The Gig Economy and AI: Implications for Indian Labour Law

Abstract This research paper instigates how the fast-growing gig economy (short-term, freelance jobs) and the quick rise of artificial intelligence (AI) are connected, focusing on what this means for labour laws in India. In India, this growth is even stronger because of the country’s large young population and ongoing struggles with creating enough stable jobs. The rapid expansion of the gig economy, powered by artificial intelligence (AI), has disrupted traditional employment models in India. While platforms like Ola, Swiggy, and UrbanClap offer flexibility, they simultaneously obscure worker rights under outdated labour laws. The intersection of these two phenomena presents unique challenges to the existing legal framework, which was primarily designed for traditional employer-employee relationships. This paper examines the legal ambiguities surrounding gig workers in India, focusing on their classification, social security entitlements, and algorithmic governance and the extent to which Indian labour law is equipped to handle the complexities of the gig economy and the integration of AI in the workplace. This paper examines using a doctrinal method approach analysing judicial precedents, policy frameworks. The study explores systemic gaps in India’s labour laws, which fail to address the dual challenges of platform-mediated work and AI-driven decision-making. The Code on Social Security (2020), though a step forward, lacks enforceability and inclusivity. The paper critically analysis a hybrid regulatory model that balances flexibility with welfare, drawing parallels with international reforms in the EU and California. Recommendations include redefining “employee” status, mandating algorithmic transparency, and creating gig worker welfare boards. This research contributes to the discourse on modernizing India’s labour laws to align with 21st-century work realities. This paper further evaluates the adequacy of existing legal mechanisms for addressing issues such as data privacy, intellectual property rights, and liability for work-related injuries in the context of gig work mediated by AI The research explores the legal classification of gig workers, their entitlement to social security benefits, and the applicability of traditional labour protections such as minimum wage, working hours, and collective bargaining rights. It analyses the potential for algorithmic bias in AI-driven work platforms and its impact on fair employment practices., for the study researcher used doctrinal research method.