India’s Refusal to Uphold a Global Gig Work Law

Subject: Economy

Why in News?

• On 12 June 2026, the International Labour Conference (Geneva) adopted ILO Convention No. 193 – “Decent Work in the Platform Economy.”
• It is the first legally binding international treaty specifically aimed at protecting gig and platform workers.
• The Convention was adopted by 406 votes in favour, 8 against, and 36 abstentions.
• India abstained from voting, although its employer and worker representatives voted in favour; only the Government representative abstained.

What is ILO Convention No. 193?

ILO Convention No. 193 establishes global minimum labour standards for workers engaged through digital platforms such as ride-hailing, food delivery, freelance, and online service platforms.

Objective

• Ensure decent work, fair wages, social protection, and transparency in the platform economy.

Key Provisions of ILO Convention No. 193

1. Universal Labour Protection

The Convention extends labour rights to all platform workers irrespective of whether they are classified as:

• Employees
• Independent contractors
• Partners
• Self-employed workers

Classification depends on the actual nature of work, not contractual terminology.

2. Fair and Timely Remuneration

Platform workers are entitled to:

• Statutory or negotiated minimum wages.
• Timely payment of wages.
• Protection against unfair deductions.

3. Occupational Safety and Social Security

The Convention requires countries to provide:

• Occupational Safety and Health (OSH) protection.
• Social security benefits comparable to those available to other workers, including:
  • Accident insurance
  • Health benefits
  • Pension
  • Maternity protection
  • Income security

4. Regulation of Algorithmic Management

Digital platforms must:

• Disclose significant automated decisions affecting workers.
• Provide written explanations for algorithm-based decisions.
• Ensure meaningful human oversight in decision-making.
• Prevent arbitrary deactivation and unfair allocation of work.

5. Worker Classification

Governments must determine employment status based on:

• The real nature of the work performed, rather than contractual labels used by digital platforms.

Status of Gig Workers in India

According to NITI Aayog:

• Gig workers (2020–21): 7.7 million
• Projected by 2029–30: 23.5 million (2.35 crore)
• Expected to constitute 6.7% of the non-agricultural workforce

Income Distribution

• 39% earn between ₹10,000–₹25,000 per month
• 34% earn ₹25,000–₹40,000 per month
• Only 15% have access to any form of social security

Major Challenges

Most gig workers lack:

• Accident insurance
• Paid leave
• Pension
• Employment security
• Health protection

India’s Existing Legal Framework

Code on Social Security, 2020

The Code formally recognises:

• Gig workers
• Platform workers

Key Provision

Aggregators are required to contribute 1–2% of their annual turnover (subject to prescribed limits) towards a Social Security Fund.

Implementation Challenges

• Welfare schemes remain largely unimplemented.
• Eligibility criteria and benefits are not clearly specified.
• Social security mechanisms are yet to become fully operational.

State-Level Initiatives

Several States have taken independent steps to regulate gig work.

Rajasthan

• Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023
• Establishes welfare mechanisms and grievance redressal.

Karnataka

• Proposal for a dedicated welfare board for gig workers.

Telangana

• Proposed welfare framework for platform workers.

These initiatives reflect increasing sub-national efforts to protect gig workers.

India and ILO Conventions

• India is a founding member of the International Labour Organization (ILO).
• India has ratified 6 of the 8 Core ILO Conventions.

Conventions Yet to be Ratified

• Convention No. 87 – Freedom of Association
• Convention No. 98 – Right to Organise and Collective Bargaining

India has also not ratified:

• Convention No. 190 – Violence and Harassment at Work

India’s Approach

India generally ratifies ILO Conventions only after ensuring that domestic laws are fully aligned with their provisions.

Why Did India Abstain?

Although no official reason was formally stated, India’s likely concerns include:

• Existing domestic laws may not fully conform to Convention No. 193.
• Legal implications of recognising gig workers as employees.
• Increased compliance costs for digital platforms.
• Need for further policy consultations and legislative reforms.

Concerns Arising from India’s Abstention

1. Delay in Adoption of Global Labour Standards

Gig workers may continue to remain outside internationally recognised labour protections.

2. Legal Uncertainty

Employment status of gig workers remains unclear, affecting:

• Labour rights
• Social security
• Industrial dispute resolution

3. Lack of Algorithmic Transparency

Workers remain vulnerable to:

• Arbitrary deactivation
• Opaque wage calculations
• Unfair work allocation

4. Weak Social Security

Despite legal recognition, effective implementation of welfare provisions remains inadequate.

Way Forward

• Operationalise the Code on Social Security, 2020 through notified welfare schemes.
• Establish universal social security coverage for gig and platform workers.
• Introduce transparency and accountability in algorithmic management.
• Define employment relationships based on the actual nature of work rather than contractual labels.
• Strengthen Centre–State coordination to ensure uniform protection across India.
• Gradually align domestic labour laws with evolving international labour standards.

UPSC Mains Question

“The rapid expansion of the gig economy has exposed gaps in traditional labour protection frameworks. In the light of India’s abstention from ILO Convention No. 193, examine the challenges faced by gig workers and suggest measures to ensure decent work in the platform economy.” (250 words)