns about exploitation through dishonest self-employment schemes are growing.
4. CASE STUDIES
While the legal text provides a framework, the practical realities of gig work have surfaced prominently in litigations and protest movement as shown below:
4.1. India
4.1.1 Swiggy and Zomato delivery workers protest
Delivery personnel across cities like Chennai, Hyderabad, Noida, Mangaluru and Mumbai among others have on multiple occasions protested over low per-delivery remuneration, denial of incentives and poor working conditions.
4.1.2 Taxi drivers protest
In July 2025, the app-based taxi drivers in Mumbai and Pune went on an indefinite strike, supported by the Indian Gig Workers Front among others, and protested the decline in per-kilometer earnings as well the request for fare regulation parity with black-and-yellow taxis.
4.1.3 Kavita S Sharma v Uber India System PVT Ltd
In Kavita S Sharma v Uber India System PVT Ltd, a complainant filed a complaint against Uber India Systems Private Limited for delayed arrival due to a driver’s fault. Uber argued it was a technology service provider, not liable for the driver’s default. The District Consumer Disputes Redressal Commission held Uber India liable for the deficiency of services provided to the complainant.
4.1.4 Public interest litigation
- The Indian Federation of App-based Transport Workers (IFAT) filed a PIL before the Supreme Court seeking classification of gig workers as unorganized workers under the Unorganized Workers’ Social Security Act, 2008, and enforcing benefits under the yet-to-be-implemented Social Security Code, 2020. The petition stressed violations of constitutional rights and demand for access to social security schemes. The case remains pending.
4.2 United Kingdom
4.2.1 Autoclenz Ltd v Belcher [2011] UKSC 41
In this case, car valeters were classified as “self-employed” by Autoclenz Ltd, with contracts that allowed for substitution and lacked mutual obligation. However, the Supreme Court determined that these contract terms didn’t accurately represent the reality of the working relationship. The workers had little real freedom to turn down work and were under tight control from the company. The Court ruled that they were considered “workers” under UK labor law, which entitled them to minimum wage and paid leave.
4.2.2 Pimlico Plumbers Ltd v Smith [2018] UKSC 29
In this case Gary Smith, a plumber, was labeled as “self-employed” by Pimlico Plumbers, yet he worked fixed hours, wore a uniform, and used company tools. After being dismissed following a heart attack, he contested his employment status. The Supreme Court ruled that he was a “worker” rather than an independent contractor, primarily due to the requirement for personal service and the significant control the company had over him.
4.2.3 Strikes in UK
In February 2024, around 3,000 delivery riders for Deliveroo, Just Eat, and Uber Eats went on strike (about five hours) over low pay and poor conditions and the drivers for Addison Lee also voted to strike in late 2024 over pay cuts, high commissions, and removal of sick-pay protections.
SUGGESTIONS
- India should implement existing laws like the Social Security Code, 2020 and state-level acts by issuing rules and bringing them into force. Out of four labour codes, Only CSS recognized gig workers and the remaining codes should also include provisions for gig and platform workers so that their rights are also equally safeguarded.
- The UK should introduce dedicated legislation to protect gig workers, codifying rights currently determined by courts.
- Dispute redressal mechanisms must be strengthened, with online complaint systems, time-bound hearings, and appellate remedies for gig workers.
- Collective bargaining rights should be recognized, enabling gig workers to unionize, negotiate contracts, and protect themselves against deactivation or unfair conditions.
- Statutes must include clear provisions on platform accountability and algorithmic management, requiring companies to disclose how algorithms determine pay, work allocation, ratings, and deactivation. Workers must have the right to be informed, to contest automated decisions, and to seek human intervention in such cases.
CONCLUSION
A comparative analysis of India and UK reveals neither jurisdiction has fully secured the rights of gig workers. Moreover, the majority of gig workers come from underprivileged groups making them vulnerable to exploitation. In India, ride share drivers like those working in Ola and uber often face hazardous working conditions with the reports indicating 25% to 30% of the road accidents involves commercial and app-based drivers. There have been tragic instances suicides among gig workers due to income instability and customer rating pressure. Violence, assaults and even death during deliveries have been reported. While the UK has a relatively lower fatality rate- uber drivers report about 0.57-0.59 deaths per 100 million miles below the national average. Studies shows that ride share drivers still face occupational risk even than police officers. These alarming patterns underscore the urgent need for statutory protection , better algorithm oversight, grievance redressal mechanisms, improved working conditions to ensure gig work does not remain synonymous with precarity and risk.
REFERENCES
Statutes and Government Documents
- Code on Social Security 2020, No 36 of 2020 (India).
- Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act 2023 (Act No. 29 of 2023).
- Karnataka platform-based gig workers Ordinance, 2025
Articles
- Vedant Choudhary and Shireshi, ‘Analyzing the Gig Economy in India and Exploring Various Effective Regulatory Methods to Improve the Plight of the Workers’ (2022).
- Vaibhav Rane, ‘Platform-Based Gig Workers: A Blind Spot in the Indian Labour Laws’ (2024).
- Tonia Novitz, ‘The Potential for International Regulation of Gig Economy Issues’ (2020).
- Maria Julia Simões Reis, ‘Regulatory Challenges of Unfair Dismissal for Gig Economy Workers in the UK’ (2019).
- Andrew Stewart and Jim Stanford, ‘Regulating Work in the Gig Economy: What Are the Options?’ (2017).