The Gig Economy And Future Of Labor Law

Meharnit Bhamrah, Maharashtra National Law University Mumbai

Introduction

What is a gig economy?

The gig economy simply relates to a labor market trend within which workers engage temporarily and in projects rather than holding permanent positions. This model has proved popular in the last few years because of improvements in technology such as the internet and apps that help link workers with employers or clients. Platforms include:

1. Uber: A transportation network company which enables drivers to be available to work at certain hours.

2. Airbnb: An agency to let out private space for tourists and visitors for e.g. homestays.

3. Freelancer.com: A platform for independent workers offering writing to graphic design services among them.

Gig workers operate outside the traditional realm of employer-employee relationship, often engaging in part-time work provided by platforms like swiggy, Zomato, Urbanclap, Blinkit, Zepto etc. Since they are allowed to work on their own time and terms this flexibility is attractive especially if they are looking for a supplementary source of income or just entering the workforce. However, this is a double-edged sword as it comes with little to no labor law protection and unstable income.

In India, existing labor laws primarily recognize three categories of employees: 1) government employees 2) employees in public sector undertakings, and 3) private sector employees. Unfortunately, gig workers do not fit neatly into any of these categories, which results in a lack of access to essential benefits such as minimum wages, overtime pay, and social security protections. The absence of specific legislation addressing gig work means that these workers often face exploitative contracts and are unable to form unions to advocate for their rights. A significant problem is the misclassification of gig workers as independent contractors rather than employees. This distinction is critical because it determines the application of labor law and the employer's obligations regarding wages, social security and working conditions.