Labour code rollout: Gig workers get social security for first time; what it means for Zomato, Swiggy, Uber riders
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Labour code rollout: Gig workers get social security for first time; what it means for Zomato, Swiggy, Uber riders

The newly notified labour codes mark a historic shift for Indiaโ€™s gig economy, formally bringing millions of delivery partners, ride-hailing drivers and platform workers under a recognised social security framework for the first time.The overhaul transitions gig workers from the fringes of the unorganised sector into a regulated system with access to protections such as provident fund benefits, ESIC coverage, insurance, and mandatory appointment letters, experts said, reported news agency PTI.โ€œFor the first time, this rapidly expanding segment of the workforce, traditionally excluded from the conventional employer-employee relationship, gains legislative recognition and a foundational layer of social security,โ€ said Preetha S, Partner, JSA Advocates & Solicitors.She added that the move also places new compliance responsibilities on platform companies, requiring contributions towards social welfare measures for workers.Platforms welcome policy shiftMajor gig-economy players signalled support for the changes and said they were evaluating operational adjustments.โ€œWe welcome the government’s intent to implement labour reforms, and we are evaluating the changes that have to be ushered in,โ€ an Amazon India spokesperson said.A Rapido spokesperson said strengthening social security for gig and platform workers was โ€œvital for long-term resilience and inclusionโ€.Eternal, parent entity of Zomato and Blinkit, said the labour codes would strengthen social security access without harming business viability. Zepto said the move protects workers โ€œwithout losing the flexibility that powers quick commerceโ€.India had 77 lakh gig workers in 2020-21, according to NITI Aayog, with the workforce projected to rise to 2.35 crore by 2029-30. TeamLease estimates the current gig workforce at around one crore.โ€œFor years, the country’s gig workers subsidised its growth from the margins. Today, they step into the system,โ€ said TeamLease Regtech CEO Rishi Agrawal, PTI quoted him as saying.New rules to reshape HR policies, pay structuresAccording to EY Indiaโ€™s Puneet Gupta, the reforms introduce clarity and standardisation across compliance requirements.โ€œFor workers, the impact is significant; formal employees gain stronger protections and uniform benefits, while gig and platform workers are included in social security schemes for the first time,โ€ he said.He added that compensation structures and employment models may be reshaped as firms align with uniform wage definitions and labour protections.Execution remains biggest challengeExperts cautioned that applying a formal benefits system to a workforce defined by flexibility, shifting hours and multiple income sources could complicate documentation and continuity of benefits.โ€œThe real test will be fitting a steady employment framework into a world where work is fluidโ€ฆ The direction of the codes is sound, but the ecosystem will need discipline and cooperation to make it real,โ€ said Kartik Narayan, CEO of jobs marketplace Apna.Lohit Bhatia, President, India & Global Operations at Quess Corp, said real-time compliance and grievance resolution at scale would require strong digital systems and behavioural change.However, he added that simplified compliance frameworks, unified registers and national licensing โ€œremove many previous bottlenecks and create a more modern, digital-first environmentโ€ to support responsible growth.



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