What’s the news?

• The Rajasthan government introduced the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, aiming to ensure social security for gig workers.

Central idea

• While the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, demonstrates commendable intentions and includes noteworthy provisions, critical concerns arise that might undermine its effectiveness. There are four major issues that could potentially limit the scope and impact of the bill.

Key Features of the Bill

• Applicability: The bill covers both aggregators and primary employers engaging platform-based workers.
• Formation of a Welfare Board: A Welfare Board will be established, chaired by the Labor Department’s minister, to oversee welfare measures for gig workers.
• Registration and Unique ID: Gig workers and aggregators will be registered, and gig workers will receive a unique ID for streamlined welfare access.
• Social Security and Welfare Fund: A dedicated fund will offer social security benefits to registered gig workers.
• Welfare Fee Deduction: Aggregators will contribute through a welfare fee deducted from transactions.
• Access to Benefits: Gig workers will gain access to state-formulated social security benefits, including insurance.
• Grievance Redressal: A mechanism for addressing worker grievances will be in place.
• Representation: Gig workers will have representation on the Welfare Board for decision-making.
• Compliance and Fines: Aggregators must comply, with fines for non-compliance.

Four major issues that could potentially limit the scope and impact of the bill

1: Definitional Ambiguity

• Definitions from the Bill and their Implications:

• The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, introduces definitions for gig worker and aggregator derived from the Code on Social Security, 2020.
• The definitions are intended to clarify the roles and relationships of gig workers and aggregators within the gig economy.

• Definitions of gig worker and aggregator:

• The bill defines a gig worker as an individual engaged in work outside the traditional employee-employer paradigm, earning from such activities, and operating under a predetermined payment rate contract.
• An aggregator is described as a digital intermediary that facilitates collaborations between aggregators, enabling service provision.

• Ambiguity in Determining the Aggregator’s Status:

• The definitions’ lack of precision in categorizing aggregators as employers creates uncertainty.
• The absence of explicit language binding aggregators to the role of employers leads to interpretational ambiguity.

• Implications of Definitional Vagueness:

• The vagueness could potentially result in gig workers being seen as self-employed or independent contractors rather than employees by aggregators.
• This vagueness contrasts with global best practices and sets the stage for the subsequent issue.

• Global Context and Significance:

• The debate over classifying gig workers and aggregators as employees or employers has global implications.
• The ABC Test in California’s labor code highlights the importance of clear classification, while the UK Supreme Court’s ruling in 2021 regarding Uber drivers further highlights the significance of accurate classification, underscoring that they are workers, not self-employed.

• Contrast with global practices:

• The Rajasthan Bill’s vague definitions deviate from global best practices, raising concerns about the subsequent challenges.

2: Integration with Labor Laws and Workplace Entitlements

• Classification of Gig Workers and Impact on Labor Laws:

• The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, does not classify gig workers as employees.
• The absence of employee classification poses challenges in integrating the bill with established labor law frameworks.

• Challenges in Compliance and Workplace Rights:

• Non-classification could allow aggregators to bypass labor law mandates, potentially undermining gig workers’ workplace rights.
• Gig workers might be denied rights granted to employees, such as minimum wages and fair working conditions.

• Exclusion from entitlements and Fairwork India ratings:

• The bill’s provisions may unintentionally exclude gig workers from essential entitlements, potentially impacting their well-being.
• Fairwork India ratings in 2022 highlighted poor worker welfare practices among prominent platforms.

• Accountability for workplace accidents

• The question arises: If gig workers are not designated as employees, to what extent can aggregators be held accountable for workplace accident expenses?
• Some Indian platforms have addressed this issue, but relying on aggregators’ goodwill risks converting entitlements into benevolence.

• Contrast with Australia and New Zealand’s Approach:

• Australia and New Zealand’s focus on a person conducting a business or undertaking (PCBU) and worker well-being highlights an alternative approach to workplace rights.

3: Duration of the Database and Implications for Gig Workers

• Database Creation and Durational Concerns:

• The bill’s third issue concerns the creation of a gig worker database transferred to the gig workers’ welfare board.
• A concern arises from the registration’s perpetual validity, irrespective of workers’ ongoing engagement with app-based platforms.

• Obstacle to Perpetual Registration:

• The well-intended perpetual registration concept could inadvertently hinder gig workers’ flexibility.
• Gig workers often work with multiple aggregators in a single day, leading to concerns about registration’s impact on choices.

• Potential influence on choices and mechanisms:

• Mandatory registration might enable aggregators to learn about workers’ engagements with various platforms, possibly influencing their choices.
• The bill lacks preventive mechanisms to address this potential influence.

4: Deficiencies in Social Security Provisions

• Social Security and Welfare Board Establishment:

• The bill’s fourth issue revolves around its core goal of providing social security to platform-based gig workers through a welfare board and fund.
• Eight aggregators are brought under the bill’s jurisdiction, but it lacks explicit definitions of social security and welfare measures.

• Discretionary Nature of Social Security Provisions:

• The bill delegated the responsibility of defining social security measures to the welfare board’s discretion.
• This lack of specificity raises concerns about the comprehensiveness and effectiveness of the proposed social security provisions.

• Lack of explicit definitions and ambiguity:

• The absence of clear definitions for social security leaves room for interpretation and may affect the welfare board’s decision-making process.

• Influence dynamics within the Welfare Board:

• While the welfare board includes gig worker representatives, the dominance of powerful representatives from platforms, bureaucracy, and the government raises questions about the extent of worker influence.

Way forward

• Refine Definitions: Clarify gig worker and aggregator definitions based on global standards to prevent ambiguity in their roles.
• Employee Classification: Clearly categorize gig workers as employees to grant them labor protections and rights.
• Database Management: Implement a periodic registration renewal system to accommodate gig workers’ changing engagements.
• Preventive Measures: Introduce safeguards to prevent aggregators from exploiting registration data to influence gig workers’ choices.
• Social Security Definition: Define the scope of social security and outline welfare measures to ensure comprehensive coverage.
• Enhanced Worker Representation: Strengthen the influence of gig worker representatives on the welfare board.
• Stakeholder Consultation: Collaborate with gig workers, aggregators, experts, and labor organizations for a well-rounded regulatory framework.

Conclusion

• In conclusion, while the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, demonstrates a commendable commitment to gig workers’ welfare, it is beset with critical flaws. Addressing the issues and aligning with global best practices will be crucial for the Bill to achieve its intended objectives and provide genuine social security to platform-based gig workers.

Also read:

What does India’s first gig workers’ rights Bill stipulate?

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