A ‘gig worker’ is someone who operates outside of the traditional employer-employee relationship, working on a contractual basis for various platforms or aggregators such as Swiggy, Zomato, Uber, and more. Gig workers differ from standard employees as they typically have flexible work hours and multiple income sources. They are compensated based on the tasks or services they complete rather than on a monthly or hourly wage. The services that gig workers offer range from food delivery and ride-hailing to home services, e-commerce, content creation, graphic design, and web development.
Gig workers make up approximately 15 million of India’s workforce, according to a report by the Boston Consulting Group and Michael & Susan Dell Foundation, and this number is projected to rise to 90 million by 2028. The gig economy refers to a free-market system in which temporary positions are common, and companies contract with independent workers for short-term engagements.
The Code on Social Security, 2020
The Code on Social Security, 2020 seeks to revise and consolidate social security laws to extend them to all employees and workers, regardless of whether they are in organized or unorganized sectors. The government can apply the Code to establishments subject to size-threshold through notification. For unorganized workers, gig workers, and platform workers, the Code provides for separate Social Security Funds set up by Central and State Governments and specific registration provisions. A National Social Security Board will be established to recommend and monitor schemes for these worker categories, with funding potentially coming from central and state governments as well as aggregators.
The Role of the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023
Recently, the Rajasthan Assembly passed a significant bill aiming at extending social security benefits to gig workers – the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill. The bill highlights the significant contributions of gig workers to the economy and aims to provide them with vital protection and support. The primary goal of this legislation is to extend social security and welfare benefits to gig workers in the state.
Key Provisions of the Bill
The bill has several key features that are designed to protect and support gig workers. It mandates the registration of all gig workers with the state government so that labor regulations cover them. The state government will maintain a comprehensive database of all gig workers in Rajasthan, with each worker receiving a unique ID to help track their employment history and benefits.
Also, gig workers will gain access to various social security schemes, including health insurance, accident coverage, and other welfare measures. A grievance redressal mechanism is also in place to ensure that gig workers have the right to address any grievances they may have.
Establishment of the Platform-Based Gig Workers Welfare Board
The legislation establishes a Platform-Based Gig Workers Welfare Board responsible for overseeing the welfare and rights of gig workers in the state. This board includes state officials, representatives from gig workers and aggregators, one member from civil society, and another interested party. At least one-third of the nominated members must be women to ensure balanced representation.
Funding for Social Security Measures
The bill introduces a ‘Platform-Based Gig Workers Fund and Welfare Fee’ to finance social security measures for gig workers. Aggregators will contribute to this fund by paying a fee for every transaction involving a platform-based gig worker. Penalties are in place for non-compliance, including fines for aggregators who fail to pay the welfare fee on time or contravene the Act.
The bill provides critical social security and welfare benefits to gig workers, helping to ensure their financial stability and protection. This legislation marks a significant step forward in recognizing and protecting the rights and contributions of gig workers in India’s fast-growing gig economy.
