Dynamic Workforce, Dynamic Rights: Understanding the Gig Economy’s Impact on Labour Jurisprudence in India

The ‘Gig Economy’ involving a temporary contractual job or short-term contract of work is transforming Labour Relations in India from the traditional hire and fire policy to that of employees working on their own terms. In India, Gig workers do not fit into the definition of “employee” or “worker” and, therefore, remain out of India’s labour law coverage. The real challenge in regulating them is owed to the nature of the work that they perform. The Indian Government with an intention to accommodate the interests of the growing Gig economy in which millions of workers are involved has enacted the Code on Social Security, 2020, in which the terms “Gig workers”, “Platform workers” and “Gig economy” have been defined. The provisions for Gig and Platform workers fall under the chapter on unorganized workers, in the Code indicating that they are not a part of the formal workforce and are not eligible for the social security benefits which are funded by employers. The Labour Welfare organizations across the country are demanding that the social security schemes relating to life and disability cover, health and maternity benefits and old age protection must be extended to Gig Workers. Any attempt to regulate the Gig Economy will affect the flexibility of the labour forces and escalate the compliance cost has been the concern of the business operators. It is in this background, the authors have analyzed the evolution of the Gig Economy in India and its impacts on the Labour Jurisprudence to suggest measures for balancing the conflicting interests between the demand for social security benefits to Gig workers and the obligation of compliance cost for the business operators.