As someone deeply entrenched in the evolving landscape of Human Resources and Human Resource Management Systems (HRMS), I have witnessed firsthand the transformative power of the gig economy. Gigin.ai, our platform, stands as a testament to this revolution, with over 1 million app installations and active daily engagement from more than 10,000 users. The gig economy, accelerated by the COVID-19 pandemic, has reshaped traditional employment models, both globally and within India. However, while growth has been exponential, so have the challenges, particularly concerning worker rights and protections.
Global and Indian Context
The European Union (EU) recently finalized draft rules to determine when gig workers should be recognized as employees rather than independent contractors, granting them benefits like sick pay. The EU, home to approximately 28.5 million gig workers, has taken significant steps to protect this workforce. In contrast, India’s gig economy, though burgeoning, has lagged in providing comprehensive legislative protections. With an estimated 7 million Indians currently engaged in gig work, this number is expected to triple in the next five years. Despite these impressive figures, the regulatory framework to protect these workers remains scant.
The Indian Scenario: A Deep Dive
Interacting with various firms and gig workers, I have gleaned insights that paint a complex picture. According to a survey conducted by Delhi-based NGO Janpahal, over a fifth of gig workers clock more than 12 hours daily. Two-thirds of women gig workers report unsafe working conditions, highlighting the urgent need for regulatory intervention. Yet, there is a silver lining. In July of last year, Rajasthan became the first Indian state to bring gig workers under the ambit of state labor laws. Karnataka is poised to follow, having released the first draft of the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2024, on June 29.
This legislation proposes several key protections, including the ability for gig workers to reject a specified number of assignments without repercussions and barring companies from arbitrarily cutting off access to their platforms. While these measures are commendable, the bill has been met with mixed reactions from gig workers and industry stakeholders.
Financial Model: A Double-Edged Sword
The proposed welfare tax model to fund the welfare board has sparked debate. It suggests contributions from consumers, gig workers, aggregator platforms, and the state and union governments. This tax could be a percentage of the gig worker’s pay, charged per transaction, or based on the aggregator’s annual turnover. Many stakeholders advocate for a transaction-based model, arguing that a percentage-based fee tied to overall profit or project cost has proven ineffective globally. Shaik Salauddin, national general secretary and co-founder of the Indian Federation of App-based Transport Workers (IFAT), emphasizes the importance of linking this model with existing social security schemes for sustainability.
However, some gig worker unions in Karnataka have raised concerns about taxing gig workers, arguing that their variable income should not be subject to fixed contributions. Furthermore, privacy and data protection issues loom large, with the draft bill proposing unique IDs for gig workers.
Insights from my daily life and the Road Ahead
My journey with Gigin has provided me with a unique vantage point. Engaging with both firms and gig workers has underscored the need for a balanced approach that addresses the concerns of all stakeholders. For instance, Syeed, a gig worker with Zepto, shared his frustration over unfulfilled promises of insurance coverage. Varsha, a beautician with Urban Company, highlighted the lack of representation for gig workers in the welfare and administrative committees.
While the draft bill is a step in the right direction, it falls short in several areas, such as setting standards for wages and ensuring adequate representation for gig workers. Drawing parallels with the Mathadi Act in Maharashtra, which focuses on unprotected manual workers, we need a framework that provides autonomy and sustainability for the welfare board.
At Gigin, we are committed to supporting fair policies and fostering an environment where gig workers can thrive. By leveraging AI-driven recruitment, skill development programs, and compliance solutions, we aim to empower gig workers and elevate the gig economy.
Conclusion
The gig economy is at a critical juncture. As we navigate this landscape, it is imperative to strike a balance between growth and worker protection. The proposed legislation in Karnataka, while not perfect, is a pivotal step toward a more inclusive and fair gig economy. As stakeholders, we must continue to advocate for policies that ensure the well-being of gig workers while fostering innovation and growth.
By prioritizing worker rights and harnessing the power of technology, we can build a robust and resilient gig economy that benefits all.
