In the age of digital convenience, food arrives in minutes, cabs are summoned with a tap, and services come to our doorstep-thanks to gig workers. But while the tech platforms thrive, what legal protections do these workers enjoy? Until recently, the answer was "very few." India's traditional labour laws didn't recognize gig workers at all. The Code on Social Security, 2020 changes that-at least on paper.

This blog explores how the new labour codes differ from the old regime, specifically for gig and platform workers, and why this shift matters.
 

Who Are Gig and Platform Workers?

• Gig workers: Individuals engaged in income-earning activities outside of traditional employer-employee relationships.
• Platform workers: A subset of gig workers whose work is based on online platforms or apps (like Uber, Swiggy, or Urban Company).

Old Legal Framework: Total Exclusion

Pre-Code Labour Laws (Before 2020):

India's labour laws were built around the idea of formal employment. Gig workers, who don't have a fixed employer or contract, were left out.
 

Aspect - Status Under Old Laws

• Legal Definition: No recognition of gig/platform workers
• Social Security: Not covered under EPF, ESI, or gratuity
• Minimum Wages: Not applicable
• Working Conditions: No legal standards for hours, safety, or leave
• Dispute Resolution: No mechanism for gig worker grievances

Outcome: Millions of platform workers operated in a legal vacuum, with no enforceable rights or benefits.
 

New Legal Framework: Code on Social Security, 2020

The Code on Social Security, 2020 is the first Indian law to formally recognize gig and platform workers.
 

What's New?

• Legal Recognition: Defines gig and platform workers under Sections 2(35) and 2(61)
• Welfare Schemes: Central and state governments empowered to frame social security schemes (e.g., life insurance, maternity, pension)
• Aggregator Contribution: Platforms must contribute 1–2% of their annual turnover to a welfare fund
• Registration: Gig/platform workers can self-register to avail benefits
• Flexibility: Workers not required to have a fixed employer
   

Old vs New: Comparative Snapshot

Element	Old Regime	Code on Social Security, 2020
Definition	No mention of gig/platform workers	Clearly defined under Section 2
Social Security Access	Denied due to non-employee status	Schemes can be created for gig/platform workers
Aggregator Responsibility	None	Mandated monetary contribution
Right to Register	Not applicable	Workers can register themselves online
Unionization Rights	No clarity	Still undefined-needs more legal development

 

Critical Insights: The Gap Between Law and Reality

• Voluntary, Not Mandatory: While the Code permits social security schemes, it doesn't make them mandatory. Registration is voluntary, and benefits are conditional on schemes being notified and funded.
• No Wage Standards: Even with legal recognition, gig workers are not entitled to minimum wages or overtime pay. Their earnings fluctuate based on algorithms, app incentives, and consumer ratings.
• Arbitrary Delisting: Platform workers often face automatic account suspensions with no explanation, no appeals process, and no job security.