Contents:
- Ensuring a proper social safety net for the gig worker
- Turning to the east
Ensuring a Proper Social Safety Net for the Gig Workers
Context: The Union Ministry of Labour and Employment is developing a national law to provide social security benefits to gig workers. This step is very significant as it extends benefits like health insurance, retirement savings, and paid leave to gig workers who contribute significantly to the Indian economy but lack traditional employment benefits.
Relevance: GS1 (Society), GS2 (Governance).
Practice question: Examine the challenges faced by gig workers in India in terms of social security and labour rights. How can the government address these issues to ensure fair treatment and protection for gig and platform workers? (250 words)
Definition :Gig workers are individuals who undertake short-term jobs or freelance work, usually through apps or platforms. Examples include Uber drivers, food delivery riders, or freelance designers.
Key Provisions of the Proposed Law :
- Social security fund aggregators should contribute 1%–2% of their revenue to a social security fund, which supports gig workers by providing essential benefits like health insurance.
- Welfare Board Model: Establishes a board to manage social security for gig workers.
- Mandatory Registration: Requires all gig workers to register on the e-Shram portal
- Termination Safeguards: Aggregators must give workers a 14-day notice before termination.
- Dispute Resolution: Providing opportunities for grievance redressal.
India’s Labour Codes and Gig workers :
The four labour codes in India are:
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health, and Working Conditions Code, 2020;
These four labour codes rationalised and simplified 29 central labour laws.
NITI Aayog estimates that the gig sector had 7.7 million workers in 2020 and got mention only in the Code on Social Security, 2020. Under the code, gig workers are considered part of the informal sector and miss out on institutional social security benefits. The code emphasised providing social security benefits, but it didn’t address fundamental confusion about gig workers employment status.
The Core Issue:
There is a lot of confusion in the employment relationship between gig workers and aggregators. Gig workers, classified as independent workers, miss out on institutional benefits like minimum wages, maternity leaves, and occupational safety standards as they were placed outside the traditional employer-employee relationship. Critics argue this classification is deliberate by aggregators to avoid compliance with labour laws.
For instance, formal sector employees receive 26 weeks of paid leave under the MaternityBenefit Act, 1961, while gig workers receive only cash benefits, indicating disparity.
The UK Uber Case:
The UK Supreme Court gave a verdict in 2021 regarding the same issue. The court classified Uber drivers as workers rather than independent contractors and Uber as their employer. This made Uber comply with labour laws of the land. This case highlights the need for a clear definition of employers and employees by including aggregators and gig workers, respectively, so that gig workers will enjoy the institutional benefits.
Path Forward
The proposed welfare board model will not yield much result without addressing the root issue, which is employment relationships. Aggregators should be recognised as employers and gig workers as employees. Doing so will reduce unnecessary efforts to duplicate laws.
Conclusion
The anticipated legislation from the labour ministry is a great step towards ensuring welfare of gig workers. However, key moves will remain in defining employment relationships. Addressing this issue will result in inclusive development by not leaving gig workers behind.
Turning to the east
Changing geopolitical dynamics in East Asia provide both challenges and opportunities for India. The recent visit of India’s prime minister to ASEAN and East Asia summits indicates growing India’s importance in the region. As global conflicts intensifies and threats for stability increase, India’s “act East policy “is becoming increasingly significant for both regional and global stability.
Relevance: GS2 (International relations).
Practice question: Discuss the significance of India’s “Act East” policy in the evolving geopolitical landscape of Southeast Asia. How does India’s role in ASEAN and its economic and security
strategies impact regional stability and global power dynamics? (250 words)
Global and Regional Challenges :
- In 1990s, ASEAN thrived due to globalisation and economic cooperation with global powers. India, through its look-east policy in 1994, re-established ties with Southeast Asia.
- US-China rivalry is defining regional geopolitics now. ASEAN, which benefitted from their cooperation, is now forced to take sides between two powers.
- China’s increased aggression in the South China Sea has increased tensions in the region. ASEAN nations are face challenges balancing economic ties with China against growing security concerns in the region.
Example: Scarborough Shoal Stand-off (2012) between China and the Philippines
- ASEAN nations remain hesitant to fully align with the US Indo-Pacific strategy due to dependency on supply chain and economic relationships with China.
For example, ASEAN-China trade reached $1.1 trillion in 2024.
- Increasing disunity among ASEAN countries is a concern;
Ex: the Myanmar crisis since 2021 has become a major source of division among ASEAN nations.
Rising India’s prominence
- Under Prime Minister Modi’s Act East Policy 2014, India has shifted from passive observer to active participant in the region.
For example, the India-Myanmar-Thailand Trilateral Highway Project.
- India’s membership in the Quad (with the US, Japan, and Australia) has strengthened its position in the Indo-Pacific region.
- India’s stance against China’s territorial expansion in the South China Sea and India’s emphasis on international law like UNCLOS reflect India’s concern for regional stability.
- India has increased its military cooperation with Southeast Asian nations.
For example, by providing BrahMos missile systems to the Philippines in 2022.
- India-ASEAN trade has doubled over the last decade, reaching $131 billion in 2023, but India faces a $38.5 billion trade deficit with ASEAN.
Economic challenges and opportunities
- India’s protectionist stance: India’s withdrawal from RCEP in 2019 over concerns about China’s dominance highlights its protectionist stance.
- India’s trade integration with Asia may face obstacles like regulatory challenges and inward-looking trade policies.
- There is ample scope for collaboration in sectors like digital trade, fintech, and renewable energy where ASAN is technologically advanced.
Conclusion
India should balance its economic and security interests in the region. Including addressing the rising trade deficit with ASEAN and the need for better economic and security strategies. Addressing these issues along with India’s Act East policy can shape the future of the Indo-Pacific region.
