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EDITORIAL ANALYSIS: New migrant realities in Karnataka’s gig sector

New migrant realities in Karnataka’s gig sector

 
 
 
Source: The Hindu
 

For Prelims:

  • Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024
  • Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023
  • NITI Aayog's projections on gig workforce
  • Code on Social Security 2020

For Mains:

  • Gig economy and labor laws
  • Employment relations in the digital age
  • Social security for informal workers
 
Highlights of the Article
Gig Workers (Social Security and Welfare) Bill, 2024
Gig Workers (Registration and Welfare) Act, 2023
Gig Workers
 
Context
Karnataka introduced a new Bill, called the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, seeking to provide social security and welfare measures for platform-based gig workers in the State. The government shared the draft on July 9. In the recent past, a similar law was also enacted by Rajasthan called the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023
 
UPSC EXAM NOTES ANALYSIS
 
1. Who are Gig Workers?
 

Gig workers are individuals who engage in short-term, flexible, or task-based work arrangements, typically facilitated by digital platforms or apps. While the document doesn't provide a formal definition, we can infer several key characteristics of gig workers based on the context:

  • Platform-based: They typically work through digital platforms or apps that connect them with customers or clients.
  • Flexible work arrangements: Gig workers often have non-traditional employment structures, working on a job-by-job or task-by-task basis.
  • Diverse sectors: They can be found in various industries, with the document mentioning app-cab operations and retail delivery sectors as examples.
  • Independent contractors: Platform companies often classify these workers as independent contractors rather than employees.
  • Lack of traditional benefits: Generally, gig workers don't receive the same benefits and protections as traditional employees, such as minimum wage guarantees, regulated working hours, or social security benefits.
  • Growing workforce: According to NITI Aayog projections mentioned in the document, the gig workforce in India is expected to expand to 23.5 million workers by 2030.
  • Subject to platform rules: Their working conditions, terms of service, and often their compensation are largely determined by the platforms they work through.

Examples of gig workers might include ride-hailing drivers, food delivery personnel, freelance writers, graphic designers working on project-based assignments, or individuals offering services through task-oriented apps

 

2. The rise of gig work versus work issues

  • The number of gig and platform workers has surged, especially in the last decade due to advancements in the app-cab and retail delivery sectors.
  • According to NITI Aayog's policy paper on the gig economy, the gig workforce is projected to reach 23.5 million by 2030. Amidst limited job creation, gig work is providing livelihoods to many job seekers, a trend also observed globally.
  • Recently, Indian gig workers have protested over revenue sharing, working hours, and other employment conditions.
  • Addressing these issues is challenging within the current legal framework, which is based on traditional employer-employee relationships.
  • In the gig economy, employment relations are complex, with platforms viewing themselves as technology providers connecting independent workers and consumers, while workers see these platforms as their employers due to the control over service conditions.
  • Consequently, gig workers seek fair treatment, better working conditions, and access to social security benefits
 
3. Gig Workers in U.K 

 

  • The legal landscape for gig workers varies globally. In the UK, a landmark Supreme Court decision classified Uber as an employer, extending labor law protections to its drivers. Contrastingly, India's approach remains fragmented.
  • While the Code on Social Security 2020 recognizes gig workers as informal self-employed individuals, other key labor codes omit them entirely. Recent state-level initiatives in Rajasthan and Karnataka further complicate this picture.
  • Both the Rajasthan Act and Karnataka Bill avoid explicitly defining the employment relationship in gig work, opting instead to use terms like 'aggregator' rather than 'employer'.
  • This ambiguity creates a legal grey area, potentially excluding gig workers from crucial labor protections such as minimum wage guarantees, safety regulations, work hour limits, leave benefits, and collective bargaining rights.
  • The current framework leaves gig workers vulnerable. They lack assurances of minimum earnings, even when available for extended periods, and face unregulated working hours. This situation has led to concerning incidents, such as fatigued ride-hailing drivers causing accidents during late-night or early-morning shifts, endangering themselves and passengers.
  • Despite attempts to characterize platforms as mere intermediaries, the reality suggests a more traditional employment dynamic.
  • These platforms effectively function as employers by dictating work terms and conditions. While presented as neutral connectors between workers and consumers, they in fact design and control the entire work ecosystem.
  • This level of control indicates that aggregators should be considered de facto employers, responsible for the well-being of their workforce
4.Gig Workers in other States
 
  • The welfare board approach adopted in Rajasthan and Karnataka offers certain benefits to gig workers but falls short of providing comprehensive social security. Unlike traditional employees, gig workers under this model do not receive essential benefits such as provident funds, gratuity, or maternity leave.
  • Past experiences with similar welfare board structures, like those established for construction workers and unorganized laborers, have shown limited success due to implementation challenges and underutilization of available funds.
  • The Karnataka legislation notably lacks provisions for crucial worker protections. It fails to establish minimum wage requirements or regulate working hours for gig workers.
  • While the bill does address income security to some extent, particularly regarding payment deductions, it stops short of ensuring a guaranteed minimum income.
  • The revenue-sharing arrangement between platforms and workers remains undefined. The bill's requirement for weekly payments, while potentially beneficial, does not specify any minimum amount, leaving workers vulnerable to financial instability

 

5.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

 

 

Mains Practice Questions

1."The rise of the gig economy presents unique challenges to traditional labor laws and social security systems." Discuss this statement in the light of recent legislative attempts to regulate gig work in India.
2.Critically examine the welfare board model adopted by some Indian states for gig workers. How effective is this approach in addressing the core issues faced by workers in the gig economy?
3.Compare and contrast the approach taken by the United Kingdom and India in defining the employment status of gig workers. What lessons can India learn from international experiences?
4."The failure to recognize platform companies as employers leaves gig workers in a legal limbo." Evaluate this statement in the context of recent state-level legislations on gig work in India.

Source: The Hindu


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