GIG economy and employment laws: Are freelancers protected? - ET Edge Insights - ET Edge Insights
India’s gig economy, driven by platforms like Ola, Uber, Swiggy, and Zomato, is growing rapidly, with 350 million gig jobs expected by 2024. However, gig workers lack basic employee rights due to being classified as “independent contractors.” The 2020 Code on Social Security offers limited benefits, but its implementation is delayed and unclear. Legal cases push for better protections, including classifying gig workers as “unorganized workers.” Drawing from international models, India could improve protections by requiring platforms to contribute to social security and introducing portable benefits, ensuring security for gig workers.
The gig economy in India, powered by digital platforms like Ola, Uber, Swiggy, and Zomato, has seen rapid growth and become a significant source of employment for the hitherto unemployed youth. It is predicted that India will have 350 million gig jobs by the year 2024. However, despite this growth, gig workers in India face legal uncertainties regarding job security, benefits, and protections. Their classification as “independent contractors” often excludes them from the rights and safeguards often afforded to formal employees under India’s labour and other laws. This has led to critical discussions about whether they have adequate legal protections under Indian laws or not. Although initial steps have been taken to recognize and address gig workers’ unique needs, however, considerable gaps persist in securing their employment rights and...
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