Social Security Code 2020 Defines Gig Workers, Govt Tells Parliament
On July 25, a question was asked in the Lok Sabha about food delivery startups bringing delivery in 10-20 minutes.
The Minister of State for Labour and Employment Rameswar Teli said that while India’s Labour Laws did not define gig workers, the Code on Social Security, 2020, did define them.
The Minister also stated that the Code on Social Security, 2020 provided for social security schemes for these workers to support them.
The questions were posed by DMK MP Kanimozhi Karunanidhi on Monday, wherein she asked the government if it was aware of the food delivery startups that brought faster deliveries and its potential impact on gig workers.
She also asked if the government would regulate these business models in the future. It was also asked if the government would ask the startups for basic compliance in regard to gig workers.
It must be borne in mind that the faster delivery options have faced enormous criticism, notably from politicians.
Calling it ‘absurd’, Congress MP Karti Chidambaram said that he would pursue the matter in Parliament. TMC MP Mahua Moitra also weighed in favour of regulating the business model. She also stated that she would also raise the issue in Parliament.
The government listed a flurry of initiatives that it has taken in support gig workers.
The government, in its response, said,“There is no definition of gig workers in the existing central labour laws. However, the Code on Social Security, 2020, for the first time, defines gig workers,” and clarified the position of gig workers in legislation.
The Government also mentioned the recent NITI Aayog report on India’s gig economy. The MoS for Labour and Employment stated that the Code on Social Security, 2020 had “already provided for framing of suitable social security schemes for gig workers and platform workers on matters relating to life and disability cover, accident insurance, health and maternity benefits, old age protection, etc.”
The Code also provided for the establishment of a Social Security Fund for gig workers. The gig aggregators will be required to contribute 1-2% of their annual turnover. However, that will be subject to the limit of 5% of the amount paid or payable by an aggregator to gig workers.
The government also talked about the e-Shram portal, where these workers would register themselves to avail of government services and benefits.
At present, the gig workers remain unprotected by government regulation and in case of breach by their employer, they have nowhere to go. The government's initiative to support the burgeoning gig economy is a welcome development.
