Table of Contents
Background Information
Gig workers are individuals who work as independent contractors, utilizing digital platforms or apps to engage in short-term, flexible jobs or freelance work. Examples of gig workers include ride-share drivers, delivery couriers, freelancers, task-based workers, and part-time instructors. The gig economy is characterized by the prevalence of short-term contracts or freelance work, driven by digital platforms that connect workers with consumers seeking specific services or tasks. Key features of the gig economy include flexibility, project-based work, technology-driven platforms, a wide variety of jobs, and independent contracting.
The gig economy has grown significantly in recent years due to technological advancements, changing work preferences, and economic factors. While it offers opportunities for flexible income, concerns about job security, benefits, and worker protections have been raised. Examples of gig workers include Uber and Lyft drivers, DoorDash and Postmates delivery couriers, freelancers like writers, designers, and programmers, and part-time instructors teaching classes on platforms like Udemy or Skillshare.
Article Explanation
Karnataka has introduced the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, aimed at providing social security and welfare measures for platform-based gig workers in the state. The bill, similar to Rajasthan’s Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023, is based on a welfare board model, which does not address employment relations. However, the Karnataka Bill is more appropriate for self-employed informal workers, as addressing employment relations is crucial in the gig work industry.
The rise of gig work versus work issues
The gig economy has experienced a surge in the last decade, particularly in the app-cab and retail delivery sectors. NITI Aayog predicts that the gig workforce will grow to 23.5 million workers by 2030. This sector is providing a livelihood to job-seekers, despite a depressed employment generation scenario. However, India has seen protests and agitations by gig workers regarding revenue sharing, working hours, and other employment conditions. The existing legal framework is difficult to solve, as employment relations in the gig economy are often non-existent or complicated. The legal framework in labour laws is based on employer-employee relations.
In the gig economy, employment relations are complex and ambiguous. Platform owners, known as aggregators, view gig workers as independent contractors or workers, who are considered masters of their own work. However, gig workers view aggregators as their employers, as they set the conditions of service and employment terms. For example, in an app-cab operation, the app/aggregator determines the ride price and the entire working conditions. In this context, gig workers seek fair treatment, improved working conditions, and access to social security as legal entitlements.
U.K. ruling
The UK Supreme Court has ruled Uber an employer, allowing existing labour laws to apply to Uber drivers. In India, gig and platform workers are included in the Code on Social Security 2020 as informal self-employed workers, but not in the other three new labour codes. Recent additions to this legal landscape include Rajasthan and Karnataka. The Karnataka Bill has overlooked the importance of defining employment relations in gig work, preferring the term ‘aggregator’ for app companies instead of ’employer.’
This lack of recognition hinders the application of protective labour laws such as minimum wage, occupational safety, working hours, leave entitlements, and collective bargaining rights. There is no guarantee of minimum earnings or regulation on working hours, and overworked app cab drivers are often involved in accidents, posing risks to themselves and passengers. Regulations should acknowledge the existence of employment relations in gig work, as aggregators are the de-facto employers who set employment terms and conditions. The platform is merely a tool, not an independent entity, making aggregators the actual employers.
Core Issues
The welfare board model in Rajasthan and Karnataka offers some welfare schemes for gig workers, but it does not replace institutional social security benefits like provident fund, gratuity, or maternity benefits. The Karnataka Bill, like the Code on Social Security, 2020, and Rajasthan Act 2023, fails to address the employment relationship in the gig economy, confusing employment relations and absolving employers of legal obligations. This oversight makes it difficult to fully protect workers’ rights, as it does not guarantee minimum wages or working hours for gig workers. The proposed Bill, like the Code on Social Security, 2020, and Rajasthan Act 2023, has been poorly implemented in the past.
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