e-Shram Portal: enhancing safety net of unorganized sector
Over the past decade, start-up culture has experienced significant growth, particularly in the realm of online platform aggregators such as food delivery, transportation, and quick e-commerce apps. These platforms rely heavily on independent contractors, commonly referred to as ‘Gig-workers’ to facilitate their goods and services on a large scale, rather than employing traditional full-time staff. However, owing to temporary association of the Gig-workers with the business holders, such workers are not regarded as ‘employees’ and consequently, their working conditions, payments and duration of work remain unregulated as the current regime of labor law contains employee centric provisions. Engaging Gig-workers benefits businesses in two ways. Firstly, they can engage Gig-workers on an ‘as needed’ basis and secondly, they can cut compliance costs under existing and applicable labor laws. The need to recognize this class of workers is inherent in the impact they have on the nation’s economy. According to a 2022 NASSCOM report, engagement of Gig-workers in Indian workforce is projected to reach 23.5 million by 2030 – up from 7 million in 2021 thereby constituting 4.1% of the total workforce in India by financial year 2029-30, compared to 1.5% in the financial year 2021-22 (to read report, please click here).
Through the Code of Social Security, 2020 (Social Security Code), the legislature intended to provide recognition to Gig-workers and ensure that the law provides a safety net to them as well. We have analyzed the position of Gig-workers in the current and the proposed legislative framework previously (to read our article, click here). As the Social Security Code is yet to come into force, the Central and the State Government have taken steps to address the existing gap in the prevalent labor laws. Additionally, the State Government of Rajasthan and Karnataka have actively curated legislations respectively that impose obligations on platform aggregators to provide safeguards to Gig-workers engaged by such businesses. (to read Karnataka Bill, click here and to read Rajasthan Act, click here)
The Ministry of Labour & Employment (the Ministry) has launched the e-Shram Portal, a national database for unorganised workers aged 16 to 59 years (Portal). The Portal facilitates the enrolment, registration, collection, and identification of data related to unorganised workers. Additionally, it aids in the portability of collected data for the purpose of refining and adapting social benefit schemes offered by the Central and State Government.
Since its inception in 2021, the Portal has successfully registered over 30.42 crore unorganised workers.[1] Recently, the Ministry issued an advisory directing platform aggregators to register both themselves and their workers on the Portal to ensure access to various social security schemes.[2] The onboarding process is set to commence in the upcoming months, and large-scale employers of Gig-workers are encouraged and urged to comply with the registration process.
To date, twelve social benefit schemes of the Central Government have been integrated with the Portal, including the scheme Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana, Prime Minister Street Vendors AtmaNirbhar Nidhi (PM-SVANidhi), PM Awas Yojana – Urban (PMAY-U), PM Awas Yojana – Gramin (PMAY-G), and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The Portal aims to serve as a “one-stop solution” for the unorganised sector, enabling workers to ascertain their eligibility and access benefits provided by the Central Government.
However, there are inherent challenges in the operation of the Portal and its ability to meet its objectives. The voluntary and self-declaratory nature of the Portal registration places the onus of registration on the Gig-workers themselves, resulting in a database limited to those who have voluntarily enrolled. Furthermore, the registration process can be burdensome, as it requires documentation that may not be readily available to all Gig-workers. Moreover, even in cases where Gig-workers have successfully registered, there is no defined timeline for the disbursement of benefits under specific schemes, undermining the Portal’s intended purpose.
Our thoughts:
Labour laws have been pivotal in ensuring that the workers especially unorganised sector is not exploited in the operations of any business however the recognition of Gig-workers in the present regime is ambiguous. The integration of schemes on the Portal and legislative attempts to address vacuum in law have been a welcome step in addressing the issues faced by Gig-workers on a daily basis. Nevertheless, the efforts of the Central and the State Government need to be synchronised to provide the intended effect and not hurt the ease of doing business in the respective regions.
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[1] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2079858