BENGALURU: As the controversy surrounding Zomato’s delivery partner and a Bengaluru-based beauty influencer deepens, the spotlight is back on the status of 15 million gig workers in India who, until last year, lacked formal regulatory support.
Legal experts told TNIE that even as the country formally introduced the Social Security Code 2020 to provide benefits such as life insurance, accident covers, gratuity and provident fund contributions, the classification of these contract workers as employees, as well as the allocation of minimum wages, continues to remain a grey area.
In a recent report, ASSOCHAM had suggested that gig workers should be entitled to potable benefits.
“Cases in India have, time and again, dealt with situations where an employer-employee relationship could or could not be established. Given the nature of the engagement or relationship, gig workers, at this stage, may not be eligible for legal or statutory claim,” the report also pointed out.
With the advent of digital platforms and startups, the industry body estimates the gig economy in the country to grow at an annual rate of 17%, to $455 billion by 2023, and generate 56% of new employment.
Meanwhile, referring to the spat between his company’s delivery partner, Kamaraj, and the customer Hitesha, Zomato CEO Deepinder Goyal said the firm will support the medical expenses of the user as well as legal financial support to the delivery executive.
Senior advocate Vivek Sood said that it is best for companies to adopt a neutral stand in such disputes.
“Zomato has taken a pragmatic stand by leaving the delivery boy and consumer to settle the issue in the police station and courts,” he said.
“Having said that, these companies must take a pro-consumer stand if they must, as their first and foremost responsibility is towards their customers. Zomato has shown wisdom by extending outside support to both parties in the case,” he added.