Legal Recognition of Gig Workers as Employees: Implications for Overtime and Benefits

Change is growth. The work economy as we know it has gone through tremendous change due to technological advancements. The traditional employment classifications are challenged on an intrinsic level by the emergence of gig economy. With this new model of work system, there are pivotal economic and legal issues between workers right and emerging business models. It becomes pertinent to examine the legal, economic and social implications of giving gig workers their due recognition as employees, keeping special focus on overtime compensation and eligibility for other benefits. This generation of work-force is more focused on having a work life balance and the flexibility to work on their own terms. This need for independence is completed by gig economy through temporary work like food delivery, freelancers and contractors, etc. currently comprising of 15% of the total workforce in India. After the revolution brought about by Jio, with the increase in affordable Smartphone technology and internet access, platform based work has been on a steady rise in the diverse workforce in India. Gig economy is expected to grow up to 23.5 million workers by 202-30. Since this economy is tremendously growing this unorganized sector needs intervention. The Code on Social Security, 2020 is the first Indian legislation to formally give recognition to “gig workers” and “platform workers”. The study seeks to understand the relationship between the legal,, social and economic implications of gig worker classification and the subsequent challenges in including them into the formal traditional labor protections.