Govt proposes 90-day work requirement for gig workers to get social security

The rapid expansion of the gig economy has been one of the defining economic phenomena of the 21st century, profoundly reshaping labor markets globally, including in India. Characterized by flexible, short-term contracts and freelance work, the gig economy has provided employment opportunities to millions, especially the youth and those seeking supplementary income. However, this growth has also brought to the fore critical challenges, primarily the lack of traditional employee benefits such as social security, health insurance, and provident fund contributions, which are typically enjoyed by workers in the organized sector. This absence of a safety net leaves gig workers vulnerable to economic shocks, health crises, and old-age poverty.

Responding to this burgeoning concern, the Indian government has proposed a significant regulation: gig and platform workers will soon need to meet a minimum work threshold to qualify for social security benefits. Specifically, the proposal suggests a requirement of 90 working days with a single aggregator or 120 days across various platforms annually. This move is a crucial step towards integrating these workers into essential welfare programs like Ayushman Bharat, a flagship national health protection scheme.

**Background Context and Historical Trajectory:**

Historically, India's labor laws have largely focused on the organized sector, leaving a vast majority of the workforce in the unorganized sector without adequate social protection. The gig economy, by its very nature, often falls outside the traditional employer-employee relationship, complicating the application of existing labor laws. The need for a comprehensive social security framework for these workers gained prominence as platforms like Swiggy, Zomato, Ola, and Uber became integral to daily life. Before this proposal, the Unorganised Workers' Social Security Act, 2008, was a foundational, albeit limited, attempt to provide social security to unorganized workers. The turning point came with the enactment of the Code on Social Security, 2020, which, for the first time, legally recognized 'gig workers' and 'platform workers' as distinct categories and laid the groundwork for the government to formulate social security schemes for them. This current proposal is a direct follow-up to the provisions outlined in this Code.

**Key Stakeholders Involved:**

1. **The Government of India (Ministry of Labour & Employment):** As the architect of this policy, the government aims to fulfill its constitutional mandate of promoting social welfare and ensuring a dignified life for all citizens. It seeks to balance the flexibility offered by the gig economy with the imperative of worker protection.

2. **Gig and Platform Workers:** These are the primary beneficiaries. While they appreciate the flexibility, they have long advocated for better social security, often through nascent worker collectives and unions. The proposed regulation addresses a long-standing demand for a safety net.

3. **Gig Platforms (Aggregators):** Companies like Swiggy, Zomato, Ola, and Urban Company are key players. They will likely bear some financial or administrative responsibility in contributing to or facilitating these benefits. Their business models, often reliant on a flexible, cost-effective workforce, might be impacted by increased compliance costs.

4. **Trade Unions and Worker Associations:** Organizations like the Indian Federation of App-based Transport Workers (IFAT) have been at the forefront of demanding social security for gig workers. They will closely monitor the implementation and adequacy of these proposed benefits.

**Significance for India:**

This initiative holds profound significance for India. Economically, it represents a step towards formalizing a segment of the workforce that has largely operated informally, potentially leading to better data collection and policy formulation. Socially, it addresses growing inequality and vulnerability, aligning with India's welfare state objectives. Integrating workers into schemes like Ayushman Bharat will significantly improve access to healthcare, reducing out-of-pocket expenses and catastrophic health expenditures. Politically, it demonstrates the government's commitment to inclusive growth and social justice, potentially garnering support from a substantial and growing demographic of workers.

**Constitutional Mandate and Legislative Framework:**

The government's move is deeply rooted in the Directive Principles of State Policy (DPSP) enshrined in Part IV of the Indian Constitution. Specifically:

* **Article 38** mandates the State to secure a social order for the promotion of the welfare of the people, striving to minimize inequalities in income, status, facilities, and opportunities.

* **Article 39** directs the State to ensure that citizens have the right to an adequate means of livelihood and that the health and strength of workers are not abused.

* **Article 41** calls upon the State to make effective provision for securing the right to work, to education, and to public assistance in cases of unemployment, old age, sickness, and disablement.

* **Article 43** mandates the State to endeavor to secure, by suitable legislation or economic organization, a living wage and conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities.

The **Code on Social Security, 2020**, is the primary legislative instrument enabling this change. It defines 'gig worker' as a person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship, and 'platform worker' as a person engaged in a work arrangement where organizations or individuals use an online platform to access other organizations or individuals to solve specific problems or to provide specific services or any such other activities. The Code empowers the Central Government to frame social security schemes for gig and platform workers.

**Future Implications:**

The implementation of this regulation will have several future implications. It could lead to a more stable and protected gig workforce, potentially improving worker morale and productivity. However, challenges remain, particularly regarding funding mechanisms (whether contributions will come from workers, platforms, or the government), enforcement, and ensuring compliance across a fragmented and dynamic sector. It may also influence the business models of aggregators, potentially leading to increased operational costs or adjustments in pricing. The move could set a precedent for other developing nations grappling with similar challenges in their gig economies, positioning India as a leader in progressive labor policy for the digital age. This policy also signifies a broader trend towards formalizing and regulating emerging forms of work, ensuring that technological advancements do not compromise fundamental worker rights and welfare.