Social Security for gig and platform workers

Why in News?

The Ministry of Labour & Employment proposed the eligibility condition for gig and platform workers to access social security benefits.

• Gig worker – A person who participates in the gig economy.
  • They work as independent contractors or freelancers, earning income through on-demand tasks or projects instead of being regular employees of a company.
• Gig economy – It is a labour market dominated by temporary, freelance, or part-time jobs rather than permanent, long-term employment.
• Gig Worker Provisions – Under the new draft rules on the Social Security Code 2020,
  • A 90-day annual work threshold with an aggregator is proposed as the mandatory eligibility condition to access social security benefits.
  • In case of multiple aggregators, eligibility requires at least 120 cumulative days in the last financial year.
  • Working with multiple aggregators on the same day counts as multiple days (e.g., three aggregators = three days).
  • Mandatory registration – Every gig/platform worker above 16 years of age must register using Aadhaar and prescribed documents on a self-declaration basis.
  • Eligible registered workers will receive a Universal Account Number (UAN) and a digital or physical identity card.
  • Mandate on aggregators – Aggregators must share worker details electronically, periodically, to facilitate updating of records.
  • Failure to update worker details may make the worker ineligible for benefits.
  • Contributions – Aggregators failing to pay contributions on time will be liable to pay 1% interest per month.
  • Collected contributions will be kept in a separate Social Security Fund for gig workers.
• Constitutional provision– The ‘Labour’ is a subject included in the Concurrent List in the 7^th Schedule of the Constitution of India.
• Both Central and State Governments are competent to legislate in their respective spheres.
• Labour Code highlights & impacts – The Union Government has consolidated and repealed 29 central labour laws by merging them into four labour codes.
• Minimum wage becomes a legal right for all workers, not optional.
• A national floor wage to be fixed so no worker is paid below a basic living standard.
• Social security benefits – Provident fund and insurance are extended to all workers, including gig and platform workers.
• Mandatory appointment letter – It must be given, so workers know their job terms clearly.
• Women can work at night and in all types of establishments with equal opportunities.
• Gender-neutral wages are ensured.
• Discrimination against transgender persons is prohibited.
• Formalise employment – To reduce informal and unsafe work.
• Compliance for employers is simplified, shifting enforcement towards guidance and support instead of punishment.

Reference

The Hindu | Social Security for gig and platform workers