On September 1, 2024, the Union Minister for Labour and Employment, Dr. Mansukh Mandaviya, convened a review meeting in New Delhi to discuss approaches aimed at extending social security benefits to gig and platform workers in India. This meeting emphasized the government's commitment to the welfare of this vital and expanding segment of existing labour workforce in India. Introduction of the Code on Social Security, 2020 was highlighted as a significant milestone in officially defining and recognizing the gig economy and rights of platform workers and acknowledging their contributions to the Indian economy.
The Ministry of Labour and Employment ("Labour Ministry"), vide circular1 dated September 16, 2024, outlining directives for the registration of platform aggregators and platform workers on the eShram portal ("Directions"). Launched on August 26, 2021, the eShram portal is designed to support unorganised and migrant workers across India, providing them with a Universal Account Number ("UAN") which facilitates access to skills training, job opportunities, and eligibility checks for various social security schemes administered by both Central and State Governments. The Government of India is committed to transforming the eShram portal into a comprehensive 'One-Stop Solution' for workers.
States like Karnataka and Rajasthan have already initiated significant steps in enhancing rights of platform-based gig workers, even prior to the Central Government's recent initiatives. For a detailed analysis on the Karnataka State Government's recent initiative in this regard, please refer to the JSA Prism of July 11, 2024.
Key highlights of the Directions
- Registration requirements: Aggregators are urged to promptly register themselves and the platform workers engaged by them on the eShram portal. Detailed terms and a standard operating procedure for registration of platform aggregators and platform workers have been provided to facilitate this process. Additionally, for better coordination and informed policy decision-making, information pertaining to the platform and platform workers are required to be shared during the on-boarding process. The prescriptions are outlined in the Directions and includes details relating to the total number of platform workers engaged by the aggregator, details of welfare schemes implemented, payments made for such welfare schemes, amongst others.
- Applicability: These Directions apply specifically to platform-based gig workers engaged in or undertaking platform work, as well as to aggregators providing services via digital platforms. Aggregators are defined as digital intermediaries or a marketplace connecting service providers with buyers or consumers across various sectors, including ridesharing, food and grocery delivery, healthcare, logistics, and any other goods and services provider platform. Platform work means a work arrangement outside of a traditional employer employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or other notified activities, in exchange for payment.
- Responsibilities of aggregators: Aggregators have been tasked with registering their platform workers on the eShram portal and regularly update their details, such as work engagement and payment information. Additionally, any worker exits should also be reported promptly to maintain accurate records and ensure integrity of the registry.
- Support for onboarding: A toll-free helpline (14434) has been established to assist aggregators and workers with the registration process and to address any technical issues.
Further, the Union Minister held a meeting on September 18, 2024, with major platform aggregators to discuss developments in creating a comprehensive framework tailored to the unique needs of gig workers, with a target to onboard a significant number of workers onto the eShram portal within 3 (three) months.
Conclusion
With the introduction of the Directions, the Labour Ministry's recognition of the invaluable contributions from platform aggregators and platform workers in India has notably seen a push. Prior to its release, the Labour Ministry's collaboration with several aggregators helped gather essential insights into the gig-worker economy, ultimately shaping the current Directions. It is encouraging to see the cooperative spirit demonstrated by both aggregators and platform workers, as their active participation in the registration process is crucial for establishing a just and equitable gig economy.
As platform work is projected to reach 23,500,000 (twenty-three million five hundred thousand) workers by 2029-30, these Directions could pave the way for robust regulations addressing wages, working conditions, and job security for platform workers. That said, certain practical challenges remain, particularly in the integration of welfare schemes with e-Shram cards. Registered users have reported issues regarding the portal's usability and clarity, highlighting the need for ongoing improvements in the system to facilitate smoother access to benefits. Further, the Directions are not mandates and are currently advisory in nature, with the Labour Ministry making recommendations to target onboarding of platform workers within the next 3 (three) months.
By collaborating effectively, stakeholders can create an inclusive framework that empowers all gig and platform workers, ensuring benefits and protections they are entitled to while enhancing the user experience in an evolving labor landscape. As we await further information from the Labour Ministry, it is crucial for all stakeholders to remain engaged and proactive in implementing these Directions. Continuous dialogue and feedback will be essential to address existing challenges and improve the system, ultimately benefiting the growing workforce in the gig economy.
Footnote
1. Circular no. W-11015/15/2024-RW (GPW).
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