Gig Workers Bill: reading between the lines – Analysis of the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023 | 30 August 2023 | UPSC Daily Editorial Analysis

What is Gig Economy:

• A gig economy is a free market system in which temporary positions are common and organizations hire independent workers for short-term commitments. The term “gig” is a slang word for a job that lasts a specified period of time.

Gig Economy in India:

• The gig economy, also known as the on-demand economy, is a rapidly growing trend in India. It refers to a labour market where temporary, short-term, or freelance jobs are the norm instead of the traditional nine-to-five office jobs.
• Some key points about gig workers in the Indian context:
  • Flexibility and Independence: Gig work offers more flexibility and independence for workers. They have the freedom to choose when and where they work, allowing them to balance work with personal commitments.
  • Cost-Effective Solution: For businesses, hiring gig workers can be a cost-effective solution. They can hire workers on a part-time or project basis, reducing overhead costs associated with full-time employees.
  • Rise of the Gig Economy: The gig economy is on the rise in India, with more people opting for independent work rather than traditional nine-to-five jobs. This shift in work culture is driven by factors such as increasing internet penetration, economic liberalization, and the growth of e-commerce.
  • Supplementing Income: Some gig workers in India are able to supplement their monthly income by working in the gig economy. They may work in the industry alongside their regular jobs or use gig work as their primary source of income.
  • Challenges and Concerns: Gig workers in India face various challenges and concerns. They often lack social security benefits, such as health insurance and paid leave. Additionally, there have been protests and demands for better working conditions and fair pay.
  • Expected Growth: The gig workforce in India is expected to grow significantly in the coming years. According to a report by NITI Aayog, India's gig workforce was 77 lakh in 2020-21 and is projected to reach 2.35 crore by 2029-30.

Challenges faced by gig workers in India:

• Income instability: Gig workers may experience fluctuations in income due to the irregular and unpredictable nature of gig work.
• Lack of social protection: Gig workers usually lack basic employment rights such as protection against discrimination, harassment, or unfair termination.
• Bad service conditions: Gig workers may face poor working conditions, such as long working hours, lack of job security, and inadequate pay.
• Entitlement burden: Gig workers may have to bear the burden of entitlements such as insurance, pension, and other benefits that are not provided by the platforms they work for.
• Declining income: Gig workers may face declining income due to increasing variable expenses and lack of welfare schemes and social security.
• Gender-specific issues: Women gig workers may face additional challenges, such as having to pay onboarding fees again when they come back after maternity leave or regularly suffering due to the lack of public toilets in the country.

What is the Government doing to regulate the gig economy in India?

• The gig economy in India is currently unregulated, and gig workers have limited recognition under the current Indian labour laws. However, the Indian government is taking steps to regulate the gig economy and address the concerns of gig workers.
• Here are some of the government's initiatives:
  • Code on Social Security, 2020: The Code on Social Security, 2020 defines gig workers as those engaged in livelihoods outside traditional employer-employee relationships. It aims to extend social security benefits to gig workers, including health insurance, life and disability coverage, and maternity benefits.
  • Occupational Safety, Health and Working Conditions Code, 2020: The Occupational Safety, Health and Working Conditions Code, 2020 aims to provide a safe and healthy working environment for gig workers. It mandates that gig platforms provide gig workers with personal protective equipment, training, and insurance coverage.
  • New Tax on Digital Platforms: In July 2023, the Indian state of Karnataka introduced a new tax on digital platforms to fund welfare schemes for gig workers. The tax will be imposed on each transaction on digital platforms, and the funds will be used to provide social security benefits to gig workers.
  • National Policy for Domestic Workers: The Indian government is also working on a National Policy for Domestic Workers, which will provide social security benefits to domestic workers, including gig workers. The policy is expected to cover a range of issues, including minimum wages, working hours, and working conditions.
• While these initiatives are steps in the right direction, there is still a long way to go in terms of regulating the gig economy in India and providing social protection to gig workers.