Introduction

The Karnataka government’s intent to introduce legislation for the welfare of gig workers is a necessary and welcome development. This legislation addresses the three significant myths perpetuated by the gig and platform industry, providing a much-needed framework for protecting gig workers’ rights and welfare.

Debunking Myths of Gig Work

Independence and Autonomy

• One of the primary myths propagated by aggregators is that gig workers are independent and autonomous, often referred to as “partners” or “captains.”
• This notion has attracted many, particularly the young, to platform-based gigs under the illusion of being their own boss.
• However, the reality is starkly different. Gig workers are subjected to an algorithm that dictates their working hours, order deliveries, cancellation policies, rating scores, and even the terms of their employment.
• The Indian Federation of App-based Transport Workers aptly described the situation: “Gig workers spend hours trying to guess what the algorithm is doing, and it feels like they are a rat in a maze.”
• The Karnataka Bill recognizes the pervasive control exerted by these algorithms and mandates aggregators to share the parameters used for work allocation, denial of work, categorization of workers, and the use of personal data.
• This transparency allows workers to reclaim some control over their work lives, countering the myth of independence.

Flexibility

• Another myth is the purported flexibility of gig work. This claim has been used to deny gig workers the protections afforded by labor laws.
• Studies have shown that true flexibility exists only for the employer, not the worker.
• The payment structures, filled with incentive schemes necessary to earn a living, eliminate any real flexibility for workers. For example, workers must comply with mandatory login hours to qualify for incentives. Any gap in activity leads to disadvantageous rate cards and incentive schemes.
• Karnataka’s draft Bill introduces provisions for fair contracts, income security, and the right to refuse work without sanctions.
• These measures bolster the position of gig workers who, paradoxically, are neither treated as employees nor enjoy the freedom of independent contractors.

Part-time Work

• The third myth is that gig workers are part-time laborers supplementing their primary income.

However, a study by PAIGHAM and the University of Pennsylvania found that 96% of cab drivers and 90.7% of delivery workers in the platform economy depend entirely on gig work for their income.

• The average work hours exceed 11 hours per day for taxi drivers and 10 hours for delivery workers.
• Recognizing this reality, the Karnataka law mandates social security, providing a safety net for events such as old age, death, and health emergencies. This acknowledgment is a critical step in addressing the true nature of gig work.

India’s Legislative Landscape

• While the Government of India has shown support for platform workers’ rights at international forums like the G-20, its Code on Social Security fails to provide substantial protections, delinking gig workers from basic labor protections such as minimum wages, occupational safety, and health.
• State governments, however, are leading the way. Rajasthan was the first to pass relevant legislation, followed closely by Karnataka, with other states like Jharkhand, Tamil Nadu, Haryana, and Telangana following suit.
• This progressive move by Karnataka highlights the need for social security for gig workers to be financed not just by the state but also by private actors who benefit economically from their labor.
• While the Bill has room for improvement, particularly in areas like minimum wage, occupational safety, working hours, and collective bargaining rights, it marks a significant step forward.
• This legislation empowers workers to mobilize and advocate for more comprehensive protections.

The Broader Implications

• The proposed Bill by Karnataka sets a precedent that could reshape the landscape of gig work in India and beyond.
• By mandating transparency in algorithmic management, it tackles one of the core issues of modern labor in the gig economy—algorithmic control and surveillance.
• The Bill’s requirements for fair contracts and income security offer a model for how gig workers can be provided with the basic rights and protections that have long been denied.
• Moreover, the recognition of gig workers as a significant part of the workforce that requires social security measures could lead to broader reforms.
• This legislation encourages other states and potentially the central government to rethink their approach to labor laws concerning gig workers.
• If implemented effectively, it can serve as a catalyst for nationwide reforms, ensuring that gig workers are not left behind in the rapidly changing economic landscape.

Conclusion

Karnataka’s Bill for gig workers breaks away from the myths of independence, flexibility, and part-time work perpetuated by the gig economy. It establishes a framework for transparency, fairness, and social security, setting a precedent for other states to follow and paving the way for more robust labor protections in the gig economy.