Gehlot said gig workers work with companies like Ola, Uber, Swiggy, Zomato, Amazon and others and their numbers are increasing. “To protect them from harassment, I propose to bring the Gig Workers Welfare Act, under which, along with the formation of the Gig Workers Welfare Board, a Gig Workers Welfare Fund will be established with Rs 200 crore,” he said in his Budget speech.
Rajasthan will become the first state in the country to enact a law for social security of over three lakh gig workers in the state.
The scope of the gig economy is increasing and the number of gig workers has increased to 3-4 lakh in the state, Gehlot said, adding that till now, there was no arrangement of social security for them.
Big victory, says union
The Indian Federation of App Based Transport workers (IFAT) hailed the Gehlot government’s announcement of a welfare board for gig workers.
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“IFAT believes that this is a monumental moment not only for gig workers, but for entire informal sector workers and industries both. These efforts will go a long way in solving many unanswered and complex questions of the informal economy where over 94%/50 Crores of India’s total workforce are employed,” the union said in a statement.
It also urged the Centre to set up the National Gig Workers’ Board.
1. PRESS Note 👇*HISTORIC DAY FOR THE WORKERS AROUND THE WORLD* A brand new year began with Great hope and soli… https://t.co/pw5TnQ5uJ8
— Indian Federation Of App Based Transport Workers (@Connect_IFAT) 1676056291000
The Centre had in 2020 formulated the Code on Social Security, which envisages 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.
However, these provisions under the Code have not come into force yet.
Concerns over working conditions
Concerns have been raised over the working conditions of gig workers as their participation in the labour force grows.
A study by research firm Fairwork India said that ride-hailing companies Uber and Ola, quick commerce platform Dunzo, online pharmacy PharmEasy, and delivery platform Amazon Flex provided the poorest conditions for gig workers in India.
The report released in December 2022 said that Uber and Ola scored zero points on a scale of 10 for the second year in a row.
Among the top performers were Urban Company, which snagged seven points, followed by Tata Group-owned BigBasket with six points, ecommerce marketplace Flipkart and food-delivery platform Swiggy received five points each.
According to a recent report by global job site Indeed, there is likely to be 90-110 lakh addition to the gig workforce by 2025.