Code on Social Security for Gig Workers
Context: Recently, the Ministry of State for Labour and Employment told the Lok Sabha that the definition of ‘gig worker’ and ‘platform worker’ has been provided for the first time in the Code on Social Security (SS), 2020.
Who is a Gig worker?
According to the Code on Social Security, 2020, a gig worker is a person who performs work or participates in work arrangements and earns from such activities, outside of the traditional employer-employee relationship
Gig Economy and India:
- The gig economy in India has been growing rapidly in recent years, with the increasing availability of digital platforms that allow individuals to offer their services on a freelance or part-time basis.
- According to a report by Boston Consulting Group, India’s gig workforce comprises 15 million workers employed across industries such as software, shared services and professional services.
- According to a report by the International Labour Organization, India’s gig economy is expected to grow by 23% by 2025.
Provisions under Social Security Code, 2020?
- The Code aims to regulate the organized/unorganized (or any other) sectors and extend social security benefits, during sickness, maternity, disability, etc. to all employees and workers across different organizations.
- Integrates Labour Laws: The Code undertakes integrating the following 9 labour laws relating to social security into one integrated Code:
The Employees Compensation Act, 1923
- The Code has widened coverage by including the unorganised sector, fixed term employees and gig workers, platform workers, inter-state migrant workers in addition to contract employees.
- The Code applies to everyone on wages in an establishment, irrespective of occupation.
Revised Definition:
- On employees: The term ‘employees’ now also includes workers employed through contracts.
- On inter-state migrant workers: It also includes self-employed workers who have migrated from another state.
- Gig workers: Freelancers, independent contractors, etc. who engage in hourly or temporary work and share a non-traditional employer-employee relationship are grouped as gig workers.
- Platform workers: Workers who use an app or website to get connected to their customers are classified as platform workers.