Context

• The Code on Social Security Bill, 2020, for the first time in Indian law, attempted to define ‘platform work’ outside of the traditional employment category. 

What are Platform works?

• According to Code on Social Security Bill,2020 Platform work means a work arrangement outside of a traditional employer-employee relationship in which organisations or individuals use an online platform to access other organisations or individuals.
• It solves specific problems or provides specific services or any such other activities which may be notified by the Central Government, in exchange for payment.

Significance of platform workers

• Platform workers were responsible for delivery of essential services during the pandemic at great personal risk to themselves. 
• They have also been responsible for keeping platform companies afloat despite the pandemic-induced financial crisis. 
• This has cemented their role as public infrastructures who also sustain demand-driven aggregators. 
• The dependence of companies on platform workers merits a jointly assumed responsibility by public and private institutions to deliver welfare measures.

What is the issue?

• While the long overdue move to recognise platform work has been made, the Code has drawn criticism from platform workers associations.

Criticism

Failing to differentiate

• Failing to delineate it from gig work and unorganised work is an issue.
• A categorical clarification could ensure that social security measures are provided to workers without compromising the qualities of platform work: flexibility and a sense of ownership.

Misclassification of platform workers 

• The misclassification of platform workers as ‘independent contractors’ instead of granting employee status to platform workers which guarantees minimum wage and welfare benefits.

Flexibility of the platform

• Platform work promises workers flexibility and ownership over delivery of work, but they are still largely dictated by mechanisms of control which affects pricing per unit of work, allocation of work, and hours. 
• To enter the platform economy, workers rely on intensive loan schemes, often facilitated by platform aggregator companies. This results in dependence on platform companies, driven by financial obligations, thus reducing flexibility.

Undefined responsibility

• The Code states the provision of basic welfare measures as a joint responsibility of the Central government, platform aggregators, and workers. However, it does not state which stakeholder is responsible for delivering what quantum of welfare. 

Way forward

• Tripartite effort

To mitigate operational breakdowns in providing welfare services, a tripartite effort by the State, companies, and workers to identify where workers fall on the spectrum of flexibility and dependence on platform companies is critical.

• Socio legal acknowledgement

A way forward for platform workers is through a socio-legal acknowledgement of the heterogeneity of work in the gig economy, and the ascription of joint accountability to the State and platform companies for the delivery of social services.

Reference:

1. https://www.thehindu.com/opinion/op-ed/a-secure-future-for-platform-workers/article32998179.ece