UK Supreme Court said that, Uber Drivers are workers, not independent contractors

• The implication of the judgement means that Uber drivers are entitled to minimum wage, paid annual leave, other workers’ rights.

About:

• Judgement held that the driver’s activities were “very tightly defined and controlled by Uber.”

• Judgment could set a precedent for other workers and companies in the broader gig economy which has thrived during the pandemic.

• Gig economy refers to a free market system in companies tend to hire independent contractors and freelancers instead of full-time employees.

India’s Gig economy:

• According to Economic Survey 2020-21, India’s gig economy is now among largest in the world due to the wider adoption of e-commerce and online retailing.

• There are about 3 million gig workers in India and an estimated 56% of new employment is generated by this segment.

• Code on Social Security, 2020 provides that central government will set up Social security fund for unorganised workers, gig workers and platform workers.

• However, they are not entitled for statutory benefits under the Code like, pension and medical insurance etc.

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Mains Paper 3: Economy

Prelims level: Gig economy

Mains level: Read the newsfeed

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