Beyond the App and Algorithm: Rights of the Gig Worker

Introduction : Although the gig economy generated flexible employment opportunities, it exposed serious gaps in India’s labour law framework, including its minimum wage guarantees, even after working long hours, the benefit of a provident fund, health insurance, job security, or effective grievance resolution mechanisms.

From Delivery Streets to Parliamentary Debate

On the 5th Day of December, 2025, Raghav Chadha thuds ‘10-Minute Delivery Culture’ and highlights the stark truths faced by app-based workers. During the winter session of Parliament, Raghav, in his parliamentary speech, called attention to the lagging conditions of the Gig workers despite their major input to India’s digital economy. He calls them the invisible wheels of the Indian economy. He pointed out that the startups or Instant delivery companies for which they are working have received a million-dollar evaluation or have become a unicorn, but the condition of the gig workers is unacceptable.

Rajya Sabha MP Raghav Chadha criticised the pressure and threat of instant delivery placed on the delivery boy, the delay in deliveries, risking his life due to overspeeds, customers' irritation, ratings-related issues, and dangerous working conditions irrespective of weather or temperature.

He also asserted that the condition of such workers is even worse than that of factory labourers because, unlike them, gig workers don’t get permanent employment, humane working conditions or any insurance.

When Workers Become “Partners” Instead of Employees

So, the central controversies revolving around the gig economy are the manner in which these platforms designed their operation model to avoid traditional labour law obligations. Companies that operate through app-based systems classify their workers as “independent contractors” or “delivery partners” rather than employees. This type of classification enables platforms to distance themselves from responsibilities ordinarily imposed upon employers under labour legislation, including Industrial Disputes Act (1947), Factories Act (1948), and EPF Act (1952).

A distinction is drawn between a “contract for service” and a “contract of service.” In the former case, the master can order or require what is to be done, while in the latter case, he can not only order or require what is to be done but also dictate how it shall be done – discussed in Dharangadhara Chemical Works Ltd vs State Of Saurashtra on 23 November, 1956.

A contract of service generally reflects an employer-employee relationship in which the employer exercises significant supervision and control over the worker. In contrast, a contract for service refers to a systematic arrangement involving an independent contractor who provides services autonomously without being integrated into the employer’s organisational structure.

Platform companies consistently argue that workers possess flexibility regarding working hours, the manner of performance, and the acceptance of assignments. On this basis, platforms insist that gig workers are self-employed individuals and not employees within the ambit of labour law, and thus are not entitled to protections or Benefits of a workman.

However, the tangible realities of platform work exhibit the substantial control exercised by digital companies. Technological supervision through algorithms determines pricing, allocates tasks, keeps an eye on worker performance, imposes penalties, regulates incentives, and even suspends or deactivates workers from the platform, favoring the argument of substantial control by companies only.

The Code on Social Security: Recognition Without Real Protection?

Acknowledging the exponential growth of non-traditional employment structures, the legislature introduced the Code on Social Security, 2020, marking the first statutory validation of such “gig workers” and “platform workers” under Indian labour law. The Code defines a gig worker as, “a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship”.

Prima facie, this Legislative reform may appear progressive as it acknowledges the existence and contribution of millions of app-based workers and also envisages welfare schemes concerning life and disability cover, accident insurance, health benefits, and other social security measures for such workers.

However, despite this formal recognition, the framework fails to bring any effective or observable changes. The code neither determines the conclusive employment status of gig workers nor establishes the enforceable obligations upon such E-commerce platforms equivalent to those imposed upon traditional employers. Consequently, these workers continue to remain outside the protection and benefits of labour welfare legislation.

The Draft Social Security Code (Central) Rules, 2025: A New Hope?

Reconsidering the position of gig workers, the Central Government, on the 30^th day of December, 2025, introduced the Draft Social Security Code (Central) Rules, 2025, with the intention to extend welfare measures to such workers, including platform workers, and other unorganised labourers operating beyond conventional employment structures.

The draft Rules introduce several significant proposals for Gig Workers, and it marks a crucial first step towards recognition, social security, protection, and dignity for gig economy workers in India. 

The draft legally recognises the gig worker, setting aside the excuse of “Independent Contractor”. Further, it proposes a 90/120-day eligibility condition for social security. The proposal also provides for the registration of App-based workers on the Government Portal, and UAN, as well as a Digital ID will be given. Also, the companies will be legally bound to register the worker and to update and share the data with the government.

Apart from these measures, the draft also proposes to constitute a social security fund for the workers, which shall be maintained by the companies. The Establishment of the National Social Security Board is also intended, which shall frame welfare schemes for Gig workers.

Conclusion

The rise of the gig economy in India has undoubtedly transformed the labour landscape, but it has also exposed the deficiency of traditional labour laws in recognising and protecting Gig workers.

For millions of delivery partners, riders, drivers, and platform workers, the draft of 2025 is a long-awaited acknowledgement that gig work is real work. However, structural change will ultimately depend upon its effective implementation.

Author: Chenu Kumari in case of any queries please contact/write back to us via email to content@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.