THE EFFICIENCY OF CODE ON WAGES, 2019  IN GUARANTEEING MINIMUM WAGES TO GIG WORKERS

AUTHOR –  MAHATHI SIVARAJ, STUDENT AT CHRIST (DEEMED TO BE UNIVERSITY)

BEST CITATION – MAHATHI SIVARAJ, THE EFFICIENCY OF CODE ON WAGES, 2019  IN GUARANTEEING MINIMUM WAGES TO GIG WORKERS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (1) OF 2024, PG. 415-420, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The impact of COVID-19 pandemic brought out the importance of gig economy workers, especially online workers, in the Indian economy, and the pandemic also highlighted the troubles faced by them. During the pandemic the freelance platform workers played a major role in providing various essential economic services preventing the economy from being slow. However, there is little to no express legal regulations regarding the provision of social protection to gig workers especially with regard to guaranteeing minimum wages and grounds of classification of gig workers of the same purpose. The paper makes use of a qualitative approach, by analysis of various existing literature, legislations in power, and also cases adjudicated, to analyse the current existing definition of gig workers and the protections awarded to them in their various sectors. It is concluded that ambiguity regarding the inclusion of gig workers in the definition of ‘employee’ under the Code on Wages prevail and that would cause the inevitable loss of benefits to gig workers. Further ambiguity was noticed in the definitions given by the Courts through their interpretation where certain precedents consider certain groups of gig workers as ‘contractual labourers’ and a certain other group as traditional employees. In conclusion, the Code on Wages can be viewed as an opportunity provided to expand the definition of ‘employee’ under the act, and therefore  the paper recommends that the Code on Wages, 2019 needs to be amended to include a definition of gig workers, understanding the need and design equitable schemes for all groups of gig workers rather than considering these groups to be a part of ‘traditional workers’, ‘contractual labour’, and ‘independent contractors. This would enable them to receive fair and equal remuneration as per the provisions of the act. 

Keywords: gig economy; gig workers; minimum wages; Code on Wages, 2019; social protection