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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.