India is a country that is known for its valued democracy and equal representation to all strata of classes irrespective of their backgrounds. For a country with big business houses, and a flourishing industrial market, it is necessary that its workers get the benefit and deserving representation and various schemes. Workers include a wide definition under our law. Black’s Law Dictionary defines a worker as “A person who offers to perform services for compensation in the employ of another, whether or not the person is so employed at a given time.”[1]Therefore our government provides certain laws and schemes to protect the interest of the labor and workers and from any sort of exploitation. Labour Laws in India governs and regulates the various laws and provisions about the working class of the country.
Because of changing dynamics and awareness of labor laws reforms in India, on 28th September 2020 with the assent of the President of India, the government came up with the historic labor codes focussing on varied and broader definitions and aspects of labor in India. These codes are The Code on Social Security, The Industrial Relations Code, and The Occupational Safety, Health and Working Conditions Code. The following article focuses on the Rights and benefits of contract/gig workers under these codes.
Meaning of Labour, Contract and Gig Workers
The new labor codes have interpreted the wide definitions of contract and gig workers, provided under Section 2(19) and 2(35) of The Code on Social Security, 2020 respectively.[2]
Contract Labour is defined as “means a worker who shall be deemed to be employed in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer and includes inter-State migrant worker but does not include an employee (other than a part-time employee) who is regularly employed by the contractor for any activity of his establishment and his employment is governed by mutually accepted standards of the conditions of employment (including engagement on a permanent basis), and gets periodical increment in the pay, social security coverage and other welfare benefits per the law for the time being in force in such employment;”
Gig worker is being defined as “means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship;”
The provision of the gig workers in the code reflect the changing scenario of emerging markets and a fresh take on the new different roles and definitions of a worker.
During these unprecedented times of COVID-19, there has been a relative rise in the no. of gig workers. Such unconventional roles needed protection under the new labor codes.
Need for schemes and provisions for gig workers
Words like “freelancers”, “gig workers”, and “platform workers” created a stir in recent years and picked up pace during the 2020 pandemic. One of the greatest examples of a gig market is the workers of the food delivery app Swiggy. During the pandemic, All India Gig Workers Union was formed in August 2020 to protect the interests of the gig workers, who were largely affected by the sudden wage cuts and unemployment distress. The incident reflected the state of the gig workers in the country.
The provision of gig workers in the code reflects the changing scenario of emerging markets and a fresh take on the new different roles and definitions of a worker.
During these unprecedented times, there has been a relative rise in the no. of gig workers. Such unconventional roles needed protection under the new labor codes
Rights/Benefits provided to Gig workers
Section 46(1)[3] of the Code gives power to the Central Government to frame various schemes for the benefits of the unorganized workers or gig workers.
Social Security Schemes powered by the Central government
Section 114(1)[4] gives the power to the Central Government to frame schemes and policies in regards to the social welfare of the gig workers and platform workers. The areas which are to be covered as follows:
(i) Life and Disability cover
Schemes related to the protection of the Right to Life of the gig workers or anything which renders them disable due to any event will be protected under this section.
(ii) Accident insurance
(iii) Health and Maternity
Health policies and schemes are guaranteed to the gig workers. Maternity Benefits is described under Chapter VI of the code which specifies to what are the conditions which require a woman to take maternity leave.
(iv) Old age Protection
Gig workers will be provided with the schemes of the old age-related circumstances and issues and benefits
(v) Creche
The gig workers under the Code are protected with the schemes of education, even for the children and toddlers, provided by the government, gig workers will be able to avail themselves the benefit under this clause.
(vi) Any other benefits provided by the government
The above section also provides for the implementation and the manner in which the schemes maybe implemented, sources of the funds, and any initiative or scheme by the Central Government.
The highlight of this Section is the role of the aggregators and their role and contribution towards funds for the gig workers. For this purpose, a wide list of aggregators has been given under the Seventh Schedule of the Act. The schemes can be wholly funded by the aggregators besides the Central Government and the State Governments. It gave an altogether new representation to the aggregators to further the cause. It is notified that their contribution shall not be more than 2%, but not be less than 1% of their annual turnover. The Aggregators can be categorized as follows:
1. Ridesharing services
2. Food/ grocery delivery
3. Logistics services
4. Content and media
5. Travel and hospitality and healthcare
6. Professional services
7. Healthcare
8. E-market places (which includes a wide network of business mediums like B2B-business to business, or B2C- Business to Commerce)
Or any such services which may be provided by similar platforms/aggregators.
For better implementation of policies, Aggregators are also included in the National Social Security Board as provided by Section 114(6) of the Act.
Social Security Fund for Gig workers/contract labor
Section 6(7)[5] of the Code provides for the various functions to be carried out by the National Social Security Board for the framing of the schemes for the benefit of the unorganized, gig, and platform workers. Their functions revolve around advising the Central Government on the various schemes provided for such workers and ensuring and monitoring that these schemes meet the requirements of the targeted audience. Besides, it would deal with financial assistance and record keeping.
This Code defines social security as “means the measures of protection afforded to employees, unorganized workers, gig workers, and platform workers to ensure access to health care and to provide income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity, or loss of a breadwinner by means of rights conferred on them and schemes framed, under this Code;”[6]
Section 141(1)[7] of the Code provides for the social security fund to be provided for by the central government. It is set up to provide for the social welfare of gig workers and others as defined under this section.
Conclusion
The new Labor Codes, 2020 had provided a robust definition to gig workers and recognizing a new way of workstyle. These codes not only provide a broader aspect to the working of gig workers and rights and benefits provided to them but also a way forward to upcoming and emerging industries. Though these codes replace several Acts that were in existence before this, it is incredibly important that every aspect should be thoroughly studied and analyzed, and always provide scope for modern laws and upcoming generations of the workforce.
References
1. SS_Code_Gazette.pdf (labour.gov.in)
2. Labour Codes | Ministry of Labour & Employment
4. The Code on Social Security, 2020 (labour.gov.in)
5. New Labour Codes,2020 (legalserviceindia.com)
[1] Worker, Black’s Law Dictionary, 8th ed, (2004)
[2] The Code on Social Security, 2020, No. 36, Acts of Parliament, 2020
[3] 46(1) Notwithstanding anything contained in this Chapter, the Central Government may, by notification, frame scheme for unorganized workers, gig workers and platform workers and the members of their families for providing benefits admissible under this
[4] Section 114(1), The Code on Social Security, 2020, No. 36, Acts of the Parliament, 2020
[5] (7) The National Social Security Board shall perform the following functions, namely: —
(a) recommend to the Central Government for framing suitable schemes for different sections of unorganized workers, gig workers and platform workers;
(b) advise the Central Government on such matters arising out of the administration of this Code as may be referred to it;
(c) monitor such social welfare schemes for unorganized workers, gig workers, and platform workers as are administered by the Central Government;
(d) review the record-keeping functions performed at the State level;
(e) review the expenditure from the fund and account; and
(f) undertake such other functions as are assigned to it by the Central Government from time to time.
[6] Section 2(78), The Code on Social Security, 2020, No. 36, Acts of Parliament, 2020
[7] 141(1) There shall be established by the Central Government a Social Security Fund for social security and welfare of the unorganized workers, gig workers, and platform workers and the sources of the fund shall comprise of funding received— (i) under sub-section (3) of section 109; (ii) under sub-section (3) of section 114; (iii) from the composition of the offences under this Code relating to Central Government and from any other Social Security Fund established under any other central labour law.
