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Business Standard
3 days ago
- Politics
- Business Standard
Centre nudges states to implement new labour codes, shifts reform goalpost
During 2019-20, Parliament consolidated 29 labour laws into four codes - Code on Wages; Code on Social Security; Occupational Safety, Health and Working Conditions Code; and Industrial Relations Code Shiva Rajora New Delhi Listen to This Article Narendra Kumar, 41, has been working as a delivery person for an online food aggregator during the day. Evening onwards, he's a security guard in a nearby milk factory. 'I usually work 13-14 hours in a day. If I fall sick even for a single day, I don't get anything from any of my jobs. Or if I meet with an accident, as I did last month, my employers would not give me anything, as they don't recognise me as their employee,'' Kumar pointed out. His ask: The government must step in to improve the working conditions. Kumar, who is
Indian Express
28-05-2025
- Business
- Indian Express
Zepto workers' strike: In India's gig economy, the continuing struggle for dignity
In the past week, hundreds of Zepto delivery workers in Hyderabad have gone on an indefinite strike. Their demands are basic: Fair pay, decent working hours, social security, and dignity. These are not new demands, nor are they unreasonable. Coordinated by the Telangana Gig and Platform Workers' Union (TGPWU), the strike follows a growing pattern of worker unrest across India's platform economy — from Blinkit to Swiggy — where the promise of entrepreneurial freedom has worn thin under the weight of wage theft, surveillance, and hyper-precarity. In Delhi, 50 Zepto workers recently filed a complaint alleging they were lured from rural areas with promises of ₹30,000 per month, free food, and accommodation. Upon arrival, they faced substandard living conditions, pay cuts, and withheld wages. Zepto has since responded with a familiar script: Distancing itself from the workers through legalistic disavowals. 'We are a technology platform,' the company claims. 'Vendors are responsible for hiring and payment.' This arm's-length logic is by design. It allows platforms to maintain granular algorithmic control — via GPS tracking, performance ratings, and app-based scheduling — while denying any legal responsibility as employers, as has been documented by People's Union for Democratic Rights' Report 2021. Meanwhile, Zepto Cafe pausing services in some locations, thereby affecting 44 stores and 700 gig workers, shows platform capital treats labour as disposable — plugged into the supply chain when needed, discarded when not. It's not just a pause; it's the logic of exploitation in motion. These are not isolated incidents of corporate malfeasance. They reveal something far more structural: The hollowness of India's legal and policy framework for gig and platform workers. Despite repeated gestures toward recognition — most recently in the Union Budget 2025 and the Code on Social Security, 2020 — India's gig and platform workers remain in a zone of legal abandonment. The Zepto strike shatters the illusion that formal recognition in law translates into material rights. State as database manager, not protector The contradictions in India's approach to platform labour are stark. In 2008, the Unorganised Workers' Social Security Act was passed to provide a basic welfare framework for workers outside the formal economy. It defined 'unorganised workers' broadly enough to arguably include gig workers. Yet, when Senior Advocate S Muralidhar recently appeared before the Supreme Court on behalf of the Indian Federation of App-Based Transport Workers (IFAT), the petition did not even seek relief — it sought a mere clarification. Do gig workers fall under the Act's scope? The fact that this question still lacks a definitive legal answer reveals the abyss in which workers are suspended. The 2020 Code on Social Security was hailed as a breakthrough: It was the first time 'gig and platform workers' were defined in Indian law [Section 2(35) and 2(61), respectively]. Yet this recognition remains inert. The Code has never been notified, which means it has no legal force. Meanwhile, the government insists that schemes under the Code are 'being formulated.' This formulation has now been 'ongoing' for over four years. Under the Code on Social Security, 2020, two key schemes were envisioned for gig and platform workers: National Social Security Board for Gig and Platform Workers: A body meant to recommend and oversee social security schemes for gig workers without ensuring universal social security for platform workers. Voluntary Registration and Contribution-Based Welfare: The Code allows for workers to self-register on a central portal. Aggregators (platform companies like Zepto, Swiggy, Ola, etc.) are expected to register their workers on the e-Shram portal. Upon registration, platform workers will receive a Universal Account Number (UAN), which will allow them access to key social security benefits. The e-Shram portal, introduced in 2021, was supposed to be a central database for unorganised workers, including gig workers. But data without rights is surveillance, not welfare. Registration has not translated into healthcare, accident insurance, or pension. The machinery of welfare exists on paper but is void of substance. The contradiction is clear: Gig workers are visible enough to be surveyed, counted, and claimed as beneficiaries in policy announcements. But they remain invisible in enforcement, excluded from labour protections, and denied bargaining rights. Beyond welfare: The struggle for power Despite the Centre's inaction, certain states have begun experimenting with more robust protections for gig and platform workers — signaling that labour governance may be forced from the margins inward. In 2023, Rajasthan enacted the Platform-Based Gig Workers (Registration and Welfare) Act, mandating the creation of a welfare board and compelling platforms to contribute to a dedicated welfare fund. Karnataka followed in 2024 with the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, proposing a welfare cess ranging from 1 per cent to 5 per cent on each transaction or payout made by platforms to gig workers. The state government aims to operationalise the gig workers' welfare fund by August 2025. These subnational laws reflect growing political recognition of gig workers as a distinct labour constituency — one increasingly vocal, organised, and electorally visible. Yet their success depends on implementation, especially amid pushback from industry lobbies and jurisdictional ambiguities over labour regulation in a federal setup. Nonetheless, these initiatives challenge the Centre's narrative of policy sufficiency and demonstrate that meaningful recognition can — and must — begin with redistributing control, not merely registering the governed. Proposals like the 2 per cent deduction from workers' earnings for social security raise further concerns. Without enforceable benefits, such deductions are not contributions — they are taxes on the poor. Moreover, corporate executives are candid in acknowledging that any costs related to worker welfare are ultimately passed on to consumers, revealing the inherent limits of voluntary corporate social responsibility. In this way, the state's role has shifted from genuinely transforming the gig economy to managing its precarious consequences: Offering health insurance or social security schemes funded through deductions may provide temporary relief, but these measures merely patch the symptoms of a deeper problem — platform business models that systematically externalise labour costs and evade employer responsibilities. Recognition becomes a technique of pacification, not empowerment. This is the new face of labour governance under platform capitalism: Symbolic inclusion in exchange for structural abandonment. The ongoing protests go beyond demands for welfare — they call for dignity, accountability, and control over working conditions. Gig workers are not seeking handouts but power: The right to unionise, bargain collectively, and reject exploitation. The Zepto strike, like recent actions at Swiggy and Blinkit, exposes the hollowness of legal recognition without enforceable rights. Unless the labour codes are implemented and platforms held accountable, India's digital economy will remain a site of extraction. Real recognition must begin by acknowledging gig workers not as data points or beneficiaries, but as rights-bearing workers demanding justice and dignity. The writer is Visiting Fellow at the Centre for the Study of Developing Societies (CSDS) and editor of the book Feminist Perspectives on Social Media
Time of India
14-05-2025
- Business
- Time of India
Karnataka eyes gig fund rollout by August end; labour dept engages platforms to fix fee
The Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024 has been sent by the government to Raj Bhavan with a request to issue an Ordinance. The rules will suggest differential rates of fee for services, such as ride hailing, food delivery and online retail. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The state government hopes to operationalise the gig workers' welfare fund in August as it engages app-based service providers in conversation to determine the percentage of fee the platforms must government has sent the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024 to Raj Bhavan with a request to issue an Ordinance. 'We hope to implement the law by the end of August,' labour minister Santosh Lad told ET. His department is currently engaged in stakeholder consultations ahead of the framing of draft rules under the proposed rules will suggest differential rates of fee for services, such as ride hailing, food delivery and online retail. Final rules will follow the government studies and stakeholder feedback. The government's current stance is that the rate must be proportionate to the size of net earnings. 'The welfare fee will not be based on the turnover, but on the service (delivery) charges,' Lad minister said about 20 rounds of meetings have been held so far with the parties being on the same page on gig workers' fee payable by platforms to the fund would range from 1% to 5% on the commission paid to gig and platform workers. The Code on Social Security caps the fee at 5% of the labour department is also examining the likely impact of the proposed fee on customers, Additional Labour Commissioner G Manjunath said. Bengaluru is estimated to have about 2.75 lakh gig workers engaged in a range of services including ride-hailing, ecommerce and food government has opted for the Ordinance route after AICC leader Rahul Gandhi cleared the broad contours of the policy last month. Karnataka has touted its proposed law as a rights-based one, aiming to protect the rights of the gig and platform came up with the Bill last year, after Rajasthan passed a law in July 2023, becoming the first state to introduce a law for platform workers. The state, however, is yet to frame minister said Karnataka will emerge as the first state to introduce welfare programmes for gig workers once it implements the law. 'We are the first state to have such a welfare fund for gig workers. The proposed law also ensures there are no arbitrary firings of workers by platforms.'The subject gained momentum after Gandhi discussed it with chief minister Siddaramaiah in Delhi, last month. The government had soft-pedalled on the idea after sections of ecommerce, ride-hailing and delivery platforms resisted the move, last year.
Time of India
13-05-2025
- Politics
- Time of India
Do India's labour codes address informal workers' needs?
Pankil Goswami is a PhD candidate at the School of Social Work, McGill University. He is interested in researching informalisation of work through labour market flexibility and the consequence of precarious working conditions among people who work at the bottom in the informal economy. His PhD thesis examines the intricacies related to access of welfare policies for migrant construction workers in western India. His research and teaching are primarily interdisciplinary in nature and focused on labour, social policy, work and employment relations, and the transformation of welfare state. LESS ... MORE India's new labour codes aim to streamline regulations and protections, but their impact on informal workers remains uncertain. Four labour codes passed by the Government of India in recent years are due for implementation. These codes mark a historic step in governing labour in contemporary India. They include the Code on Wages, 2019; the Occupational Safety, Health and Working Conditions Code, 2020; the Code on Social Security, 2020; and the Industrial Relations Code, 2020. This codification is critical in ensuring that the informal workers of the country, who make up the majority of the workforce, receive due recognition and welfare. But how do these new labour codes address to the needs of unorganised workers? What impact will they have on the working lives of low-income workers? Are there any promising signs for this vast segment of informal workers engaged in precarious occupations across the country? The informal sector and the significant number of people employed in it are not new concerns in India. However, the labour codes offer policymakers an opportunity to rethink existing legislation and introduce changes that can offer relief to those who have been working in precarious occupations. India has one of the world's largest informal working populations. According to a recent estimate, the country has approximately 110 million informal sector workers, including those employed in agriculture, construction, and small factories; domestic workers; coastal and forest workers; ragpickers; autorickshaw drivers; street vendors; and power loom workers—a few among many overlooked professions. These workers are all around us yet remain largely invisible, especially to the state. Their invisibility manifests as a lack of written contracts, uncertainty in wages, irregular payments, and limited provisions for taking leaves. As of May 2022, more than 94 percent of workers registered on the e-Shram portal (national database of unorganised workers) reported an income of INR 10,000 or less. In many states, institutional structures such as the Directorate of Industrial Safety and Health, Building and Other Construction Workers Welfare Board, Unorganised Workers' Social Security Board have failed to provide informal workers with safeguards like guaranteed minimum wages, workplace safety, and pension benefits. For example, an International Labour Organization (ILO) report found that in 2022, 70 percent of workers in the construction sector in India did not receive the prescribed minimum wage. However, the new labour codes are being hailed as the 'biggest labour reforms in independent India'. The central government is positioning them as an effort to effectively implement minimum wages, ensure a safe working environment, and provide social security to everyone. If backed by political will, they present a watershed opportunity to provide relief in the form of social security. Major concerns faced by informal workers Informal sector workers are plagued by concerns of non-payment of minimum wages, deplorable work environments, unhealthy living conditions, and a lack of access to social security benefits. These issues were also highlighted at Labour Codes and Unorganised Labour, a two-day workshop organised by the Asangathit Shramik Hit Rakshak Manch (Unorganised Workers Social Protection Platform) in September 2024 in Ahmedabad, Gujarat. The workshop brought together 32 informal workers' organisations from Gujarat to bridge the awareness gap by deepening their understanding of how the implementation of the four new labour codes could benefit informal workers. I attended this event as part of a 14-month ethnographic study, during which I worked with Bandhkam Mazdoor Sangathan, an Ahmedabad-based trade union. I also spent time with a civil society organisation called Aajeevika Bureau. The ethnography aimed to deconstruct the lived realities of migrant construction workers in Gujarat and their access to welfare schemes. Here are some of the challenges raised by the workers at the event: Non-payment of minimum wages Although minimum wages are guaranteed through the Minimum Wages Act, 1948, many informal workers still do not receive them. Construction workers, agricultural labourers, forest workers, and many others complained that wage theft by contractors, middlemen, and even employers has become the norm. Precarious working environment Many informal workers work in precarious conditions (construction, power looms, fisheries, factories), where occupational health hazards and accidents are common. Some precarious workers have also lost their lives owing to the lack of enforcement of safety regulations. Substandard living conditions in urban India Many informal workers do not have decent living facilities in rapidly urbanising India. A typical example would be the living conditions of construction workers, who often seasonally migrate to big cities and are forced to live on the streets or in makeshift tents at construction sites. Lack of formal sector benefits Informal workers lack formal sector benefits such as written contracts, salaried employment, and safe and non-exploitative working environments. Additionally, they face constant uncertainty about work not being available for a longer period and even unemployment. In an effort to address these challenges, the Ministry of Labour and Employment launched the e-Shram portal in 2021 for creating a database of informal workers across the country and linking them to important welfare and social security provisions. Currently, more than 30 crore workers are registered in the e-Shram portal. Once registered, workers can access various welfare schemes, including the Pradhan Mantri Shram Yogi Maandhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Pradhan Mantri Suraksha Bima Yojana. While the state encourages workers to register on the e-Shram portal, informal workers at the event indicated that they want the government to go beyond administrative processes and work on improving the social protection being offered to them. Unorganised workers' welfare board: A possible solution? The four new labour codes were introduced to rationalise existing labour laws by consolidating them under an umbrella legislation. According to the central government, this would help solve confusion related to the multiplicity of labour laws, while providing informal workers with much-needed social security and decent working conditions. The most significant code aimed at providing welfare to informal workers is the Code on Social Security, 2020. Under this code, there is a clause stipulating the formation of a National Social Security Board and a State Unorganised Workers' Welfare Board, which have been touted as critical to addressing the needs of unorganised workers. However, the Unorganised Workers Social Security Act, 2008, already provided a similar mandate. Although it has been a decade and a half since the act was passed, these boards are yet to operate at full capacity or generate any meaningful impact. The governments of many states, including Gujarat and Tamil Nadu, have formed unorganised workers' welfare boards. But my fieldwork in Gujarat revealed that the board has limited financial resources to formulate and implement welfare schemes. It is a mammoth task for state governments to operationalise state unorganised workers' welfare boards and run welfare schemes for them. These are some of the challenges: Understanding the needs of informal workers: Informal workers are spread across a wide range of occupations, and it is challenging to build viable financial resources to fund these welfare schemes for a sustained period of time. Structural transformation: Many professions that fall within the unorganised category are inherently exploitative. While these boards may provide welfare in the form of schemes, can they guarantee minimum wages, provide an accident-free working environment, and mitigate occupational diseases? Lack of clarity: Workers and unions remain unsure about how the new labour codes could benefit them. Effective dialogue with state authorities is necessary to clarify the various clauses and their benefits and gather feedback on which micro-policy additions can be made according to the needs of different occupations within the informal sector. Non-functioning boards: Some states have already formed unorganised workers' welfare boards, but they are practically non-functional. The hope is that the renewed legislation under the Code on Social Security will force these state governments to operationalise these boards, which have long been in limbo. Despite these challenges, the establishment of Building and Other Construction Workers' Welfare Boards across all Indian states offers a positive example to follow. These boards serve as dedicated public institutions and have gradually begun to facilitate constructive changes, primarily by running welfare schemes for migrant construction workers in the country. For example, the board mandates the collection of a cess from construction sites, which funds welfare initiatives for construction workers. Each state's Building and Other Construction Workers' Welfare Board will finance its welfare schemes through this tax mechanism. But as far as other unorganised workers (that is, those not engaged in construction work) are concerned, a similar system would need to be established. Devising such a mechanism is highly challenging due to the range of occupations and the informality that defines them. In such cases, state governments must provide the financial resources necessary for running welfare schemes. However, funding such resources has become a matter of public debate, as exemplified by the recent discourse on freebies. A potential roadmap for the future The four new labour codes present a crucial opportunity for unorganised workers to collectively organise and meaningfully engage with the state to put forward their demands. The codes were introduced with the promise of universalising minimum wages and ensuring the timely payment of wages. The consolidation of 29 existing laws into four comprehensive codes is meant to uphold the dignity of unorganised workers across the country. The need of the hour, however, is for workers and organisations that advocate for workers' rights to hold public institutions such as the welfare boards accountable. These labour codes are unlikely to make a difference until the central and state governments actively participate in dialogue with unorganised workers and their unions to understand their demands. This would help the state identify sector-specific challenges and determine the necessary steps to improve working conditions and design appropriate schemes. A strong political will is critical to understanding and meeting the needs of unorganised workers. Without it, the new labour codes are toothless. This article was originally published on India Development Review. Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.
The Wire
01-05-2025
- Business
- The Wire
The Plight of Gig Workers in India
In The Precariat: The New Dangerous Class , Guy Standing paints a stark picture of the growing workforce trapped in unstable, insecure employment without basic labour protections. His analysis resonates deeply with the condition of India's gig workers – the millions powering platforms like Swiggy, Zomato, Uber and Ola, yet largely excluded from fundamental labour rights. The rise of the gig economy in India The gig economy in India has expanded at an unprecedented pace, driven by the rapid growth of digital platforms and consumer demand for on-demand services. According to a NITI Aayog report, there were 7.7 million gig workers in India in 2020–21, and this figure is projected to surge to 23.5 million by 2029–30. Gig work, often celebrated for its flexibility, hides a grim reality – the absence of job security, social security benefits and legal protections. Unlike regular employees, gig workers are classified as 'independent contractors', making them ineligible for essential rights such as minimum wage, paid leave, accident compensation and health benefits. Their dependence on algorithmic ratings and customer reviews means that their employment is perpetually unstable. Films like Ken Loach's Sorry We Missed You powerfully capture this reality. The film's protagonist, Ricky Turner, a delivery driver, struggles with mounting debt and emotional strain due to the exploitative conditions of gig work. His story mirrors that of thousands of gig workers in India, who endure long hours, fluctuating earnings, and the constant fear of deactivation – the industry's euphemism for termination. Legal protections: A fragmented framework In response to the expanding gig economy, the Indian government introduced four labour codes in 2020, including the Code on Social Security, 2020, to extend welfare benefits to unorganised and gig workers. The code defines platform workers under Section 2(61) as individuals performing work through online platforms, while Section 2(86) classifies unorganised workers as those engaged in irregular or self-employment. Under Section 6 , the code mandates the formation of a National Social Security Board, tasked with recommending welfare schemes for gig and platform workers. However, implementation has been sluggish , and most gig workers are yet to see any tangible benefits. The ambiguous language and fragmented enforcement mechanisms allow platforms to sidestep accountability, leaving workers without recourse. A notable exception is the Rajasthan Platform-Based Gig Workers Act, 2023 – India's first state-level legislation specifically addressing gig worker rights. It mandates platform registration, data-sharing obligations and the establishment of a welfare board. However, the absence of national-level legislation means that gig workers in other states remain vulnerable to exploitation. Despite existing laws such as the Contract Labour Act, 1970, and the Employment Compensation Act, 1923, gig workers continue to be denied protections. These laws, designed for traditional employment, fail to address the fluid, transient and decentralised nature of platform work. The human cost of flexibility For many gig workers, the promise of flexibility has translated into financial precarity and insecurity. Ravi Kumar, a Swiggy delivery rider in Haridwar, highlights the fragile nature of gig work. 'If I fall sick, I lose my entire income for the day. There's no backup. My job depends on my app rating. If a customer gives me a low rating – even unfairly – I risk getting deactivated. It's scary because I have a family to support.' Deactivation – an abrupt removal of a worker from the platform – has become a constant threat. With no notice or explanation, workers are left without income and with no legal recourse. The All India Gig Workers Union v. Uber India Systems Pvt. Ltd. case exemplifies the legal battle for gig worker rights. In this case, gig workers challenged Uber's refusal to provide minimum wages and social security benefits, seeking recognition as employees. However, the absence of clear legal classifications for gig workers means the fight for fair wages and protections continues. Gendered disparities in the gig economy Women gig workers face even greater challenges in the already precarious gig economy. Seema Sharma, a beauty service provider on UrbanClap in Delhi, shares her experience with harassment and the lack of grievance mechanisms. 'There have been times when clients made me feel unsafe, but when I complained, the app just told me to block them. There is no proper mechanism for reporting harassment. I feel vulnerable and alone.' Research by Damini Kain reveals that women in the gig economy are more likely to be underpaid, denied opportunities and exposed to harassment. The absence of gender-specific protections makes women workers even more vulnerable. The mental health toll While the financial instability of gig work is well-documented, its mental health consequences are often overlooked. Akash Singh, a Zomato delivery agent in Delhi NCR, describes the emotional strain of working under constant pressure. 'I'm always worried about my ratings. One bad review means fewer orders. I often work 14-16 hours a day i just to make ends meet. The stress is constant – I've started having anxiety attacks.' A survey by the All India Gig Workers Union found that over 60% of gig workers reported symptoms of anxiety and depression, driven by financial instability, long hours and algorithmic surveillance. However, lacking formal employment status, they remain excluded from employee assistance programs or mental health support. Algorithmic control and the power imbalance One of the most concerning aspects of gig work is algorithmic control, where platforms dictate how much a worker earns, the orders they receive, and even whether they remain employed. The lack of algorithmic transparency leaves workers vulnerable to arbitrary deactivations. Pawan Verma, an Ola driver in Multai, recalls his sudden deactivation. 'One day, my account just stopped working. No message, no call – nothing. When I contacted customer support, they said I had 'violated guidelines', but they didn't specify how. It took me four days of constant calls and emails to get my account reactivated.' Such deactivations, often automated, reflect the unregulated power platforms wield, with no accountability or grievance redressal mechanisms in place. A call for comprehensive reform The stories of Ravi, Seema, Akash and Pawan underscore the human cost of platform-based labour. Despite the introduction of labour codes, weak enforcement leaves gig workers exposed to exploitation. As Guy Standing argues, the rise of the precariat demands a new social contract. India must implement comprehensive reforms that: Recognise gig workers as employees, granting them access to minimum wage, accident insurance and paid leave. Introduce algorithmic transparency laws to prevent arbitrary deactivations. Ensure gender-specific protections to safeguard women workers. Establish mental health support programmes for gig workers. The Rajasthan Platform-Based Gig Workers Act offers a promising model, but a nationwide framework is necessary to ensure consistent protections. Without such reforms, the gig economy will continue to thrive at the cost of its most vulnerable workers, reducing flexibility to a euphemism for exploitation. As Sorry We Missed You illustrates, the struggle of gig workers is not just about wages – it is about dignity and survival. India's policymakers must recognise this and act decisively to safeguard the rights and humanity of its gig workforce. Naina Bhargava is a lawyer and founder-editor of The Philosophy Project. Madhumita Sharma is a Consultant at Network18, who has been published in The Hindu, Indian Express, Newslaundry, The Quint, Outlook and FII.
