Existing labour laws not aligned with e-commerce economy, need redesign for gig workers' welfare: Policy expert
New Delhi, May 29
India's existing legal frameworks are not adequately aligned with the rapidly growing platform economy and urgently need a structural redesign to guarantee proper welfare and social security for gig and delivery workers.
Speaking exclusively to ANI, Virjesh Upadhyay, Chairperson of the Dattopant Thengadi National Board for Workers Education and Development (DTNBWED) under the Ministry of Labour & Employment, emphasised that current statutes fail to directly account for modern digital business structures.
"So far, the legislative structure of this country is not directly addressing the aggregators or the platform workers. So with the practice, with the evolving design, we need to find a place or redesign the existing laws to accommodate them," he told ANI in an exclusive interview on the sidelines of the Stakeholders' Consultation on Opportunities and Challenges of Gig and Platform Workers in India, organised by FICCI - AIOE in collaboration with ILO.
He further added that redesigning means existing laws are actually not looking towards e-commerce business and it should be equally flexible and customised to accommodate these workers also.
Upadhyay said the focus area in the FICCI event remains grievance redressal mechanisms for platform workers, adding that such systems are evolving among aggregators but need to be further adapted to Indian conditions.
"The major area is how to address the grievances. It is not only for the platform makers, but it is also for the rest. For me, it was a very encouraging procedure," he said.
He said some large aggregators are already working on designing systems to address worker grievances, but stressed the need for continued dialogue to "customise this into Indian wisdom" and ensure worker-centric solutions.
Referring to the growing platform economy, he said delivery partners working with aggregators such as Uber, Swiggy, Zomato and others should be treated at par with other workers in terms of welfare and rights.
"For your workers, those who are delivery partners, they are basically workers. Whatever is good for rest of the workers, benefits, facilities must be for these workers. Means the rights, the social security, whatever is available to us, that should be available to them," he said.
He added that worker welfare provisions should remain uniform in principle, including for platform workers.
"Rights and welfare should be common for all workers, including platform workers," he said.
On the issue of minimum wages, he said a uniform national benchmark may not be practical due to differences across industries, states and localities, though earnings must still meet basic living needs.
"Minimum wages are very dynamic... it depends upon industry to industry, state to state, locality to locality. Putting one particular benchmark would not be advisable," he said.
Addressing concerns over inflation and global economic uncertainty, he said gig workers are also impacted by rising prices and that compensation mechanisms such as dearness-related adjustments need continuous review.
"There is a component of compensating them through industrial dearness allowances, but how far it is meeting that gap is the area to address," he said.
On government initiatives, Upadhyay said the government is focused on balancing business growth with worker welfare in the evolving gig economy, including steps such as insurance coverage for gig workers announced earlier.
He added that in the coming years, gig workers may gradually be integrated into broader social security frameworks, including provident fund and insurance-based protections.
"In the coming time, there may be a lot. Gradually, they all should be brought to the same framework," he said.
— ANI
Reader Comments
Good points in the article but one thing - making minimum wages uniform across India is not practical. Cost of living in Mumbai vs. a small town is vastly different. But yes, proper social security net is needed. These Swiggy and Uber drivers work 12-14 hours and still can't afford healthcare. 😕
Interesting perspective. Back in the UK, gig workers have been fighting for rights too. But India's situation is more complex with the sheer scale. Hope the discussions at FICCI-ILO lead to real change. The industry is growing too fast for outdated laws.
As someone who worked in HR for a delivery aggregator, I can tell you the ground reality is messy. Companies want flexibility, workers want stability. But the "Indian wisdom" comment by the policy expert is key - we cannot just copy Western models. Need a desi solution balancing innovation and worker welfare.
Very timely discussion. My father was a factory worker and had all protections, but today's gig workers are treated as "partners" to avoid giving benefits. If you work full time for a platform, you deserve full protections. This "independent contractor" label is just a way to exploit. 😤
Having worked in tech policy in the US, I've seen how California's Prop 22 tried to address this. But India needs its own path. The sheer volume of platform workers is staggering. Glad to see government acknowledging the gap. Redesigning labour laws for the digital age is crucial for India's future economy.
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