In the past ten years, mobile applications such as Zomato, Swiggy, and Blinkit have brought about a revolution in the delivery of food and groceries. The acceptance of orders through these platforms provides a means of subsistence for millions of delivery delivery drivers.
Despite the fact that technology has made it possible to have flexible work and income options, it has also brought up important considerations around whether or not these riders are afforded the safeguards that are provided by India’s labor laws.
Platform-based delivery workers were left in a category that was not clearly defined because traditional statutes were written for factory workers, office staff, and labor that was formally employed. The purpose of this essay is to assess the scope of legal covering for app-based delivery riders by analyzing important labour statutes, court pronouncements, and regulatory actions.
For More Updates & Regular Notes Join Our Whats App Group (https://chat.whatsapp.com/DkucckgAEJbCtXwXr2yIt0) and Telegram Group ( https://t.me/legalmaestroeducators ) contact@legalmaestros.com.
An Overview of the Gig Worker Model and Definitions of Labour Law
Statutory duties, such as minimum salaries, social security contributions, and dispute resolution systems, are triggered in conventional employment when there is a clear link between the employer and the employee.
On the other hand, delivery platforms employ riders in the capacity of independent contractors. Riders agree to sign standard form agreements that provide them access to the app in exchange for a commission on fares.
They have the ability to work for competing apps at the same time, the ability to select when to log on, and the ability to take orders. Because of their autonomy, they are distinguished from employees in accordance with labor legislation. Nevertheless, the platforms continue to exercise a significant amount of control by means of performance evaluations, deactivation regulations, and algorithmic management, which has the effect of blurring the line between employee and contractor.
For More Updates & Regular Notes Join Our Whats App Group (https://chat.whatsapp.com/DkucckgAEJbCtXwXr2yIt0) and Telegram Group ( https://t.me/legalmaestroeducators )
Coverage through the provisions of the Social Security Code
These social security provisions for employees and unorganized workers are consolidated in the Code on Social Security, which will be implemented in 2020.
It defines “platform workers” as those who obtain labor through digital intermediaries, with the intention of introducing the category of “platform workers” inside the category of unorganized workers. In accordance with the law, state governments are required to provide unorganized and platform workers with information regarding various welfare programs, including health insurance, maternity benefits, pensions, and other benefits. Regardless of this, the Code has not yet been completely put into effect.
Because there has been no central notification, app-based riders have not been officially brought into a social security plan that has been alerted. Consequently, despite the fact that the statute acknowledges platform workers as being entitled to protection, riders do not yet have access to these benefits in actuality.
Instances in which the Minimum Wages and the Code on Wages are applicable
The objective of the Code on salaries, 2019, is to guarantee that all workers, regardless of classification, are paid at least the minimum wage and that their salaries are paid on time. It eliminates previous legislation and broadens the scope of coverage to include all establishments and workers, including those who are employed through independent contractors.
Theoretically, platform workers ought to be entitled to at least the minimum wage that is relevant in their region for the amount of time that they spend providing the service. On the other hand, the application of the piece-rate payment model by delivery apps makes salary calculations more difficult.
When averaged over the number of hours that employees are actively working, platforms contend that payouts per order already surpass the regulatory minimums. Due to the fact that enforcement organizations have difficulty establishing the number of hours worked and the real profits, riders have few options available to them.
The Mechanisms for Resolving Industrial Conflicts and Disputes
Within the context of industrial establishments, the Industrial Disputes Act of 1947 is the legislation that governs collective disputes, layoffs, and retrenchment procedures for “workmen.” Because gig workers are not considered employees and because the platforms do not meet the concept of “industry” according to the Act’s criteria, gig workers are often not included in its scope.
As a consequence of this, delivery riders are unable to file a complaint with the labor courts under this Act in the event that they are subjected to unfair practices, wrongful termination, or salary disputes.
Internal grievance redressal cells are offered by some platforms; however, these cells do not possess the authority and transparency that are associated with statutory dispute forums. Riders are forced to rely on consumer courts or arbitration clauses that are embedded in their agreements because there is no formal dispute resolution route available to them.
IFAT v. Union of India Constitutes a Landmark Litigation
A coalition of more than 35,000 app-based transport and delivery workers submitted a writ petition to the Supreme Court in September 2021, requesting recognition as “unorganized workers” under the Unorganized Workers’ Social Security Act, which was passed in 2008. They demanded that the Constitution be amended to include provisions for social security payments, minimum wages, and other essential rights.
As a result of this case, which is more widely known as the IFAT petition, the predicament of gig workers has been brought to light, and the government has been put under pressure to apply the Code on Social Security.
It is important to note that the Supreme Court has not yet made a final ruling, despite the fact that it has issued notices and expressed concern over delayed policy action. As the litigation continues to be pending, it serves as a metaphor of the fight that delivery riders are going through to acquire rights under the existing labor laws.
Reforms and Experiments in the State Legislature
There are a few states in India that have taken the initiative to pass forward new legislation to protect platform workers. The Platform Based Gig Workers Welfare Act was passed into law in the state of Rajasthan in the year 2023. Aggregators are required to make contributions to a welfare fund for gig workers, which will include health care, accident insurance, and skill development.
This law mandates that these contributions be made. According to this regulation, platforms are required to register riders, show their identification cards, and provide methods for the resolution of grievances at the district level. Despite the fact that they are only applicable in one state, these reforms serve as an example of how legislative rights can be extended to delivery passengers. As it is being implemented, other states are observing it in order to consider taking similar actions.
Difficulties in the Enforcement and Implementation of the Law
The protection of delivery riders is hindered by a number of obstacles, despite the fact that legislative progress has been made. To begin, the classification dispute between contractors and employees has not been addressed, which provides platforms with the ability to build interaction models that circumvent legal duties.
Secondly, the lack of transparency in data makes it difficult for authorities to determine whether or not minimum wage and social security rules are being followed. As a result of platforms maintaining proprietary algorithms and confidential performance measures, it is impossible for authorities to conduct audits of working conditions. The third issue is that riders themselves are frequently unaware of their rights, and the fear of being deactivated discourages them from voicing their complaints.
It is vital to conduct awareness campaigns, strengthen labor inspections, and mandate transparency of algorithmic judgments in order to overcome these difficulties by strengthening labor inspections.
Comparative Perspectives and International Developments
Protections for gig workers have been a contentious issue for lawmakers and courts around the world. The Supreme Court of the United Kingdom has decided that drivers for ride-hailing services are considered “workers” and are therefore entitled to minimum wage and holiday pay.
There is currently a directive being discussed inside the European Union that would guarantee fundamental rights to platform workers across all member states. In certain places around the United States, delivery apps are required to recognize riders as employees for the purposes of setting wages and providing benefits.
The experience of India demonstrates a convergence towards acknowledging platform workers; nevertheless, it also underscores the challenge of adjusting labor rules that have been in place for over a century to digital economy. Lessons learned from comparisons highlight the importance of having clear definitions, rules that are enforceable, and a compromise between flexibility and flexibility for both platforms and workers.
The Path That Lies Ahead
It is important to take a number of steps in order to guarantee that delivery riders are subject to meaningful coverage under labor rules. In accordance with the Code on Social Security, both the central government and the state governments are obligated to immediately notify social security programs, which must specifically include platform workers.
In order to clarify salary calculations for piece-rate employment and to enforce transparency in algorithmic management, the Ministry of Labour ought to develop rules. An impetus that is desperately required will be provided by the identification of riders by the judiciary as unorganized workers who are entitled to statutory benefits. In addition, platforms must to be proactive in adopting best practices, such as providing regular health insurance, death-in-service benefits, and tiredness management methods.
It is possible for the sector to be transformed into a model that is more equitable and sustainable with the collaboration of governments, platforms, worker collectives, and civil society participants.
Within the framework of Indian labor law, delivery drivers for Zomato, Swiggy, and Blinkit are considered to be in a liminal region. Despite the fact that laws such as the Code on Social Security and the Code on Wages have provisions for the protection of platform workers, the actual execution of these provisions is still in its infancy.
However, major policy action and enforcement are required. Although landmark litigation and pioneering state laws give optimism, there is still a need for these. Not only would the recognition of delivery riders as workers who are entitled to social security, minimum wages, and dispute resolution rights protect livelihoods, but it will also legitimize a sector of the modern labor that is exceptionally important.
While India is embracing digital platforms, it is both a legal obligation and a moral imperative to make certain that gig labor continues to be based on rights and is conducted in a respectful manner.
