Applicability of the new Labour Codes to gig and platform workers

Introduction

The four labour codes, namely (i) Code on Wages, 2019 (“Wages Code”); (ii) Industrial Relations Code, 2020 (“IR Code”); (iii) Occupational Safety, Health and Working Conditions Code, 2020 (“Safety Code”); and (iv) Code on Social Security, 2020 (“Social Security Code” and collectively, “New Labour Codes”) which were approved by the Indian Parliament in 2020 have been notified in the Official Gazette on November 21, 2025. While the IR Code and the Safety Code have been notified fully, the Wages Code and the Social Security Code have been only partially notified.

One of the most significant aspects of the New Labour Codes is the formal recognition of ‘gig’ and ‘platform’ workers. This note analyses the treatment of gig and platform workers in the New Labour Codes under the Social Security Code.

Definitions and applicability

Under the Social Security Code, a ‘gig worker’ has been defined as a person who “performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship”[1]. A ‘platform worker’ has been defined to mean a person engaged in or undertaking ‘platform work’ which is defined as “a work arrangement outside of a traditional employer-employee relationship in which organisations/ individuals use an online platform to access other organisations/ individuals to solve specific problems or to provide specific services in exchange for payment”[2].

Presently, the only labour code that concerns gig and platform workers is the Social Security Code since both these terms have been specifically defined only under the Social Security Code. Further, as ‘gig workers’ and ‘platform workers’ are defined separately from the more traditional categories of ‘employees’ and ‘workers’, they do not fall within the scope of the IR Code, the Safety Code, or the Wages Code. As a result, standard employer-employee entitlements, including but not limited to wages, leave, standing orders, health and safety obligations, retrenchment protections do not extend to gig and platform workers under the current regulatory framework.

The Social Security Code specifies that gig and platform workers will be eligible to receive various social security benefits such as life and disability cover, health and maternity benefits, old-age protection, creche facilities and other benefits as may be determined by the Government. However, since these social security benefits will ultimately emanate from schemes which have not yet been notified by the Government under relevant rules or notifications, in effect, these social security benefits will not be effective immediately. Rather, they will become operational once the Central Government notifies the appropriate rules dealing with these specific themes. Further, in view of the fact that labour is a subject on the Concurrent List, it is yet to be seen how the rules under the Social Security Code will be operationalised by different states.

The Social Security Code contemplates (subject to further specific notifications) the following social security benefits for gig and platform workers:

• Creation of a social security framework for gig and platform workers (Sections 109 and 114)

The Central and State Governments are empowered to frame welfare schemes providing life and disability cover, accident insurance, health and maternity benefits, old-age protection, education and any other welfare measures.

However, no scheme can be implemented until the Central or State Governments notify such schemes and prescribe the eligibility criteria for participating in these schemes, specify the nature and quantum of benefits, and lay down the funding and contribution structure and administrative mechanism for implementation of the scheme. The Government is yet to notify any welfare scheme under Section 109 or Section 114 of the Social Security Code.

•  Contribution obligations for aggregators (Section 114 read with Section 141)

Section 141 of the Social Security Code requires the Central Government to establish a ‘Social Security Fund’ for funding various social security and welfare schemes applicable to gig and platform workers and lay downs that contribution by ‘aggregators’[3] shall be one of the sources of funding for the Social Security Fund.

In this regard, Section 114(4) creates a framework under which aggregators (e.g., ride-sharing, food delivery, logistics platforms) are required to contribute a percentage of their annual turnover to fund social security schemes for the benefit of gig and platform workers. Section 114 requires the Government to notify the exact rate of contribution (within the statutory range of 1–2% of annual turnover of such aggregator, capped at 5% of the payments which are made to gig and platform workers by the aggregator). At present, the exact contribution rates, payment mechanism, formats of returns, and more importantly the date from which such contribution is to be made by the aggregators are yet to be notified by the Central Government under Section 114. Thus, since the exact mechanics of this model are yet to be notified, there is no immediate obligation on aggregators to make contributions.

• Eligibility of registered gig/platform workers for welfare schemes framed under the Social Security Code (Section 113)

The Social Security Code provides that gig or platform workers must be registered to avail the various schemes which are formulated under the Social Security Code. One of the methods by which this registration may be done by such workers is by logging into the ‘e-Shram Portal’ and submitting the relevant details such as PAN and Aadhar details to avail the various benefits. Thus, while in theory, this registration may be done by platform and gig workers, in practice, this will translate into determinable rights for these workers and corresponding obligations by aggregators only when the Government notifies the schemes or the manner in which contributions to the Social Security Fund may be made.

Conclusion

While the Social Security Code creates a legislative framework for providing social security benefits to gig and platform workers, none of these provisions can currently be enforced as their implementation is entirely dependent on Government notifications that are yet to be issued. The Government is yet to clarify key obligations vis-à-vis aggregators’ contribution to the Social Security Fund or the manner in which they must be disbursed to the gig and platform workers.

We will continue to closely monitor the notifications, draft rules, and any scheme formulated under the New Labour Codes and will share relevant updates as and when any enforceable obligations arise vis-à-vis gig and platform workers.

[1] Section 2(35), the Social Security Code.

[2] Sections 2(60) and 2(61), the Social Security Code.

[3] Section 2(2) of the Social Security Code defines an ‘aggregator’ as “a digital intermediary or a market place for a buyer or user of a service to connect with the seller or the service provider” and specifies nine categories of aggregators in the Seventh Schedule.

This note does not constitute legal advice and is not intended to create an attorney-client relationship.