Labour Rights in India - Supreme Court’s Stand on Gig Workers

Supreme Court’s Stand on Gig Workers: A Turning Point for Labour Rights in India.

In a landmark development, the Supreme Court of India has taken up petitions seeking recognition of gig and platform workers as “workers” under Indian labour law, with specific reference to their entitlement to social security benefits. This move comes amid growing debate on the rights of delivery executives, ride-hailing drivers, and other platform-based workers who are currently classified as “independent contractors.”

The case has the potential to reshape employment relationships in India’s rapidly expanding gig economy and could bring millions of workers under the protective umbrella of social security laws.

Background of the Case

• Petitions were filed by worker unions and advocacy groups, arguing that gig workers engaged by companies such as Zomato, Swiggy, Ola, and Uber should be considered “workers” within the meaning of the Employees’ Provident Fund Act, the Employees’ State Insurance Act, and other social security statutes.
• The petitioners pointed out that while platforms exercise substantial control over gig workers (through algorithms, performance ratings, and penalties), they deny any employer-employee relationship to avoid statutory obligations.
• The Supreme Court issued notices to the Central Government, aggregators, and state governments, highlighting the urgent need to clarify the legal status of gig workers.

Key Legal Issues Before the Court

1. Employer-Employee Relationship:

Whether gig and platform workers can be deemed “employees” under labour laws despite contractual terms labeling them as independent contractors.

2. Right to Social Security:

Whether gig workers are entitled to benefits such as PF, ESI, maternity leave, gratuity, and accident insurance under existing statutes or new frameworks.

3. Scope of Labour Codes:

The Code on Social Security, 2020, defines gig and platform workers as separate categories but stops short of recognizing them as employees. The Court must decide if this classification dilutes their rights.

Arguments in Favour of Gig Workers

• Control and Dependency: Platforms dictate pricing, assign jobs, track performance, and impose penalties, which mirrors traditional employment relationships.
• Economic Vulnerability: Gig workers face low wages, a lack of healthcare, and a lack of job security. The right to social security is part of India’s constitutional promise under Articles 21 and 41.
• International Precedents: Courts in the UK (Uber case, 2021) and other jurisdictions have recognized gig workers as “workers” entitled to minimum wage and social security.

Counterarguments from Platforms

• Flexibility vs. Employment: Companies argue that gig workers enjoy freedom to choose work hours and platforms, distinguishing them from employees.
• Business Model Concerns: Imposing social security obligations may raise costs and disrupt the scalability of platform-based services.
• Legislative Competence: Platforms argue that the matter should be addressed by Parliament through policy, not judicial intervention.

Potential Implications of the Ruling

1. For Workers:

• Access to PF, ESI, maternity, and accident benefits.
• Greater bargaining power and recognition as a formal workforce.

2. For Companies:

• Increased labour compliance costs.
• Possible restructuring of contracts and business models.

3. For Policy:

Clarification of gig workers’ status may push the government to amend the Social Security Code or frame new rules to balance worker rights with platform growth.

Broader Significance

The Supreme Court’s engagement reflects the growing need to modernize Indian labour law to address new forms of employment. Much like the Industrial Disputes Act of 1947 responded to post-independence industrialization, today’s gig economy requires legal frameworks that balance worker protections, technological innovation, and business sustainability.

Conclusion

The Supreme Court’s eventual ruling on gig workers’ rights will set a historic precedent. Recognizing them as “workers” would mark a paradigm shift in Indian labour law, extending long-denied social protections to millions of platform-based workers. At the same time, the Court faces the challenge of balancing labour rights, industry viability, and legislative policy-making.

Regardless of the outcome, this case has already pushed India to confront the future of work and ensure that the workforce powering its digital economy is not left without basic security

India’s Labour Ministry Accelerates Work on a National Database for Migrant Workers.

The Ministry of Labour and Employment has renewed its push to create a comprehensive national database of migrant workers, aiming to ensure targeted delivery of social security benefits, improve portability of entitlements, and provide policymakers with real-time data on one of India’s most vulnerable workforce segments.

This initiative has gained urgency in the aftermath of the COVID-19 pandemic, which starkly exposed the precarious conditions of migrant labourers who lacked access to welfare schemes due to the absence of reliable data.

Background: The Migrant Worker Challenge

India has an estimated 140–150 million internal migrant workers, who contribute significantly to the construction, manufacturing, textiles, transport, hospitality, and domestic work sectors. Yet, they remain:

• Invisible in official statistics due to inter-state mobility and informal employment contracts.
• Excluded from welfare schemes, including Public Distribution System (PDS), health insurance, and social security, since benefits are tied to domicile.
• Vulnerable to exploitation, wage theft, unsafe working conditions, and a lack of grievance redressal.

The Supreme Court of India (2021) directed the government to establish a national database for unorganised workers (NDUW) under the Unorganised Workers’ Social Security Act, 2008, leading to the launch of the e-Shram portal.

The Government’s Current Push

1. Integration with e-Shram Portal:

Migrant workers are being encouraged to register on the e-Shram database, which already has over 29 crore workers enrolled as of mid-2025.

2. Portability of Benefits:

The database will enable “One Nation, One Ration Card” (ONORC) and portability of ESI/EPF benefits across states, ensuring workers do not lose entitlements when they migrate.

3. Skill Mapping:

The portal is expected to include skill profiles of workers, aiding both employment opportunities and targeted skilling initiatives.

4. State Collaboration:

The Labour Ministry is coordinating with state governments to ensure interoperability of state labour records with the central database.

5. Welfare Targeting:

The database will help channelise government welfare schemes, including accident insurance, housing, and healthcare, to the right beneficiaries.

Legal and Policy Implications

• Labour Codes: The initiative aligns with the Code on Social Security, 2020, which emphasises social protection for unorganised and migrant workers.
• Right to Welfare: Access to social security is part of the Directive Principles of State Policy (Articles 38, 39, 41), and this database helps operationalise these constitutional mandates.
• Employer Accountability: Registered employers may eventually be required to declare migrant workers engaged through contractors, strengthening compliance with the Inter-State Migrant Workmen Act, 1979 (until fully subsumed by labour codes).

Benefits of the National Database

1. For Workers:

• Easier access to welfare benefits across states.
• Better job opportunities through skill-matching.
• Recognition and visibility in official systems.

2. For Employers:

• Reliable pool of skilled and unskilled workers.
• Streamlined compliance reporting.

3. For Government:

• Evidence-based policymaking.
• Efficient allocation of welfare budgets.
• Reduced duplication and leakages in schemes.

Challenges and Criticisms

• Digital Divide: Many migrant workers lack smartphones, digital literacy, or Aadhaar linkage, making registration difficult.
• Trust Deficit: Workers fear misuse of personal data, surveillance, or exclusion due to errors.
• Coordination Across States: Migrant labour is highly mobile, requiring seamless state-level cooperation.
• Implementation Gaps: Past schemes for unorganised workers often failed due to bureaucratic inefficiency and lack of awareness.

The Road Ahead

The Labour Ministry plans mass awareness campaigns, facilitation centres at labour chowks, and partnerships with NGOs to drive registrations. If implemented well, the database can become a game-changer for India’s labour governance, transforming how welfare and rights are extended to migrant workers

Labour law - A Step Towards Inclusive Labour Protection.

Delhi Drafts Social Security Rules for Gig and Platform Workers.

The Government of Delhi has released draft rules under the Code on Social Security, 2020, extending for the first time a structured framework of welfare measures to gig and platform workers. With the rapid growth of the digital economy, ride-hailing, food delivery, and e-commerce logistics, India’s urban workforce is increasingly dependent on platform-based jobs. However, this segment has remained largely outside traditional labour protections. Delhi’s move signals a shift towards formal recognition and welfare coverage for gig workers.

Background: The Gig Economy in India

India’s gig and platform economy is among the fastest-growing globally:

• Over 7.7 million gig workers were estimated in 2020-21, projected to reach 23.5 million by 2030 (NITI Aayog).
• Gig workers typically operate as independent contractors for companies like Ola, Uber, Zomato, Swiggy, Amazon, and Urban Company.

Their biggest challenges include:

• Lack of minimum wage guarantees
• No health or accident insurance coverage
• No access to provident fund (PF), ESI, or maternity benefits
• Income volatility due to algorithmic management and a lack of bargaining power

The Code on Social Security, 2020, recognised gig and platform workers as a distinct category, mandating governments to frame welfare schemes. Delhi is one of the first states to issue concrete draft rules.

Key Provisions of the Draft Rules

1. Registration of Workers:

Gig and platform workers can self-register on the e-Shram portal or through facilitation centres to avail social security benefits.

2. Welfare Schemes:

• Health and Accident Insurance coverage under the Employees’ State Insurance (ESI) framework or equivalent schemes.
• Maternity and Disability Benefits for eligible workers.
• Skill Development and Reskilling initiatives to enhance employability.

3. Funding Mechanism:

The draft rules propose contributions from:

• Aggregators/Platforms: A small percentage of annual turnover (similar to provisions in the Code).
• Government Subsidy: To supplement contributions and ensure sustainability.

4. Grievance Redressal:

Establishment of nodal officers and help desks for handling worker complaints, disputes with platforms, and delays in benefit delivery.

5. Inclusion of Delivery Partners and Drivers:

The rules specifically recognise drivers, delivery partners, and logistics workers as eligible beneficiaries.

Why This Move Matters

1. Formal Recognition: Gig and platform workers are, for the first time, formally covered by labour welfare frameworks in Delhi.
2. Welfare Security: Access to health insurance, accident coverage, and maternity benefits can reduce economic vulnerability.
3. Corporate Accountability: By mandating aggregator contributions, the government ensures that platforms share responsibility for worker welfare.
4. Model for Other States: If effectively implemented, Delhi’s framework could inspire other states to follow suit.

Challenges and Concerns

1. Implementation Hurdles: Many gig workers lack awareness or digital literacy to register for schemes.
2. Resistance from Platforms: Companies may resist additional financial contributions, citing higher operational costs.
3. Coverage Gaps: Questions remain around whether part-time gig workers or multiple-platform workers will be fully covered.
4. Monitoring Compliance: Strong regulatory oversight will be required to ensure platforms actually contribute to welfare funds.

Comparative Perspective

Delhi’s draft rules come at a time when other states, such as Rajasthan and Karnataka, have also announced or piloted welfare measures for gig workers. However, Delhi’s approach emphasises:

• Integration with the e-Shram portal (centralised database)
• Defined contribution model for aggregators
• Urban worker focus, given the high concentration of gig employment in Delhi NCR

The Road Ahead

For Delhi, the key task will be ensuring enforcement and awareness. Registration drives, digital literacy campaigns, and close collaboration with worker unions will be essential. In the long run, effective implementation could set a national benchmark for gig worker welfare.