Platform Workers Need Protection from New Forms of Exploitation

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Indian Express | Editorial | June 2, 2026

Gig workers face algorithmic exploitation, income-risk shifts, and social-security denial. Portable benefits, algorithm transparency, and a UK-style ‘‘worker’’ category are the minimum regulatory baseline.

The Argument in One Line

The gig economy’'s exploitation is structural and algorithmic — existing labour law cannot address it; portable benefits and a third worker category are the fixes.

India’'s Gig Sector at a Glance

• 7.7 million+ gig workers (NITI Aayog 2021 estimate); projected ~24 million by 2030.
• Platforms: Swiggy, Zomato, Ola, Uber, Urban Company, Meesho, etc.
• Code on Social Security 2020 — first recognition of “gig worker” and “platform worker”.
• Implementing rules for gig worker social security: still pending.

The New Exploitation Tools

Tool	How it exploits
Algorithmic ratings	Opaque deactivation; income suppression
Dynamic pricing	Platform captures upside; worker bears demand risk
Contractor classification	Avoids EPF, ESI, gratuity, minimum wage

UPSC Relevance

Paper	Relevance
GS2	Labour law; gig economy; social security; Code on Social Security 2020
GS3	Economy — platform economy; e-commerce; EPF, ESI
Prelims	Code on Social Security 2020 (4 Labour Codes); ESIC; EPF; gig worker definition

Sources: Indian Express, Ministry of Labour and Employment

Source: Platform Workers Need Protection from New Forms of Exploitation — Ujiyari.com | Free UPSC & State PCS Editorial Analysis

Key Arguments at a Glance

The rapid growth of gig and platform work has outpaced India’s labour regulatory architecture, creating new forms of exploitation — algorithmic surveillance, dynamic pricing that shifts income risk to workers, and denial of social security — and the piece argues for portable benefit frameworks and algorithm transparency mandates as the baseline floor for platform worker protections.

✓ Supporting

• India’s four Labour Codes — including the Code on Social Security, 2020 — formally recognised “gig workers” and “platform workers” for the first time, but implementing rules and the actual social-security framework for this category remain incomplete.
• Algorithmic management creates exploitation mechanisms invisible to traditional labour inspection: ratings systems that suppress income unpredictably, surge pricing that extracts more work during peak demand without proportional reward, and geo-tracking that limits workers’ autonomy.
• Platform companies classify workers as “independent contractors” to avoid EPF, ESI, gratuity, and minimum wage obligations; the binary classification of “employee” vs “contractor” is inadequate for a relationship that is dependent but not salaried.

⚠ Counter

Platform companies argue that workers value flexibility and choose the gig model over formal employment; mandating EPF and minimum wages could raise costs that platforms cannot absorb, reducing platform supply and ultimately worker income.

→ Way Forward

Enact a “worker” category between employee and contractor (as the UK has done); establish a portable benefits pool (a contribution from platforms per transaction, going into a worker’s portable account covering health, accident, and retirement); mandate algorithm-explainability for gig workers so they can understand and contest deactivation.