15 July 2024 : The Hindu Editorial Analysis

1. The problem with the Karnataka gig workers Bill

(Source – The Hindu, International Edition – Page No. – 8)

Topic: GS2 – Governance

Context

Karnataka introduced the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, aiming to provide social security for gig workers. Similar to Rajasthan’s 2023 Act, it follows a welfare board model, which fails to address employment relations, leaving critical worker issues like minimum wages and working conditions unresolved.

Introduction

• Last month, Karnataka introduced the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, aimed at providing social security and welfare measures for platform-based gig workers in the state. The government shared the draft on July 9.
• Rajasthan had previously enacted a similar law called the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023.
• Both pieces of legislation are based on a welfare board model, which is more appropriate for self-employed informal workers and does not address employment relations.

What is a gig worker?

A gig worker is an individual who engages in short-term, flexible jobs often facilitated through digital platforms. Unlike traditional employment, gig workers are typically classified as independent contractors rather than employees, meaning they lack formal employment protections such as minimum wage, benefits, and job security. Gig work includes roles like rideshare driving, food delivery, freelance work, and other on-demand services. While offering flexibility and opportunities for supplemental income, gig work often lacks the social security and legal protections afforded to regular employees, raising concerns about worker rights and fair treatment in the evolving labour market.

The Rise of Gig Work Versus Work Issues

• The number of gig and platform workers has been rising, particularly in the last decade with developments in the app-cab and retail delivery sectors.
• NITI Aayog projects the gig workforce in India to expand to 23.5 million workers by 2030.
• In the current employment scenario, gig work is providing livelihoods to a growing number of job-seekers, a trend also visible in other countries.
• Recently, India has witnessed protests by gig workers over revenue sharing, working hours, and various other working conditions and terms of employment.
• The existing legal framework, based on employer-employee relations, struggles to address these issues as employment relations in the gig economy are non-existent at worst or complicated at best.

Employment Relations in the Gig Economy

• Aggregators, who run the platforms, consider gig workers as independent contractors and view themselves as technology providers connecting workers and consumers.
• Workers in the gig economy, however, see aggregators as their employers since the conditions of service and terms of employment are set by the aggregators.
• For instance, in app-cab operations, the price of the ride and the working conditions are determined by the app company.
• Gig workers seek fair treatment, improved working conditions, and access to social security as legal entitlements.

U.K. Ruling and India’s Legal Framework

• In the United Kingdom, the Supreme Court ruled that Uber is an employer and existing labour laws apply to Uber drivers.
• In India, gig and platform workers are included in the Code on Social Security 2020 as informal self-employed workers, but there is no mention of them in the other three new labour codes: the Code on Wages, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code.
• The recent Rajasthan and Karnataka legislations add to this legal landscape.

Skirting the Issue of Employment Relations

• Both the Rajasthan Act and the Karnataka Bill avoid defining employment relations in gig work, using the term ‘aggregator’ for app companies instead of employers.
• Without recognizing employment relations, it is difficult to apply protective labour laws that ensure minimum wage, occupational safety and health, working hours and leave entitlements, and the right to collective bargaining.
• Important issues in gig work, such as minimum earnings, regulation of working hours, and incidents of overworked drivers, remain unresolved.

Core Issues with the Welfare Board Model

• The welfare board model adopted by Rajasthan and Karnataka provides some welfare schemes for gig workers but does not replace institutional social security benefits such as provident fund, gratuity, or maternity benefits.
• Historically, welfare board models have been poorly implemented, as seen with the Construction Workers Welfare Act of 1996 and the Unorganized Workers Social Security Act, where available funds were inadequately used.
• The Karnataka Bill does not address minimum wages or working hours for gig workers.
• Section 16 discusses income security regarding payment deductions but does not guarantee a minimum income, wage entitlements, or revenue sharing between aggregators and gig workers.
• Section 16(2) only requires weekly payments, without specifying a minimum amount.

Conclusion

• The proposed Karnataka Bill, like the Code on Social Security, 2020 and the Rajasthan Act 2023, fails to address the employment relationship in the gig economy.
• This oversight confuses employment relations and absolves employers of legal obligations, making it difficult to fully protect workers’ rights.

PYQ: Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (150 words) (UPSC CSE (M) GS-1 2021)

Practice Question:  Discuss the effectiveness of the welfare board model in addressing the social security needs of platform-based gig workers, with reference to recent legislative efforts in Karnataka and Rajasthan. (250 Words /15 marks)