In March 2021, the Ministry of Labour and Employment in India directed gig economy platforms such as Ola, Uber, and Zomato to provide social security benefits to their gig workers. The ministry stated that these platforms need to classify their gig workers as employees and provide them with benefits such as health insurance, pension, and accident insurance. The move comes as gig workers in India are not entitled to any social security benefits or protections under labor laws, as they are classified as independent contractors. This has resulted in widespread concerns over the precariousness of gig work and the lack of safety nets for workers.
The ministry’s directive is part of ongoing efforts to expand social security benefits to gig workers in India. In 2020, the government launched the Pradhan Mantri Shram Yogi Maan-dhan (PMSYM) scheme, which provides pension benefits to gig workers in the unorganized sector. The scheme is open to workers aged between 18 and 40 years with a monthly income of less than Rs 15,000. However, there have been concerns that the scheme’s coverage is limited, and it does not provide sufficient benefits to gig workers who are not covered by traditional labor laws. The ministry’s directive to gig economy platforms is aimed at addressing these concerns and providing gig workers with greater social security protections.
The gig economy platforms have raised concerns over the financial burden that such benefits could impose on their operations. They have argued that they are technology platforms that connect gig workers with customers and do not directly employ them. However, the ministry has stated that these platforms have a responsibility to provide social security benefits to their workers and has threatened legal action if they do not comply with the directive. The outcome of this directive remains to be seen, but it highlights the ongoing debate around the classification and rights of gig workers in India and the need to provide them with greater social security protections.