• The implication of the judgement means that Uber drivers are entitled to minimum wage, paid annual leave, other workers’ rights.
• 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.
Mains Paper 3: Economy
Prelims level: Gig economy
Mains level: Read the newsfeed