KLE COLLEGE OF LAW

GIG WORKERS AND PLATFORM WORKERS

LABOUR LAW-II

BY

PRIYADARSHINI KHERKAR
ROLL NO. 41
T.Y.L.L.B

UNDER THE GUIDANCE OF

ASST. PROF. MAYURI TAWARE

OCTOBER 2024

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 ACKNOWLEDGEMENT

I would like to express my special thanks to Principal Sir Professor Dinkar Gitte who gave
me this golden opportunity to do this wonderful project on the topic Gig Workers and Platform
Workers.

Secondly, I would like to extend my gratitude to my professor Ms. Mayuri Taware for her
able guidance and support to complete my project.

Lastly, I would like to thank my colleagues who appreciated my work.

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 INDEX

Sr. No. Content Page No.

1. Abstract 4
2. Methodology 5
3. Introduction 6
4. Transformative impact of Gig Workers and Platform workers on 7
urban and rural employment opportunities in India
5. Positive impact of Gig Economy in Urban areas 7
6. Negative Impacts of Gig Economy in Urban areas 8

7. Positive impact of Gig Economy in Rural Areas 9

8. Negative impact of Gig Economy in Rural Areas 11

9 Role of Digital Platforms 12

10 Gig Economy Platform Participation Barriers: Urban and Rural 13

Comparisons

11 Case Laws related to Gig Workers and Platform Workers: 15

12 Key Provisions under Indian Labor Law for Gig Workers and 17
Platform Workers
13 Key Provisions under Indian Labor Law for Gig Workers and 18
Platform Workers
14 Conclusion 20
15 References 21

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 ABSTRACT

The rise of the Gig economy has transformed the nature of work, creating new opportunities
and challengers for workers employers alike. Gig workers and platform workers are now a
significant segment of the labour market, engaged in short-term, flexible, and often task-based
employment facilitated by digital platforms. This abstract explores the key characteristics,
benefits, and drawbacks of gig and platform work, emphasizing the implications for workers'
economic security, job satisfaction, and work-life balance.

Gig workers typically enjoy flexibility and autonomy, allowing them to manage their own
schedules and work from various locations. However, this flexibility often comes at the
expense of job security, predictable income, and access to traditional employee benefits such
as health insurance and retirement plans. Platform workers, who are often engaged through
apps and online platforms, face similar challenges but also confront unique issues related to
algorithmic management and the gig economy's evolving regulatory landscape.

The abstract highlights recent research on the socio-economic impacts of gig and platform
work, including the disparities in earnings and working conditions compared to traditional
employment. It also examines emerging trends and potential policy responses aimed at
improving the welfare and rights of gig and platform workers, such as portable benefits systems
and new labor regulations. By understanding these dynamics, stakeholders can better address
the needs of this growing workforce and develop strategies to balance flexibility with fair
treatment and economic stability.

Keywords : Gig workers, platform workers, social security,welfare,benefits.

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 METHODOLOGY

This research is Doctrinal research. The main source of information is secondary in nature. The
study is not empirical in nature. Cases decided by the Courts, books, scholarly articles,
magazines and newspaper articles are relied upon to develop and examine the judicial approach
with regard to Gig Workers and Platform Workers in India.

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 INTRODUCTION

For the first time in India, the newly enacted labour codes extend social security benefits to
Gig and Platform workers, as well as to those in the unorganized sector. These codes also
represent the first instance of Indian legislation explicitly defining gig and platform workers.
India has been addressing the impacts of the Covid-19 pandemic, which led to 113.6 million
job losses between March and April 2020, according to 1CMIE data. Despite these challenges,
the temporary staffing market ended fiscal year 2021 with over 1.03 million new employees
across various industries and a modest growth rate of 3.6% in March 2020. This growth
suggests that temporary staffing will continue to be a major source of new jobs in India for the
foreseeable future.2 According to the Indian Staffing Federation's 2019 report, India ranks as
the fifth largest country globally in flexi-staffing, following the US, China, Brazil, and Japan.
With India's GDP projected to reach $5 trillion by 2025, the gig economy is expected to play a
crucial role in bridging income and unemployment gaps. The gig economy offers increased
control over work preferences, such as better work-life balance, being one's own boss, and
working on projects of personal interest. Younger generations, particularly Gen Y and Gen Z,
prefer not to be tied to long hours and fixed pay structures, making the gig economy a
favourable alternative. HR professionals should leverage the gig economy to manage their
talent portfolios effectively. This study aims to explore the gig economy and gig workers in
India, including the growth of electronic gig employment platforms, the challenges faced by
gig workers, and potential solutions. The rise of tech-enabled platforms and the demand for
flexible employment have fuelled the gig economy's growth, offering a viable and sustainable
alternative for job seekers and current employees dissatisfied with traditional full-time roles.

1
https://economicoutlook.cmie.com/
2
https://www.linkedin.com/company/indian-staffing-federation/?originalSubdomain=in

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3
Transformative Impact of Gig Workers and Platform workers on
Urban and Rural Employment Opportunities in India:

The gig economy in India has introduced significant changes to employment opportunities
across both urban and rural areas. The advent of platforms like Uber, Ola, Swiggy, Zomato,
and UrbanClap (now Urban Company) has created flexible job opportunities, though it also
brings challenges related to job security, income volatility, and infrastructure. This discussion
will explore the role of gig economy platforms in India, highlighting both the positive and
negative impacts.

4
Positive Impacts of the Gig Economy in Urban Areas:

 Increased Employment Opportunities: Platforms like Uber, Ola, Swiggy, and Zomato
have created numerous job opportunities, providing livelihoods to a large number of
people who may have struggled to find employment in traditional sectors.

 Flexibility and Autonomy: Gig workers in urban areas often enjoy the flexibility to
choose their working hours and the autonomy to decide how much they want to work,
which can lead to better work-life balance.

 Skill Development: Engagement with gig platforms can lead to the development of new
skills such as digital literacy, customer service, and time management, which can be
beneficial for future employment prospects.

 Income Supplementation: Many individuals use gig work as a supplementary source

of income, allowing them to boost their earnings alongside traditional employment.

3
https://www.researchgate.net/publication/383053115_A_Study_on_the_Impact_of_Gig_Economy_Pl
atforms_on_Employment_Opportunities_in_India's_Urban_and_Rural_Areas
4
De Stefano, Valerio, Platforms at Work: Gig Economy and the Law 45 (1st ed. 2018).

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  Ease of Entry: The gig economy often has lower entry barriers compared to traditional
jobs, making it accessible to a broader segment of the population, including those with
limited formal education or professional experience.

 Economic Growth: The proliferation of gig platforms has contributed to urban

economic growth by increasing consumption and demand for various services, thereby
stimulating local economies.

 Service Availability: The gig economy has enhanced the availability and convenience
of various services, improving the quality of life for urban residents by providing easy
access to transportation, food delivery, home services, and more.

 Technological Advancements: The gig economy has spurred technological

advancements and innovations, leading to improved service delivery and efficiency in
urban settings.

 Women Empowerment: Gig platforms have opened up opportunities for women who
might face societal barriers in traditional workplaces, allowing them to work flexibly
from home or within their communities (Hunt & Samman, 2019).

 Crisis Resilience: During economic downturns or crises such as the COVID-19

pandemic, the gig economy has provided an alternative employment avenue for those
who lost their jobs in traditional sectors.

Negative Impacts of the Gig Economy in Urban Areas:

 Job Insecurity: Gig workers often lack the job security that comes with traditional
employment. They can be easily replaced, and their income can be inconsistent due to
fluctuating demand.

 Income Volatility: Earnings in the gig economy can be unpredictable, leading to

financial instability for workers who rely solely on these platforms for their livelihood

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 Lack of Benefits: Gig workers typically do not receive benefits such as health
insurance, retirement plans, paid leave, or other employee benefits that are standard
in traditional jobs

 Workplace Exploitation: There is a risk of exploitation, as gig workers might have to

work long hours or accept unfavourable terms to earn a sufficient income. The power
imbalance between workers and platform companies can lead to unfair treatment.

 Mental and Physical Health Issues: The pressure to meet high demands and the
lack of job security can contribute to stress, anxiety, and other mental health issues.
Additionally, the physical demands of some gig jobs, such as driving for long
hours or delivering goods, can lead to health problems.

 Lack of Career Progression: Gig work often lacks clear pathways for career
advancement, leaving workers in a cycle of low-wage, low-skill jobs without
opportunities for growth.

 Dependence on Technology: Reliance on technology can be a double-edged sword.

Technical issues, algorithm changes, or platform policies can directly affect workers’
earnings and job stability.

 Regulatory Challenges: The gig economy operates in a grey area with respect to labour
laws. This can result in inadequate legal protections for workers, who may be classified
as independent contractors rather than employees.

 Social Isolation: Gig work can be isolating as it often lacks the social interactions
and support systems present in traditional workplaces, potentially leading to feelings
of loneliness.

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  Environmental Impact: The increase in gig economy services, particularly in
transportation and delivery, can contribute to traffic congestion and pollution in urban
areas.

 Data Privacy Concerns: Gig workers are often required to share personal data with
platforms, raising concerns about data privacy and the security of their information.

 Economic Inequality: The gig economy can exacerbate economic inequality as it often
provides low-wage jobs with few protections, contrasting sharply with the high profits
generated by platform companies and their shareholders.

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Positive Impacts of the Gig Economy in Rural Areas

 Employment Generation: The gig economy has created new job opportunities in rural
areas, where traditional employment opportunities might be scarce. Platforms like
Swiggy, Zomato, and UrbanClap (now Urban Company) have enabled rural residents
to find work without having to migrate to urban centres.

 Income Diversification: Gig economy platforms provide rural workers with the ability
to diversify their income sources, which is crucial in regions where agriculture is the
primary occupation and subject to seasonal fluctuations.

 Access to Markets: Gig economy platforms enable rural entrepreneurs and small
businesses to access larger markets, enhancing their customer base and potential
revenue. This is particularly beneficial for local artisans and farmers, who can now
reach urban consumers

 Skill Development and Empowerment: Engagement with gig platforms helps rural
workers develop new skills, such as digital literacy, customer service, and technical
know-how, which can enhance their employability and empowerment

5
Standing, Guy, The Precariat: The New Dangerous Class 85 (Bloomsbury, 2011).

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  Economic Inclusion: The gig economy has played a role in economically including
marginalised populations in rural areas, such as women and differently-abled
individuals, who might find it challenging to engage in traditional employment.

 Improved Connectivity: The demand for gig services has incentivized

improvements in infrastructure, such as better internet connectivity and
transportation networks, which benefit rural communities at large.

 Service Availability: The gig economy has brought essential services to rural areas,
improving the quality of life for residents by providing access to transportation, delivery
services, and home repairs that were previously hard to find.

 Flexibility and Autonomy: Rural gig workers often appreciate the flexibility to choose
their working hours and the autonomy to balance work with other responsibilities,
such as farming or household duties (Bajpai & Jha, 2018).

 Technology Adoption: The proliferation of gig economy platforms has accelerated

technology adoption in rural areas, fostering a more digitally inclusive society
(Ganne & Lundgren, 2019).

 Resilience to Economic Shocks: The gig economy provides an alternative source

of income during economic downturns or agricultural off-seasons, contributing to
the resilience of rural households.

Negative Impacts of the Gig Economy in Rural Areas

 Income Instability: Gig work often comes with fluctuating and unpredictable income,
which can be particularly challenging for rural workers who may lack other income
sources.

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 Lack of Benefits and Protections: Gig workers typically do not receive traditional
employment benefits such as health insurance ,retirement plans, or paid leave,
leaving them vulnerable to economic hardships .
 Limited Job Security: The gig economy offers limited job security as workers can be
easily replaced and have little recourse in cases of job loss or disputes with platform
companies
 Technological Barriers: Many rural areas suffer from inadequate internet connectivity
and digital infrastructure, which can hinder participation in the gig economy and limit
access to opportunities.
 Exploitation and Power Imbalance: The power dynamics between gig workers and
platform companies can lead to exploitation, as workers might have to accept
unfavourable terms and conditions to secure work .
 Skill Mismatch: The types of jobs offered by gig platforms may not always align with
the skills and experiences of rural workers, leading to underemployment or the
necessity to engage in low-skill, low-paying tasks.
 Isolation and Lack of Community: Gig work often involves solitary tasks, leading
to social isolation and a lack of community support that can negatively impact mental
health and well-being .
 Dependency on Platforms: Rural workers can become overly dependent on gig
platforms for income, making them vulnerable to changes in platform policies,
algorithms, or market demands

 Inadequate Regulatory Framework: The lack of a robust regulatory framework for

gig work can result in insufficient legal protections for workers, leaving them exposed
to unfair labour practices.
 The gig economy in India plays a crucial role in reshaping employment activities,
particularly those involving transportation and delivery, can contribute to
environmental degradation and an increased .

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6
Role of Digital Platforms :

1. Job Creation: Digital platforms have emerged as significant job creators in India,
particularly for the gig economy. They provide numerous opportunities in various
sectors such as transportation (Uber, Ola), food delivery (Swiggy, Zomato), and
freelancing (Upwork, Freelancer).

2. Income Levels Digital platforms have had a mixed impact on income levels, offering
both opportunities for higher earnings and challenges related to income volatility.

3. Work Flexibility: One of the most significant advantages of digital platforms is the
flexibility they offer to workers, allowing them to choose when, where, and how much
they work.

4. Socioeconomic Development: Digital platforms contribute to socioeconomic

development by promoting financial inclusion, reducing unemployment, and fostering
entrepreneurial activities.

6
Standing, Guy, The Precariat: The New Dangerous Class 85 (Bloomsbury, 2011).

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7
Gig Economy Platform Participation Barriers: Urban and Rural
Comparisons:

Urban Context

1. Digital Literacy and Access

 Digital Divide: Many urban residents, especially those from lower socio-economic
backgrounds, lack the necessary digital skills and access to technology required to
participate in the gig economy.
 Device Access: Access to smartphone and reliable internet connections, crucial for
gig work, can be limited for some of the urban poor.

2. Regulatory and Legal Issues:

 Regulatory Uncertainty: The lack of clear regulations around gig work can create an
uncertain environment, deterring potential participants.
 Legal Protections: Gig workers often lack basic labour protections such as minimum
wage, health benefits, and job security, making gig work less attractive.

3. Financial Barriers
 Initial Costs: Initial investments, such as purchasing a vehicle for ride-sharing
services or a smartphone, can be prohibitive for many urban dwellers.
 Earnings Volatility: The unpredictable nature of gig income can deter individuals
seeking stable and reliable earnings.

4. Awareness and trust

 Lack of Awareness: There is often a lack of awareness about available gig
opportunities and how to access them, especially among older and less educated
populations.

7
Berg, Janine et al., Digital Labour Platforms and the Future of Work: Towards Decent Work
in the Online World 121 (International Labour Organization, 2018).

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  Trust Issues: Trust in digital platforms and online payment systems can be low,
particularly among those with less exposure to digital transactions and reliable internet
connections, crucial for gig work, can be limited for some of the of the urban poor .

Rural Context

1. Infrastructure Challenges
 Internet Connectivity: Poor internet connectivity in rural areas significantly hampers
access to gig economy platforms
 Transportation and Logistics: Inadequate transportation infrastructure can limit the
feasibility of certain gig jobs, such as delivery services
2. Digital Literacy and Skills
 Low Digital Literacy: Many rural residents lack the digital literacy necessary to
effectively engage with gig economy platforms .

 Skill Gaps: There can be a mismatch between the skills required by gig platforms and
those possessed by rural workers.
3. Financial Constraints
 Investment Barriers: The financial barriers to entry, such as the need for a
smartphone or vehicle, are often higher for rural workers due to lower income
levels
 Access to Financial Services: Limited access to banking and credit services can impede
the ability of rural residents to invest in the necessary tools for gig work

4. Socio-Cultural Barriers
 Traditional Mindsets: Resistance to adopting new forms of work due to traditional
mindsets and a preference for conventional employment or agriculture can be
significant .
 Gender Barriers: Women in rural areas may face additional barriers due to gender
norms and restrictions on mobility and work.

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Case Laws related to Gig Workers and Platform Workers:

1) 8
AICCTU v. Union of India (2020)
Court: Supreme Court of India
Issue: Petition seeking better labor protections for gig and platform
workers the Covid -19 Pandemic.

 Facts : The All India Central Council of Trade Unions (AICCTU) filed a petition in the
Supreme Court to recognize gig workers as "workers" under Indian labor laws. The
petition argued that gig workers, particularly food delivery riders and ride-hailing
drivers, were denied basic protections such as health benefits, minimum wage, and
social security during the pandemic, despite being classified as essential workers.

 Judgement : The petition sought an intervention by the court to compel the government
to provide social security benefits and statutory protections to gig workers. This case
increased awareness of the precarious position of gig workers in India, particularly in
light of COVID-19, though the legal status of gig workers remained unresolved pending
legislative reforms.

 Impact: This petition highlighted the absence of a clear legal framework for gig
workers in India and underscored the need for statutory recognition and protection.

8
AICCTU v. Union of India (2020) SCC (Supreme Court Cases) or AICCTU v. Union of India (2020) AIR (All
India Reporter).

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 2) 9
Indian Federation of App-Based Transport Workers (IFAT) v. Union of India
(2021)
Court: Supreme Court of India
Key Issue: Recognition of app-based gig workers as employees under labor laws.

 Facts: The Indian Federation of App-Based Transport Workers (IFAT),

representing ride-hailing drivers and delivery workers, filed a petition in the Supreme
Court seeking the classification of app-based workers as "employees" under the
Unorganized Workers' Social Security Act, 2008 and the Motor Transport Workers
Act, 1961. They argued that gig workers should be entitled to social security benefits
such as insurance, maternity leave, pension, and other welfare measures.

 Judgement: The petition aimed to direct the government to provide statutory

protections, but as of 2023, the case was still being considered by the Supreme Court.
The petition has placed significant pressure on policymakers to address the legal status
and social security needs of gig workers.

 Impact: This case is pivotal in shaping the future of gig work in India. If successful, it
could establish significant labor protections for millions of gig workers across the
country.

3) 10
Amazon Transportation Services Pvt. Ltd. v. Transport Workers Union of India
(2017)
Court: Karnataka High Court
Key Issue: Recognition of Amazon delivery drivers as employees for the purpose
of labor protections.

 Facts: Amazon’s delivery personnel, often working under third-party contractors,

demanded employee status to gain access to benefits such as provident fund, health

9
Indian Federation of App-Based Transport Workers v. Union of India, (2021) 7 SCC 396.
10
Amazon Transportation Services Pvt. Ltd. v. Transport Workers Union of India, (2017) 241 DLT 385.

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 insurance, and leave. Amazon argued that its delivery drivers were independent
contractors, not employees, and thus not entitled to such protections.
 Judgement: The Karnataka High Court upheld the classification of Amazon delivery
drivers as independent contractors, noting that the relationship did not exhibit the
control or permanency required for an employer-employee relationship under Indian
labor law.
 Impact: This case reflects the broader challenge in India regarding the classification of
platform workers, with companies often preferring to classify gig workers as
independent contractors to avoid offering statutory benefits.

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Uber India Systems Pvt. Ltd. v. Competition Commission of India (CCI) (2017)
Court: Delhi High Court
Key Issue: Allegations of predatory pricing and competition law violations by Uber.

Facts: Uber was accused of engaging in predatory pricing by offering heavily

discounted fares that harmed competitors and adversely impacted the earnings of
drivers on other platforms.

Judgement : The Delhi High Court ruled in favor of Uber, holding that predatory
pricing claims could not be substantiated without clear evidence of intent to harm
competition. While this case was focused on competition law, it had indirect
implications for Uber drivers, as the platform’s pricing model significantly impacts
their earnings and livelihood.

Impact: This case brought attention to the broader implications of pricing practices in
the gig economy, but it did not directly address worker classification or employment
rights.

11
Uber India Systems Pvt. Ltd. v. Competition Commission of India, (2017) 1 Comp LJ 537 (Delhi).

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12
Key Provisions under Indian Labor Law for Gig Workers and
Platform Workers :

1. The Code on Social Security, 2020: The Code on Social Security, 2020 consolidates
and amends laws relating to social security with the aim of extending social security
benefits to workers in both the organized and unorganized sectors, including gig and
platform workers. Recognition of Gig and Platform Workers.

13
The Code on Social Security, 2020, envisions the following social security
provisions for gig and platform workers:
 Social Security Schemes: The central and state governments may frame schemes to
provide benefits for gig and platform workers, including:
 Life and Disability Cover: Ensuring that gig and platform workers receive insurance
for accidental death, disability, and other life-related events.
 Health and Maternity Benefits: Schemes may be formulated to cover health insurance
and maternity benefits for these workers.
 Old Age Protection: The Code proposes pension schemes for gig and platform workers,
providing financial security during old age.
 Crèche Facilities: The provision of child-care facilities for workers may be mandated
under specific circumstances.
 Provident Fund (PF): The Code also provides for the creation of provident fund
schemes for workers in this sector.

2. Contribution to Social Security Funds: The Code mandates the establishment of

social security funds for gig and platform workers. Contributions to these funds can
come from multiple sources, including:
 Central Government and State Governments.
 Aggregators (the digital platforms) may be required to contribute a certain percentage
of their annual turnover towards this fund.

12
NITI Aayog, India’s Booming Gig and Platform Economy: Perspective and Recommendations 57 (2022).
13
Ministry of Labour and Employment, Draft Code on Social Security (Central Government, 2020).

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 Other stakeholders, including workers themselves, may also be required to contribute
in some schemes.
3. Role of Aggregators

 Aggregators (platforms like Uber, Ola, Zomato, etc.) are expected to contribute to the
social security funds set up for gig and platform workers.
 The specific percentage of contribution by aggregators is yet to be clearly defined, but
the government can prescribe a contribution ranging from 1% to 2% of the aggregator’s
turnover.

4. Registration of Gig Workers

 Gig and platform workers will be required to register themselves with designated social
security boards or platforms to avail of benefits. This would likely involve digital
registration through platforms recognized by the government.

5. Grievance Redressal Mechanisms

 The Code also aims to provide mechanisms for gig and platform workers to raise
disputes or grievances related to their work and benefits, though the exact structure for
this is still evolving.

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 CONCLUSION

The Code on Social Security, 2020 represents a significant step forward in providing social
security and welfare benefits to gig and platform workers in India. It recognizes the evolving
nature of work in the digital economy and seeks to protect the growing number of workers in
the gig sector. However, the practical application of these provisions will depend on further
policy formulation, government initiatives, and effective implementation. Legal and social
activism continues to push for more comprehensive protections, including recognition of gig
workers as employees under broader labor laws.

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 BIBLIOGRAPHY

 De Stefano, Valerio, The Rise of the “Just-in-Time Workforce”: On-Demand Work,

Crowdwork, and Labor Protection in the Gig-Economy, 37 Comp. Lab. L. & Pol'y J. 471
(2016).

 Cherry, Miriam A., Beyond Misclassification: The Digital Transformation of Work, 37

Comp. Lab. L. & Pol'y J. 577 (2016).

 Dubal, Veena, Winning the Battle, Losing the War? How Uber Drivers Won a Historic
Court Victory in the UK, 119 Mich. L. Rev. 1031 (2021).

 Harris, Seth D., and Alan B. Krueger, A Proposal for Modernizing Labor Laws for
Twenty-First-Century Work: The “Independent Worker,” 2015 Hamilton Project
Discussion Paper 10 (2015).

Books
 De Stefano, Valerio, Platforms at Work: Gig Economy and the Law 45 (1st ed. 2018).

 Standing, Guy, The Precariat: The New Dangerous Class 85 (Bloomsbury, 2011).

 Berg, Janine et al., Digital Labour Platforms and the Future of Work: Towards Decent
Work in the Online World 121 (International Labour Organization, 2018).

Government Reports and White Papers

 NITI Aayog, India’s Booming Gig and Platform Economy: Perspective and
Recommendations 57 (2022).

 Ministry of Labour and Employment, Draft Code on Social Security (Central

Government, 2020).

 OECD, The Future of Work: Employment Outlook 2020, 143 (2020).

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 ILO, The Role of Digital Labour Platforms in Transforming the World of Work,
International Labour Organization 91 (2018).

Online Reports and Websites

 Press Trust of India, The Rise of Gig Economy in India, The Economic Times (Mar. 24,
2021), https://economictimes.indiatimes.com/.

 Fair work India, Fair work India Ratings 2020: Labour Standards in the Platform
Economy, (Dec. 2020), https://fair.work/wp-
 content/uploads/sites/131/2020/12/Fairwork_India_2020_report.pdf.

 Oxford Internet Institute, The Online Gig Economy in India: Exploring Employment
Practices and Livelihood, (Aug. 2019), https://www.oii.ox.ac.uk/publications/gig-
economy-india.pdf.

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