Digital Labour Rights and the Gig Economy: A Legal Perspective onEmerging Employment Relations in India

Abstract: 

Gig workers are individuals who perform temporary tasks and are paid per task or hour, depending on services such as ride-sharing, food delivery, or freelancing. The primary issue for gig workers is that they are considered independent contractors, which is why they are excluded from traditional benefits that every employee receives, such as minimum wages, paid leave, social security, and protection. This is somewhere violating the rights of equality. Gig workers should be included in the Labour laws, and they should get proper employee protection like other employees without any discrimination. Existing Indian labour codes provide limited protection. The law must evolve to ensure fair wages, dispute redressal, and social security coverage for gig workers. 

Introduction: 

The 21st century has witnessed the rise of a new working class — one that logs into apps instead of clocking into offices. The “gig worker” has become the face of digital capitalism, yet remains the most legally invisible participant in today’s labour market. The emergence of the gig economy has transformed the traditional labour landscape and changed the employer-employee relationship through digital platforms such as Uber, Swiggy, Zomato, Urban Company, etc. Due to the consideration of Gig workers as independent contractors, they are excluded from most labour laws. They cannot claim rights under laws such as the Industrial Disputes Act, 1947, and the Minimum Wages Act, 1948, etc. Gig workers also lack access to basic employee benefits, such as health issues, maternity leave, pensions, paid leave, etc. Under Articles 41 and 43 of the Directive Principles of the Indian Constitution, the right to work and social security provides equality within the labour market. Most gig workers sign digital contracts, which often include unfair terms — such as unilateral changes in pay, lack of dispute mechanisms, and denial of legal recourse. There are many issues with gig workers that should be addressed and resolved. The main objective of this article is to draw global attention to the problems faced by gig workers in this emerging new world. Let’s dive deeper into this.

Legal Framework: 

The Ministry of Labour and Employment has introduced 4 Labour codes, out of which Code on Social Security, 2020 (herein referred to as “Code”) has blended 9 Labour laws, intending to extend social security to all employees and workers of both the organised and unorganised sectors. One of the significant changes included in this code is the inclusion of Gig and Platform workers. In this code, under Section 2(35), a gig worker is “A person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationships.” 

According to this code, the Central Government is obliged to constitute the National Social Security Board for the welfare of unorganised workers, gig workers and platform workers to recommend and monitor the schemes for such workers.  

The code empowers the government to establish a free helpline number for gig workers to: i) Provide information about social security schemes available. 

i) Assist them with the entire process of the application forms, etc. 

In July 2023, the Rajasthan government passed the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023, which aims to regulate platform-based gig workers. As per Section 2(e) of this act, the law defines gig workers as individuals earning outside traditional employment through contracted work with specific payment terms. The Act establishes the Rajasthan Platform-Based Gig Workers Welfare Board, which will: i) Oversee the registration of the platform-based gig workers. 

ii) Monitor social security schemes made for registered workers and provide recommendations to the State Government for their administration.

iii) Ensures that platform-based gig workers have access to all the benefits given under the schemes created by the State Government. 

iv) Protect the rights of the platform-based gig workers.

v) Facilitate timely resolutions of grievances related to their rights, among other responsibilities.

The Policy Framework of NITI Aayog (2022)

The NITI Aayog report “India’s Booming Gig and Platform Economy” (June 2022) offers a crucial policy framework for upcoming legislation, even if it is not a law. 

Important Suggestions: 

• Access to universal social security benefits via a “Gig Workers’ Welfare Fund”
• All platform workers must register on the National Database for Unorganised Workers (NDUW).
• Co-contribution models between the government and platforms for health, accident, and life insurance.
• In India’s labour and employment statistics, gig workers are acknowledged as an essential component of the workforce.

This report is mentioned in continuing policy debates and has an impact on legislation drafting, although not legally binding. 

Constitutional Provisions: 

Even if there is no full statutory coverage, the Constitution guarantees to extend certain protections to gig workers. 

• Article 14 of the Indian Constitution guarantees equality before the law and equal protection under the law to all persons within India. It prevents arbitrary classification and unequal treatment of workers.
• Article 21 of the Indian Constitution states the right to life and livelihood. This supports claims for decent working conditions and livelihood security.
• Article 23 of the Indian Constitution states the prohibition of exploitation. This prevents unfair labour practices or algorithmic exploitation by platforms.
• Directive Principles of the Indian Constitution, including Articles 38, 39, 41, and 43, which deal with social justice, living wage, and right to work.
• Provide a constitutional basis for legal reforms protecting gig workers.

Judicial Interpretations: 

The Indian judiciary has played a crucial role in interpreting labour laws and addressing the status of gig workers. Notable judgements are:

• Piyush Pandey v. Unacademy: In this case, a gig worker at Unacademy claimed employee status in order to pursue labor rights. The court rejected this, emphasizing that the worker was an independent contractor. The decision was based on the platform’s level of control; specifically, the worker’s autonomy in choosing their own work schedule and assignments showed a high level of independence. This ruling highlights the value of control and autonomy in determining job status and highlights how challenging it is to apply traditional employment laws to gig work.
• Uber v. Aslam (UK): Despite not being an Indian case, the Uber v. Aslam ruling from the UK Supreme Court has had a big influence on the global conversation about gig workers’ rights. The court decided that Uber drivers were entitled to paid leave and the minimum wage because they were employees and not independent contractors. The decision brought to light the extent of Uber’s control over its drivers, including its ability to set prices and dictate working conditions. Similar legal recognitions and protections for gig workers have been called for in India as a result of this case.

Suggestions: 

• India is one of the top places in the world for gig workers, ranked at the 5th position in the world.  
• Due to lack of guaranteed minimum wages for gig workers faces many issues. This also leads to their unpredictable earnings and financial insecurity. There should be establishment of legal minimum wage tailored to gig economy that could provide anecessary safety and also ensures fair compensation for the work performed.
• Provide health and accident insurance to gig workers as a requirement, with platforms and the government sharing the cost via a contributing mechanism. Extend programs like Ayushman Bharat and e-Shram to include platform and gig workers as a separate category. Create a portable pension fund that automatically deducts contributions from platform payments, similar to the Employees’ Provident Fund. 
• In addition to often having no job security, gig workers run the possibility of being arbitrarily fired or deactivated by platforms. Clear rules for equitable treatment should be outlined in regulations, together with safeguards against wrongful termination and anti-discrimination policies. These safeguards are essential to preventing unfair treatment of gig workers on the basis of their age, gender, color, or other characteristics.
• To supervise the execution of gig worker welfare programs, a formal National Board made up of representatives from the government, platforms, labor unions, and civil society should be established. In addition, this board should oversee interstate welfare mechanisms, settle disputes, and control platform responsibility.

Conclusion: 

In India, gig workers’ legal status is changing, but it’s taking time. The 2020 Code on Social Security is a step forward, but it must be applied well. The objective should be to develop new frameworks that cater to the particular demands of gig workers rather than trying to fit them into outdated legal classifications. Collaboration between the government, platforms, employees, and civic society will be necessary for this. Only then will India be able to guarantee that businesses and the people who enable the gig economy share the rewards equitably. The legal system must change as the gig economy expands in order to safeguard the millions of people who rely on it for their livelihoods. Getting this correctly is critical to their financial stability and self-respect. 

Reference(S): 

1. https://bhattandjoshiassociates.com/legal-status-of-gig-workers-under-indian-labour-laws -a-comprehensive-analysis/
2. https://articles.manupatra.com/article-details/WORKERS-RIGHTS-IN-GIG-ECONOMY -LEGAL-FRAMEWORK-AND-CHALLENGES
3. Uber BV v. Aslam [2021] UKSC 5.
4. NITI Aayog, India’s Booming Gig and Platform Economy: Perspectives and Recommendations on the Future of Work (June 2022) https://www.niti.gov.in/sites/default/files/2022-06/Report_Gig_Economy_28_June_final. pdf accessed 11 July 2025.
5. https://legislative.gov.in/constitution-of-india/
6. https://labour.gov.in/sites/default/files/ss_code_gazette.pdf
7. Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023