The nature of employment has undergone a considerable change over the years. Earlier, employment was largely understood through the traditional relationship between an employer and an employee, where a person worked for an organisation in return for wages and certain employment benefits. However, with the growth of digital platforms and technology-based services, a different form of work has emerged. Today, individuals can earn their livelihood by delivering food, transporting passengers, providing household services, and performing various other tasks through online platforms without necessarily entering into a conventional employment relationship.
This arrangement is commonly known as the gig economy. Platforms such as Zomato, Swiggy, Uber, Ola, Blinkit, and Urban Company have become familiar examples of businesses operating through this model. The individuals providing services through these platforms are generally referred to as gig workers or platform workers.
The gig economy has created new earning opportunities by allowing individuals to work with greater flexibility and sometimes earn through multiple platforms. However, this flexibility also raises legal concerns. Unlike conventional employees, gig workers may not have access to paid leave, provident fund benefits, fixed wages, or employment-linked social security. Questions relating to arbitrary termination, payment deductions, working conditions, and algorithm-based management further complicate their position.
The central issue is not simply whether gig workers should be treated as employees. It is also whether individuals who depend upon platforms for their livelihood should be left without meaningful protection merely because their relationship has been described as an independent contractual arrangement.
India has gradually started addressing these concerns through the Code on Social Security, 2020, and dedicated state legislation. The commencement of the four Labour Codes on 21 November 2025 has marked another important development. However, legal recognition and actual availability of benefits are different matters. Understanding this distinction is essential to examining where India currently stands.
Understanding Gig Workers and Platform Workers
A gig worker is generally an individual who undertakes work outside a traditional employer-employee relationship and earns through contractual or task-based arrangements. For instance, a delivery partner may receive payment for each completed delivery, while a cab driver may earn according to the number of rides undertaken.
The terms gig worker and platform worker are not interchangeable. Section 2(35) of the Code on Social Security, 2020 defines a gig worker by reference to work outside the traditional employer-employee relationship. Section 2(60) separately defines a platform worker as a person engaged in platform work facilitated through an online platform.
This distinction matters because gig work is not necessarily facilitated through a digital platform, whereas platform work specifically involves such an intermediary.
The Code on Social Security, 2020
The most significant central legislation addressing this category of workers is the Code on Social Security, 2020. It formally recognises gig workers and platform workers as distinct categories for social security purposes. Chapter IX provides the framework for extending social security to unorganised workers, gig workers, and platform workers.
Two provisions are particularly important.
Section 113 deals with registration. It requires eligible workers to register for the purposes of this Chapter. The statutory conditions include completion of sixteen years of age, submission of a self-declaration, and an application containing prescribed information and documents, including Aadhaar. Section 113(3) provides that registration makes a worker eligible to avail the benefits of the concerned scheme framed under the Chapter.
The Social Security (Central) Rules, 2026 provide the procedural framework. Under Rule 48, gig and platform workers who have completed sixteen years of age are required to register through the designated Central Government portal on a self-declaration basis. Aggregators must also share worker details electronically and update information when workers join or leave their platforms. Eligible registered workers are to receive identity cards.
An important distinction appears in Rule 48(2)(e). For eligibility under schemes framed under the Code, the Rules prescribe engagement for at least ninety days with one aggregator or 120 days across multiple aggregators during the preceding financial year, subject to applicable scheme conditions. This is a benefit-eligibility requirement, not a condition that prevents a worker from initially registering under Section 113.
Section 114 deals with social security schemes and their financing. Under Section 114(1), the Central Government may frame and notify schemes covering life and disability protection, accident insurance, health and maternity benefits, old-age protection, crèche facilities, and other benefits it determines.
Section 114(2) allows these schemes to specify their administration, implementing agencies, the role of aggregators, and sources of funding. Section 114(3) provides different funding arrangements, including contributions from the Central Government, State Governments, aggregators, beneficiaries, and corporate social responsibility funds.
The aggregator contribution mechanism is addressed under Section 114(4). Aggregators falling within the categories specified in the Seventh Schedule are required to contribute at a rate between 1% and 2% of their annual turnover, as notified by the Central Government. However, the contribution cannot exceed 5% of the amount paid or payable to gig and platform workers. Section 114(5) requires the Central Government to separately notify the date from which these contributions will commence.
Therefore, the statutory contribution range should not be confused with an automatically payable levy. The Central Rules provide an administrative collection mechanism, but the applicable rate and commencement notification remain necessary to determine the actual contribution obligation.
Section 114(6) provides that the National Social Security Board constituted under Section 6 will also function as the Board for gig and platform workers, with a modified composition representing workers, aggregators, government authorities, and experts.
An important development occurred on 28 October 2026, when the Central Government constituted the National Social Security Board through Notification S.O. 5884(E), published in the Gazette on 29 October 2026. The Board has been constituted for three years and will also perform the functions relating to gig and platform workers under Section 114(6). Its composition includes representatives of major aggregators, worker organisations including the Indian Federation of App-Based Transport Workers (IFAT), government departments, and experts.
This is a significant institutional step. However, constituting the Board does not, by itself, establish that every social security scheme is operational or that benefits have already reached workers.
Implementation of the Four Labour Codes
The four Labour Codes are the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020. Their provisions were brought into force from 21 November 2025 through the respective commencement notifications.
For gig workers, the Code on Social Security remains the most directly relevant legislation because it specifically recognises their category and provides for welfare schemes. The other Codes should not be understood as automatically extending every conventional employee benefit to all platform workers. Their coverage continues to depend upon the definitions and applicable provisions of each Code.
The Central Government has also taken steps towards identifying platform workers through the e-Shram portal and its aggregator module. Twelve major aggregators, including Zomato, Blinkit, Urban Company, Uber, Ola, Amazon, Swiggy, Rapido, Zepto, and Porter, have been onboarded through this initiative.
The Union Budget 2025-26 also announced identity cards, e-Shram registration, and healthcare coverage under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana for eligible gig workers. The scheme to extend PM-JAY benefits to online platform workers received approval from the competent authority in 2025.
These initiatives are important because identifying workers is a necessary first step towards extending welfare benefits. However, registration and an announcement of healthcare coverage should not be confused with an unconditional entitlement to benefits. Eligibility requirements, beneficiary identification, and actual enrolment remain important.
State-Level Legislative Developments
Apart from the central framework, several states have enacted dedicated legislation addressing platform-based gig work. Their commencement and implementation stages, however, are different.
Rajasthan was the first state to enact dedicated legislation through the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023 (Act No. 29 of 2023). The Act provides for a Welfare Board, registration of workers and aggregators, and a welfare fund financed through a fee imposed on aggregators. However, Section 1(3) requires a separate government notification for commencement. Its enactment and publication in September 2023 should therefore not be treated as proof that its welfare mechanisms have become operational. No commencement notification could be independently verified for this revision.
Karnataka enacted the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025 (Act No. 72 of 2025). It is deemed to have come into force from 30 May 2025 and received the Governor's assent on 11 September 2025. The Act addresses fair contracts, transparency in automated monitoring and decision-making systems, termination of work, income security, reasonable working conditions, and grievance redressal.
Karnataka subsequently notified the Karnataka Platform Based Gig Workers (Social Security and Welfare) Rules, 2025. A further government order dated 13 February 2026 prescribed category-specific welfare fee rates and caps. This represents a significant step beyond the enactment stage.
Bihar enacted the Bihar Gig and Platform Based Workers (Registration, Social Security and Welfare) Act, 2025 (Act No. 8 of 2025). It provides for worker registration, a Welfare Board, a dedicated fund, fair contracts, transparency in automated decision-making, timely payments, occupational safety, and grievance redressal. However, Section 1 requires the State Government to appoint a commencement date through a Gazette notification. The enactment of the Act should not automatically be treated as proof that its provisions have commenced.
Jharkhand enacted the Jharkhand Platform-Based Gig Workers (Registration and Welfare) Act, 2025 (Jharkhand Act No. 13 of 2025). The Governor gave assent on 13 December 2025, and the authorised English text was published in January 2026. Its commencement provision contains an important deeming clause: the Act is treated as having commenced on the 120th day from enactment or on the date of an earlier notification, whichever is earlier. Accordingly, the statutory provision results in deemed commencement by 12 April 2026.
Telangana enacted the Telangana Platform Based Gig Workers (Registration, Social Security and Welfare) Act, 2026 (Act No. 21 of 2026). It received the Governor's assent on 25 April 2026 and was published in the Telangana Gazette on 28 April 2026. The State Government appointed 2 June 2026 as its commencement date through G.O. Ms. No. 7 dated 1 June 2026.
An interesting feature of the Telangana legislation is Section 20(6), which provides that the welfare fee collected under the state law will count towards the aggregator contribution payable under Section 114(4) of the central Code, subject to the statutory provision concerning any difference in the contribution payable.
These state developments demonstrate that legislation is gradually moving beyond general welfare promises. At the same time, the establishment of a statutory board, notification of rules, collection of contributions, and actual delivery of benefits must be examined separately.
Challenges
The Question of Employment Status
One of the most significant challenges is the classification of gig workers. Platforms generally describe them as independent contractors, delivery partners, or service providers rather than employees. This distinction affects their access to employment-linked rights and benefits.
However, contractual independence does not necessarily mean economic independence. A worker may technically be free to accept or reject tasks but remain heavily dependent on a platform for income. The platform may determine payment structures, allocate work, monitor performance, and control access to future assignments.
Therefore, the actual nature of the relationship deserves attention rather than relying exclusively on the terminology used in the contract. Platform control, economic dependence, and the degree of autonomy available to the worker are relevant considerations. No single factor should automatically determine employment status without examining the overall arrangement.
Income Security and Working Conditions
Gig workers are generally paid according to completed tasks rather than receiving a fixed monthly salary. Their earnings may depend upon demand, incentives, distance, customer ratings, and platform policies. Expenses relating to fuel, vehicle maintenance, and other necessities further affect their actual income.
Working conditions present another concern. Delivery partners and drivers may work extended hours to achieve incentives or meet targets. Road accidents, physical exhaustion, and exposure to extreme weather conditions make occupational safety particularly important.
The flexibility associated with gig work should not become a justification for overlooking these concerns.
Algorithmic Management and Grievance Redressal
Many platforms use automated systems to allocate tasks, determine incentives, evaluate performance, and suspend or deactivate worker accounts. Workers may not always understand why a particular decision was taken or how it can be challenged.
This makes transparency especially important. Workers should have access to meaningful explanations, an opportunity to contest adverse decisions, and an effective human grievance mechanism. Merely providing a customer-support option does not necessarily amount to an adequate dispute-resolution system.
Social Security and Coordination
Although the Code on Social Security provides a framework for welfare measures, the actual availability of benefits depends upon notified schemes, eligibility requirements, funding, and implementation. Registration through e-Shram is useful, but it is not equivalent to receiving accident insurance, healthcare, or old-age protection.
Further, different state laws prescribe different institutional arrangements and obligations. Platforms operating across several states may consequently face different compliance requirements. Coordination between the Central and State Governments will be important to prevent gaps in protection.
Judicial Developments
An important judicial development in this area is Indian Federation of App-Based Transport Workers (IFAT) v. Union of India, Writ Petition (Civil) No. 1068 of 2021, pending before the Supreme Court of India.
The petition raises concerns regarding the legal status and social security entitlements of app-based transport workers. It questions whether the exclusion of such workers from conventional social security protections is consistent with constitutional guarantees relating to equality, livelihood, and protection against forced labour.
The Supreme Court's proceedings have also brought attention to the delay in implementing the social security framework under the Code on Social Security, 2020. In February 2025, the Court sought an update from the Union Government regarding the rules and schemes required for Chapter IX. Its order dated 9 April 2026 directed that the matter be relisted on 7 May 2026.
The latest signed Supreme Court order independently verified for this revision is dated 9 April 2026. A subsequent substantive order or final judgment could not be verified from the accessible official records as on 5 November 2026. The constitution of the National Social Security Board, which includes an IFAT representative, is a separate executive development and does not amount to a judicial determination of the petition.
The case therefore remains important in understanding the continuing debate concerning social security, constitutional protection, and the relationship between platform companies and workers. Its final outcome should not be anticipated or presented as settled law.
Conclusion
India's legal position concerning gig workers has undergone an important transformation. From being largely overlooked within traditional employment arrangements, gig and platform workers have received formal recognition under the Code on Social Security, 2020. The commencement of the four Labour Codes, the e-Shram registration initiative, the constitution of the National Social Security Board, and dedicated state legislations represent significant steps towards extending social security to this workforce.
However, the question of whether gig workers are adequately protected remains open to discussion. Legal recognition is only the beginning. Workers must also have access to timely payments, accident insurance, healthcare, income security, transparent working conditions, and effective grievance redressal mechanisms.
The challenge is to maintain the flexibility offered by the gig economy without allowing that flexibility to become a reason for denying basic worker protection. Platforms may operate through independent contractual arrangements, but the individuals who make these businesses function should not be left without meaningful safeguards.
Ultimately, the success of India's gig worker framework will depend not merely upon the number of laws enacted but upon how effectively they are implemented. A modern employment system should not only create opportunities for earning a livelihood but should also ensure that those who contribute to it receive fairness, dignity, and adequate legal protection.
Disclaimer: This article is intended for general informational and educational purposes only. It does not constitute legal advice or create an advocate-client relationship.