Credits: sydney.edu.au
Introduction:
Last year, the firing of Indian-born Amita Gupta by Uber Eats for reportedly being 10 minutes late for a delivery after working 96 hours in one week led to a huge outroar and reignited the need to give gig workers access to fundamental job rights. The incident happened in the United States of America and the parties later reached an out-of-court agreement to resolve the well-known unjust dismissal case for $400,000 following the first hearing in the Federal Court.
However, back in India, inadequate regulatory changes, the weakening influence of unions, and the lack of additional protections for this new economy sector continue to disadvantage gig workers and strengthen the position of employers in such a "precarious" temporary labour market. So, how has the Indian Law kept up with the protection of Gig Workers or is it falling short?
The Gig and the Code of Social Security:
There is an obvious contrast between a gig worker and an employee in the traditional sense based on a cursory review of the definitions of "employee" and "gig worker." The definition of a gig or platform worker includes the idea of a considered job which is independent of the traditional employer and employee relationship, even if the definition of an employee is identical to that previously established under many current social security legislations.
Under Indian Law, Gig Workers are covered primarily by the Code of Social Security, 2020 and a group of other legislations. While to-the-point legislation has not been drafted yet, this gamut of Legislation tries to provide for the security cover and rights of the Gig Workers. The Code defines a gig worker as:
‘A person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship’.
Additionally, the Code suggests that the Central Government may create social security programmes for platform and gig workers on issues pertaining to:
(a) life and disability cover;
(b) health and maternity benefits;
(c) old age protection; and
(d) any other benefit as may be determined by the Central Government
The Code mandates that workers receive gratuities, salary, insurance, provident funds, and maternity benefits. On the other hand, it has allowed for the creation of appropriate social security plans by the federal and state governments for gig workers with regard to issues like life and disability insurance, accident insurance, health and maternity benefits, old age protection, etc. The Code also mandates that the federal government create a social security fund specifically for gig workers.
It requires gig employers like ride-sharing services, grocery and food delivery companies, and other platforms that offer products and services to contribute one to two percent of their yearly revenue to the fund that may be used to implement social security plans. The contribution from the gig employers will be capped at 5% of the total amount paid to or due from their gig employees. The Code also requires that all gig and platform workers register for social security benefits.
Credits: mit.edu
Ups and Downs:
While the String of Legislations along with the Code is welcomed, there have been some red flags regarding its scope and extent to which this Law covers the Gig Workers. First, employees have access to basic benefits including maternity benefits, life and disability insurance, old age security, provident funds, and employment injury benefits, making them eligible for the same. Eligibility, however, does not imply a guarantee of benefits.
Second, the Code states the provision of basic welfare measures as a joint responsibility of the Central government, platform aggregators, and workers, which is a necessary step. However, it does not state which stakeholder is responsible for delivering what quantum of welfare, leading to ambiguity and a lot of grey areas in this aspect.
One of the most unaddressed issues is the excessively long working hours the workers are subjected to. Most of these gig workers are mired in a cycle of excessive hours, unpaid workdays, and meagre pay. According to interviews with workers, an overabundance of labour causes workers to frequently wait hours for delivery or orders. They are unsure of the methodology used to distribute orders. As may be expected, businesses do not compensate these "freelancers" for waiting in between jobs.
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In India, Uber/Ola drivers typically earn between Rs 25,000 and Rs 30,000 per month, whereas Swiggy or Zomato employees get between Rs 14,000 and Rs 15,000 per month.
According to some, the gig economy enables people to make extra money by accepting a "gig" in their spare time in addition to their regular employment. However, this is the main employment for the majority of the gig workers who were questioned. As long as earnings are in addition to other, regular incomes, the volatility of earnings can be tolerated. However, the worker finds themselves in a very insecure and vulnerable position when their primary sources of income become unclear and poor.
The National Law School of India University (NLSIU), conducted a study of Bengaluru’s food delivery workers, and said the situation of gig workers during the pandemic “exposes the myth perpetuated by the industry that these workers are independent contractors”. The employees are at risk for accidents because of the "unequal relationship," in which the business depends on the reliance of the gig worker and imposes arbitrary deadlines. It is clear from this that the employees are everything but "partners."
In principle, workers may log off and go home. Workers are tethered to a platform and are required to log in for extended periods of time due to the target and incentive model's numerous conditionalities, declining per-order rates, and incentives, it was stated. The corporations don't offer social security, despite the fact that the job also comes with exhaustion from long hours of work, exposure to pollutants, and climatic fluctuations. The research emphasized the necessity for such workers to be protected by labour laws in order to maintain fair and humane working conditions.
The Way Forward
Paid Leaves, Health Access and Insurance: Along the lines of measures introduced to mitigate the challenges posed by the Covid-19 pandemic by platforms businesses, measures for paid sick leave, health access and insurance may be adopted by platforms as a part of their workplace or work engagement policies for all the workers they engage, round the year. This will have positive implications for offering a social security cover to platform workers engaged by these firms.
Additionally, platforms may implement strategies for offering accident insurance to all delivery and driver “partners”, as well as other platform workers throughout India. According to the 2020 Code on Social Security, they may be provided in association with the public or private sector. Adopting policies that provide retirement and old age benefits as well as other insurance coverage for contingencies such as work-related injuries that might result in lost income and employment is also necessary.
Measures like providing social security benefits from a corpus fund can support gig and platform employees as well as other sector-related independent contractors in the event of emergencies.
Though monitoring of gig work is still essential to make sure that these kinds of workers have the same chances and safeguards as several other employees protected by different labour legislation in India, gig labour has evolved into a need for the companies hiring them and the workers. With the development of technology, labour disputes will continue to grow significantly and take on new forms. The protection of gig workers' rights depends on the development of legal instruments, policy frameworks, and a revision of the Code.
By: HARSH DABAS
A Second-Year Law undergrad who is passionate about legal concepts, practical exposure to law and legal columns. Strives to look into the diverse areas of the law as well as driven to amassing knowledge and developing skills that will give him an edge on the competition. In my free time,I take keen interest in knowing about things and listening to music.
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