By Suchita Dutta
Coworking: Are you one of the countless individuals in India who have embraced the gig economy? Whether it is driving for a ride-sharing service, delivering food, or freelancing from the comfort of your own home, gig work has become an increasingly popular way to earn a living. However, recent developments in Rajasthan have shaken up this booming industry and sparked heated debates across the country.
What is Rajasthan Gig Workers Bill?
The Rajasthan Gig Workers Bill, also known as the Rajasthan Unorganised Sector Security Social Welfare Act 2020, is a piece of legislation aimed at providing social security and welfare benefits to gig workers in the state. It recognises gig workers as employees and mandates that platform companies contribute to their social security funds. Under this bill, gig workers are entitled to various benefits, such as accident insurance, health insurance, maternity benefits, and pension schemes.
The bill also establishes a Gig Workers Board to oversee the implementation of these provisions and resolve any disputes between gig workers and platform companies. This bill is seen by many as a landmark move towards ensuring better working conditions and social protection for gig workers, who often lack traditional employment benefits such as paid leave or retirement plans. It aims to bring them under the purview of labour laws while acknowledging their unique work arrangements.
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Additionally, it recognises gig work as formal employment and gives these workers legal protection. The bill introduces a mechanism for grievance redressal, giving gig workers a platform to voice their concerns and seek resolution for any disputes they may face. This can help address issues related to non-payment or delayed payments, which are common problems faced by many gig workers.
However, this legislation could also burden platform companies with additional costs, which may ultimately lead to reduced earning opportunities for gig workers. They also point out potential challenges in determining eligibility criteria for different types of gigs and enforcing compliance among the numerous platforms operating in the state. While some states have lauded this initiative and expressed interest in adopting similar measures, there has been no central-level implementation so far. As a result, there are concerns about disparities in terms of coverage and protection for gig workers across different states.
Impact of bill on gig workers
While the bill offers potential benefits such as access to healthcare, insurance coverage, and retirement savings plans for gig workers, there are concerns about the implementation of the bill. The lack of clarity regarding who will bear the costs of these benefits raises questions about whether gig workers may face reduced job opportunities or increased expenses due to higher platform fees. There are also some concerns that if companies are required to contribute towards social security measures like provident funds or health insurance premiums on behalf of their workforce, they might pass these costs onto consumers or reduce job opportunities altogether.
Furthermore, by categorizing all types of gig work under one umbrella term, certain sectors may be overlooked or not adequately addressed by this legislation. As each type of gig work comes with its own unique challenges and requirements, ensuring fair treatment across industries becomes crucial. Defining exactly who qualifies as a ‘gig worker’ could be challenging under this legislation. Given the diverse range of roles and arrangements within the gig economy—from ride-hailing drivers to freelance writers—ensuring fair inclusion without leaving anyone behind could prove difficult.
Central versus State: Challenges in Implementation
The Indian central government formulated this ‘first of its kind’ policy in the whole world but did not implement it, and now that states are leading with the implementation plans as their own, it reflects a mighty ‘strong step over’ that a state has over the central government in this matter. Without a unified approach across all states, there may be disparities in how these benefits are distributed and accessed by gig workers throughout the country. This lack of uniformity could lead to confusion and potential gaps in coverage. Thus, they lack access to traditional employment benefits such as healthcare or insurance.
The future of gig workers in India will depend on finding a delicate balance between safeguarding their rights and fostering an environment conducive to economic growth. It requires collaboration between policymakers, industry leaders, and worker representatives to address issues like fair wages, better working conditions, and comprehensive social security measures. To ensure long-term success for both parties involved—gig workers as well as companies utilising their services—it is important to create sustainable policies that adapt to changing dynamics within this evolving sector.
While the Rajasthan Gig Workers Bill represents a step towards recognising and supporting this important segment of India’s workforce, further discussions are needed to address its shortcomings and ensure effective implementation without burdening individual gig workers excessively.
Suchita Dutta is the Executive Director of Indian Staffing Federation. Views expressed are the author’s own.