The ordinance seeks to address gaps in protections for Gig Workers.

• A gig worker is defined in Code on Social Security, 2020 as a person who works in an arrangement outside of a traditional employer-employee relationship.
  • They can be broadly classified into platform (like Zomato) and non-platform-based workers. 
• As per NITI Aayog the number of gig workers and platform workers in India was 7.7 million in 2020-21, which is expected to rise to 23.5 million by 2029-30.

Key features of the ordinance

• Welfare Board: Provides for establishment of ‘Welfare Board’ at state-level.
• Welfare fee: Aggregator platforms like Zomato, Ola, Swiggy, Amazon and others will pay a welfare fee ranging from 1 to 5 percent of every transaction made with a gig worker.
  • Welfare fee will be deposited into the welfare fund, which will be also have workers contribution and government grants.
• Other Features: Provides safeguards against unfair dismissals,  unique ID valid across platforms, and more transparency with regards to automated monitoring and decision-making systems deployed by platforms.

Challenges to gig workers: 

Lack of Social Protection, Algorithmic management, Uncertain Nature of Job, Lack of Social Protection, etc.