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WHAT IS THE GIG ECONOMY AND TECHNOLOGY’S IMPACT ON IT

The gig economy or jobs can be in Layman’s terms defined as employment received through small and brief appointments made by people who require it, that are made through different sorts of mediums. The mediums predominantly being technological in recent times but also has significance outside the domain too. They are also classified as non-contractual jobs and the wages are also instantly given as soon as the job or ‘gig’ is completed.

One of the biggest examples of Gig works can be the food delivery system through apps created by a company dedicated to that cause or even a conglomerate. The time period after the pandemic saw a rapid boom in the number of gig workers, mainly due to the increased dependency on technological assets and various other reasons we will explore further in the writing. But even before the widespread advent of technology, there existed gigs or small works mainly of the nature of freelance, but mainly leaned towards professions of performing arts or entertainment.

Technology has been a major actor in the gig economy, where we see the impact of it pre and post covid. The gig economy had just started gaining traction through interfaces like ‘Uber’, ‘And Zomato’ during the period of pre covid. As soon as covid hit and people became confined in their houses, their dependence on technological gadgets increased and also awareness about such services that were being provided at one’s doorsteps manifested itself as well, and thus came the previously discussed boom in the gig economy[1].

Another point to note here has to be the fact that post-pandemic, there was a persistent rise in unemployment, and thus these gig jobs came in handy for people who had families to feed and needed funds immediately to make ends meet.

ADVANTAGES OF THE GIG ECONOMY

Just like any other aspect, the gig economy also has its fair share of advantages and disadvantages. If we outline some of the advantages of such

First and foremost, we need to highlight the point of freedom here, where a person working in this aspect enjoys the freedom of doing their job whenever and wherever they wish to do so.
The flexibility persists in the case of days of working as well, as the decision for days of working, or days of leave also resides with the individual themselves.
Most jobs auctioned so far in this type of economy do not require a determined skill set or very advanced forms of skills, so individuals who are lacking in such aspects can readily avail of services under gigs.
There is no fixed income one can make through these jobs, so the scale can basically be unlimited or can extend to whatever they want the scale to be.
With the advanced technological pursuits and access to them getting increased by folds, gigs have become very easy to avail, thus leading to newer opportunities.

Also Read: NFTs Explained: Understanding the Hyped Virtual Asset and its Legal Implications

DISADVANTAGE OF THE GIG ECONOMY

But it is not always this bright on the other side, and so we have to spell out the disadvantages to it, which are:

The biggest con here has to be the lack of security, for these gigs are very superficial in nature, it bases heavily on feedback received through platforms, and thus it also influences the income, benefits etc. provided to the worker which is different from the benefits enjoyed by other people doing conventional jobs.
Social security measures including insurance, health benefits, gratuity, etc. are basic concepts foreign to gig workers because these benefits are not offered by the companies pertaining to the temporary nature of the work provided.
Even though I have mentioned an advantage being the lack of required skill set, recent trends in gigs have seen companies seeking workers with advanced skill sets, who will be able to provide multifaceted services and that too, up to the mark[2].
The relationship between the employer and the employees is practically nil due to interfaces working in between, mainly in freelancing, which can cause several problems like long working hours, lack of workplace safety, etc.[3]
The exploitation of such workers is rampant in several, whether that be by the employer or even the ones who take or provide the service, and the greater problem is, there are practically no mechanisms enshrined as already mentioned, these being dominantly non-contractual work.
Due to the uncertainty clouding the aspects of these kinds of works, there often is a trend of a person jumping from one kind of gig job to a whole different kind of it altogether, leading to a very unstable lifestyle[4].

REGULATION AND THE LEGAL ISSUES SURROUNDING THE GIG ECONOMY:

The gig economy and its role in the post-pandemic workforce Policy makers in many nations are trying rigorously to reform the economy of the gigs. Yet regulations have a long way to go to meet the need of an increased number of workers which are basically based mainly on platforms.

In some cases, like in the case of a man who is a worker and works for long hours being a freelance driver who resides in the Indian state of Telangana, he is also the

also, the national general secretary of the Indian Federation of App-based Transport Workers (IFAT). His day generally look like, He spends mornings and afternoons logging and investigating issues reported by fellow drivers, then drives his own cab in the evenings.

In India, as around the world, much gig work remains unstable; the lack of traditional employment protections puts gig workers on a precarious footing.

Having an organised way of working for the gig workers is at a critical moment in India. An important case in this regard In the case of Salauddin and IFATs In September 2021, wherein he files petition to the supreme court of India and calling, among other things, for pandemic relief for app-based transport and delivery workers, who have been struggling to stay afloat. Salauddin is super positive as well as hopeful that India’s millions of gig workers can mobilise to exert pressure on the Indian government.

The government has already approved a law that would make gig workers eligible for social security benefits, though there has been little progress on this since 2020. NITI AAYOG has launched a report which basically is titled ‘India’s Booming Gig and Platform Economy’. The report was released by NITI Aayog Vice Chairman Suman Bery, CEO Amitabh Kant and Special Secretary Dr. K Rajeswara Rao.

GIG ECONOMY AND ITS EFFECTS ON WORKERS RIGHTS AND BENEFITS:

Some of the key impacts of the gig economy on worker rights and benefits are listed below.

Lack of job security:

Gig He Workers are typically independent contractors rather than employees, so there is no guarantee of employment. This means that you are not entitled to benefits such as health insurance or paid sick leave, and you can be fired without reason or warning.

Low wages:

Gig workers often earn lower wages than traditional employees because they compete with other workers on online platforms. This has led to a race to the bottom of wages, as workers are willing to take low-paying jobs just to make a living.

Limited Access to Benefits:

Gig workers are not entitled to the same benefits as traditional workers, such as: B. Workers Compensation Insurance, Unemployment Insurance or Pension Plans. This can leave gig workers vulnerable if they become ill or injured, or if they reach retirement age.

GIG ECONOMY AND ITS ROLE IN THE POST PANDEMIC WORKFORCE

The COVID-19 epidemic has had a large global impact, notably on the gig economy. The gig economy has risen enormously in recent years, with many people preferring freelance or part-time work to regular 9-5 jobs. Unfortunately, the non-traditional work environment of the gig economy has generated obstacles for both gig workers and corporations during the epidemic.

Job loss has been a serious concern for gig workers as a result of COVID-19. Many gig workers have lost their jobs as corporations have shrunk their workforce due to the advent of work-from-home policies and social distancing techniques. Furthermore, gig workers in specific industries, such as ride-sharing or event management, have seen a reduction in demand, worsening the job loss situation.

The post-COVID era is expected to have a greater impact on the gig economy. Cost reduction becomes a priority as businesses lose revenue due to the pandemic. Therefore, it is expected that more and more businesses will turn to freelancers and independent contractors to significantly reduce labour costs. In addition, many workers who have lost their jobs due to the pandemic and are finding it difficult to find new jobs are turning to gig work because of its greater flexibility.

The gig economy is well suited for the post-COVID era as it addresses some of the challenges that come with regular employment. Traditional work can be rigid and inflexible, but Gig Work gives you the freedom to work on your own terms, set your schedule, and choose your workload. This flexibility is especially appealing to many employees who have already experienced remote work and are no longer constrained by geographic boundaries.

Technology has also made it easier to deliver and the COVID-19 epidemic has had a large global impact, notably on the gig economy. The gig economy has risen enormously in recent years, with many people preferring freelance or part-time work to regular 9-5 jobs. Unfortunately, it also has some downsides, the non-traditional work environment of the gig economy has generated obstacles for both gig workers and corporations during the epidemic.

Analysis of the current condition

If we think about it, gigs have become a day-to-day requirement for us, be it an emergency medical requirement or a midnight craving, we look forward to see those bikes to pull up by our porch and hand us our requirement.

But we fail to see what conditions they work under, because they do not get any form of extra compensation or funds for working in inhumane conditions like extreme heat or excessive rain, while interacting with a ‘Rapido’ driver I had also got to know that when one pays the fare through the app interface, a sizeable amount is cut by the company and the amount also gets credited to them only after some time and not immediately. So, there are many disadvantages that one gig worker has to face to just complete one single service.

Like In the case of freelancing market. In 2020 we are all aware that we were hit by never seen before disease and pandemic ,COVID during that time nobody had any idea about how to deal with this calamity people in 100s and 1000s were losing jobs and were facing the menace of layoffs even now in 2023 after two years of the horrific pandemic we are still facing economic recession and job losses during such tough times freelancing came as a boon for a lot of people where people can work being at their homes and earn money with the help of Gig /platform based works.

Platform based work came as a boon for a lot of people even in the legal field which was hit really badly by the pandemic, lawyers across the country found such kind of platform-based work as a boon in such trying times. Though gig and freelancing work is not yet that popularised but it is gaining moment even in the food sector businesses like swiggy, Zomato has risen and all the delivery boys and girls in these businesses are also working on gig or per assignment bases.

Platform based work has its advantages as well as its disadvantages. As more and more people are going towards platform-based works, we have to also focus in the fact that this gig industry is also highly unregulated and unorganised. There are not much statuary provisions regulating such work and there is also a lot of difference and disparity in the wages paid to these gig workers. We should work towards building more regulations and building better working conditions for such workers and not wear a veil of ignorance in this regard. This is the current and economic and business scenario which should be considered and understood.

This is a co-authored article written by:

Author 1 : Titiksha Galhotra, Institute of Law Nirma University, 3^rd year BA LLB (Hons)

Author 2 : Debosmita Panja, Institute of Law Nirma University, 3^rd year BA LLB (Hons)

[1] Rebecca Henderson, How COVID-19 Has Transformed the Gig Economy, Forbes (Dec. 10,2020 , 10:18 am), https://www.forbes.com/sites/rebeccahenderson/2020/12/10/how-covid-19-has-transformed-the-gig-economy/?sh=639c85136c99

[2] Arne L. Kalleberg and Michael Dunn, Good Jobs, Bad Jobs in the Gig Economy, Vol. 20 (2016), Perspectives on Work,10,10-13,2016.

[3] Amit Kapoor, The Challenge with Gig Economy, India Times (Aug 04, 2021,12:14 pm), https://economictimes.indiatimes.com/jobs/the-challenge-with-gig-economy/articleshow/85031089.cms?from=mdr

[4] Haini Tayal, Regulating the Gig Economy in India: How Secure Are Gig Workers? 28 Supremo Amicus [289] (2022).

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