A gig economy is a work environment where organizations have temporary workers or freelancers instead of full-time long haul representatives. Companies give temporary situations to workers and the latter reaches free, transient contracts with them. The pattern is solid in advanced economies like the USA, Canada, and the United realm.

Factors promoting the gig economy:

An important reason for its development is the digital age, where the workforce is exceptionally versatile and work can be done from anywhere, anytime. This means that you need not reach the location of the organization to carry out the responsibility.

Firms, in the era of disruption, discover increasingly profitable when they give transient contract as it avoids long haul obligations like benefits and different payments. The worker can be calmed at any time without any grating.

For the worker, the momentary engagements will give him the adaptability of the work and timings of the work.

Software and technological changes taking away human endeavors, requiring the participation of labor power also added to its development.

Declining or uncertain financial conditions and need to cut workers at any time also elevated companies to go for transient contracts.

Temporary nature of activities and greater specializations added to this pattern. Eg: An individual’s specialized abilities may be required by several organizations, so he need not confine to a solitary organization.

Slow penetration of the millennial work culture into the labor market also encouraged transient contract engagements. Eg: In the US, schools and colleges enlist teachers and educators on a contract basis.

However, the typical example is the digital part workers like the Uber workforce who are having a present moment and adaptable contract with the organization.

Issues associated with Gig Economy:

Workers are typically administered by the contract among them and the businesses. Since labor laws are not brought into play, the business is not required to make commitments as for fortunate store, gratuity, super-annuity, and workers state insurance.

While it saves the hassle and expenses for the business, the gig workers miss out on statutory safeguards as for unfair termination, least wages, paid leave, and so forth.

Not at all like a traditional business representative relationship where the law would assume that all work items created by the worker shall remain the intellectual property (IP) of the business, for gig workers, such terms must be negotiated on a case-to-case basis. This makes the task burdensome for the businesses.

Another issue that may manifest for the business is confidentiality. In ventures, for example, information innovation and pharmaceuticals where confidentiality gets crucial, having less power over the actions of a gig worker will make it challenging for the business to implement confidentiality obligations on him.

Teamwork is essential, gig worker teams shaped and disbanded on a case-to-case basis will probably create tardy, inconsistent, and helpless yield. Ideas like organizational culture and team collaboration become casualties in such ad hoc work conditions.

Way Forward:

In this manner, taking into consideration the above issues we ought to appropriately address various anomalies, for instance, taking a page from the UK business tribunal’s judgment, basic labor security like least wages, paid leave provisions and maternity advantages ought to be available to gig workers as well.

The government needs to step in, not to regulate away adaptability yet to manufacture workers and workplace insurance into the framework.

It should mandate portable retirement savings and health insurance payments, and the contracted wage should rise to incorporate these components.

India can engage with the European Union and the United States, where discussion on assurances already began.

There is arguably a case for the state to balance the interests of business exigencies and social welfare.


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