- For the uninitiated, gig workers are defined as independent contractors, online platform workers, contract firm workers, on-call workers, and temporary workers. Gig workers enter into formal agreements with on-demand companies to provide services to the clients of the company. As can be easily deduced, gig workers are almost entirely comprised of unorganized sector workers for whom social security protection is virtually non-existent. This remains one of the most difficult challenges for the country’s workforce, which has little safety net in times of adversity. A timely reminder to policymakers about the importance of extending protection in the form of insurance is appropriate here.
PC: Vallari Sanzgiri
- Against this backdrop, the Rajasthan government recently passed a bill in the assembly that seeks to introduce social security measures for online platform-based gig workers. Its highlights include the goal of balancing the employment potential of gig work with measures to mitigate the harsh working conditions. The framework for achieving this goal is the establishment of a welfare board dominated by government appointees, which will register both gig workers and aggregators. The proposed legislation authorizes the collection of a welfare fund as a percentage of the value of a transaction involving a gig worker. The responsibility of an employer under this scheme is mostly limited to ensuring that the welfare fee is charged on a transaction.
- Gig workers linked to online platforms, on the other hand, were recognized in the GOI’s 2020 labor code. It is, however, not yet operational. As a result, Rajasthan’s efforts to improve the social security framework as part of an ambitious legislative agenda serve as a case study. There are signs that gig work will expand. According to Niti Aayog, over 23 million people will be a part of it by the end of the decade. According to reports, the government of India is attempting to persuade large platforms to establish group health and accidental insurance schemes for their gig workers. Aside from legal efforts, the extent of labor supply influences the conditions of gig workers. A jobs crisis ensures an abundant labor supply in India. Given this context, what can we anticipate from Rajasthan’s bill?
PC: Mahinsha s
- Indeed, registering gig workers is critical because there have been reports of platforms failing to honor salary commitments. Workers may benefit from registration. Rather than relying on employers, Rajasthan attempted to establish a corpus without specifying specific social security benefits. Flexibility in usage is practical as long as the fund is not diverted to another expense. Overall, the bill’s intent and approach are correct. Regardless, execution will be critical. The same template should be replicated across other states once the move gains traction and acceptability in Rajasthan by executing the bill with due diligence. If the governments can ensure that the intended insurance coverage reaches the majority of gig workers, the move will be considered a huge success.
