Introduction

Today, convenience seems to be the defining word. Without really stepping out of the comfort of our homes, because of the blazing sun or the heavy rains or due to pollution, we get nearly everything we want. All this has become quite possible because of smartphone applications. Now, have you ever wondered who makes this all happen? Among these low-footprint people is the category commonly termed gig workers. This essay examines the very real challenges facing such a group and those structural issues lying at the root of the burgeoning gig economy.

Background

The average gig worker in India works 69.3 hours a week, which means that he or she is almost working seven days in a week without any rest at all. Other workers in this same survey averaged at 56 hours per week. Such long hours, low wages, and no job security coupled with better qualifications than many other workers are the reality of gig workers.

This is a short-term employment or performance-based work. Even before the advent of the gig platforms, this term was pretty haphazardly used with respect to musicians and performers who got paid per each performance. The very first recorded usage of the term “gig” referring to a temporary job was by author Jack Kerouac in 1952. Gig work today includes service-based jobs and knowledge-based jobs-for instance, delivery agents represent service-based jobs while consultants and data scientists represent knowledge-based jobs.

Current Issue: How the Gig Economy Risen and Is Falling :

The gig economy, which rose during and after the COVID-19 pandemic, couldn’t realize its theoretical promises. Popular companies like Uber, Zomato, and Swiggy kept this model going which allows the employer to hire and fire as he pleases, offering an illusory sense of flexibility that finds stark reality at face value. Very recently, it has been observed that the gig economy expanded from 3 million workers to 7.7 million by 2021 – and is likely to increase further to 23.5 million by 2030-end, according to a 2022 NITI Aayog report.

And yet, 75% of gig workers claim to be living pay check-to-pay check, with monthly averages of just ₹18,000. That would be the primary source of income for 88% of them; not supplemental. For 90% of gig workers during the pandemic, earnings fell, and some literally had to borrow money to pay their bills.

Problems with Gig Workers:

While gig companies extol themselves as freedom and flexibility providers, the flip side is that gig workers quite are on the opposite end. They do not assist them even in the costs of tools such as motorcycles and fuel. Thus, it sometimes turns out to be a heart breaking reality for many Uber and Ola drivers to be traveling long distances without earning even a single penny and yet the companies do not assist them with the fuel used.

These companies also will not call their workers “employees” and instead label them “partners” in order to avoid such rights as health insurance, minimum wage, and job security. Latest studies have emerged, one performed in 2022 by the Oxford Internet Institute, which prove that none of the major platforms in India provides for a living wage when the expenses are being added into the calculation for the gig workers.

Exposing gig exploitation goes beyond financial matters. The penalty for cancelling a job done because of an accident or personal emergency falls directly on the shoulders of a worker. Worse still, companies penalize the workers through rating systems within applications and algorithms that are programmed to punish those with low ratings by taking away work.

International Response and Potential Solutions:

Still, India has not provided much security for gig workers. There have also been movements made by several countries to protect the rights of this kind of worker. For example, in Europe, the 2023 EU Platform Workers Directive provides conditions for reclassifying gig workers into employees that may access social security, health benefits, and job security. The US National Labour Relations Board has supported the unionizing of the gig economy, and countries such as Thailand and Malaysia offer health and accident insurance premiums paid through a 2% levy on every trip.

India’s Legal Framework and Future:

India’s legacy labour law says nothing about gig workers, but the 2020 Social Security Code provision loosely defines the term as a worker who may operate service platforms, and no state has enacted specific legislation for gig workers. Rajasthan recently enacted the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023, which proposes registration, access to social security, setting up welfare boards, and imposing penalties in the event of non-compliance by companies.

However, how these would be implemented remains unclear. Other states like Karnataka are in line to do the same. Gig companies have already begun protesting such regulations, stating that laws like these would inflict damage on their business models.

Conclusion:

The gig economy is probably one of the very few rays of hope during the pandemic; but, the reality is exploitation, long hours, and financial insecurity for many workers. While gig work is expanding, governments need to come in with better regulations offering gig workers the same rights and protections afforded to a more traditional employee. Only then will the gig economy will benefit both workers and companies.

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