The growth of the gig economy in India is propelled by the increased reliance on quick commerce, e-marketplaces and taxi aggregators. This has led to the demand for legislation to ensure social security benefits for gig and digital platform-based workers, such as the enactment in Rajasthan in 2023 and more recently in Karnataka and Bihar. Jharkhand’s legislative assembly passed a bill on the matter in August 2025, and the Telangana government released a draft bill earlier in the year.
Agrima Awasthi
Counsel
Wadhwa Law Offices
Before these states took action, the Code on Social Security, 2020 (the SS code), was enacted by the central legislature. Once it is brought into force, it will require the establishment of a central social security fund for gig and platform workers. The fund will support schemes providing life and disability cover, accident insurance, health and maternity benefits, old age protection and crèche facilities. The National Social Security Board will recommend and monitor schemes administered by the union government. SS code attempts to distinguish the provisions for workers in the unorganised sector and for gig and platform workers, however, these categories overlap in practice and the implementation of the schemes may be challenging.
While the SS code is yet to be implemented, state governments are introducing their own measures to protect gig and platform workers. These state-level laws aim to set up state-specific boards to recommend, implement and monitor welfare schemes. The schemes will be funded through welfare fees to be collected from aggregators and online platforms engaging the workers (collectively, aggregators). Workers and aggregators must register with such boards. Workers will then be eligible for social security schemes based on the contributions made by them and a minimum amount of gig work undertaken.
Shivanshu Sharma
Senior associate
Wadhwa Law Offices
Some state laws require aggregators to enter into fair contracts with gig workers, which must be transparent, in simple language and include fair standards of payments, deductions, incentives and calculations of work done. In Karnataka and Bihar, contracts must give workers the right to refuse the tasks offered. Changes to the terms of engagement will have to be communicated in advance. Under the Bihar legislation, workers will be entitled to terminate the contract upon change of terms, and the government may review draft contracts to determine whether they are fair in nature. Aggregators will have to ensure that their automated monitoring and decision-making systems do not lead to discrimination.
The proposed laws also contemplate reasonable working conditions. These include working environments that are safe and do not pose threats to workers’ health. Workers must have adequate rest during the workday and access to sanitary and rest facilities within easy reach.
Prachi Shreyskar
Associate
Wadhwa Law Offices
To further transparency, suspension or termination of the engagement will be permitted only after a written notice giving valid reasons for it is issued, and principles of natural justice are adhered to. Some states specify an exhaustive list of grounds to be set out in the contract. Deductions from payments may be made only for valid reasons as well.
Other countries are also increasing the regulation of gig and platform workers. In the UK, Uber drivers have been classified as “workers”, entitling them to benefits such as minimum wages and paid holidays. In the US, gig workers are generally classified as independent contractors. However, some US states have introduced minimum wage levels for app-based delivery workers. Labour laws in India distinguish between employees, who are entitled to a broader set of protections, and independent contractors, who are afforded limited safeguards. However, given the increased protection under the upcoming laws, we may be looking at claims of permanency from gig workers in the future.
Industry bodies continue to drive for a balance between operational costs and feasibility, and the welfare of gig and platform workers. A challenge to the distinction between gig and platform workers, and unorganised workers is pending before the Supreme Court in Indian Federation of App-Based Transport Workers v Union of India. The manner of implementing schemes at the central and state levels continues to remain unclear beyond the limited input from the statutes themselves.
Agrima Awasthi is a counsel, Shivanshu Sharma is a senior associate and Prachi Shreyskar is an associate at Wadhwa Law Offices
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