Gig Workers’ Rights Under the New Labour Law      

Today, many people earn their income through apps and online platforms such as Swiggy, Zomato, Ola, Uber, Urban Company, etc. These workers are commonly called gig workers.

For a long time, gig workers were not properly covered under labour laws because they were not treated as regular employees.

However, the new labour reforms, especially the Code on Social Security, 2020, have introduced important changes.

Who Are Gig Workers?

Under the Code on Social Security, 2020, the law has officially recognised gig workers.

Gig Worker

A gig worker is a person who works outside the traditional employer-employee relationship.

For example:

• Food delivery partners
• App-based drivers
• Freelancers working through platforms
• Home service providers

 

Platform Worker

A platform worker is someone who provides services through an online platform like:

• Uber/Ola
• Swiggy/Zomato
• Urban Company

This is the first time Indian labour law has clearly defined these workers.

Why Is This Recognition Important?

Earlier, gig workers were treated as “independent contractors.”

This meant:

• No PF benefits
• No gratuity
• No ESI or health coverage
• No job security
• No formal labour protection

Legally, they were outside the scope of most labour welfare laws.

Main Rights and Benefits for Gig Workers Under the New Labour Code

 Legal Status Under the Law

The biggest change is that gig and platform workers are now officially recognised under the Code.

This gives them a legal identity and makes it possible to design welfare schemes for them.

Social Security Benefits

The government can introduce schemes for gig workers relating to:

• Life insurance
• Accident cover
• Health benefits
• Maternity benefits
• Old age support or pension

These benefits are not automatic yet, but the law provides the framework.

Contribution by Aggregator Companies

The Code provides that platform companies (called aggregators) like Uber or Swiggy may have to contribute towards social security funds.

The law allows contribution between:

• 1% to 2% of the aggregator’s annual turnover,
  subject to prescribed limits.

This is legally important because it places responsibility not only on workers but also on platforms.

 National Social Security Board

The Code proposes the creation of a National Social Security Board to:

• Recommend welfare schemes
• Monitor implementation
• Advise governments on gig worker protection

This shows that gig workers are now part of India’s formal welfare structure.

 Beginning of Future Labour Protection

At present, gig workers are still not treated fully as “employees.”

However, legally speaking, this recognition is the first step toward future rights such as:

• Minimum wage protection
• Better working conditions
• Dispute resolution mechanisms
• Protection from unfair termination

The Code opens the door for stronger regulation in coming years.

 

Who Will Benefit the Most?

The main beneficiaries include:

• Delivery workers
• Cab and auto drivers working through apps
• Home service workers
• Freelancers working via digital platforms

This is significant because India has a large and growing gig workforce.

Legal Challenges Still Remaining

• Most schemes are still to be notified by the government
• Gig workers do not yet receive full employee-level rights
• No clarity on working hours, leave, or minimum wages
• Implementation will depend on proper rules and enforcement

Therefore, while the Code is progressive, practical benefits will depend on execution.

The Code on Social Security, 2020 is a landmark step because it finally recognises gig and platform workers under Indian labour law.

It introduces the concept of social security coverage and aggregator responsibility.

Although gig workers are not yet fully treated as regular employees, the law has laid the foundation for their welfare and future protection.