The Invisible Workforce | Gig Workers and the New Code on Social Security, 2020

News; dated: 04.12.2025

1. Introduction

In the age of the “10-minute delivery” and instant ride-hailing, the Indian economy is increasingly fuelled by an invisible workforce. Whether it is a Zomato delivery partner braving the rain or an Urban Company professional entering a home, these individuals form the backbone of the “Gig Economy.” Yet, despite their indispensable contribution, the promise of fair wages for fair work often remains unfulfilled.

Traditionally, labour laws in India were designed for factories and office spaces, leaving this new class of workers in a legal vacuum. They were neither “employees” with full benefits nor were truly independent “entrepreneurs” with control over their pricing. The Code on Social Security, 2020 (CoSS 2020) marks a historic shift by legally recognising “gig workers” and “platform workers” for the first time, aiming to bridge the gap between algorithmic management and social protection.

2. The Scenario Pre-Code on Social Security

Before the CoSS 2020, India’s labour framework largely divided the workforce into the “organised” (receiving Provident Fund, ESI, Gratuity) and “unorganised” sectors. Gig workers fell into a “grey zone.”

(a) “Partners,” not Employees – Platforms like Uber, Ola, and Swiggy classified workers as “partners” or “independent contractors.” This classification allowed companies to bypass costs associated with statutory benefits like the Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI).

(b) Lack of Safety Net – In the absence of formal recognition, a delivery rider injured on the job often had to rely on voluntary (and often inadequate) group insurance provided by the platform, rather than a statutory right to compensation.

(c) The Reality of Conditions – The Fairwork India Ratings 2024 [https://fair.work/wp-ontent/uploads/sites/17/2024/10/Fairwork_India_Report_2024.pdf] highlighted the precarious nature of this work. Major platforms like Uber and Ola scored zero in the ratings, while Zomato, Swiggy, and Urban Company scored moderately (6/10), indicating significant gaps in “Fair Pay” and “Fair Representation.”