PLATFORM-BASED GIG WORKERS BILL
1. Context
Recently, the Rajasthan government passed the Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023. It is the first legislation of its kind in India outlining welfare schemes for the State’s approximately three lakh gig workers.
2. Gig Workers
- Gig workers, also known as freelancers, independent contractors, or contingent workers, are individuals who work on a temporary or project-based basis, often for multiple employers or clients.
- Unlike traditional employees, gig workers are not tied to a specific company or employer and have the flexibility to choose when, where, and how they work.
- This emerging workforce is redefining the way work is done and is becoming an integral part of the modern economy.
3. Characteristics of Gig Workers
- Gig workers can be found across various industries, from rideshare drivers and food delivery couriers to freelance writers, designers, and consultants.
- They are characterized by their flexibility and autonomy, enabling them to take on multiple projects simultaneously or focus on specific niches where their skills excel.
- Gig workers often use digital platforms and online marketplaces to connect with clients and find work opportunities, making use of technology to enhance their employability and reach.
4. Advantages of Gig Work:
- Flexibility: Gig work offers unparalleled flexibility, allowing individuals to create a work schedule that fits their lifestyle and personal commitments. This flexibility is particularly appealing to parents, students, or individuals pursuing other interests alongside their work.
- Diverse Opportunities: Gig workers can explore diverse opportunities and gain experience in various industries and projects. This variety can lead to skill development, exposure to different working environments, and the chance to build a diverse professional portfolio.
- Autonomy and Independence: Gig workers enjoy a higher degree of autonomy and control over their work. They can choose projects they are passionate about, negotiate terms with clients, and take charge of their career paths.
- Location Independence: The nature of gig work often allows workers to perform their tasks remotely, providing the freedom to work from any location with an internet connection.
5. Challenges and Concerns
- Income Stability: Gig work may lack the stability of a traditional job, as gig workers may experience fluctuations in income depending on the availability of projects or clients.
- Lack of Benefits: Gig workers are typically not entitled to employee benefits such as health insurance, retirement plans, or paid time off, which can pose financial challenges and reduce social security.
- Legal Protections: Some gig workers face legal uncertainties regarding their employment status, leading to concerns about worker rights, job security, and access to legal protections.
- Work-life Balance: While gig work offers flexibility, it can also blur the boundaries between work and personal life, leading to potential challenges in maintaining a healthy work-life balance.
6. What does the bill propose?
- The Gig Worker Welfare Bill applies to aggregators and primary employers in the gig economy.
- Aggregators are digital intermediaries connecting buyers and sellers, while primary employers engage platform-based workers.
- The proposed Welfare Board will comprise State officials, representatives from gig workers and aggregators, and civil society members.
- The Board's responsibilities include setting up a welfare fund, registering platform-based gig workers, aggregators, and primary employers, and ensuring social security for gig workers.
- Each gig worker will receive a unique ID, which will be valid indefinitely, and the Board will maintain a database of companies and workers.
- Labour unions raised concerns about vague terminologies in the Bill that may create loopholes for companies.
7. Social Security and Welfare Fund:
- The Board will create a "Social Security and Welfare Fund" for gig workers.
- The fund will comprise contributions from individual workers, State government aids, and a 'welfare cess' paid by aggregators.
- The welfare cess will be up to 2% or not less than 1% of the value of each transaction.
- Unions objected to worker contributions due to fluctuating and inadequate pay.
8. Recognition of Workers' Rights:
- Existing labour laws often do not recognize gig workers as 'employees' since they do not have a fixed term of employment.
- The Rajasthan Bill eliminates "restrictive criteria" about eligibility, allowing any person to be registered upon joining an app-based platform.
- The Welfare Board will formulate schemes for social security, including accidental and health insurance.
- Unions suggest clarifying the benefits available to gig workers in the Bill.
9. Grievance Redressal:
- Gig workers can raise grievances related to entitlements, payments, and benefits provided under the Act.
- Petitions can be filed physically or online through the web portal.
- The employer can object to the order within 90 days before an 'Appellate Authority.'
- Concerns were raised about the effectiveness of current redressal mechanisms, as evidenced by protests from Urban Company workers.
10. Aggregator's Duties under the Bill:
- Aggregators must deposit the welfare cess on time, which is a percentage of each transaction's value.
- Aggregators are responsible for updating the database of gig workers regularly.
- Aggregators must document any changes in the number of gig workers within one month of such variations.
- For first offences, primary employers will be fined up to ₹10,000, while aggregators will face fines up to ₹5 lahks.
- Subsequent violations will incur higher penalties, with primary employers paying up to ₹2 lakh and aggregators facing fines up to ₹50 lahks.
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For Prelims: Gig Workers, Gig Economy, Social Security and Welfare Fund, Aggregators, and Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023.
For Mains: 1. Examine the role of the 'Gig Economy' in the process of empowerment of women in India (UPSC 2021).
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Previous year Question1. With reference to casual workers employed in India, consider the following statements: (UPSC 2021)
1. All casual workers are entitled to Employees Provident Fund coverage.
2. All casual workers are entitled to regular working hours and overtime payment.
3. The government can by a Notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements is correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: D
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Source: The Hindu
