.png)
l Who is a Gig Worker ?
A gig worker is someone who takes on short-term or project-based jobs, often for multiple clients at once, rather than being employed by a company. Many freelancers find gigs through online platforms. He is a professional who works on gigs or
one-time projects basis rather than getting paid on a regular basis. Employers provide temporary job possibilities with payment on a freelance or contractual basis in this flexible work environment. For instance, a business may use contract labourers to assist with an exceptionally big project for a customer. The term "gig economy" describes the increased demand for temporary workers from companies as well as the setting in which these workers operate.
"Work" often refers to a full-time position with regular working hours and perks. However, as technology advanced and the economy changed, the meaning of work started to shift. This resulted in the emergence of a new labour force that was defined by contract and independent employment.
l Gig Economy in India
With so many businesses providing gig job options in a variety of industries—including ride-sharing, food delivery, e-commerce, and freelance writing—the gig economy is growing quickly in India. Among the major participants in the Indian gig economy are businesses like Ola, Uber, Swiggy, Zomato, and Urban Company. Typically, Indian gig workers receive payment based on the task they complete, as opposed to a set income or rate. Employee perks like paid time off, health insurance, and retirement benefits are also not available to them. Though they are free to select their own schedules and occupations, gig workers are nevertheless in charge of their own taxes and other costs.
Currently, India has over 15 million freelance workers working on projects in IT, HR, and design. India's workforce is rising by around 4 million individuals every year. And, because the majority of them are young millennials, they are increasingly interested in gig jobs. This tendency is predicted to have a major influence on the gig economy in the near future.
l Impact of the Gig Economy
The gig economy, roughly defined, refers to employment arrangements that are more analogous to "gigs" than traditional types of jobs. This plays on the concept that work is becoming more like playing a music event at a venue, with no certainty of continued employment but workers free to select where to go next. Short-term or insecure labour has a longer history than formal work arrangements, both in positions with "standard employment contracts" and in roles that remain informal, such as domestic work. In the United States, it is estimated that around one-third of the population works in some type of gig capacity. The number is projected to increase as more organisations use independent contractors to save time and money.
A variety of factors contribute to the expansion of the gig economy. Employees appear to favour freelancing over full-time employment owing to its flexibility and freedom. It has increased options to find jobs throughout the world and made work more responsive to changing requirements and desires for flexible lives. With a gig, freelancers may pursue lifestyle options that a traditional career would not allow. They may work when and where they choose, and they can set their own prices.
Companies gain from having a flexible workforce since it saves them money on training and recruitment, eliminates the need for medical coverage, and allows them to simply replace their workers if necessary. Contracted workers are less expensive for enterprises, and employers gain from having a larger pool of applicants to pick from; also, they are not required to choose someone based on location.
l Labour Laws and the Gig Economy in India
Indian labour laws are intended to safeguard workers' interests and guarantee that businesses treat their employees fairly. However, the gig economy has resulted in a new type of employment arrangement that is not protected by existing labour regulations. This has sparked debate over the need for a new legal framework that recognises the distinctive character of gig labour. The gig economy has created problems concerning gig workers' job status, namely whether they should be classified as employees or independent contractors. Employment status plays an important role in defining the rights and benefits that workers are entitled to under Indian labour regulations.
According to Indian labour law, a work relationship consists of three components: control, direction, and supervision. If an employer has control and direction over the work of a worker, the worker is termed an employee. However, if the worker has control over how they do their employment, they are termed an independent contractor. The difficulty with the gig economy is that gig workers frequently fall between employee and independent contractor status. Gig workers have some autonomy in their job, but they are also subject to the management and direction of the companies for whom they work.
In 2017, the Indian government produced a draft of the Code on Social Security, proposing to incorporate gig workers as workers and give them with social security benefits like as health insurance and retirement benefits. However, the code has yet to be approved by parliament, and gig workers are still not eligible to these benefits. The lack of legal protection for gig workers has resulted in exploitation and unjust treatment. In 2019, Indian food delivery workers went on strike to protest low wages and working conditions. The employees said they were paid less than the minimum wage and did not have access to basic conveniences such as bathrooms and drinking water.
In response to the demonstrations, the government formed a committee to investigate the rights of gig workers and suggest policy steps to safeguard them. In 2020, the committee published a report recommending that gig workers be classed as dependent contractors and receive basic labour rights such as minimum salaries, social security benefits, and anti-discrimination protection. However, the findings have yet to be implemented, and gig workers remain in a legal grey area. This lack of legal protection for gig workers has resulted in ambiguity and exploitation, as employers can use the lack of clear legislation to deny workers their basic rights and safeguards.
l Conclusion
The gig economy's flexibility creates opportunities for both workers and businesses, but the dispute over worker classification raises critical concerns about labour rights and safeguards. While some believe that gig workers should maintain their freedom, others emphasise the need for correct classification to provide fair pay, benefits, and job stability. Balancing flexibility and worker rights is critical to fostering a long-term and fair gig economy. Striking this balance will decide whether the gig economy empowers individuals or maintains unstable working circumstances, with far-reaching consequences for the future of labour and socioeconomic equality.
In conclusion, the ongoing battles surrounding worker classification in the gig economy underscore a fundamental tension between traditional labour frameworks and the evolving nature of work. As companies navigate legal and regulatory challenges, the implications for workers' rights, benefits, and job security remain paramount. Striking a balance between flexibility and protection is essential to ensure fair treatment and adequate support for gig workers. Ultimately, collaborative efforts between policymakers, businesses, and workers are imperative to shape a sustainable future where the gig economy can thrive while safeguarding the well-being of its workforce.
~Author Ronit Palvia
Comments