Gig Apps Bypass Codes: Platform Workers Fall Through New Law Cracks With Zero Bargaining Power

New labour codes promise to finally recognise gig and platform workers, offering social security coverage and a formal place in India’s labour law framework. However, at the ground level, opaque contracts, algorithmic ratings and deactivations are still used by gig apps to circumvent core privacy and retain workers atomised. Although the code on social security gives benefits by the use of aggregator contribution and registration systems, the code fails to ensure minimum wages, consistent hours and actual collective bargaining rights. As strike procedures tighten and union space shrinks, platform workers find themselves recognised in law but weaker at the negotiating table than ever.​

What the New Labour Codes Promise

• The four new labour codes consolidate 29 laws and, for the first time, explicitly include gig and platform workers within social security coverage.​
• The aggregator platforms should pay a part of the turnover to a specific social security fund which will allow the provision of benefits such as health insurance, accident cover and pensions.​

Read more: New Labour-Law Overhaul in India: What It Means for Informal, Gig, and Migrant Workers

How Gig Apps Bypass Protections

• The platforms are based on independent contractor labels, flexible work arrangements, and overlapping worker categories which result in legal grey areas and enforcement loopholes.​
• Unclear duties, lax punishment and delegated adoption of rules allow firms to postpone or water down donations, and algorithmic control substitutes formal oversight devoid of regulatory oversight.​

Zero Bargaining Power on the Ground

• New strike restrictions and procedural hurdles further weaken traditional unions, limiting collective action exactly when platform workers most need it.​
• Since the gig workers have low density levels, individualised ratings and are always at risk of losing their app, they are not in a position to negotiate on remuneration, incentives, and working hours on equal terms.​

What Real Reform Should Look Like

• These protections would be stronger and tie social security recognition to enforceable rights to minimum wages, fair termination, and transparent algorithmic management.​
• Enabling sectoral unions, worker collectives, and digital grievance systems could turn legal recognition into actual bargaining power for platform workers.​

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