Defined Gig Workers, Set To Make Welfare Fund For Them: Union Labour Ministry

The central government has defined gig workers, whereas a welfare fund for them and platform workers is in its formative stages currently as contributions will be sought from the related companies for the purpose as well.

Gig workers are recognised as a new occupational category, one which does not have a traditional employer-employee relationship, according to the Code on Social Security.

“It defines the gig worker as a person who performs work or participates in work arrangement and earns from such activities, outside of the traditional employer-employee relationship,” the Union Labour Ministry told the Parliament on Monday, Moneycontrol reports.

Similarly, a platform worker has been defined as an individual engaged in or undertaking platform work.

However, it has been clarified that the code that makes way for several welfare benefits for gig and platform workers does not recognise the gig economy.

“The code envisages various benefits for gig workers, including life and disability cover, accident insurance, health and maternity, old age protection, creche and other benefits,” the ministry reaffirmed its plans for the newly-emerged class of workers.

The Code on Wages, 2019 that has provisions for a universal minimum wage and a floor wage for both organised and unorganised sectors, will be referred to the payment of wages to the gig and platform workers.

It, however, requires the government to fix the applicable floor wage across both the central and state spheres.