This report by the Japan Institute for Labour Policy and Training (JILPT) analyzes the current state of federal and state laws regarding legal protection for gig workers in India. It provides detailed reporting on the progress and challenges of legal framework development for gig worker protection, focusing on the 2020 Social Security Code and Karnataka state law.
Key Points
1. Importance and Challenges of India's Gig Economy
- Gig economy positioned as driver of economic growth for India's goal of becoming developed nation by 2047
- Many deficiencies exist in current law for gig worker protection
- Existing regulations like 1970 Contract Labour Act and 1923 Workmen's Compensation Act exclude gig workers
- Existing laws cannot address fluidity, temporariness, and dispersed nature of platform work
2. Definitions in 2020 Social Security Code
- First legal definition of gig workers and platform workers in Indian law
- Gig workers: Those earning income outside traditional employer-employee relationships (Section 2(35))
- Platform workers: Those engaged in platform company operations (Section 2(61))
- Unorganized workers: Gig workers not belonging to platforms (Section 2(86))
3. Federal Law Limitations and Implementation Delays
- 2020 Social Security Code passed by federal parliament but state implementation procedures incomplete
- Does not recognize gig workers as "workers," shelving misclassification issues
- National Social Security Board establishment mandated (Section 6) but not realized
- Ambiguous wording reduces effectiveness
4. Progress in State-Level Legislation
- Rajasthan: Enacted first gig worker law on July 24, 2023
- Established Central Transaction Information Management System (CTIMS) for payment monitoring
- Karnataka: Promulgated ordinance on May 27, 2025, implementing law
- Jharkhand and Telangana also considering bills
5. Features and Issues of Karnataka State Law
- Establishes Gig Worker Welfare Board
- Collects 1-5% welfare fee from each platform company transaction
- Advances in algorithmic management regulation and accountability obligations
- Mandates establishment of in-person complaint windows
- Requires approval within 6 weeks of state assembly reopening (expires without approval)
6. VVGNLI Recommendations and Future Direction
- Ensure social security through national registry establishment
- Establish criteria distinguishing "workers" from "independent contractors"
- Grant labor organization and collective bargaining rights to gig workers
- Achieve fair compensation and working conditions through algorithmic transparency
- Transform gig economy into high-income organized sector by 2047
The article reveals that while gig worker protection legislation is being developed at federal and state levels in India, challenges remain in effectiveness and labor rights protection, requiring more comprehensive labor relations legislation.