India's gig economy - Workers in this sector require some kind of income protection too

Workers in this sector require some kind of income protection too, and the right to own their personal data that reveal their performance, efficiency and experience

Gig workers work outside the traditional employer-employee relationship. They work on platforms like e-commerce, food delivery, cab rides on piecemeal rates or short-term contracts.: Shutterstock

The Editorial Board   |  TT   |   29.03.21 : One major consequence of rapid economic growth driven by new technologies has been the informalization of the workforce across the world. India is no exception to the rise of what is referred to as the gig economy. Gig workers work outside the traditional employer-employee relationship. They work on platforms like e-commerce, food delivery, cab rides on piecemeal rates or short-term contracts. A survey report by Ernst & Young in 2017 had estimated that 24 per cent of the global gig force was from India. For people entering the workforce, this appears to be the new normal. This sector has been lauded for giving freedom to workers to choose when they work, the quantum of work, and its terms and conditions.

However, the main economic benefit goes to business organizations that can increase their sales and reduce labour costs. Gig economy workers are not treated legally as ‘employees’ and, hence, do not have the right to seek certain kinds of compensations and rights. For instance, they are not covered under the minimum wages regulations; neither do they have the right to organize. They are at the mercy of the organization hiring them or, worse, the customers who might give them a poor rating. People on formal, short-term contracts can have some benefits guaranteed under the contract law of the country. However, even in these circumstances, the hired workers are often not granted their rights. The distinction made between a worker and an employee is used sweepingly to cover people with diverse earning potentials — for instance, from a top-end information technology consultant to an e-commerce delivery person. The former can afford to choose a work partner and demand high fees. The latter can afford neither. The labour code introduced by the Centre allows for some benefits to be guaranteed to gig workers, such as minimum wages and health cover under the Employees’ State Insurance Scheme. The workers at the bottom of the gig economy need much more than this. They need regulations that protect them from exploitative contracts or working terms and conditions; they need the right to organize as well as a transparent mechanism for grievance redressal. Workers in this sector require some kind of income protection too, and the right to own their personal data that reveal their performance, efficiency and experience. The gig economy is here to stay. The earlier the problems are addressed, the better for society and economy.