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India’s gig workers win legal status, but access to social security remainselusive

India has granted legal status to gig workers under new labor laws, a significant step for the delivery and ride-hailing sectors. However, key details about benefits and social security compensation are still unclear. While the new laws intend to require companies to contribute to a social security fund, many gig workers remain without basic employment protections.

Key points

  • India recognizes gig workers legally under the Code on Social Security, implemented five years after Parliament's initial approval.
  • This law mandates platforms like Uber and Swiggy to contribute a small percentage of their revenue to a social security fund.
  • Concerns arise about the lack of clarity on the specific benefits, access, and eligibility for workers.
  • Trade unions emphasize existing issues such as fluctuating earnings and account terminations are more urgent than long-term benefits.
  • Implementation inconsistencies may occur, as states have differing capacities to roll out necessary programs and boards.

Why it matters

  • The shift towards legal recognition of gig workers aligns with global trends advocating for worker protections in the gig economy.
  • Increased public scrutiny and legislation around gig economies are also happening in countries like the U.K., Spain, and New Zealand, where gig workers are being classified closer to employees.
  • The growing gig economy is integral to India's labor market, especially post-pandemic, highlighting the need for comprehensive reforms that address rising worker exploitation.

While the legal recognition of gig workers in India is a milestone, the effectiveness of the new laws remains contingent on clear guidelines and timely implementation, as well as addressing immediate worker concerns that affect their livelihoods.