LABOUR LAW

(2nd INTERNAL – LEGISLATIVE ANALYSIS)

- CODE ON SOCIAL SECURITY 2020
(Effect on the gig/platform workers)

SUBMITTED BY:
JANAKI NAIR
18010125428
DIVISION E
B.A LL. B (4TH YEAR) – 2018-2023
18010125428@symlaw.ac.in
+91 8848165718
 Table of Contents

INTRODUCTION...............................................................................................................................3
SS CODE 2020 AND COMMENTARY.............................................................................................3
WHO ARE GIG AND PLATFORM WORKERS?......................................................................3
GIG AND PLATFORM WORKERS UNDER THE CODE........................................................4
REALITY OF THE GIG AND PLATFORM WORKERS..............................................................5
CONCLUSION....................................................................................................................................5
BIBILOGRAPHY................................................................................................................................6
 LEGISLATIVE ANALYSIS OF CODE ON SOCIAL SECURITY BILL, 2020

– Effect on the gig and platform workers

INTRODUCTION
It is a well-known fact that the population density of India has never been consistent with its
economic development. India has one of the biggest amounts of unorganised workers
employed as of late. The issue with the unorganised sector in India was the fact that it was
extremely difficult to ensure whether these unorganised workers are actually receiving the
correct incentives as well as security benefits for the work that they do. Therefore, the Social
Security Code [hereinafter referred to as the SS Code] was passed on 28 th September, 2020,
with the objective to change as well as to amalgamate the already existing major labour laws
connected to social security in such a manner that there comes into focus a legislation that
provides social security to every worker, regardless of them hailing from the organised,
unorganised or any other work sector. The SS Code, which was the vision of the National
Commission on Labour (NCL), 2002, therefore strived to emphasize the need for basic social
security requirements for workers all over the country.

The current commentary would therefore be about the legislative areas and effects of the SS
Code 2020 on the gig and platform workers, and whether it has truly and positively impacted
the community for better.

SS CODE 2020 AND COMMENTARY

WHO ARE GIG AND PLATFORM WORKERS?
The 2020 Code did bring in certain new concepts to the table. The concept of ‘gig workers’
was one such new term that was defined under the Code 1 as a worker who earns in any kind
of arrangement which is outside the scope of a normal employer – employee relationship.
This formal definition was important as it gave adequate recognition to a whole umbrella of
careers, jobs and professions such as freelance writers, independent contractors, etc.

Another worker group which used to belong to the unorganized sector was ‘platform
workers.’2 They refer to those people or organizations which are employed by other
individuals or organizations to provide particular services to the latter for consideration,
which is almost always money.

1
S. 2 (35), Code on Social Security, 2020.
2
S. 2 (61), Code on Social Security, 2020.
The issue involving both these types of workers was that before the advent of the SS Code of
2020, they were quite literally under the mercy of their employers, and had no access to any
kind of basic ‘employee’ benefits as they were not legally recognised as ‘workers’ under any
Indian labour law. Benefits such as Health Insurance3, Paid leave, Pension, Provident Fund,
etc. were never provided to them due to this lack of recognition.

GIG AND PLATFORM WORKERS UNDER THE CODE

The reason due to which we get to know about these workers is because of the SS Code of
2020. The Central Government, through the Code, has proposed generalised benefits to all
types of workers by way of giving out health insurance, maternity benefits, life insurance,
disability insurance, etc. Under the State Government, all workers, including the
aforementioned platform and gig workers, will now be subjected to minimum wage
regulations and that the Government will be subjected to the Employees State Insurance
Corporation.

In order to obtain the aforementioned benefits, it is mandatory for the workers to register on
an online portal curated for the same. Moreover, there is an age limit to avail such benefits
and its between 16 years and 60 years of age. These workers should have also worked for a
period of 90 days in the previous 12 years.

It is extremely clear that the decision to include platform and gig workers with proper
definitions was mostly a sound one. Especially, during the COVID pandemic, people
working under such fields such as Swiggy, Uber, etc. have been of immense help to the
normal citizens and therefore, their contribution to society as well as the economy cannot be
ignored.

The earlier existing problem was the fact that these workers were never given the proper
status of an ‘employee’ by the people who use their services, as the former were mostly
independent contractors, and the ‘bosses’ of these type of workers did not want to spend more
money in providing them with employee benefits. Therefore, there was no employee –
employer relationship that the workers could take some advantage of to avail benefits. Many
Indian Courts have tried strictly defining as to what exactly constitutes an employer –
employee relationship, but every court state that it depends on the case circumstances and is
not something that can be given a narrow interpretation.

3
Goswami, Upadhyay and Ranjan, An analysis on gig and platform workers: Code on social security, THE
DAILY GUARDIAN [Accessed on 30th April 2022], Available at: https://thedailyguardian.com/an-analysis-on-
gig-and-platform-workers-code-on-social-security/.
 REALITY OF THE GIG AND PLATFORM WORKERS
Even though the Government introduced the Code with its amendments on social security for
the benefit of these unorganized workers, however, in practicality, the benefits do not seem to
be visible to the workers working in such uncertain situations. Common people and owners
of such gig platforms have been stating that the only benefit that these kinds of schemes give
to the workers is on the long run. They state that the SS Code misses the genuine grievance of
the gig and platform workers, as provisions such as health insurance and gratuity fund will
only negatively impact their immediate income4 and livelihood, although it may have the
opposite effect in the long run. However, people in this sector right now, especially with the
ongoing pandemic, find it very hard to earn decent livelihoods in the midst of all these new
provisions. On a serious note, it might have been better to establish an employer – employee
relationship between gig/platform workers and their contractors such as the case of Uber in
the UK case of Uber BV v. Aslam5, wherein the court had stated that Uber drivers had an
employee – employer relationship with their company although they technically are
independent and third party contractors. A similar viewpoint might boost India as a more
social-welfare oriented government, even though it may have to take down its
entrepreneurship achievements a notch.

CONCLUSION
Even though there have been criticisms of the SS Code of 2020 from both scholars and
common people alike, still, that is not to say that this had been a very good initiative from the
Government. It aims to recognise the unorganised sector and thereby try to reduce the
existing wedge between employees and wage – earners from the organised as well as
unorganised sectors. However, it would be better if another Code is created or if the existing
code is amended to include more key provisions that showcase the relatability of the
Government with the practical life styles of these unorganised sector workers.

4
D. Shekhar, Why the Code on Social Security, 2020, misses the real issues gig workers face, FORBES
[Accessed on 30th April 2022], Available at: https://www.forbesindia.com/article/take-one-big-story-of-the-
day/why-the-code-on-social-security-2020-misses-the-real-issues-gig-workers-face/63457/1.
5
Uber BV v Aslam [2021] UKSC 5.
 BIBILOGRAPHY
A. PROVISIONS
1. Code on Social Security, 2020, Section 2 (35)
2. Code on Social Security, 2020, Section 2 (61)
B. CASE LAW
1. Uber BV v. Aslam, [2021] UKSC 5.
C. ARTICLES
1. Goswami, Upadhyay and Ranjan, An analysis on gig and platform workers: Code on
social security, THE DAILY GUARDIAN [Accessed on 30th April 2022], Available
at: https://thedailyguardian.com/an-analysis-on-gig-and-platform-workers-code-on-
social-security/.

2. D. Shekhar, Why the Code on Social Security, 2020, misses the real issues gig
workers face, FORBES [Accessed on 30th April 2022], Available at:
https://www.forbesindia.com/article/take-one-big-story-of-the-day/why-the-code-on-
social-security-2020-misses-the-real-issues-gig-workers-face/63457/1.