The gig economy has reshaped the global labour market, offered flexibility but also challenged traditional labour rights frameworks. Recent labour law amendments, especially in India, have sought to address the precarious position of gig workers, who often lack basic protections such as minimum wage, social security, and the right to collective bargaining.

This article analyses the evolving legal landscape, with a focus on the implications of the Social Security Code, 2020, and related judicial developments. It argues that while these amendments are a step forward, they fall short in providing comprehensive protection to gig workers. The analysis concludes that a more nuanced approach is necessary to balance the interests of gig economy businesses and the rights of workers.

Introduction
The rise of the gig economy has fundamentally transformed labour markets worldwide. Characterized by flexible, on-demand work facilitated by digital platforms, the gig economy offers workers autonomy over their work schedules and employers a cost-effective, scalable workforce. However, this flexibility comes at the expense of labour rights, as gig workers are typically treated as independent contractors rather than employees and actually are not really protected under traditional labour laws.

Over the last couple of years, there has been a move toward labour protection coverage for gig workers. This has resulted in far-reaching legal developments, most eminently the enactment of the Social Security Code, 2020, in India, effecting-on any view-a topically large but still limited shift in the legal regime governing gig workers. The paper dwells on those recent developments with regard to the effect on the rights of gig workers and wider implications of labour law.

The Gig Economy and Labor Rights

The gig economy, driven by platforms such as Uber, Swiggy, and Zomato, represents a significant shift in the nature of work.[1] Where traditional employees have a clear employer and are entitled to a raft of labour protections, for example, individuals doing gig work are normally classified as independent contractors. This often strips them of minimum wage protection, security, and other basic rights like the right to unionize.[2]

One of the most highly debated issues in India is the legal status of gig workers. The dilemma is whether gig workers should be considered employees, and hence entitled to a full array of labour protections, or if they are independent contractors to whom those laws and regulations do not apply. This distinction makes a huge difference in determining what sort of labour laws apply and what liabilities a hirer would have.[3]

Recent Legal Developments in India

In view of the growing concerns over gig workers' rights in India, various legal reforms are being initiated to extend protection of labour laws to the sector. The most prominent one among them is the Social Security Code, 2020; this explicitly recognized for the very first-time gig and platform workers as independent categories of workers.[4]

It defines a "gig worker" as "a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationships." This is an important definition in that it gives a unique character to gig work and ultimately provides for the extension of social security benefits to such workers.[5]

However, the safeguards provided by the Social Security Code, 2020 are minimal at best. The Code merely lays down provisions for the formation of social security schemes for gig and platform workers but does not have any provisions mentioning any particular entitlements. Rather, it leaves the design and execution of such schemes at the government's discretion. The move has raised concerns over the adequacy of the protections offered, in that there are no guarantees that the schemes will either be implemented or that they offer meaningful benefits to gig workers.

Other important issues of the gig workers, such as those concerning minimum wage and collective bargaining rights, have been left out in the Social Security Code, 2020. All these are provided for under other labour codes, viz., the Code on Wages, 2019, and the Industrial Relations Code, 2020, neither of which extends to gig workers. It is precisely this sort of fragmented approach to labour law reform that has seen criticism regarding the fact it does not go far enough to protect gig economy workers from exploitation.[6]

Judicial Responses and Their Implications

The courts have also played an important role in shaping the rights of gig economy workers. Maybe the most prominent case was the February 2021 decision of the United Kingdom Supreme Court in Uber BV v. Aslam, wherein the Court held that Uber drivers are "workers," not independent contractors, and therefore entitled to basic labour protections, including minimum wage and paid leave. The effect of the ruling has been felt across the world, including in India, where the judgment has been referred to in current litigation processes relating to the rights of gig workers.[7]

In India, the Indian Federation of App-based Transport Workers has filed a Public Interest Litigation in the Supreme Court, demanding extension of social welfare benefits to the gig workers. The PIL sought to argue that gig workers be classified as "unorganised workers" under the Unorganised Workers' Social Security Act, 2008, and thus be entitled to social security benefits. The ruling in this litigation may well go on to have major implications for the legal status of gig workers in India.[8]

The Way Forward: Striking a Balance

While the Social Security Code, 2020, and the linked judicial developments are a step in the right direction, the recognition of gig workers' rights remains unfinished without comprehensive protection. Comprehensive reform to labour laws is required if the interest of the gig workers is to be safeguarded.[9]

The government should first expedite the implementation of social security schemes for gig workers. These schemes shall have to be designed and developed after due consultation with the gig workers and their representatives so that they meet all kinds of needs of this heterogeneous group of workers. It should extend the coverage of other labour codes, such as the Code on Wages, 2019, to gig workers so that basic protection of minimum wage and working conditions is assured. Finally, it should have clear legal provisions for collective bargaining on the part of the gig workers to unionize for negotiating better terms of work.

Conclusion
The gig economy has challenged traditional labour law frameworks within a good number of countries. Recent legal developments in India, in particular, the Social Security Code 2020, were quite ahead of their time with regard to the recognition of gig workers, but much more needs to be done to cover all aspects. This would require far greater nuance in balancing the interests of gig economy businesses against the rights of workers to a fair and just labour market.

End Notes:

1. Benjamin Means & Joseph A. Seiner, Navigating the Uber Economy, 49 U.C. Davis L. Rev. 1511 (2016).
2. Valerio de Stefano, The Rise of the "just-in-time workforce": On-demand work, crowdwork and labour protection in the "gig economy", 37 Comp. Lab. L. & Pol'y J. 471 (2016).
3. Ibid.
4. Isana Laisram & Ravi Shankar, Navigating Labour Law in the Gig Economy, 14 NUJS L. Rev. 3 (2021).
5. Ibid.
6. The Social Security Code, 2020, No. 36, Acts of Parliament, 2020 (India).
7. Uber BV & Ors v. Aslam & Ors, [2021] UKSC 5.
8. The Indian Federation Of App Based Transport Workers (IFAT) v Union of India, Writ Petition(s)(Civil) No(s).1068/2021. (2021).
9. The Social Security Code, 2020, No. 36, Acts of Parliament, 2020 (India).