“SECURING THE FUTURE OF CONTINGENT WORKERS:

RIGHTS, PROTECTIONS AND POLICY PERSPECTIVES”

Anurag Sharma1

The Contingent worker’s presentation of flexibility and independence in economy has drawn
millions of workers worldwide. However, there are risks and uncertainties because the rights
and interests of its workers are routinely disregarded in this changing market. This essay
explores the intricacies of freelancing and makes legal system comparisons and contrasts
between developed and developing countries, as well as legislative concerns pertaining to
Contingent Worker’s rights. In order to show the variations and similarities in the ways that
Contingent Worker’s are protected globally, the paper looks at a number of significant areas,
including collective bargaining rights, job categorization, social security, minimum pay and
benefits, and dispute resolution procedures. Examined in detail are the intricacies of
freelancing, such as how benefits are acquired according to the type of work, how platforms
impact working conditions and the challenges workers face in this strange country.
Furthermore, this study offers support to platform organizations. Through comprehending the
issues and worries of their employees, platform companies could be motivated to reconsider
their personnel management protocols and promote a more ethical and sustainable strategy.
The ultimate objective is to establish a win-win scenario that benefits Contingent Worker’s
and platforms alike, while also bolstering and strengthening the economy. From a
comparative standpoint, this study offers valuable insights into the intricate realm of
Contingent worker work. It is a call to action, urging decision-makers in government, IT
firms, and the general public to acknowledge the importance of Contingent Worker’s and
ensure that their rights are respected in the future to build a more inclusive and equitable
workplace.

KEYWORDS: Contingent worker, economy, Freelancing, Uncertainties and risks,

Industrialized and developing nations, Ethical Work Environment.

1
Assistant Professor, Department of Law, Prestige Institute of Management and Research, Gwalior
INTRODUCTION

Contingent Worker represents a labour force that is heavily dependent on flexible, ephemeral,
and transient work arrangements. Other names for them include freelancers, contingent
labourers, and independent contractors. Contingent Worker’s differ from their normal job
counterparts in that they are not constrained by long-term contracts with a single employer,
which is important while navigating the professional environment. This independent lifestyle
gives Contingent Worker’s more control over their schedules because they can choose when
and where to apply their skills. Contingent Worker and clients can connect through digital
platforms and technology, which act as virtual marketplaces that ignite these transient
interactions. In addition to offering their services, Contingent Worker’salso actively manage
every aspect of self-employment, from handling money to selling their skills. They do this by
being entrepreneurial in nature. The flexible and adaptive Contingent worker offers a new
kind of work where individuals, like to musicians, develop their careers by taking on
numerous jobs in a dynamic and ever-evolving workplace. Everyone wants to work, and
although young people still have a hard time finding employment, Contingent Worker have a
lot of employment opportunities. As a result, the Contingent worker has spread throughout
urban areas. Contingent Worker are exempt from the labor laws governing wages, hours
worked, working conditions, and the right to collective bargaining. Workers on digital
platforms are subject to various workplace safety, security, and health risks; this is especially
the case for women working in the app-based delivery and taxi industries. The nature of
labour has significantly changed globally as a result of increased rates of unemployment, a
growing need for flexible work hours, and developments in technology.

According to NITI Aayog's report, 7.7 million workers, or 77 lakhs, were working in the
Contingent worker in 2020–21. In 2029–2030, there would be 2.35 crore (23.5 million)
workers in the Contingent worker, accounting for 1.5 percent of India's labour force or 2.6
percent of the non-agricultural employment. Use the online marketplaces to complete their
employment in the Contingent worker. The Contingent worker in India is growing rapidly; by
2024, ASSOCHAM projects that it would generate over $455 billion in revenue. This
economy has several advantages for both employers and employees.2

2
Niti Aayog policy brief and platform economy
https://www.niti.gov.in/sites/default/files/202206/
policy_brief_india's_booming_gig_and_platform_economy_27062022.pdf
CONTINGENT WORKER:

Cambridge dictionary defines Contingent worker 3 as “a way of working that is based on

people having temporary jobs or doing separate pieces of work, each paid separately, rather
than working for an employer.” ‘Contingent Works’ are piece of work or tasks done for
different clients over a stipulated period.

ACCORDING TO NITI AAYOG:

“The Contingent worker in itself is expansive and undefined and can include a variety of
workers outside of a traditional worker definition. However, Platform Economy is more
concretized as it specifically focuses on the use of online platforms, making each worker’s
role clearly defined”.

They can be broadly classified into Platform worker and non-platform worker. Platform
workers are those whose work is based on online software apps or digital platforms.

Non-platform Contingent Worker are generally casual wage and own-account workers in
conventional sectors, engaged part-time or full-time. There are two subgroups of the
Contingent worker in India: platform workers and non-platform workers. In India, an
individual is classified as a Contingent Worker if they work for a company other than the
usual employer-employee relationship. Contingent Workers that use online algorithmic
matching platforms—that is, websites or applications like Uber or Amazon—to interact with
clients are referred to as platform workers. Non-platform workers are those who labo ur
outside of these platforms. These primarily consist of day labo urers, temporary employees
not reliant on technology, and construction workers. The perks offered to temporary workers,
such as the freedom to select their own workdays, holidays, shifts, and preferred
organizations, have resulted in a large growth in their percentage of the workforce. Instead of
being pushed into a position, workers here are free to choose their organization for as long as
they wish. Vulnerable work is now possible thanks to the Contingent worker. Substituting
independent contractors and freelancers for full-time employees is the new guiding
philosophy. The vagueness surrounding the employment ties of Contingent Worker often
exposes them to hazards such as inadequate compensation, excessive working hours, unpaid
sick days, inadequate workplace safety, and a dearth of mechanisms for resolving disputes.
Consequently, laws pertaining to collective bargaining rights, hiring, firing equity and the
ability to organise unions do not apply to Contingent Worker s.
3
CONTINGENT WORK ERECONOMY | Pronunciation in English (cambridge.org).
CONTINGENT WORKER’S STATUS: ARE THEY EMPLOYEES OR
INDEPENDENT CONTRACTORS?

To advance Contingent Worker’s status in India and around the world, it is necessary to study
and evaluate the argument over whether they should be treated as independent contractors or
employees. In order to help these Contingent Worker and battle against the interests of the
employers, the judiciary is essential in providing a response or interpretation on this matter.

The relevance of providing an answer to this topic stems from the fact that, as this article
discusses, many labour regulations only apply to "employees" of organizations; Contingent
Worker are not included in this. Contingent Worker are not taken into account by regulations
designed for the unorganized sector, such as the Unorganised Workers’ Social Security Act,
2008 (UWSSA)4, which offers various benefit plans to safeguard home-based and self-
employed workers. In order to determine whether a worker should be classified as an
employee or an independent contractor, the judiciary has created a number of tests.
Typically, the tests focus on things like the employer's level of control and the parties' shared
goals. These evaluations, which are dynamic and take place all over the world, may include
analyzing things like work practices, hiring and firing power, equipment ownership, contract
titles, and setting rules and standards.

Despite being applied to identical scenarios, the use of these standards can lead to differing
judgments about the classification of Contingent Worker as independent contractors or
employees due to the unique characteristics of Contingent worker. The main explanation of
this diversity is the characteristics that Contingent Worker share with both independent
contractors and regular employees.

EXISTING LEGAL FRAMEWORK

Laws for the Contingent Worker in India: According to the Code on Wages5, 2019, a
universal minimum wage and floor wage should be provided to all organised and unorganised
sectors, including Contingent Worker s.

Whereas under the Code on Social Security, 20206, the Contingent Worker are provided with
recognition as a new occupational category. But a few problems are associated with the code
as even though the Contingent Worker are now eligible for benefits like maternity benefits,

4
Unorganised Workers' Social Security Act 2008
5
The Code on Wages, 2019
6
Code on Social Security, 2020
life and disability cover, old age protection, provident fund, employment injury benefits, etc.
However, eligibility does not ensure the guarantee of mentioned benefits to workers.

A literature review is an evaluative report of information found in the literature related to

selected area of study. The main purpose of literature review is to convey to the reader about
the work already done and the knowledge or ideas that have been already established on a
particular topic of research.

While the Indian government has taken some steps to address the issues faced by Contingent
Worker s, there is still much work to be done. The proposed Code on Social Security and
the Karnataka Contingent Worker’s Welfare Board 7 are positive steps towards providing
social security benefits and legal protections for Contingent Worker s. However, these
measures need to be implemented effectively and enforced rigorously to ensure that they have
a meaningful impact on the lives of Contingent Worker s8.

Code on Social Security, 20209: The enactment of the Code on Social Security, 2020 has
made understanding of the scope and ambit of social security laws easier by consolidating the
pre-existing laws. The Code also defined the various terms like Contingent Worker and
platform workers which were not previously defined. The Code will help in increasing
employment opportunities by engaging workers on temporary basis and also providing them
with the social security.

The only law that includes provisions for Contingent Worker s, platform workers, and
unorganized sector workers is the Code on Social Security (2020). This Code contains a
number of provisions, including covering for accidents, provident funds, health and maternity
benefits, pension security, and educational benefits. It also includes coverage for disability
and life insurance. According to the Code, a "Contingent Worker " is a person who works or
arranges to work outside of the traditional employer-employee system and is compensated for
their efforts. Usually, this kind of labour is done temporarily and in a set amount of time.

The introduction of Rajasthan's proposed Contingent Worker law10, which also includes
the creation of a welfare board and ₹200 crore in funding, is a crucial first step in recognizing
the rights and dignity of Contingent Worker s. This, though, is only the start. An employment
7
The draft of the Code on Social Security (Karnataka) Rules, 2021, NO: LD 285 LET 2021(April 4, 2022
8
Aditi Mishra and Suyog Ghosh Dasttidar , Navigating the Challenges of the Contingent workerEconomy: A
Legal Analysis of Protection to Contingent workerWorkers in India and Overseas, 6 (1) IJLMH Page 2183 -
2194 (2023).
9
Code on Social Security, 2020
10
Rajasthan Platform Based Contingent workerWorkers (Registration and Welfare) Act, 2023 - 14.09.2023 -
Department of Law : MANU/SNRJ/0126/2023
connection entails a host of rights that go beyond welfare requirements. These rights are
related to empowerment and include the freedom to strike and the right to file a complaint
about unfair termination. The equilibrium of power between employers and employees is
another issue they are worried about. Therefore, in order to address social welfare issues and
use the language of workers' rights, more detailed and comprehensive legislation is required.

REPORTS RELATED TO CONTINGENT WORKER’S

India’s Booming Contingent worker and Platform Economy, NITI Aayog, (2022)

The research provides a thorough, rigorous methodology to estimating the Contingent

worker's present size and job generation potential. It looks at the advantages and difficulties
of the Contingent worker and platform economies and provides examples of global best
practices for social security systems. The goal of the study is to comprehend the importance,
generate employment, and recommend policies to support employment in the industry.11

RELEVANT CASE LAWS

(A) The plight of Uber and Ola Drivers:12

The complex legal battle between Ola and Uber drivers in Maharashtra State, India,
highlights the challenges Contingent Worker’s encounter in obtaining benefits and having
their employment recognized. In 2017, a number of Uber and Ola drivers filed complaints
with the Maharashtra State Road Transport Authority, alleging that the ride-hailing
companies were violating labour laws and treating them more like independent contractors
than employees. The drivers argued that they were entitled to protections including minimum
wage, health insurance, and other benefits typically provided to employees.

Although the case is still seeking settlement, it has raised important questions about the
classification of Contingent Worker and the responsibilities of companies that employ
independent contractors to provide services. Uber and Ola drivers argue that they are self-
employed and do not qualify for employee benefits; yet, they claim that they are employees
and should be treated as such for legal purposes.

The case has also raised awareness of the challenges Contingent Worker face in organizing
and advocating for their rights. Since many Contingent Worker operate remotely and alone, it
11
Niti Aayog policy brief and platform economy
https://www.niti.gov.in/sites/default/files/202206/
policy_brief_india's_booming_gig_and_platform_economy_27062022.pdf
12
Tilman Ehrbeck et al, The Digital Hustle Contingent worker Worker Financial Lives Under Pressure, India
Spotlight, (2020).
might be difficult for them to form unions or other collective bargaining groups. Many labour
laws do not adequately meet the unique needs and concerns that Contingent Worker have,
and the legal framework pertaining to Contingent worker works is always changing.

In conclusion, the Maharashtra State legal case involving Uber and Ola drivers serves as a
reminder of the challenges and complexities that Contingent Worker encounter on a national
and international level, as well as the necessity of more robust legal protections and advocacy
to ensure that they receive the assistance and care required to succeed in the Contingent
worker.

(B) The protest against Swiggy and Zomato: 13

The dispute that exists in India between the largest food delivery companies, Swiggy and
Zomato, and their delivery partners highlights the difficulties that Contingent Worker in that
nation endure. A number of delivery partners petitioned the National Company Law Tribunal
(NCLT) in 2019, claiming they were treated unfairly and received insufficient incentives. The
partners contended that they were denied basic rights like minimum pay, health insurance,
and social security since they were labelled as independent contractors. The case was first
dismissed by the NCLT due to jurisdictional difficulties, but it was later permitted to continue
by the National Company Law Appellate Tribunal (NCLAT). Zomato and Swiggy have been
compelled to address the allegations, and an independent auditor has been assigned to
examine the businesses' rules and payment procedures as the case develops. Even though the
lawsuit is still in court, it has already had a big influence on India's Contingent worker.

Contingent Worker in India need stronger protections and rights, particularly in terms of
benefit access and job classification. This instance has made this point quite clear. This has
also raised significant questions about the responsibility that platforms and aggregators have
to their workers in the Contingent worker.

(C) The dispute raised by Urban Company Service Professionals14

In September 2021, service providers employed by Urban Company filed the lawsuit. Urban
Company is a home services marketplace that links consumers and service providers like
electricians, plumbers, and cleaners. According to Indian labor regulations, the service

13
The Indian Federation Of App – Based Transport Workers, (Ifat) & Ors.) v Union Of India & Ors. (2021) Writ
Petition 1068/2021.
14
Prachi Agnihotri v. Urbanclap Technologies India Private Limited, 2021 SCC OnLine CCI 18
providers employed by Urban Company are categorized as independent contractors and are
not entitled to the same legal protections as employees.

The service industry professionals contended that they need to be considered Urban Company
employees and be eligible for benefits like social security, minimum salary, and legal
protection from labour regulations. They asserted that Urban Company controlled a large
portion of their labour, establishing their availability, establishing rates, and keeping an eye
on their output. In addition, they contended that they were unable to bargain for better
working conditions since they were monetarily reliant on Urban Company.

The service providers cited a ruling in the Food Corporation of India v. Jagdish Balaram
Bahira15 case from the Supreme Court of India. In that case, the Supreme Court ruled that,
regardless of title or contract, a person who provides services to a business for payment is
considered an employee under Indian labour laws. The Delhi High Court has given Urban
Company notice to reply to the plea in the ongoing litigation. The case's verdict is probably
going to have a big impact on how Contingent Worker’sare classified in India and what rights
they have under the law.

LITERATURE REVIEW

(ADITI MISHRA AND SUYOG GHOSH DASTTIDAR, 2023)16 The rise of the
Contingent worker in India has brought to light many challenges that Contingent Worker’s
face, including job security, fair compensation, and health and safety concerns. The lack of
legal protections for Contingent Worker is a significant issue that needs to be addressed to
ensure that they are not exploited or subjected to unfair treatment. It is important to recognize
that Contingent worker work is here to stay, and it will continue to play a significant role in
the Indian economy. Therefore, it is essential to create a legal framework that protects the
rights and interests of Contingent Worker and ensures that they are treated fairly and with
dignity. Only then can we truly harness the potential of the Contingent worker to drive
economic growth and development while also ensuring that Contingent Worker are not left
behind.

15
Food Corporation of India v. Jagdish Balaram Bahira, (2017) 8 SCC 670, (India)
16
Aditi Mishra and Suyog Ghosh Dasttidar , Navigating the Challenges of the Contingent workerEconomy: A
Legal Analysis of Protection to Contingent workerWorkers in India and Overseas, 6 (1) IJLMH Page 2183 -
2194 (2023), DOI: https://doij.org/10.10000/IJLMH.114301
(Dr. Pushpa Suryavanshi 2022)17 Government can play a significant role in reaping the
benefits of Contingent worker. It must remove barriers for regulating the market.
Organizations should be given freedom to hire contractual workers. At the same time, it is
role of government to safeguard interests of contractual and independent workers. Contingent
Worker and contractual workers must be given protection through minimum wages, maternity
benefits and other welfare provisions just like regular workers. For the same, appropriate
labour laws must be formulated.

(Chaudhary, 2021)18 explained the women’s enhancing participation and opportunities for
work in the Contingent worker. The author has found that the participation of women in
labour force participation rate [LFPR] is very low and there is a large gap that exists in India
which is all-time low.

(Pal, 2021)19 raised an issue of the raising popularity of the Contingent worker, and its
advantages and disadvantages in both the global and Indian contexts. In the study, the author
discussed the recent initiative taken by Central Government of India.

(Mukherjee & Sujatha, 2020)20 Study has examined the process of construction of
professional identity over organizational identity by independent workers and understands the
impact of learning agility on professional identity while engaging in the Contingent worker.

(Rukhsar, 2019)21 The study analysed the employee’s awareness and perception towards
Contingent worker system. The authors also looked at the problems faced and some potential
solutions. They have found that the Contingent worker system doesn’t restrict the talent by
setting any kind of limitations and the system also allows having a better network in and out
of the organization.

(Banwari, 2018)22 examined the trend of Contingent worker which is promptly increasing in
every sector in the country with the fast-growing Contingent worker which is based on
17
Suryavanshi, Pushpa, India's Booming Contingent workerEconomy (November 1, 2022). Juni Khyat, Vol-12
Issue-11 No.01 November 2022 ISSN: 2278-4632, Available at SSRN: https://ssrn.com/abstract=4267040
18
Chaudhary, R. (2021). India’s Emerging Contingent workerEconomy : Shaping the Future of Work for
Women. 50–57.
19
Pal, B. (2021). Rising Popularity in Contingent workerEconomy: A Case Study from India.
InternationalJournal ofReligious and Cultural Studies, 3(2), 203–208.
https://doi.org/10.34199/ijracs.2021.09.08
20
Sujatha, D. V. M. & D. R. (n.d.). “Identity in a Contingent workerEconomy”, Does Learning Agility Matter ?
Talent Management Consultant & Founder Me Green India , Former VP-HR , Research Professor of HR &
Entrepreneurship , Entrepreneurship Coach , Amity Business School , Page No : 3610. Mukt Shabd Journal-Mukt
Shabd Journal ISSN NO : 2347-3150, IX (Vi), 3610–3632.
21
Rukhsar, Umaima (2019). A Study on Perception Of Employees Towards Contingent workerSystem: 4,
5349–5368.
22
Banwari, Vijeta. (2018).Contingent workerEconomy: Opportunity and Challenges in India. 5(11), 413–420.
technological platforms. The author has found that this economy has potential benefits and
challenges that may convert into opportunities with the collaboration of government and
educational institutes.

(Caza, 2020)23 The study focused on the prevalence of Contingent worker work which is also
being implemented in management education with all aspects of organizing and highlighted
three broad areas for future investigation that is- how the Contingent worker may influence
students, faculties and universities also.

(Sargeant, 2017)24has brought insight into the advancement of the Contingent worker and the
improvement of labour market due to expansion in contingent work. The study analyzed the
size and status of the Contingent worker and also analyzed the issues raised by lawsuits
[litigation] in relation to the employment status of workers employed in the developing
Contingent worker.

(Dokko et al., 2015) made an attempt to identify the opportunities and challenges of non
traditional and contingent employment relationships under the development of the Contingent
worker in the United States (U.S.).

A GLOBAL VIEWPOINT

Developed countries like the United States and the European Union, where part-time
employees or independent contractors are hired to complete certain tasks, are familiar with
the Contingent worker notion. Contingent worker is defined as employment where the terms
of employment, including working hours, holidays, workdays, and organizational structure,
are set by the employee. Contingent Worker are engaged by most internet platforms that offer
temporary employment. The European Union has established guidelines with the goal of
giving workers who work an average of three hours per week or twelve hours per week and
are not self-employed the minimal rights and greater transparency in their working
conditions.

This directive was primarily given to stop the practice of falsely declaring self-employment
status when an employee satisfies the requirements of the employer-employee relationship in
order to avoid the employer's financial and legal obligations. Reducing abusive practices
against workers is another goal of the order.

23
Caza, A. (2020). The Contingent workerEconomy’s Implications for Management Education. Journal of
Management Education, 44(5), 594–604. https://doi.org/10.1177/1052562920934150.
24
The United States Supreme Court of California resolved several issues concerning
Contingent worker in the case of Dynamex Operations West, Inc. v. Superior Court of Los
Angeles. Multiple employees worked for the courier delivery firm Dynamex. In order to
avoid paying wages as required by the Industrial Welfare Commission and complying with
labour laws, the corporation converted the status of its employees from employees to
independent contractors. The primary goal of the welfare commission's regulations was to
increase welfare benefits, such as minimum wages, working hours, and equipment
requirements. A former employee of Dynamex brought the action alleging that the Industrial
Welfare Commission's regulations were broken and circumvented. The 'ABC' test was
established by the court to distinguish between employees and independent contractors, and it
upheld the petitioner's arguments. The test required an employer to demonstrate whether a
worker was an employee or an independent contractor. Contingent Worker can now swiftly
obtain employee status thanks to a plan developed by the U.S. Department of Labour in 2022
called the Fair Labour Standards Act (FLSA). The Companies would have to give Contingent
Worker all the benefits of an employee under this proposed act. Contingent Worker in China
were negatively impacted by the Covid epidemic, particularly those who delivered food.
Despite being regarded as independent contractors, Contingent Worker received certain
perks.

Benefits were increased during the pandemic to assist Contingent Worker s, and as a result,
government organizations passed regulations to safeguard and enhance pay, working
conditions, and safety at work. One-third of Contingent Worker in South Asia left their jobs
within a year of starting their Contingent worker due to bad working conditions and a lack of
job security. Taking on Contingent worker while looking for a job is another reason why
people leave their jobs; they need a source of cash to survive. More than 30% of Contingent
Worker want to leave their jobs during the first month of employment, and 24% of
Contingent Worker in India and 34% of Contingent Worker in Pakistan hold jobs at
universities.

In order to safeguard Contingent Worker s, the Singaporean government established a set of

regulations that include pensions, health insurance, and work injury compensation. Certain
nations, such as Spain, France, and Switzerland, have made it mandatory to grant employee
status to freelance workers. Australia and Brazil, for example, view Contingent Worker’sas
independent contractors.

(A)United Kingdom
Contingent Worker are legally categorized as "workers" in the United Kingdom, a status that
is in between that of a "employee" and a "independent contractor". Employees are entitled to
certain legal benefits and rights, including the right to holiday pay, minimum wage, and anti-
discrimination protection.

Numerous court decisions in the UK led to the establishment of this classification, one of
which involved Uber driver case25 and was widely publicized in 201622. Due to the fact that
Uber drivers were compelled to carry out tasks under the company's supervision and were not
genuinely running their own enterprises, the UK employment tribunal decided in that case
that they should be categorized as employees rather than independent contractors.

Other Contingent worker businesses in the UK have also encountered legal problems about
the employment status of their employees after that decision. For instance, in 2018, the
26
courier business Hermes and the GMB trade union came to a deal wherein Hermes
would provide its couriers the choice to become "self-employed plus" workers, entitling them
to certain extra rights and benefits.

All things considered, the UK's decision to classify Contingent Worker as employees rather
than independent contractors has been viewed as a landmark move in the legal handling of
these individuals, and it has established a standard that other nations will likely follow.
Nonetheless, some detractors contend that more effort needs to be done to guarantee that
Contingent Worker are adequately protected and that businesses do not take advantage of
legal loopholes to avoid offering benefits and safeguards.

(B) United States of America

Contingent Worker in the US are also governed by a patchwork of state-by-state rules and
regulations. The rights and protections of Contingent Worker have been impacted by a few
federal legislation and court rulings, though. Here are a few illustrations:

1. Fair Labour Standards Act (FLSA) 27: The Fair Labor Standards Act (FLSA) is a federal
legislation that sets minimum wage and overtime compensation requirements for American
workers. The FLSA's minimum wage and overtime protections are not applicable to

25
Uber BV v Aslam, (2021) UKSC 5
26
Partnership Principles Agreement,2019,
https://www.gmb.org.uk/sites/default/files/Hermes%20Partnership%20%26%20Procedure%20Agreement
%201 %20with%20GMB.pdf.
27
29 U.S. Code § 206 - Minimum wage
Contingent Worker who are categorized as independent contractors, according to a 2019
opinion letter published by the Department of Labor.

2. National Labor Relations Act (NLRA) 28: A federal statute known as the NLRA grants
employees the ability to band together to create unions and participate in collective
bargaining. Uber drivers are not protected by the National Labor Relations Act (NLRA) since
the National Labor Relations Board (NLRB) ruled in 2019 that they are independent
contractors.

3. Dynamex Operations West, Inc. v. Superior Court 29: A new standard for figuring out
whether workers are independent contractors or employees under state law was established
by a 2018 decision from the California Supreme Court. Businesses find it more challenging
to categorize employees as independent contractors when they apply the so-called "ABC"
test.

4. ABC30: The ABC test from the Dynamex case was broadened to cover a wider range of
businesses and formalized in a measure known as AB5, which was passed by the California
legislature in 2019.Despite legal challenges and numerous revisions, the law has significantly
impacted California's classification of Contingent Worker s.

5. Proposition 2231: Voters in California approved Proposition 22 in 2020, allowing

Contingent worker businesses to label their employees as independent contractors and
exempting them from AB5. The idea guaranteed a minimum wage and offered limited
healthcare coverage, among other benefits and safeguards for Contingent Worker s. These are
just a handful of the legislation and court decisions that have influenced the rights and
protections afforded to Contingent Worker’sin the US. The legal environment is continuously
changing, and there is continuous debate about how to reconcile the need to give workers
sufficient and fair protections with the adaptability and creativity of the Contingent worker.

(C) Australia:

Australian Contingent Worker s, often labelled as independent contractors, miss out on

benefits and legal protections enjoyed by traditional employees under the Fair Work Act.
However, initiatives are underway to bridge this gap. Proposed legislation aims to grant
28
National Labor Relations Act (1935)
29
Dynamex Operations W. v. Superior Court - 4 Cal. 5th 903, 232 Cal. Rptr. 3d 1, 416 P.3d 1 (2018)
30
California Assembly Bill 5 (2019)
31
California Proposition 22, App-Based Drivers as Contractors and Labor Policies Initiative (2020)
Contingent Worker benefits like sick leave and workers' compensation, offering them
increased security and support.

(D) China:

Though previously lacking benefits as independent contractors, Chinese Contingent Worker’

gained ground in December 2020 with government regulations mandating minimum wage
(based on local standards) and basic social security (healthcare, unemployment, pensions,
work injury) from platforms. While this shift offers better protection, challenges remain:
ensuring consistent enforcement, clarifying worker classification, and potentially expanding
social security benefits to fully bridge the gap with traditional employee protections 32.

TROUBLES FACED BY CONTINGENT WORKERS

he rise of the Contingent worker in India presents a conundrum for traditional labour laws,
leaving many workers facing low pay, no benefits, and unpredictable income. At the heart of
the issue lies the concept of "employment relationship," which struggles to define the often-
ambiguous nature of Contingent worker work. All things considered; the Contingent worker
emphasizes the necessity of modern labour laws that take into account the particular
difficulties experienced by platform workers.

Classifying Contingent Worker as independent contractors or employees raises certain

challenges. If Contingent Worker were considered employees, businesses would have to pay
excessive taxes, penalties, and back wages. This would raise operational costs and create an
unviable economic model for the company.

However, if Contingent Worker are classified as independent contractors, then their

employees will continue to be denied basic labour rights, which would amount to labour
exploitation.

The Contingent Worker are now considered "partners" by the web platforms. The
aggregator-intermediary structure that these companies employ to circumvent labour
regulations in the nation has raised serious questions about the purported protection granted
to internet platform-based businesses, according to Justice D Y Chandrachud. "They cannot
comply with traditional definitions of employment with their contract-based relationship with
app-based workers, and collective bargaining with platforms is challenging due to the
disaggregated nature of app-based work," Judge Chandrachud stated.
32
Guidelines for Platform-based Employment (issued by the Chinese government, Dec. 10, 2020), available at
http://www.gov.cn/xinwen/2020-12/10/content_5579325.html
Specific instances of Contingent Worker employed by online platforms include drivers for
ride-hailing services such as Uber, Ola, and Rapido; delivery personnel for food delivery
services such as Swiggy and Zomato; and home and delivery service personnel employed by
companies like Amazon, Flipkart, and Urban Companies.

While social security benefits are a step, they're insufficient to address Contingent Worker’s
needs. There's a call for a national minimum wage, the right to unionize, and job stability for
Contingent Workers. Additionally, there's a need for life insurance and tips recognition. Fair
compensation requires collective bargaining. Broad policies are generally needed to address
the unique challenges faced by Contingent Workers.

Contingent Worker face an uncertain future, lacking essential safety nets

Unlike traditional employees, Contingent Worker aren't granted basic benefits like paid leave,
retirement savings (through the EPF scheme), or severance pay. This exclusion stems from
their non-employee classification. Consequently, they often juggle financial instability,
particularly during illness, accidents, or unforeseen circumstances that hinder their ability to
work33.

Contingent worker in Limbo: Legislative Gridlock Hinders Progress

The burgeoning Contingent worker in India faces a roadblock due to unclear regulations and
outdated laws. The absence of a legally defined "Contingent Worker" creates a web of
uncertainties, impacting essential issues like social protection, taxation, benefits, and
minimum wage.34

Blurred Lines, Uncertain Lives: Contingent Worker Trapped in Legal

Limbo

33
Baishali Pal, Rising Popularity of Contingent workerEconomy: A Case Study from India, International Journal
of Religious and Cultural Studies, Vol. 3, No. 2 203-208, (2021)
34
9 Anto Robert G, Contingent workerEconomy: Prospects & Challenges under Social Security Code,
International Journal of Law Management & Humanities, Vol. 4 Iss 3; 3863, (2021).
India's Contingent Worker face a harsh reality – legal ambiguity. Existing labor laws offer
some protection, but they flounder when it comes to classifying Contingent Worker as
employees or independent contractors.35

Power Imbalance: Tech Giants Squeeze Contingent Worker in India

The Indian Contingent worker thrives on tech platforms like Uber, Ola, and Swiggy, but at a
cost to its powerless workforce. These platforms hold immense control, creating a David vs.
Goliath scenario for Contingent Worker who struggle to negotiate for fair pay and decent
working conditions.36

Underpaid and Undervalued, Contingent Worker’s Struggle in India

Many independent contractors in India face a grim reality: Meager pay checks barely cover
their basic needs, lacking even the semblance of security offered by benefits like pensions or
health insurance. This systemic undervaluing leaves them in a vulnerable position, struggling
to make ends meet while facing limited bargaining power against platforms and companies. 37

INTERPRETING MULTI-STAKEHOLDER SOLUTIONS AND

COLLECTIVE ACTION TOWARDS A MORE EQUITABLE SIZE FOR
CONTINGENT WORKERS IN INDIA
Need for multi-stakeholder solutions38: The complexity and diversity of the Contingent
worker in India make multi-stakeholder solutions imperative to resolving the problems faced
by Contingent Worker s. Governments, businesses, labour unions, and civil society
organizations can collaborate to develop programs and regulations that support Contingent
Worker and improve fair and decent working conditions. It might also require having direct
conversations with Contingent Worker in order to better understand their needs and problems
and offer solutions tailored to their unique situation.

Delivery Partners for E-commerce Platforms39: In September 2021, the Karnataka High
Court ruled that delivery partners for online merchants such as Amazon and Flipkart should
be considered employees under the Industrial Disputes Act. The e-commerce platform
35
Ruchika Chaudhary, India’s Emerging Contingent workerEconomy: Shaping the Future of Work for Women,
Georgetown Journal of Asian Affairs, Volume 7, (2021).
36
Neelam Kshatriya & Daisy Kurien, Contingent workerworkers in India: Emerging Opportunities in the New
Economy, Liberal Studies, Vol. 7, Issue 1, (2022).
37
Bobby Jacob & Mohsin Shaikh, Growth and Challenges Of Contingent workerEmployees in India, KIIT Journal
of Management, Vol. 17(I), (2021).
38
Nilanjan Banik, The Spread of Contingent workerEconomy: Trends and Effects, Foresight And Sti Governance,
Vol. 15 No 1 (2021).
39
Dr. Vijeta Banwari, Contingent workerEconomy: Challenges and Opportunities in India, JETIR, Vol 5 Issue 11,
(2018)
controlled and supervised the delivery partners, so the court decided that they should be
entitled to the safeguards of the labour law.

Social safety nets40: Due to the absence of formal legal protections, many Indian Contingent
Worker rely on unofficial social safety nets to support their families and themselves. This can
include community-based insurance programs, peer-to-peer assistance networks, and
unofficial savings and lending institutions. Although helpful in some circumstances, these
safety nets cannot take the place of official legal protections and may show to be inadequate
or unstable in times of serious medical or financial difficulties.

Skills development41: Because Contingent worker work is always changing and requires skill
development and ongoing education, many Indian Contingent Worker are making these
investments to stay competitive and employable in their sectors. Keeping up with the most
recent developments and developing trends can entail taking online courses, attending
seminars or training sessions, or searching for networking and mentorship possibilities.

Collective action is necessary42: Due to these challenges, many Indian Contingent Worker
have turned to lobbying and organizing groups in order to help secure better working
conditions and legal protections. To draw attention to their issues and concerns, this can
entail organizing worker organizations or unions, participating in protests and strikes, and
starting social media campaigns. These projects may be risky or difficult to sustain over time,
even though they may succeed in some circumstances. This is especially the case when they
encounter resistance from powerful tech corporations or political organizations.

Way Forward

The government protects the interests of workers, including Contingent Worker s, as seen by
the Industrial Relations Code of 2020, which was developed by fusing three different labor
laws. The Code aims to prevent future disputes by including protections that benefit
Contingent Worker as well as industrial units. The Atal Bimit Vyakti Kalyan Yojna, which
offers Contingent Worker the same benefits as workers in the organized sector in the event of
job loss, is the program's most notable feature. Contingent Worker are covered by the
Employee State Insurance (ESI) Scheme, which provides them with essential financial

40
Prakhar Dubey, Contingent worker& Platform Workers: A Way Towards Formal Labour Recognition, Symbiosis
Law School, Nagpur Multidisciplinary Law Review, Vol I Issue 2, (2022).
41
Rajeev Rambhatla, The Contingent workereconomy in India - Employment laws, (2022).
41 Ria Kasliwal, Gender and the Contingent workerEconomy: A Qualitative Study of Contingent workerPlatforms
42
Ria Kasliwal, Gender and the Contingent workerEconomy: A Qualitative Study of Contingent workerPlatforms
for Women Workers, ORF issue brief no. 359 May, (2020).
assistance that serves as a safety net during periods of unemployment. Labour regulations are
unified under the Occupational Safety, Health, and Working Conditions Code of 2020 to
protect workers across all industries, including Contingent Worker s. While offering
advantages like free medical care through ESIC to Contingent Worker and other individuals,
it focuses on creating safe working conditions in mines, factories, plantations, and other
venues. Now that ESIC covers workers across all industries, facilities are expanding to the
district level. Contingent Worker in risky jobs are eligible for benefits from ESIC, and
individuals employed in cutting-edge technology are encouraged to sign up. Plantation
workers are protected, and establishments in high-risk regions are required to register with
the ESIC. In addition to Social Security benefits, the EPFO pension plan ensures the financial
stability of Contingent Worker and other employees.

By integrating nine labour regulations into one, the Social Security Code safeguards
employees' rights to insurance, pensions, gratuities, and maternity benefits. It creates a
thorough structure for social security that accounts both company and employee payments.
The Code creates a distinct social security fund, eliminates the need for a minimum service
requirement for gratuities, and implements a nationwide database, it is a significant step
forward for Contingent Worker s. Employers are required to post job openings online,
encouraging openness. Contingent Worker are given a Universal Account Number (UAN) for
convenient access to benefits, which is supported by an Aadhaar-based system. When
everything is taken into account, the Code demonstrates a strong commitment to enhancing
the welfare of Contingent Worker in India's shifting labour market43.

The Minimum compensation Code integrates four labour laws, all workers—Contingent
Worker included—have the right to minimum compensation. Contingent worker and the 40
crore unorganized sector workers are now the first to receive this fundamental privilege.
Simplified methods have been used to account for factors such as skill level and region for
determining minimum wages. For Contingent Worker s—many of whom have flexible and
temporary employment agreements—this ensures fair compensation for work completed in
accordance with necessary requirements.

CONCLUSION

The Contingent worker's growth in India has highlighted a number of issues that Contingent
Worker must deal with, such as job stability, just compensation, and safety and health risks.
In order to prevent exploitation and unfair treatment, it is imperative that the important
43
The Code on Wages, 2019
problem of Contingent Worker’s lack of legal rights be addressed. It's critical to acknowledge
that Contingent worker is here to stay and will keep contributing significantly to the Indian
economy. Consequently, it is crucial to establish a legislative framework that guarantees
Contingent Worker’s rights, interests, and fair and dignified treatment.