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Context & Recent Development
At the 114th session of the International Labour Conference in Geneva, the International Labour Organisation (ILO) adopted Convention No. 193 concerning Decent Work in the Platform Economy. This landmark treaty represents the world’s first binding international legal instrument setting labor standards specifically for digital platform and gig workers.
While the convention was adopted with an overwhelming majority (406 votes in favor), the Government of India abstained from voting. Notably, India’s workers’ and employers’ delegates both voted in favor of the convention, leaving the government isolated within its own tripartite delegation.
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Key Provisions of ILO Convention No. 193
- “Primacy of Facts” Classification Principle: Requires member states to classify workers based on the actual nature of work and payment structure rather than relying strictly on contractual labels (e.g., “independent contractors” or “partners”) used by platform companies.
- Floor for Social Protection & Wages: Mandates access to minimum wage safeguards, healthcare, occupational safety, and disability/old-age social security on par with traditional employees.
- Algorithmic Transparency & Human Oversight: Guarantees workers the right to understand automated management systems, prohibiting arbitrary automated deactivations or pay cuts without human review and written explanations.
- Collective Bargaining & Freedom of Association: Grants gig workers the explicit right to form unions, organize, and engage in collective bargaining with digital platforms.
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Rationale Behind India’s Abstention
India’s decision to abstain reflects a cautious approach rooted in domestic economic priorities and existing regulatory frameworks:
- Preserving Business Flexibility & Innovation: The primary driver for platforms operating in emerging markets is labor flexibility. Imposing rigid employer-employee obligations could increase operational costs for aggregators (like Swiggy, Zomato, Ola, and Uber), potentially dampening venture capital investment and slowing employment generation in the digital economy.
- Informality of the Indian Labor Market: Over 85-90% of India’s total workforce operates in the informal sector. Enforcing strict formal-sector employment standards on gig work—a sector inherently defined by task-based, non-standard arrangements—is viewed by policymakers as administratively difficult and premature.
- Preference for Domestic Statutory Definitions: India prefers to regulate gig workers under its own statutory architecture—specifically the Code on Social Security, 2020—which categorizes gig and platform workers separately from traditional “employees” to balance welfare with business growth.
- Historical Pattern on ILO Treaties: India historically refrains from ratifying international labor conventions that mandate universal binding standards if domestic administrative machinery or economic conditions cannot immediately ensure compliance across all states.
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Status & Gaps in India’s Domestic Framework
According to NITI Aayog, India’s gig workforce is projected to expand to 23.5 million workers by 2029–30. However, domestic mechanisms present clear gaps compared to global standards:
| Parameter | Domestic Framework (Code on Social Security, 2020) | Global Standard (ILO Convention No. 193) |
| Worker Status | Defines gig/platform workers as distinct from traditional “employees”. | Applies the “Primacy of Facts” test to prevent misclassification. |
| Enforceable Rights | Makes workers eligible for social welfare schemes, but rights are not legally guaranteed or enforceable in labor courts. | Mandates legally enforceable minimum wage floors, social security, and safe conditions. |
| Algorithmic Regulation | Silent on algorithmic management, automated pay cuts, or arbitrary account deactivations. | Guarantees right to human review, explanation of automated decisions, and data privacy. |
| Data & Visibility | The Periodic Labour Force Survey (PLFS) subsumes gig workers under “self-employed” or “casual labor”. | Requires explicit statistical representation and transparency. |
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Implications of Non-Ratification
- Inadequate Safety Nets for Vulnerable Workers: Abstaining keeps Indian gig workers in a legal void where income volatility, high out-of-pocket medical costs, and lack of accident insurance remain unaddressed at a national level.
- Regulatory Fragmentation Across States: In the absence of a ratified national or global standard, individual states (such as Rajasthan and Karnataka) are enacting state-specific gig worker welfare legislation, leading to fragmented compliance norms for pan-India aggregators.
- Reputational Risk in Global Governance: Abstaining—especially when domestic trade unions and employer groups supported the treaty—weakens India’s leadership positioning in global labor rights forums.
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Way Forward
- Operationalize the Code on Social Security: Rules under the 2020 Code must be finalized swiftly, making aggregator contributions to the Social Security Fund mandatory rather than optional.
- Introduce Algorithmic Accountability: Incorporate provisions in draft aggregator rules that require platforms to notify workers before deactivation and provide clear transparency on fare calculations and commission deductions.
- Revamp Statistical Metrics: Update the Periodic Labour Force Survey (PLFS) to collect dedicated data on gig workers, ending their “statistical invisibility” to inform targeted welfare policies.
Phased Harmonization: Adopt a gradual approach toward ILO principles—starting with occupational health, safety, and grievance redressal mechanisms—before transitioning to stricter employment relationships
