ILO Convention No. 193

Syllabus: GS3/Economy

Context

• The International Labour Conference adopted Convention No. 193, ‘Decent Work in the Platform Economy’.
  • 406 voted in favour (which included nations such as China, Brazil, Germany, France, South Africa, and Japan), 8 against, and 36 abstentions including India.

About Convention

• It is the first legally binding international labour standard dedicated specifically to the platform economy.
  • It establishes a global framework to help ensure that technological innovation and new business models go hand in hand with workers’ rights, fair competition and sustainable economic growth.
• The Convention applies to digital labour platforms and digital platform workers, whether they are in an employment relationship or not, including self-employed workers. It covers both location-based and online platform work.
• The Convention addresses a broad range of issues, including:
  • Fundamental principles and rights at work;
  • Occupational safety and health;
  • Violence and harassment;
  • Promotion of decent work opportunities;
  • Remuneration or payment;
  • Social security;
  • Impact of the use of automated systems based on algorithms on workers;
  • Data protection and privacy;
  • Suspension, deactivation and termination;
  • Protection of migrants and refugees;
  • Access to justice.
• On Automated Systems: The Convention contains provisions on the impact of the use of automated systems based on algorithms, including automated decision-making systems.
  • It establishes principles relating to their transparent use and access to review mechanisms when automated systems based on algorithms affect workers.
• Once ratified, it must be implemented through national laws, regulations, policies, collective agreements in accordance with each country’s legal system and national practice.

Who are Gig Workers?

• Non-standard or gig work consists of income-earning activities outside of standard, long-term employer-employee relationships. 
• It relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees.
• The term is borrowed from the music world, where performers book “gigs” that are single or short-term engagements at various venues.
• The gig economy uses digital platforms to connect freelancers with customers to provide short-term services or asset-sharing.
  • Examples include ride-hailing apps, food delivery apps, and holiday rental apps.

India and Gig Economy (As per NITI Aayog)

• In 2020, 7.7 million workers were engaged in the gig economy. 
• The gig workforce is expected to expand to 23.5 million workers or 4.1% of total workforce by 2029-30. 
• About 39% of gig workers earn ₹10,000-₹25,000 a month and 34% earn ₹25,000-₹40,000, with wages stretched across 12-hour shifts; fuel paid for by the worker himself; and no overtime.
• Only about 15% have any social security.
• At present about 47% of the gig work is in medium skilled jobs, about 22% in high skilled, and about 31% in low skilled jobs. 
• Its contribution to India’s gross domestic product (GDP) is estimated to be substantial, with the potential to add 1.25% to GDP by 2030, and create 90 million jobs in the long term. 

Reasons for a rise in Gig Workers

• Post Pandemic: The trend accelerated during the 2020 COVID-19 pandemic, as gig workers delivered necessities to home-bound consumers, and those whose jobs had been eliminated turned to part-time and contract work for income. 
• Freedom to work from anywhere: These types of positions facilitate independent contracting work, with many of them not requiring a freelancer to come into an office. 
• Rise of Technology and Internet: Rise of fast internet and smartphones have made it easier to work from anywhere easily.
• Convenient for Small Organisations: Employers who cannot afford to hire full-time employees to do all the work will often hire part-time or temporary employees to take care of busier times or specific projects.
• Benefits Employers: Employers do not need to provide related benefits, such as medical insurance, Provident Fund, and year-end bonuses which make it a better option for them to pay only for work on a unit basis.

Challenges

• Work-life balance: For some workers, the flexibility of working gigs can actually disrupt the work-life balance, sleep patterns, and activities of daily life.
• Can replace Full time employees: The number of full-time employees required by the company can be reduced as freelance workers take over the work.
• No regular job benefits: Many employers save money by avoiding paying benefits such as health coverage and paid vacation time.
  • There is no formal employment relationship with the platform company and there are usually no employee benefits in short-term contracts.

Steps Taken by Government of India for Gig Workers

• Code of Social Security, 2020: The Government has formulated the Code on Social Security, 2020 which envisages framing of suitable social security schemes for gig workers and platform workers on matters relating to life and disability cover, accident insurance, health and maternity benefits, old age protection, etc.
  • It directs aggregators to pay 1%-2% of their annual turnover, capped at 5% of worker payouts, into a social security fund.
  • However, these provisions under the Code have not come into force. 
• e-Shram Portal: The Government has also launched e-Shram portal in 2021 for registration and creation of a Comprehensive National Database of Unorganized Workers including gig workers and platform workers. 
  • It allows a person to register himself or herself on the portal on a self-declaration basis, which is spread across around 400 occupations.

Conclusion

• Not having the health coverage enjoyed by many people who are in traditional full-time employment, gig workers are particularly vulnerable to medical expenses. These costs can sometimes be catastrophic. 
• As they often lack job security and associated benefits of full-time employment, government-backed coverage could provide a crucial safety net.

Source: TH