Abstract

The increase in artificial intelligence and automation is reshaping the global labour market with increased informal employment and destabilizing conventional social security systems. The AI based automation of labour not only threatens jobs but also alters employment patterns, a factor that, in combination with the spread of precarious work arrangements, especially through the gig economy, will undermine better quality employment. According to many critics, workers on short-term contracts or freelance work through digital platforms are often saddled with insufficient social protection, combined with insecure employment and algorithmic management practices that degrade working conditions. This trend has particularly crucial implications for developing countries like India, where about 90% of the employed work in informal employment. Most of these people are deprived of core social security benefits, including access to healthcare, pensions, and protection against unemployment. The growth of the informal sector through AI fuels economic inequality, exposing more vulnerable workers to poverty and social exclusion. In regards to these challenges, the ILO suggests policies that upgrade workers from informal to formal employment and extend social security coverage of all workers. In addition, reskilling and upskilling programs are undertaken by introduction of four labour codes amongst them the Social Security Code, 2020 does mentions about social security but it still there is difficulties in recognizing the different aspects of informal employment. Recently, the Central Government has taken steps by announcing the formation of a social security panels of experts to develop a framework for gig workers, along with the creation of a national portal, e-Shram, to register informal workers. This article explores the evolving definition of informal sector and examines how the changing dimensions of social security which can provide better protection to all workers in this rapidly changing employment landscape

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