The gig economy and the Indian employment law

employment law
The gig economy and the Indian employment law

The evolution of technology has brought about radical and sudden shifts in human capital requirements. With the rapid pace of automation and integration of artificial intelligence in the workplace, employers across the globe have found it both expensive and unnecessary to limit workforce engagement to the traditional employer-employee model. New-age on-demand business models are rapidly evolving, from taxi services to salon and spa services, from chefs to grocery delivery, all creating fluid and dynamic workforce structures, including the ‘gig workers’.

The concept of ‘gig’ or on-demand working has been gaining popularity across the world for a couple of years now; however, the Indian Government began to take notice of this only when the taxi drivers affiliated with certain app-based taxi service providers went on strike in Karnataka earlier this year to protest the harsh conditions of work, inconsistent wages, and lack of stability. Further, as per news reports, a taxi driver’s union in Delhi had also made similar allegations against app-based taxi service providers. This union has filed a case in the High Court of Delhi against these app-based taxi service providers, claiming that their manner of engagement, nature of work, and the extent of supervision and control exercised by the cab aggregator demonstrate an employer-employee relationship.

Source: People Matters

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