Gig Workers, you can find them anywhere and everywhere. In an attempt to meet daily targets, they ride their bikes continuously as "delivery riders" after picking up orders from eateries or retail establishments. As taxi drivers for transport aggregators, they pick up and drop off passengers in the hopes of earning a fair amount of money at the end of the day after the company has deducted its costs. Delivery agents, taxi drivers, repair specialists, and beauticians are examples of gig workers, who are the new face of employment in India. Many of them have a reasonable degree of education, but because they can't find regular jobs that match their qualifications, they've entered the murky area of the gig economy. The employee-employer ties are ambiguous, and "employment" is typically done through a vendor or other third party; it is grey. This workforce operates in an ambiguous territory where employment relationships are poorly defined. Companies often engage these workers through third-party vendors and label them with misleading terms like "partners," though they share little in the company's success. Whether they're delivery agents, cab drivers, repair technicians, or beauticians, these workers represent a new category of employment that challenges traditional workforce definitions.
This article aims to examine and highlight concerning patterns of exploitation within the gig economy, where workers frequently find themselves caught between the promise of flexible work and the harsh reality of precarious employment conditions.
Who are gig workers?
The term “Gig workers” refers to workers outside of the conventional employer-employee relationship and includes freelancers, workers who are employed on a contractual basis with their employers, project-based work, and short-term work. Typically, the work is platform-based, where workers are paid compensation for providing specific services. Examples include food delivery services like Zomato and Swiggy, as well as e-commerce platforms such as Amazon and Flipkart, which often utilize gig workers. A study by Ernst and Young in 2017, on the “Future of Jobs in India,” found that 24% of the world’s gig workers come only from India. With the growth of the internet, the market has expanded greatly, and it is growing particularly quickly in developing nations like India.
India currently has the fifth-highest number of gig economy workers, and by 2030, it may rise to third place. By 2030, there is also an estimation that India’s gig economy workers will rise by around 200% and contribute to around 2.5% of the GDP.
Presently, the numbers must have risen dramatically as India is already the world's 5th largest economy and will continue to rise, as it is predicted that it will clinch the third place as the world’s largest economy soon in the coming time.
The gig economy allows different people across cities, age groups, and skill sets to pick up work without being tied down to one single project. Those just entering the workforce find it easier to find gig work than conventional jobs that require some amount of work experience.
Gig Economy Historically
The origins of the gig economy can be traced back to the post-World War II era, when temporary staffing agencies began providing workers to companies in need to fill short-term positions. This employment model experienced significant expansion with the advent of the internet, particularly through platforms like Craigslist, which enabled workers to showcase their expertise and professional capabilities online.
The trend has since evolved, with an increasing number of companies adopting this temporary workforce model. Some businesses, particularly platform-based companies like Ola and Swiggy, have built their entire operational model around gig workers. While the United States pioneered the legal recognition of gig economy workers within its legal and judicial framework, there remains a pressing need globally for enhanced legal protections and formal acknowledgment of gig workers' rights across different countries.
Indian Position
The Code on Social Security, 2020, has categorized gig economy workers into two groups: platform workers and non-platform workers. Platform workers are those employed by companies with online platforms, like Amazon, and delivery personnel for Swiggy. Non-platform workers refer to individuals who are not engaged with such platforms; examples of this include construction laborers and temporary workers in non-tech fields.
In the gig economy, there are three key stakeholders. The first group consists of companies that employ gig economy workers, often sourcing them through online platforms like Uber and Zomato. The second group comprises the workers engaged by these companies. Lastly, the government serves as a mediator between the two parties and enacts laws that directly affect both companies and their workers.
Severe Problems and Exploitation
Semi-skilled gig workers frequently face challenges with the aggregators. With no limits on working hours, continuously decreasing minimum wage rates, a lack of social security benefits, and the random removal of workers from the platform, their situation can be quite difficult.
In July 2021, the Indian Federation of App-based Transport Workers (IFAT) filed a petition with India's Supreme Court, arguing that platforms like Ola, Uber, and Zomato were violating their constitutional rights to equality, freedom, and protection from exploitation. IFAT, along with the Transport Workers’ Federation, carried out surveys with 2,128 participants across six cities, revealing that the typical taxi driver spends between 16 to 20 hours each day in their vehicle, and 89.8 percent of the participants report getting fewer than six hours of sleep. Common health issues reported included back pain, liver problems, constipation, and discomfort in the waist and neck. However, these drivers do not receive health or accident insurance from the aggregators. Furthermore, the aggregators sometimes lower the minimum wage rates, with no additional compensation provided to adjust for rising fuel costs or increased loads on motorcycles.
This closely resembles the workings of necrocapitalism ( A form of capitalism where a country’s trade and industry are founded on, linked to, and dependent directly or indirectly on death and the profit accruing from it ), where Indian aggregators exploit legal ambiguities to take advantage of wage payments and working hours. In contrast, gig workers' experiences may vary across different states. India as a whole faces significant levels of youth unemployment, with aggregators gaining profits at the cost of the workers.
In India, the government has established several regulations aimed at safeguarding gig economy workers, including provisions in the Contract Labour (Regulation and Abolition) Act, Unorganised Workers Social Security Act, and various acts concerning construction workers. However, these regulations were created quite some time ago and do not adequately address a significant portion of today's gig economy workers, specifically platform workers. Consequently, the ratio of platform workers to non-gig economy workers stands at 20:1, and these individuals currently lack any substantial legal protection. This situation results in issues such as inadequate salaries, insufficient insurance coverage, variable income, and a deficiency in job security.
A need for Legislation!
A serious need to develop and implement a holistic legal framework to safeguard the rights of the Gig Economy Workers, and their ambiguous work life identity.
In order to tackle these urgent issues, it is essential for legislators to craft a comprehensive legal structure that addresses the specific challenges encountered by gig and platform workers. This structure must guarantee fair compensation, access to social security benefits, insurance coverage, and effective dispute resolution mechanisms. Furthermore, it should acknowledge the changing nature of gig employment and find a balance between the flexibility needed by businesses and the stability required by workers. Only through such forward-thinking and inclusive legislation can we close the current gap, safeguard the rights of gig economy workers, and foster a sustainable environment where both workers and platforms can thrive jointly.
Aryanshu Singh Sengar is a student pursuing B.A. LL.B. (Hons.) from Jamia Millia Islamia.
Edited By Khadija Khan
Disclaimer: The opinions expressed in this publication are those of the author. They do not purport to reflect the opinions or views of The Jamia Review or its members.
