Gig Economy and Labour Rights in India: Legal Protection for Platform Workers

The rapid rise of digital platforms such as Uber, Ola, Swiggy, Zomato, Urban Company, and Amazon has transformed India’s workforce. Millions of workers today operate in what is called the gig economy—short-term, flexible, on-demand jobs mediated through apps. These workers are central to the urban lifestyle, delivering food, ferrying passengers, and providing household services. Yet, while they power India’s digital economy, gig workers remain outside the ambit of most labour protections.

The legal question is whether these workers are “employees” entitled to labour rights, or “independent contractors” with no social security. This article examines the legal framework, judicial developments, and challenges in securing rights for gig workers in India.

The Gig Economy in India

The gig economy refers to work arrangements characterized by:

• Task-based assignments rather than permanent jobs. 
• Platform-mediated work, where digital apps connect service providers and customers. 
• Flexibility in hours, but lack of fixed wages, benefits, or job security. 

According to NITI Aayog’s 2022 report, India had 7.7 million gig workers, expected to grow to 23.5 million by 2030. This makes the issue of their legal rights urgent.

Current Legal Framework

1. Contractual Classification: Most platforms classify gig workers as independent contractors, not employees. This excludes them from benefits such as provident fund, gratuity, paid leave, and health insurance. 
2. Labour Codes: The Code on Social Security, 2020 is a landmark step, as it explicitly recognizes “gig workers” and “platform workers.” It provides for schemes relating to life insurance, health benefits, maternity benefits, and old-age protection. However, implementation depends on future rules and government schemes. 
3. State-Level Initiatives: Rajasthan passed the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, creating a welfare fund for gig workers—the first law of its kind in India. Other states are yet to follow. 

Judicial Developments

Courts in India have only begun grappling with the status of gig workers:

• Food Delivery Riders’ Cases: In disputes before labour courts, riders have argued that platforms exercise significant control over their work (via algorithms, penalties, and incentives), making them more like employees than independent contractors. 
• While no final binding Supreme Court judgment exists yet, tribunals abroad provide useful guidance. 

International Perspective

• UK: In Uber BV v. Aslam (2021), the UK Supreme Court held Uber drivers were “workers,” entitled to minimum wage and paid leave. 
• EU: Proposals are underway to classify platform workers as employees unless companies prove otherwise. 
• US: Mixed approaches exist, with states like California attempting laws to recognize gig workers as employees, though heavily contested by platforms. 

India can learn from these models, especially in recognizing the control platforms exert through algorithms and data.

Issues Faced by Gig Workers

1. Lack of Social Security: No provident fund, health insurance, or pension. 
2. Algorithmic Control: Ratings, incentives, and penalties create dependency and reduce autonomy. 
3. Unpredictable Income: Workers face fluctuating demand and rising costs (fuel, vehicle maintenance). 
4. Occupational Hazards: High accident risks for delivery partners and drivers, without adequate insurance coverage. 
5. Exclusion from Collective Bargaining: Being “independent contractors,” gig workers lack formal unions or bargaining rights. 

Constitutional and Human Rights Dimensions

• Article 21 (Right to Life): Interpreted to include livelihood, health, and dignity, extending logically to gig workers. 
• Directive Principles (Articles 39, 41, 43): Stress securing adequate livelihood, right to work, and social security. 
• Article 14 (Equality): Gig workers argue that excluding them from labour benefits while providing for other categories of workers violates equality before law. 

The Way Forward

1. Legislative Clarity: The Centre must operationalize the Social Security Code’s provisions with clear schemes for gig workers. 
2. Welfare Funds: States should replicate Rajasthan’s model to ensure safety nets for gig workers. 
3. Algorithmic Transparency: Platforms must disclose how ratings and incentives are determined. 
4. Hybrid Classification: Gig workers may be recognized under a new “worker” category, with some but not all employee benefits. 
5. Collective Bargaining Rights: Trade unions for gig workers should be encouraged to strengthen their negotiating power. 
6. Judicial Intervention: The Supreme Court may eventually need to decide whether platform workers are employees under labour laws. 

Conclusion

The gig economy embodies both opportunity and precarity. While it provides flexibility and income for millions, the lack of labour protections leaves gig workers vulnerable. India’s judiciary, legislature, and civil society must together craft a legal framework that balances innovation with protection.

If the law continues to treat gig workers as invisible, the promise of the digital economy risks turning into exploitation. Ensuring their dignity, security, and fair treatment is not just a matter of labour rights—it is a test of India’s commitment to inclusive growth in the digital age.