This Article is Written by Manika Saluja, Student of Institute of law, Jiwaji University, Gwalior (M.P.
Suppose you are standing on the street walking and the rain comes. Eventually, you will use apps like Uber, Ola, or Rapido to call a freelance taxi driver in emergencies to reach home safely. Likewise, the gig economy around the scope of the platform economy is vast, encompassing industries such as transportation, hospitality, finance, and professional services[1] Goverened by Labour Law Reforms.
Here are some examples of the gig economy:
- Freelancers
- Consultants
- Independent, contractor, and professional
- Temps (temporary contract workers), etc.
Who are gig workers?
An individual who engages in short-term, task-based jobs or contracts through digital marketplaces like DoorDash, Upwork, Fiverr, or Uber [2] is called a gig worker. In contrast to traditional employees, gig workers tend to be classified as independent contractors, which implies they aren’t covered by standard employment benefits like paid leave, health insurance, or minimum wages.
The code on social security, 2019 defines this term, although not notified yet, Gig worker under section 2(35) as follows:
“A person who performs work or participates in a work arrangement and earns from such work activities outside of a traditional employer-employee relationship[1].”
Code on Social Security, 2019
What is gig economy?
A gig economy is a free market economy where organisations frequently hire independent contractors for short-term projects and temporary positions are prevalent. A “gig” is a slang word commonly used for a job that lasts a specified period[4].
Examples of gig employees in the workforce could include work arrangements such as freelancers, independent contractors, project-based workers, and temporary or part-time hires.
Reasons for this growing trend of gig workers:
- Digitalisation
- Remote or mobile working culture
- Flexibility to Employees and Employers
Key Areas for Labor Law Reforms:
Categories of employees:
One of the primary concerns involves gig workers being considered employees or independent contractors. Employees in numerous legal systems are entitled to rights such as minimum pay, benefits, and the chance to organize, but independent contractors are not. The existing classification system has been condemned as inappropriate for modern working conditions. In response, multiple governments and states implemented measures. For example, California’s AB5[2] Law reclassified many gig workers as employees; however, it was subsequently questioned and altered by Proposition 22[3], which formed a new category referred to as “app-based drivers.”[5]
Economic protection and benefits:
Gig workers might not have access to standard employment benefits, which include health insurance, retirement savings, and paid leave. A key component of future labour law change could be bringing equivalent safety measures to gig employees via portability benefits schemes. These solutions could allow employees to accumulate benefits throughout many gigs and employers, reducing the violative nature of gig work.
To collaborate and collectively bargain:
Most gig workers are not granted the right to form an organization or bargain collectively. Labour law reforms might seek to give gig workers greater bargaining strength by establishing frameworks for platform employees to negotiate wages, conditions, and benefits. Several gig workers have already formed informal unions or workers’ cooperatives to advocate for their rights.
Algorithmic management and worker surveillance:
Under the gig economy, labourers are frequently monitored using algorithms, prompting issues within anonymity, equity, and disclosure. Algorithms possess the capacity to assign jobs, set working hours, and analyze employee performance. To ensure that these algorithms adhere a to high standard of equity, future reform might be required to address the management and monitoring of gig employees.
Flexibility vs. Security:
Many workers find flexibility appealing, as the gig economy depends on it. But security is frequently sacrificed to achieve this kind of adaptability. Future labour reforms will be shaped by how effectively innovation is balanced with the requirements for fundamental rights for employees. Establishing hybrid models that provide versatility and uphold minimum standards is one of the approaches.
Globalization and International labour Issues:
Given the global reach of platforms like Uber, Upwork, and Fiverr, it may be necessary for labour law reforms to take on international labour difficulties. This includes protecting workers who could be impacted by diverse labour laws in different nations and regulating platforms that operate in many jurisdictions.
Discrimination and Inequality:
Gig economy workers, especially women, minorities, and immigrants, may encounter major challenges such as discrimination, unfair remuneration, and restricted access to higher-paying positions. To ensure that all workers in the gig economy have equal opportunities and safeguards, legal measures will probably be required to address these disparities.
A global perspective on the gig economy:
European Union: To govern platform work, the EU proposed new labour laws in 2021. These laws included provisions to guarantee fair working conditions and enhance algorithmic management’s transparency.
UK: Regardless of contract type, the Taylor Review[4] Modern Working Practices recommended “good work” for everyone and provided clearer definitions of employment status.
Australia: The state of Victoria has looked into giving basic standards and guarantees to gig workers, particularly those who work in the food delivery and ridesharing industries.
Conclusion
In conclusion, labour law reforms are necessary to protect workers while retaining the flexibility that leads many towards the gig economy as it continues to expand. To develop a more equitable and sustainable labour market, discussions regarding the future of work will likely continue and legislation will be reformed.
Furthermore, expanding social protection and perks for gig workers is important. Traditional labour rules do not accommodate workers transferring between employment or platforms, requiring innovative frameworks such as portable benefits.[5][6] Systems that allow workers to mass healthcare, retirement, and paid leave benefits between gigs.
References
[1] Section 2(35) of the Code on Social Security, 2019
[2] California Assembly Bill 5 (AB5) and Proposition 22, illustrate the legal debate on gig worker classification.
[3] Proposition 22 – This article details California’s Proposition 22, which exempts app-based drivers from AB5 and redefines their employment status. It provides context for ongoing debates about labour law and gig workers.
[4] The Taylor Review (UK) on modern working practices and its recommendations on gig work.
[5] Portable Benefits – This article discusses the concept of portable benefits, a potential solution for gig workers who lack access to traditional employment benefits. It covers different models and legislative proposals for creating a benefits system that works across gigs and employers.
