Sep 17, 2024 09:53 AM IST
HT first reported on this and other proposed plans of the labour ministry to extend social-security schemes to workers of the gig economy on September 11
New Delhi: The Union labour ministry has asked technology-based platforms and aggregators to get all gig workers engaged by them to register on the e-Shram portal, a centralised database, which will make them (the workers) eligible for publicly funded social-security benefits, according to details reviewed by HT.
The government has issued an advisory containing a set of standard-operating procedures, outlining aggregators’ responsibilities in registering the country’s estimated 7.7 million gig workers on the portal that caters to the informal workforce, including registration.
The drive will be rolled out on the government’s 100th day in office, September 17. HT first reported on this and other proposed plans of the labour ministry to extend social-security schemes to workers of the gig economy on September 11.
After enrolment, gig workers will receive a universal account number or UAN, which serves as a social-security code with which registered members can access facilities such as health and accident insurance.
This is in line with the Social Security Code passed by Parliament in 2020, which hasn’t been implemented because the rules are yet to be framed by all states. The Modi government in its previous tenure had passed four labour codes during 2019-2020 , which consolidated 29 labour laws to boost jobs and extend ease of doing business.
Before finalising the plan, the labour ministry ran trials in partnerships with a few aggregators to register gig workers. The basic process requires platforms to log in to the portal with a one-time password.
Gig firms need to then provide details such as annual turnover, number of workers engaged, tax details and company registration number in a certain format. This opens up the process for workers’ registration.
The e-Shram portal, which currently has 300 million registered workers enrolled, is a single unified platform through which all schemes administered by central and state government for the informal workforce can be accessed.
“Considering millions of workforce are now joining the platform economy, the ministry of labour and employment government…is in the process onboarding aggregators on e-Shram as well as registration of platform workers on the portal,” the advisory sent out to firms stated.
A “foremost and immediate requirement” is that aggregators onboard themselves and workers engaged by them, the advisory said. An official the ministry has set up a toll-free helpline number (14434) to assist gig firms enroll themselves.
“It is a step in the right direction and we welcome the government’s decision,” a spokesperson for Urban Company, an app-based home services firm said.
Globally, gig platforms tend to not view themselves as traditional employers. These app-driven service providers describe workers as partners, which then has implications for what kind of labour regulations they are required to follow.
India’s gig economy is rapidly expanding but most workers are undocumented and not covered by any welfare programme.
According to the Economic Survey 2023-24, the gig workforce in Asia’s third-largest economy will reach 23.5 million workers by 2029-39, roughly three times the estimated 7.7 million in 2020-21.
“Any social benefits are welcome, but there are also concerns over the definition of employee-employer relationships in the gig sector, wages and working hours,” said Sunand, who goes by one name, who is leader of the All-India Gig Workers’ Union and the Centre for Indian Trade Unions.
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