It's a new day for labour as 4 codes kick in

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The codes replace a labyrinth of 29 fragmented laws, a statement by the labour ministry said.

(MINT)

formally recognise gig workers, platform workers and aggregators, and extend social security benefits to them.

Sonal Arora, country manager at GIGroup Holding, said the codes legitimise gig work and give delivery partners, drivers and independent contractors more transparent and accountable payout systems.

In a statement, the labour ministry said all workers—including gig workers—will now get PF, ESIC, insurance and other social security benefits. Niti Aayog estimates India’s gig workforce will grow from 10 million in 2024-25 to 23.5 million by 2029-30.

This means companies such as Flipkart, Amazon, Swiggy, Zomato, Blinkit, and Zepto, among others, must allocate 1-2% of annual turnover—capped at 5%—towards gig and platform workers.

Rajneesh Kumar, chief corporate affairs officer, Flipkart Group, said the codes offer a predictable framework for businesses and workers. Uber and Amazon also welcomed the move.

The new system is also encouraging sectors like logistics to hire more gig workers, as documentation and onboarding are expected to become easier. “We will now invest in training more workers to incorporate them in the skilled workforce,” said Jitendra Kumar, co-founder and executive director of third-party logistics firm Emiza.