GIG ECONOMY: PANACEA OR PANDORA’S BOX

The gig economy is mainly comprised of platform and gig workers and has been characterised by short-term, freelance and flexible nature of employment. It has transformed the traditional standard of employment by offering new opportunities along with challenges in the existing labour market. The gig economy has seen an exponential growth in India mainly due to advancements in technology, a rise in preference for non-traditional work arrangement, the digitalisation of the economy, need for a second and quick source of income due to economic pressure. Gig economy in India encloses a broad range of industries from ride-hailing services and food delivery agents to freelance IT and creative work. The key challenges for the regulation of gig economy in India includes ambiguity in legal status, the lack of collective bargaining power and the absences of a comprehensive social security for platform/ gig workers. The regulation of gig and platform workers is a global issue where the International Labour Organisation (ILO) has recognised the need to protect the gig workers. The ILO’s 2025 agenda focuses on advancing social justice and promoting decent work in the evolving labour market. It aims to address critical areas such as the future of work, social protection, equality and the regulation of emerging work forms like the gig economy. India has taken certain measures to regulate the gig economy by focusing on providing legal recognition and social security to platform and gig workers, the social security code, 2020 and other initiatives at the central level and State level initiatives includes certain steps taken by the State government such as the state of Rajasthan and Kerala. This paper aims to study the pros and cons of the gig economy, whether it is a panacea or pandora’s box for developing nations along with that the paper aims to address the following three questions: 1. Why the Gig Economy is on the rise? 2. Why is there a need to regulate it? 3. What are the recent measures taken to regulate it?