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Gig Platforms to Fund Worker Welfare: New Labour Codes Emerge
22 Nov
Summary
- Gig platforms must allocate 1-2% of turnover for worker welfare.
- Four new labor codes aim to simplify, protect, and modernize employment.
- Zomato's parent company supports the new regulations for gig workers.
India has officially implemented four new labor codes, consolidating 29 existing laws to streamline the employment landscape. These codes are designed to formalize work, enhance worker protections, and align the labor ecosystem with global standards.
Central to these new regulations is the requirement for 'gig work,' 'platform work,' and 'aggregators' to contribute between 1 to 2 percent of their annual turnover. This contribution, capped at 5 percent of the amount paid to workers, is earmarked for the welfare of gig and platform employees.
Eternal Ltd, the parent company of Zomato and Blinkit, has expressed support for the codes. They believe the new framework will strengthen social security access for their gig workforce and anticipate no detrimental financial impact on their business's long-term sustainability.
