Only Bigbasket, Urban Company guarantee minimum wage for gig workers: Fairwork India report

A recent study on the working conditions of gig workers revealed that only Bigbasket and Urban Company have implemented policies ensuring their workers earn at least the local minimum wage after accounting for work-related costs.

"In addition to ensuring that payments are made in full, and on time, both platforms have a publicly available wage policy that commits to ensuring their workers will earn at least the hourly local minimum wage after factoring in work-related costs such as fuel, vehicle maintenance insurance, and data," the report added.

The Fairwork India Report 2024 presented critical findings on the working conditions of platform workers in India. The report, in its sixth edition, assessed 11 major platforms—such as Swiggy, Zomato, and Urban Company—against five key principles: Fair Pay, Fair Conditions, Fair Contracts, Fair Management, and Fair Representation. Each platform was scored based on compliance with these standards.

Several platforms, including Amazon Flex, bigbasket, BluSmart, Swiggy, and Zomato, scored well on Fair Conditions. These platforms provided safety equipment and training, and some even offered accident insurance. However, many platforms fell short of providing full compensation for non accident-related medical leave.

The report found that some gig platforms are doing better than others when it comes to fair contracts for workers. Bigbasket, BluSmart, Swiggy, Urban Company, Zepto, and Zomato stood out for offering contracts that are easy for workers to understand and access. These contracts are written clearly, available in multiple languages, and include protections for workers' personal data.

In addition, Bigbasket, BluSmart, Swiggy, Zepto, and Zomato went a step further by notifying workers in advance of any changes to their contracts and by ensuring workers aren’t unfairly held responsible for problems like app malfunctions. These platforms also explained how pricing works when dynamic pricing is involved, giving workers more transparency and protection.

A key concern raised in the report was the lack of fair representation. Despite increasing worker collectivisation, no platform was willing to formally recognise worker unions or collectives, showing a significant gap in supporting workers' voices in decision-making processes.

YourStory earlier reported that only 38% of Indian workers think that gig professionals, such as cab drivers on Ola and Uber, or delivery partners working for food delivery companies such as Swiggy and Zomato, should have the right to collectively bargain, according to a survey by the International Transport Workers Federation.

The report also discussed upcoming regulatory changes, such as draft bills in Karnataka and Jharkhand, which aim to improve working conditions through social security measures and algorithmic transparency.

The Karnataka Draft Bill goes beyond social security by addressing algorithmic transparency, contracts, dispute resolution, and mandating safe working conditions, while establishing a welfare board for gig workers. It proposes welfare fee collection models and ensures worker rights in contracts and grievances. The Jharkhand Draft Bill follows a similar approach but retains the gig worker definition from the Code on Social Security (CoSS) 2020.

However, platform companies and industry associations, such as NASSCOM and the Internet and Mobile Association of India (IAMAI), have raised concerns about these regulatory changes. They argue that some provisions—such as transparency in algorithmic work allocation and the welfare fee—are too burdensome and could affect their operations.

NASSCOM suggested rejecting the Karnataka bill's definition of gig workers in favor of the CoSS definition, claiming platforms don’t exercise control over independent contractors, and expressed concerns about mandatory contract transparency and work rejection rights.

IAMAI warned that welfare fees could lead to price distortions, reduce demand for gig-based services, and negatively impact the gig economy in the state.