Proposed Legislation for Gig Workers
The Ministry of Labour is drafting a national law to provide gig workers with social security benefits like health insurance and retirement savings.
Companies employing gig workers may need to contribute 1%-2% of their revenue to a social security fund.
Labour Codes
In 2019-2020, India created four new labour codes merging 29 existing laws.
Only the Social Security Code 2020 specifically addresses gig workers, viewing them as part of the informal sector.
Worker Definition
Gig workers are defined outside traditional employer-employee relationships, leading to misconceptions about their status as independent workers.
This definition excludes them from benefits like paid leave and job security available to formal workers.
The Core Issue
To protect gig workers, the legislation must clearly define the employment relationship and recognize aggregators as employers.
Similar cases, like the Uber ruling in UK, show the importance of recognizing gig workers as employees to apply labour laws effectively.
Way Forward
Clearly defining gig work would allow for the inclusion of gig workers in existing labour codes rather than creating separate laws.
Addressing the employment relationship would enhance the formal status of gig workers and ensure better protection under labour laws.
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