The consolidation of India’s labour laws into four Labour Codes i.e, the Code on Wages, 2019; Code on Social Security, 2020; Occupational Safety, Health and Working Conditions Code, 2020; and Industrial Relations Code, 2020[1] constitutes the most comprehensive reform of labour legislation in Independent India. This legislative consolidation is not mere exercise in rationalization. By subsuming twenty-nine disparate central statutes into a unified framework, the Codes achieve a structural correction in labour jurisprudence, extending recognition and protection categories of workers who had long remained outside the statutory field.
Foremost among these are gig and platform workers. For decades, individuals engaged as drivers, delivery agents, freelance professionals etc. operated in a regulatory vacuum.
The Code on Social Security, 2020 is the first legislation to formally define “gig worker” and “platform worker”. This definition is not merely semantic, it creates statutory identity for millions engaged in non-traditional, and technology mediated work. By doing so, the Code lays the foundation for their inclusion in social security schemes. Section 2(35) and Section 2(60) of the Code explicitly recognize gig and platform workers, thereby enabling the Central and State government to frame welfare schemes covering health insurance, maternity benefits, provident fund contributions and old age protection.
Section 2(35) defines gig workers as a person who performs work or participate in a work arrangement and earns from such activities outside of traditional employer-employee relationship.
Whereas Section 2(60) defines platform workers means a work arrangement outside of a traditional employer-employee relationship in which organizations or individuals use an online platform to access other organizations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payments;
Chapter IX of the Social Security Code provides for social security extendable to unorganized workers, gig workers, and platform workers.
Section 109 of the Social Security Code mentions the responsibility of the Central Government to frame and notify welfare schemes on matters relating to life and disability core, healthy and maternity benefits, old age protection, education and any other benefit as may be determined by the Central Government.
On the other hand, the State Government has been held responsible for framing of schemes covering provident fund, employment injury benefits, housing, educational schemes for children, skill upgradation of workers, funeral assistance, and old age homes.
It is further provided that any scheme notified by the Central Government may be wholly funded by the Central Government, or partly funded by the Central Government and partly funded by the State Government, or partly funded by the Central Government, partly funded by the State Government and partly funded through contributions collected from the beneficiaries if the scheme or the employers as may be specified in the schemes by the Central Government or funded from any source including corporate social responsibility fund within the meaning of the Companies Act, 2013 or any other such source as may be specified in the scheme.
The Code on social security also provides that the government formulating the scheme shall also provide the procedural guidance on record keeping kept electronically or otherwise.
Section 112 of Chapter IX provides that the appropriate government may set up a toll free call center or helpline or such facilitation centres.
The Code on Wages, 2019 lays down the principle of a universal minimum wage, extending its applicability across both the organized and unorganized sectors.
For gig workers, this provision is transformative It curtails the risk of exploitative compensation structures often dictated by digital platforms and ensures a baseline of economic dignity. The Code also mandates timely payment of wages, reducing income volatility that is economical to gig workers.
The Occupational Safety, Health and Working Conditions Code, 2020 extends the principle of workplace safety top non-traditional environments. Although gig workers may not be engaged in traditional factory floors or office settings, the Code expressly empowers the government to frame welfare measures for their protection. These measures extend to ensuring safe and dignified working conditions, providing access to sanitation facilities. It signals recognition that dignity of labour must transcend the boundaries of traditional workplace.
Although Industrial Relations Code, 2020 primarily addresses trade unions and dispute resolution in formal employment, its framework indirectly benefits gig workers by legitimizing collective bargaining in broader sense. As gig worker organizes themselves into associations and unions, the Code’s provisions on recognition of negotiating bodies provide a pathway for their collective voice to be heard in policy discourse.
In the present economic climate, marked by rapid digitalization, rising unemployment in formal sectors, and the proliferation of platform based work, the inclusion of gig workers under the statutory protection is both timely and necessary. India’s gig economy is projected to employ nearly 23.5 million workers by 2030, contributing significantly to GDP growth. Yet, without social security, this workforce remains precarious. The Labour Codes balance the imperative of ease of doing business with the constitutional mandate of social justice under Article 38 and 43, ensuring that economic innovation does not come at the cost of worker welfare.
The promise of the Labour Code lies in their implementation. Effective operationalization requires:
- Notification of schemes tailored to gig worker’s realities, such as contributory social security funds with platform participation.
- Robust grievance redressal mechanisms accessible through digital platforms
- Awareness campaigns to ensure gig workers understand and claim their entitlements
- Coordination between central and state authorities to avoid fragmentation of benefits.
Without robust operationalization, the recognition of gig workers risks being reduced to formality rather than delivering tangible protection.
Author: Jyotsna Chaturvedi, Head – Corporate Practice
Co- Author: Navya Saxena, Associate
- https://www.labour.gov.in/offerings/schemes-and-services/details/labour-codes-gzNzQzMtQWa
