The digital age has brought notable changes to the labor market globally, with India emerging as a key player in the burgeoning ‘gig economy’. This term refers to a labor market characterized by temporary and short-term contracts often managed via online platforms. A recent study conducted by Fairwork India focuses on the working conditions within this economy, presenting a concerning picture for India’s gig workers. In this article, we break down the findings of the study and discuss further the implications and potential interventions.
The Fifth Annual Fairwork India Study: Key Findings
Fairwork India’s fifth annual study, conducted across 12 Indian e-commerce platforms such as Bigbasket, Flipkart, and Urban Company, scrutinized five principles: Fair Pay, Fair Conditions, Fair Contracts, Fair Management, and Fair Representation. Unfortunately, the results were largely disappointing. The study found that only three of these platforms have minimum wage policies in place, and none guarantee a living wage for their workers.
Worker alienation was also explored in the report, revealing that discriminatory practices based on caste, class, gender, and religion contribute to a sense of isolation amongst workers. Additionally, while some platforms offer accident insurance and measures to ensure contract clarity and data protection, none received points for Fair Representation. This points to a lack of recognition for collective worker bodies, a significant issue given the growing trend of worker collectivization.
Gig Economy in India: Overview and Challenges
India has emerged as one of the world’s largest countries for flexi staffing, with its gig economy employing approximately 7.7 million workers. The Niti Aayog predicts this to rise to 23.5 million by 2029-30, making up nearly 4% of all employment. However, this growth comes with significant concerns, primarily revolving around worker security and welfare. Gig workers often lack access to essential labor rights, such as social security and limits on working hours, due to their ambiguous employment status. Moreover, in the unfortunate event of disability or death, gig workers may have lower coverage for these benefits, putting their financial security at risk.
Government’s Response to the Gig Economy
In order to address these issues, the Indian government has made some efforts; The Code on Social Security (2020) imposes an obligation on gig employers to contribute to a Social Security Fund, while The Code on Wages (2019) provides for universal minimum wage across sectors. However, these measures still leave much to be desired in terms of ensuring fair representation and security for gig workers.
India’s Minimum Wage Policy
The Code of Wages Act 2019 is a landmark law aimed at introducing minimum wages and increasing transparency in labor laws. The Act empowers the Central Government to fix floor wages by considering the living standards of workers, and mandates that the minimum wages decided by central or state governments should be higher than the floor wage. But it should be noted that while this legislation represents a significant step towards fairer wages, it is not without criticisms and concerns.
Suggested Interventions For Improving Gig Economy in India
Addressing the issues within the gig economy will require a multi-pronged approach. One crucial step is defining clear guidelines for worker classification in the gig economy, which could pave the way for essential legal protections and benefits. Other potential interventions include the implementation of mechanisms to ensure fair compensation, the creation of opportunities for skill development and training, and the exploration of new ways to provide gig workers with access to social security benefits.
By taking comprehensive steps towards these interventions, we can work towards creating a more equitable and secure environment for gig workers in India.
