Determining the Status and Treatment of “GIG-Workers” under the Industrial Disputes Act, 1947

Abstract

The gig economy, characterized by short-term contracts, freelance work, and on-demand tasks, has witnessed rapid growth in recent years, reshaping the way people work and earn a living. India is the fifth-largest country in terms of gig-workers. Gig workers offer a cost-effective solution, often working on a project basis, reducing continuous payroll expenses. Moreover, the gig economy facilitates market expansion and job opportunities, making it accessible to students, retirees, stay-at-home parents, and those seeking additional income. They may thus have a different type of job, but their significance is equal to that of a regular employee. Although this new work paradigm gives workers flexibility and possibilities, it also raises serious questions regarding the rights and protections afforded to gig workers.

Due to the nature of the work, they are perceived as “second class workers” and denied social security benefits that come with formalised employment. Unfortunately, the law is yet to catch up with this fast-paced economy. Existing Indian labour laws fail to recognise Gig workers under its organised labour legislation i.e., the Industrial Disputes Act, 1947. They are clubbed with unorganised labourers and are thus deprived of all the benefits given to a traditional employee; all benefits that are rightfully due to them. Gig workers are now an essential component of the contemporary economy, adding to its flexibility and dynamism. Governments, corporations, and society as a whole must address the difficulties that gig workers encounter and provide a framework that protects their rights and well-being while allowing them to benefit from their invaluable contributions as the economy grows. The former half of this paper highlights the social issues around their employment and legislative lacunae in their recognition. The latter half comparatively analyses the international position to propose additional tests to be adopted in India. Lastly, it explains the challenges that could be faced in bringing a change to the current system and the way forward from there.