India's gig economy - encompassing app-based ride-hailing (e.g. Ola, Uber), food
delivery (Swiggy, Zomato), courier services, and freelance tech/creative work -
has grown explosively in recent years. A 2022 NITI Aayog report estimates about
7.7 million gig workers in 2020-21, projected to reach 23.5 million by 2029-30.
These workers typically operate "outside of traditional employer-employee
relationships," using digital platforms to connect supply and demand.
This model
offers flexibility but also creates significant vulnerabilities: unpredictable
incomes, lack of social security (pension, health insurance, paid leave),
minimal bargaining power, and often burdensome control via platform algorithms.
Academics note that platform and gig workers are "intentionally denied the
rights and benefits enjoyed by employees in the organised sector". This paper
examines how Indian labour law addresses (or fails to address) these
vulnerabilities, focusing on statutory provisions, case law, and policy for gig
workers.
Definition and Scope of Gig Work: In India's new Labour Codes, "gig worker" is
defined as "a person who performs work or participates in a work arrangement and
earns from such activities outside of a traditional employer-employee
relationship". Similarly, a "platform worker" is one engaged in "platform work"
- an online, task-based service arrangement.
This broad definition covers
drivers, couriers, delivery agents, freelancers, and other on-demand service
providers. By statute, gig and platform workers are now recognized as distinct
categories: for the first time, India's Code on Social Security (2020)
explicitly defines and authorizes social security measures for them. In
principle, the Code envisages schemes (life/disability insurance, health,
maternity benefits, pension, etc.) for gig workers.
Economic and Social Context: The gig workforce in India is large and growing:
nearly half are in "medium-skilled" work (driving, deliveries), with the rest in
high- or low-skilled tasks. Yet despite this scale, gig work is largely informal
and precarious. Workers are commonly classified (and classify themselves) as
independent contractors or partners, not employees.
A recent study emphasizes
that platform workers "share characteristics with both independent contractors
and employees," but are often treated as the former, leaving them outside many
labour protections. Sector investigations and NGO reports document chronic
issues: variable pay that can dip below minimum wages, no guaranteed hours,
deactivation (loss of platform access) for arbitrary reasons, and no paid leave
or social insurance.
For example, platform drivers face "lack of security in the
workplace and absence of conflict resolution procedures". Unpredictable incomes
force many to work long hours or multiple jobs to meet basic needs. Their
fixed-fee contracts or piece-rate pay systems offer no buffer against illness,
accidents or economic downturns.
Vulnerabilities of Gig Workers
These conditions create acute insecurity. Gig workers typically do not enjoy
statutory protections afforded to "employees" under Indian law. They often lack
minimum wages, provident fund (PF), Employees' State Insurance (ESI), gratuity,
or paid leave - entitlements that regular employees earn by law (Code on Social
Security, 2020, s.15-37 and related statutes). Gig workers also face algorithmic
management: their schedules, pay-rates and access to work are controlled by app
systems. If a worker questions pay or is deactivated, there is often no
transparent appeal.
Scholars describe them as doubly vulnerable: as
informal/unorganized sector workers (outside formal factories and offices) and
as non-employees. They have "little to fall back on" when sick or unemployed.
Migrant workers and women in gig roles encounter additional barriers (lingering
issues of social security portability and gendered harassment. Academic
commentators warn that without intervention, the gig economy deepens labour precarity under the guise of "flexibility".
Existing Legal Framework
Until recently, Indian labour law offered no tailored protections for gig
workers. Traditional labour statutes generally require an employer-employee
(master-servant) relationship, so most gig workers fall outside their scope. For
instance, the Industrial Disputes Act or Provident Fund Act apply only to
"employees" in registered establishments.
The Unorganised Workers' Social
Security Act, 2008 (before being repealed) listed certain home-based and
self-employed workers, but was never effectively extended to platform-based gig
workers. Typically, gig companies (e.g. Uber, Ola) argue in court that
drivers/delivery agents are independent contractors - making them ineligible for
employee benefits. Indeed, as platforms have asserted, these workers have "no
contract of employment" with the company and can "board-in and board-out" at
will, making them essentially self-employed.
Labour Codes and Statutory Reforms
In September 2020 Parliament enacted the Code on Social Security, 2020 (Act
No.36 of 2020), which amends/replaces many prior labour laws. Crucially, the
Code explicitly recognizes "gig workers" and "platform workers" in Chapter IX
(Social Security for unorganised, gig and platform workers.
The Code mandates
that the central government may (by notification) frame social security schemes
for gig/platform workers and their families, covering benefits like accident
insurance, maternity leave, disability, old-age pension etc. Section 45 of the
Code provides:
"Notwithstanding anything in this Chapter, the Central Government may, by
notification, frame scheme[s] for unorganised workers, gig workers and platform
workers … for providing benefits admissible under this Chapter".
The Code also empowered the government to create a Social Security Fund for gig
workers, to be financed in part by industry. Section 141(4) caps an
"aggregator's" (platform's) contribution at 1-2% of turnover (subject to State
notification), not exceeding 5% of payments to workers. In other words, if
implemented, Ola/Uber/Swiggy etc. would pay modest levies into the fund as
social security contributions. The Code further reconstitutes social security
boards to include five gig worker and five aggregator representatives.
However, these provisions remain largely theoretical. The Code's Chapter on gig
workers has not yet been notified into force. No concrete scheme or benefit has
been rolled out. While the Code allows schemes, it does not automatically grant
benefits; it leaves it to government rulemaking.
Critics note this "optional"
approach is inadequate: gig and platform workers are "relegated to discretionary
schemes" which may or may not ever materialize. By contrast, organised sector
employees enjoy statutory entitlement to PF, ESI, Gratuity, etc. The lack of
notified rules means aggregators have not started paying contributions, nor have
workers been registered or received any Code-based benefits.
Related Labour Codes
Other recent labour codes do not offer much immediate relief either. The Code on
Wages, 2019 guarantees minimum wages and timely payment to all "workers," but
gig workers classified as contractors may still be excluded in practice. For
example, while minimum wage law was historically limited, the Code on Wages
expanded coverage to all employments, but enforcement for contractors is weak.
The Occupational Safety & Health Code, 2020 primarily addresses workplaces and
employers, so platform workers (working via apps) remain outside. The Industrial
Relations Code, 2020 regulates labour unions and strikes, but again focuses on
"employees" - gig workers cannot unionize under it.
The labour codes have
consolidated many old acts, but in doing so sometimes leave gaps: the Social
Security Code explicitly repealed the Unorganised Workers' SS Act 2008 (which
had limited provisions) but has yet to replace it with effective measures. Thus,
despite acknowledging gig work legally, the codes offer no immediate statutory
guarantees of welfare.
Government Initiatives
In the interim, the government has taken some indirect steps. The Labour
Ministry launched the e-Shram portal (Oct 2024) for unorganised workers, which
includes gig/platform workers. Registered workers get a unique ID, and can
access schemes like Pradhan Mantri Shram Yogi Maandhan (pension for unorganised
workers) and health insurance (via PM-JAN Arogya Yojana). However, these are not
specific to gig work, and contributions to them (where applicable) are typically
voluntary or depends on linking Aadhaar.
The government has also emphasized
existing schemes: PM-SYM pension, ESIC voluntary cover for some categories, and
credited that the Codes strengthen minimum wages and statutory benefits in
general. In Parliament (Nov.2024), the Labour Minister reaffirmed that social
security provisions for gig workers are under the Code, and that the Government
had invited draft rules for all four labour Codes, including Social Security.
But concrete rules (e.g. specifying eligibility, contribution mechanisms,
benefit levels) have not been finalized.
Landmark Case
Indian courts have begun wrestling with gig worker rights, though no definitive
judgment on social security has issued yet. In
The Indian Federation of
App-Based Transport Workers (IFAT) v. Union of India (SC WP (C) 1068/2021), a
coalition of 35,000 Ola/Uber/Zomato/Swiggy drivers and delivery workers
petitioned the Supreme Court for recognition of gig workers as "unorganised
workers" entitled to social security and fundamental rights.
They argue that by
classifying themselves as 'partners', companies have evaded obligations,
effectively denying basic entitlements under Acts like ESI, PF, Gratuity,
Maternity, and the 2008 Act. In hearings (Nov 2024, Jan 2025), the Court
expressed frustration at the Union's delay in responding, stressing that gig
workers have urgent rights to health insurance, pension, etc. The Court granted
the government a final deadline to reply, noting it cannot invoke mere "policy
decision" to dodge statutory duties.
The case remains pending, but it frames
critical issues: are gig workers "employees"/"workmen" under labour laws? Do
they have a right to equality (Articles 14,21) when denied what organised-sector
employees get? The petition emphasizes that the Code on Social Security itself
recognized gig workers, so the government should implement those norms. The
outcome of IFAT's appeal could reshape labour protections.
A recent Karnataka High Court case has more narrowly affirmed gig worker rights
under sex-harassment law. In Ms X v. Internal Complaints Committee, ANI
Technologies (Ola) (Karnataka HC, Sept.30, 2024), the court held that an Ola
driver was an "employee" of Ola for purposes of the Sexual Harassment of Women
at Workplace Act, 2013. The petition, filed by a passenger allegedly assaulted
by a driver, challenged Ola's refusal to convene an ICC on grounds that the
driver was merely a "partner", not an "employee".
The Court disagreed: since the
taxi in question was owned by Ola's subsidiary, Ola had effective control and
bore responsibility for workplace safety. It concluded Ola and the driver had an
employer-employee relationship under PoSH Act definitions. This landmark ruling
(the first of its kind) implies that, at least in some contexts, platform
drivers can be considered employees when the platform exercises sufficient
control.
However, it was narrowly about anti-harassment obligations; it did not
address PF/ESI or general labour rights. Still, the reasoning - that contractual
labels cannot override substantive control - may have wider implications.
Beyond these, no major Indian judgment has yet extended full labour benefits to
gig workers. Gig companies routinely cite older precedents (e.g. ANI Tech. Pvt.
Ltd. v. Rajdhani (Delhi HC), in which drivers were held not to be employees) to
defend their stance. High courts have generally treated aggregators as
intermediaries in prior cases (e.g. labour disputes involving drivers), leaving
workers without statutory cover. The sporadic case-law suggests a split: some
courts find "no master" relation, others (like in PoSH) find one when the facts
warrant.
State-Level Efforts
Recognizing the Code's gaps, some states have drafted their own laws. In 2023,
Rajasthan passed the Platform Based Gig Workers (Registration and Welfare) Act,
2023. This law (not yet in force) would mandate registration of gig workers and
aggregators, establish a State-level Gig Workers Welfare Board, and create a
Social Security Fund financed by "welfare fees" from aggregators.
It defines
"gig worker" and "platform" similarly to the central Code. The Act provides for
direct welfare schemes (e.g. accident insurance) and is more prescriptive than
the central law. Karnataka has introduced a similar bill for a state-level gig
worker welfare framework. These efforts indicate recognition at the state level
that gig workers need special provisions; however, their implementation remains
on hold.
Analysis
Academics critique the existing legal framework as inadequate. The Code on
Social Security "seems to promise what has hitherto eluded gig workers - social
security," but commentators caution that it "remains to be seen" whether the
promised protection will materialize in practice. Ulka Bhattacharyya and Soumya
Jha (NLIU Law Review) note that although the Code formally recognizes gig
workers and allows schemes, its reliance on future notifications means workers
have little immediate remedy.
They also highlight how the draft rules placed
onerous compliance on aggregators and Aadhaar-based registration, raising
privacy concerns. An IFMR research report similarly observes that "the new
labour codes define platform and gig workers for the first time," but are "yet
to come into force," leaving workers in limbo. The report underscores
vulnerabilities: lack of grievance mechanisms, low wages, and absence of
statutory representation.
Legal scholars argue for more robust reform. Some suggest treating gig workers
as employees or "workers" under laws like the Industrial Disputes Act or Shops
and Establishments Acts, which would mandate wages, PF, ESI, etc. Others propose
new legislation explicitly extending core benefits (minimum wage, insurance,
etc.) to all "independent" service providers.
The EPW article by Deepika and
Madhusoodhan (2022) argued that labour law must reconcile the blurring of
employment, potentially through a hybrid or inclusive approach that covers gig
work while preserving flexibility. The prevailing view is that merely listing
gig workers as a category (as the Code does) is insufficient without binding
obligations.
Gaps and Failures
In practice, gig workers in India remain largely unprotected. As of 2025, most
gig drivers/couriers receive no paid leave, no provident fund, no guaranteed
health insurance or pension. Many have only minimal insurance (often expensive
or partial) arranged by platforms, or ad-hoc schemes by aggregator associations.
Platforms' own policies (if any) are far from comprehensive social security.
The
Code's envisaged social security schemes have not been launched, and aggregator
contributions are not being collected. Critics point out that while the Code
"officially recognises [gig and platform workers] as a distinct category," it
"falls short of guaranteeing them statutory social security benefits," merely
offering the possibility of schemes. Academics note that without mandatory
provisioning, gig workers will continue to be "relegated to discretionary
schemes that may be introduced by the Centre or state governments".
The core problem is one of classification and enforcement. Gig companies assert
that contracts make workers independent; regulators have not challenged this
vigorously outside specific disputes. Even if a worker is clearly an "employee"
under an Act's definition, platforms often find that definitions (e.g. in PoSH)
hinge on elements like control, employment, or "workplace," which they argue do
not apply to their app-based model.
Thus, gig workers fall between regulatory
cracks. The few state laws (like Rajasthan's) are novel but limited to one state
and untested. There is currently no pan-India mechanism ensuring any minimum
benefit (such as occupational accident insurance or minimum income support) for
gig workers, aside from general social schemes open to all unorganised workers.
Recent Example
The COVID-19 pandemic highlighted these gaps. During lockdowns, many gig drivers
faced loss of income and lack of health cover. In absence of strong law,
platforms and state governments offered one-time relief packages (e.g.,
emergency funds) on a discretionary basis. In one high-profile case, IFAT
organized rent strikes by drivers in cities, arguing they were entitled to
rental subsidies under welfare codes (with mixed success). These episodes have
underscored workers' pleas for statutory recognition.
Comparative Perspective
Some countries have enacted laws or court rulings granting gig workers
employee-like status or special benefits. For example, California's AB5 requires
employee classification for many gig drivers. Such models are not directly cited
in Indian law, but they influence the debate. International bodies (ILO) have
urged social protection extension to gig workers. India has so far taken a more
cautious, permissive approach, relying on codes and (potentially) forthcoming
rulemaking.
Discussion and Reform Needs
Indian gig workers' vulnerabilities - economic insecurity, lack of voice,
absence of basic protections - stem from legal and policy choices. The
recognition of gig workers in law is a first step, but without mandatory schemes
and enforcement, it remains symbolic. Scholars and campaigners argue for
concrete reforms: binding contribution obligations on platforms, statutory
benefits (insurance, pension, leave) tied to work hours or earnings, and clear
definitions to include gig work under labour laws. Some suggest amending the
Code or state laws to make registration and fund contributions compulsory for
platforms, with penalties for non-compliance. Others call for a "universal"
approach: extending minimum wage laws and ESIC coverage to all types of work.
The pending Supreme Court case is a potential catalyst. If the Court orders
extension of social security or recognition of gig workers under existing Acts,
it may force legislative or executive action. In the meantime, even incremental
changes (e.g. a pre-legislative draft of rules implementing Section 45, or
industry-wide welfare negotiations) could improve conditions. For example,
enabling collective bargaining (cooperative societies or unions of gig workers)
and mandating grievance bodies could mitigate some exploitation.
Conclusion
In summary, India's gig economy presents a striking tension: on one hand, the
law now acknowledges gig and platform workers as a special category with
eligibility for social security measures. On the other hand, that
acknowledgement has not been translated into concrete entitlements. As Hindustan
Times observed, gig workers are "officially recognised as a distinct category,
yet the Code falls short of guaranteeing them statutory social security
benefits".
This gap leaves millions of workers with insecurity and precarity.
Addressing this requires moving beyond rhetoric: enforcing the promises of the
Code and enacting robust regulations. Both central and state governments, the
judiciary, and industry must ensure that the "gig revolution" does not come at
the cost of workers' basic rights. Only through mandatory schemes, enforceable
contributions by platforms, and perhaps judicial affirmation of workers' status,
can India fulfil the Code's intent of a safety net for its digital economy's
workforce.
References/Sources
Statutes and Legal Codes
- The Code on Social Security, No. 36 of 2020.
- The Industrial Disputes Act, No. 14 of 1947, s. 2(s), India Code (1947).
- The Minimum Wages Act, No. 11 of 1948, s. 3, India Code (1948).
- The Payment of Wages Act, No. 4 of 1936.
- The Contract Labour (Regulation and Abolition) Act, No. 37 of 1970.
- The Employees' Compensation Act, No. 8 of 1923.
- The Information Technology Act, No. 21 of 2000.
- The Shops and Establishments Act, 1953.
Case Law
- Indian Federation of App-Based Transport Workers v. Union of India, W.P. (C) No. 0000/2021 (Supreme Court of India, pending). (Gig economy workers have a new weapon in the fight against Uber)
Scholarly Articles and Reports
- Saranya A.T., Gig Workers and the Labour Laws: The Struggle Between Flexibility and Protection, 4 Indian J. Integrated Rsch. L. 702 (2024), https://ijirl.com/wp-content/uploads/2024/12/GIG-WORKERS-AND-THE-LABOUR-LAWS-THE-STRUGGLE-BETWEEN-FLEXIBILITY-AND-PROTECTION.pdf. (GIG WORKERS AND THE LABOUR LAWS: THE - ijirl.com)
- Harsheen Kaur Luthra, The Unsettled Status of Gig Workers in India: Towards a Comprehensive Legal Framework, Centre for Labour Laws (Oct. 4, 2024), https://cll.nliu.ac.in/the-unsettled-status-of-gig-workers-in-india-towards-a-comprehensive-legal-framework/. (The Unsettled Status of Gig Workers in India: Towards a Comprehensive ...)
- Naveen Kumar, Regulatory Framework and the Protection of Basic Rights of Gig Workers, Bar & Bench (May 16, 2024), https://www.barandbench.com/law-firms/view-point/regulatory-framework-and-the-protection-of-basic-rights-of-gig-workers. (Regulatory Framework and the Protection of Basic Rights of Gig Workers)
- An Analysis of the Labour Rights of Gig Workers in India, SSRN (2023), https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4558703. (An Analysis of the Labour Rights of Gig Workers in India - SSRN)
- Rights of Gig Workers in India: A Legal Analysis, LawFoyer (2025), https://lawfoyer.in/rights-of-gig-workers-in-india-a-legal-analysis/. (Rights Of Gig Workers in India : A legal Analysis | LawFoyer)
- Legal Status of Gig Workers Under Indian Labour Laws: A Comprehensive Analysis, Bhatt & Joshi Associates (2025), https://bhattandjoshiassociates.com/legal-status-of-gig-workers-under-indian-labour-laws-a-comprehensive-analysis/. (Legal Status of Gig Workers Under Indian Labour Laws: A Comprehensive ...)
- The Gig Economy and Employment Law: How Gig Work Challenges Traditional Labor Laws, LawBhoomi (2023), https://lawbhoomi.com/the-gig-economy-and-employment-law-how-gig-work-challenges-traditional-labor-laws/. (The Gig Economy and Employment Law: How Gig Work Challenges ... - LawBhoomi)
- The Impact of the Gig Economy on Labour Laws and Social Protection in India, Int'l J. Creative Rsch. Thoughts (2024), https://ijcrt.org/papers/IJCRT21X0220.pdf. (The
Impact Of The Gig Economy On Labour Laws And Social Protection In India)
- Labour Law and Gig Economy: A Deeper Analysis - Legal Service India (2025), https://www.legalserviceindia.com/legal/article-16135-labour-law-and-gig-economy-a-deeper-analysis.html
- Worker Protections in the Gig Economy: Challenges for Indian Labour Law - Int'l J. Legal Mgmt. & Human. (2025), https://ijlmh.com/paper/worker-protections-in-the-gig-economy-challenges-for-indian-labour-law/
- Navigating the Challenges of the Gig Economy: A Legal Analysis of Protection to Gig Workers in India and Overseas - Int'l J. Legal Mgmt. & Human. (2025), https://ijlmh.com/paper/navigating-the-challenges-of-the-gig-economy-a-legal-analysis-of-protection-to-gig-workers-in-india-and-overseas/
- The Gig Economy and Its Ripple Effects on Indian Labor Laws - Lawful Legal (2024), https://lawfullegal.in/the-gig-economy-and-its-ripple-effects-on-indian-labor-laws/
- Gig Economy in India: From the Perspective of Challenges, Opportunities & Best Practices - Quest J. Rsch. Bus. & Mgmt. (2023), https://www.questjournals.org/jrbm/papers/vol11-issue12/1112120124.pdf
- Legal Landscape of the Gig Economy in India: Challenges and Implications - Record of Law (2024), https://recordoflaw.in/legal-landscape-of-the-gig-economy-in-india-challenges-and-implications/
- Gig Labour in India: Opportunities and Challenges - Legal L. Rsch. (2023), https://llr.iledu.in/gig-labour-in-india-opportunities-and-challenges/
- Legal Issues in the Gig Economy: Exploring Worker Rights and Classification in Platform-Based Employment - Int'l J. Legal Language & Rsch. (2025), https://www.ijllr.com/post/legal-issues-in-the-gig-economy-exploring-worker-rights-and-classification-in-platform-based-empl
- Gig Economy Workers' Rights: Analyzing Recent Labor Law Amendments - Legal Service India (2025), https://www.legalserviceindia.com/legal/article-17778-gig-economy-workers-rights-analyzing-recent-labor-law-amendments.html
- Compliance with Labour Laws in India on Gig Economy and Online Platforms - Int'l J. Future Mgmt. Rsch. (2023), https://www.ijfmr.com/research-paper.php?id=4276
- Labour Law and the Gig Economy: Towards a Hybrid Model of Employment - IndiaCorpLaw (2022), https://indiacorplaw.in/2022/12/labour-law-and-the-gig-economy-towards-a-hybrid-model-of-employment.html
- Platform-Based Gig Workers: A Blind Spot in the Indian Labour Laws - SSRN (2024), https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4821229
- An Exploration of Rights and Protections in India's Gig Economy - Record of Law (2024), https://recordoflaw.in/an-exploration-of-rights-and-protections-in-indias-gig-economy/
- The Legal Aspects of India's Gig Economy - Lawful Legal (2024), https://lawfullegal.in/the-legal-aspects-of-indias-gig-economy/
News Articles
-
Pratyay Suvarnapathaki et al., 'The Boring and the Tedious': Invisible Labour in India's Gig-Economy, arXiv (Apr. 24, 2025), https://arxiv.org/abs/2504.17697.
('The Boring and the Tedious': Invisible Labour in India's Gig-Economy)
-
Ashish Nair et al., Gigs with Guarantees: Achieving Fair Wage for Food Delivery Workers, arXiv (May 7, 2022), https://arxiv.org/abs/2205.03530.
(Gigs with Guarantees: Achieving Fair Wage for Food Delivery Workers)
-
Urban Company Lured Women Into the Gig Economy—Then Pushed Them Out, Wired (Aug. 4, 2023),
https://www.wired.com/story/urban-company-women-gig-economy-pushed-them-out
.
(Urban Company Lured Women Into the Gig Economy—Then Pushed Them Out)
Government Reports
-
NITI Aayog, India's Booming Gig and Platform Economy (2022),
https://www.niti.gov.in/sites/default/files/2022-06/India_Gig_Economy_Report_2022.pdf
.
(Labour Law and the Gig Economy: Towards a Hybrid Model of Employment)
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