Freelancing is not freedom, it's precarity!

Introduction

In recent years, freelancing and platform-based work have been lauded as hallmarks of a flexible, “gig-driven” future of employment. Mobile apps and digital platforms promise workers the freedom to choose their hours, projects, and clients—allegedly empowering them to escape the constraints of traditional nine-to-five jobs. However, beneath the veneer of autonomy lies a labor ecosystem rife with insecurity, lack of social protection, and exploitative practices. As India has become a global exporter of cheap gig labor—powering everything from online content moderation to hyperlocal deliveries—the very workers at the “core” of this digital revolution find themselves trapped in precarious employment, devoid of basic benefits and bargaining power. This article examines how the “gig economy” in India often functions as a modern façade for age-old labor exploitation, haunting millions of workers who were told they would achieve “freedom” but instead confront unregulated hours, volatile incomes, and no safety nets.

1. The Myth of Flexibility: From Promise to Precarity

The gig economy’s central promise is flexibility—work when you want, for as long as you want, on projects you choose. Yet, in practice, many Indian gig workers report working upwards of 12–18 hours per day just to earn a subsistence-level income. In a recent study by Aditya Ray (2024), scholars coined the term “digitally organised informality” to describe how platform economies in India institutionalize precarious, subcontracted labor without social protections or stable wages (SAGE Journals). Gig workers are classified as “independent contractors,” a designation that allows companies to evade labor laws related to minimum wages, overtime, social security, and collective bargaining.

A Times of India investigation in May 2025 found that many gig workers employed by ride-hailing and food-delivery apps routinely exceed 14-hour shifts, yet have no guaranteed minimum wage and no entitlement to overtime premiums (The Times of India). When earnings for a standard day fall below platform-set “benchmarks,” workers face deactivation or relegation to lower-priority assignments, effectively coercing them into ever-longer hours. Therefore, the vaunted “flexibility” becomes a euphemism for unbreachable precarity, in which app algorithms and opaque rating systems dictate how much—and when—a person must work simply to survive.

2. Lack of Social Security and Collective Bargaining

Unlike formal salaried employees, gig workers in India generally receive no provident fund, pension, paid sick leave, or employer-funded health insurance. The Code on Social Security, 2020 officially recognizes gig and platform workers, but its provisions remain largely unimplemented due to administrative delays and vague definitions (cll.nliu.ac.in). For instance, the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023, was hailed as a pioneering state law—introducing a Rs 200-crore welfare corpus for registered gig workers, with mandated insurance and grievance redressal mechanisms. Yet, to date, the Act’s critical components remain unfulfilled, leaving registered workers in limbo (The Times of India).

Moreover, the very notion of collective bargaining—a cornerstone of worker rights—is elusive in the gig context. Aggregator models classify drivers, delivery partners, and content moderators as “partners,” not employees, thus depriving them of the right to unionize or negotiate directly with platform owners. In March 2024, a Public Interest Litigation (PIL) filed on behalf of gig workers sought recognition of their right to organize and demand social security as a fundamental entitlement. However, the case remains pending before the Supreme Court of India, with no clear timeline for enforcement (cll.nliu.ac.in).

3. The Human Cost: Precarious Livelihoods and Mental Strain

Financial instability in the gig economy has severe psychological ramifications. A 2025 report by the Centre for Labour Laws (NLIU) documented that nearly 60 percent of surveyed gig workers reported chronic anxiety stemming from unpredictable incomes and the constant fear of deactivation (cll.nliu.ac.in). Many workers borrow heavily—often at high interest rates—to purchase or maintain the personal vehicles they need for ride-hailing apps. When platforms abruptly adjust commission structures or de-monetize specific routes, drivers find themselves unable to service loans, leading to personal bankruptcies. In one distressing incident, a former app-based driver in Bengaluru took his own life after incurring unsustainable debts—highlighting how digital labor algorithms can translate directly into human tragedy.

Additionally, evidence suggests that mental health among platform workers is deteriorating. The relentless pressure to maintain high star ratings fosters a workplace atmosphere of near-constant surveillance. A 2024 UNI Global Union survey found that one in five Amazon delivery drivers in India reported job-related injuries and stress‐induced health issues, exacerbated by tight delivery schedules and minimal employer support (The Economic Times). Digital platforms provide no structured counseling or stress-relief programs; instead, they rely on gamified incentives—“badges,” “bonuses,” and leaderboard rankings—to extract ever-higher productivity, often at the expense of worker well-being.

4. Regulating the Unregulated: Policy Responses and Stakeholder Accountability

To transform the gig economy from a landscape of exploitation to one of equitable opportunity, multifaceted policy interventions are imperative:

1. Definitional Clarity in the Social Security Code: The Social Security Code, 2020, must provide precise, enforceable definitions of “gig workers” and “platform workers,” ensuring they are categorically eligible for minimum wages, health insurance, and provident fund contributions. Without unambiguous legislative language, state and central governments cannot translate policy into substantive protection. (cll.nliu.ac.in).

2. Mandatory Cess and Welfare Funds with Stringent Oversight: Several states, including Karnataka (2025) and Rajasthan (2023), have introduced gig worker welfare cesses—nominal levies on platform revenues to finance social security schemes. However, implementation has been piecemeal, with insufficient worker representation on welfare boards. The cess must be enforced nationwide, with a legally mandated proportion (e.g., 50 percent) ring-fenced strictly for direct worker benefits—healthcare, insurance, skill development, and pension contributions—rather than administrative expenses (The Times of India, The Times of India).

3. Presumption of Employment in Dispute Resolution: Recognizing that gig workers lack bargaining power compared to platform corporations, labor courts should adopt a “presumption of employment” standard—placing the burden on platforms to demonstrate that workers are truly independent contractors. In the landmark UK Supreme Court ruling (Uber BV v Aslam, 2021), such a presumption granted drivers access to employment rights. India’s judiciary must similarly interpret “gig contracts” pragmatically, preventing platforms from circumventing basic labor protections. (cll.nliu.ac.in).

4. Digital Grievance Redress and Portable Benefits: Government regulators should mandate that all gig platforms integrate portable digital “benefits wallets,” allowing workers to accumulate entitlements (e.g., health insurance premiums, provident fund credits) independent of any single app. A centralized portal—operated by a tri‐partite board (government, platform representatives, and worker unions)—could oversee fund disbursal, track worker contributions, and adjudicate disputes swiftly.

Conclusion

The narrative of gig work as a pathway to autonomy and entrepreneurial independence obscures the pervasive exploitation faced by India’s digital labor force. Classifying millions of platform workers as “partners” rather than employees has eroded labor protections, perpetuating a cycle of precarious incomes, mental stress, and unsafe working conditions. Genuine reform demands that policymakers move beyond cosmetic acknowledgments of gig work to implement enforceable social security frameworks, clear legal definitions, and effective welfare funds. Only then can India shift from a “race to the bottom” in labor costs to a model where technology empowers—not entraps—its workforce.

References

1. Aditya Ray, “Coping with crisis and precarity in the gig economy: ‘Digitally organised informality’, migration and socio-spatial networks among platform drivers in India,” Environment and Planning A: Economy and Space, March 2024. (SAGE Journals)
2. Harsheen Kaur Luthra, “The Unsettled Status of Gig Workers in India: Towards a Comprehensive Legal Framework,” Centre for Labour Laws, NLIU, October 4, 2024. (cll.nliu.ac.in)
3. “Gehlot meets gig workers at his home,” The Times of India, May 2025. (The Times of India)
4. “New cess for gig workers’ welfare likely to raise costs for consumers,” The Times of India, May 2025. (The Times of India)
5. UNI Global Union, “Amazon workers in India endure intense pressure, unsafe working conditions,” The Economic Times, April 2024. (The Economic Times)