Labour Standards in the Platform Economy | 1
Fairwork India Ratings 2020: Labour Standards in the Platform Economy 2 | Fairwork India Ratings 2020
Executive Summary As the scale and scope of work mediated by digital platforms has grown in India, so has the number of workers registering on such platforms. This rapid growth has also raised questions about the work conditions that result from digital mediation.
As in other parts of the world, platform a cross-sectoral view of working after accounting for costs. Urban workers in India are predominantly conditions, and provides new entrants Company, Flipkart, Grofers, and paid a piece rate (i.e. per task), and are with a glimpse of what to expect from Ola were the exceptions. This typically classified by the platforms platform work. highlights the need for regulation as “independent contractors”, or and worker consultation on as driver / delivery “partners”. One This is the second year of scoring matters of pay. major concern is that such workers platforms using the Fairwork principles do not benefit from labour regulations in India. Last year, twelve platforms, � Workers have little to no social pertaining to wages, hours, working from sectors including ride-hailing, security. While some platforms conditions, and the right to collective e-commerce, food-delivery, and home provide accident insurance, bargaining. Consequently, there is an services, were scored. This year, eleven workers were unclear of the urgent need to examine the nature platforms were scored, with nine being procedures to make claims. of digitally-mediated work and its repeated from the first year. Data from Only two platforms (Urban effect on the livelihoods of millions of multiple sources indicates that, as of Company and Flipkart) were able workers in the country. February 2020, an estimated three to demonstrate that additional million workers were registered on the measures were taken to actively To this end, the Fairwork project eleven platforms scored this year (see improve working conditions. evaluates working conditions on digital Appendix III). platforms and scores them according � With the exception of Urban Company and Dunzo, there to five principles of ‘fair work’, Key Findings developed through multi-stakeholder was insufficient evidence meetings at UNCTAD, the International � The 2020 platform scores that accessible. readable and Labour Organisation, and in-country show the heterogeneity in comprehensible terms and stakeholder meetings in India, working conditions amongst conditions were available to Germany, and South Africa. The five platforms, corresponding to workers. With a growing reliance principles are Fair Pay, Fair Conditions, the policies and management by some platforms on labour Fair Contracts, Fair Management, and practices that platforms have recruited from subcontractors, Fair Representation. Evidence for in place. Urban Company, a workers were often unclear who compliance with these five principles home services platform, tops was responsible for their working is collected through desk research, the list of platforms studied this conditions and for the payment of worker interviews, and interviews with year, followed by Flipkart, an wages. platform management. The evidence e-commerce platform. Interviews Platform companies fared better is used to assign a “fairwork” score to with managers on both platforms � when it came to the principle individual platforms. With a basic and revealed that the Fairwork of Fair Management. There an advanced point awarded for each of process had provided them was sufficient evidence that the five principles, a platform can earn with new perspectives from the eight of the eleven platforms a maximum score of ten. workers’ point of view - enabling provided due process for workers them to reflect on their policies. The Fairwork project aims to study through a channel for workers work conditions on platforms on an � While the potential of high to communicate and appeal annual basis, with its scores offering wages and short payout cycles disciplinary decisions including an independent perspective on work continues to draw workers deactivations. Only Urban conditions for policy makers, platform to platform work, there was Company and Flipkart were companies, workers, and ethically- insufficient evidence that workers awarded the advanced point. minded consumers. In particular, on seven of the eleven platforms Urban Company was awarded it offers existing platform workers earned the minimum wage rate the point for actively blocking Labour Standards in the Platform Economy | 3
customers who discriminate companies fared poorly when precarious livelihoods of all against service providers. Flipkart it came to acknowledging a workers (platform or otherwise), was awarded the point for its collective voice for workers. this report shows that the proactive initiatives to employ However, no platform was pandemic has only exacerbated women and physically-disabled agreeable to negotiating with a precarity already endemic to persons in its last-mile workforce. worker associations and unions. platform work. � With the exception of Urban � While the COVID-19 pandemic Company and Flipkart, platform has brought to prominence the
Fairwork India 2020 Scores*
Urban Company 8
Flipkart (Ekart) 7
Dunzo 4
Grofers 4
Amazon (ATS) 2
Bigbasket 2
Housejoy 2
Ola 2
Swiggy 1
Uber 1
Zomato 1
* Scores are out of 10. 4 | Fairwork India Ratings 2020
Editorial: Towards Fair Work Platforms connect “individuals and organisations so they can innovate or interact in ways not otherwise possible”.1 Digital platforms enable interaction by providing the infrastructure to mediate between actors who offer services and those who are looking for them.2 With their ability to lower the transaction costs of matching supply and demand, platforms are considered to have the potential to address the employment challenge in the Global South.3 This report will explore the extent to which that potential is being realised in India.
This report examines a category A prominent issue with work on digital by healthy and safe working conditions. of platforms which offer “work on- platforms is employment status, as The other three focus on whether the demand via apps” in sectors such most workers are not classified as platform’s contract with the workers as domestic and personal care employees with income security and is fair; management processes and services, logistics, food delivery, and social protection. Rather, they are communication channels are clear and transportation. The report points usually classified as independent transparent; and platforms allow for out that the growth of the platform contractors. As a result of such the expression of worker voice through economy has undoubtedly offered classification, workers find themselves open worker representation. employment opportunities in a country in increasingly flexible labour markets where there is growing concern that where their survival has become The Fairwork India team is the number of workers seeking work precarious and vulnerable. Many lack spearheaded by the Centre for IT has far exceeded the number of jobs labour and income security, and work- and Public Policy (CITAPP) at the available. The section, Overview of the based identity, with little sense of a International Institute of Information Indian Platform Economy, discusses future in what they are doing.5 Technology Bangalore (IIITB), along the factors that have led to such with partners at the University growth. This report presents the findings of of Oxford and the University of a study conducted by the Fairwork Manchester. The partners at Oxford Although digital platforms offer India team on how platform work include legal experts who look at employment opportunities, it is far is perceived and experienced by potential government-level policy from clear whether the work offered workers on these platforms. The actions and regulatory interventions qualifies as what the International Fairwork project focuses on five core to better protect platform workers. Labour Organisation calls decent work, principles of fair platform work: Fair The team assessed evidence against or “work that is productive; ensures Pay, Fair Conditions, Fair Contracts, Fair each of the Fairwork principles through equality of opportunity and treatment Management, and Fair Representation. a combination of desk research and for all women and men; delivers a fair Scores are awarded out of ten to worker interviews conducted in income, security in the workplace and a platform based on whether they Bangalore6 and, where possible, from social protection for families; provides meet the basic standard (one point) evidence provided by the platforms. prospects for personal development; and achieve a higher standard (an Given the often opaque and fast and gives workers the freedom to additional point) for each of these five changing nature of the platform express their concerns, organise and principles. The first two principles ask economy, reliable data is difficult to participate in decisions that affect their if workers receive fair pay for their come by. Thus, a point is awarded working lives.”4 work, and if their jobs are characterised only when there is evidence that the Labour Standards in the Platform Economy | 5
platform fulfils the conditions. Being a team of researchers with no affiliation with workers, platforms or government, our scores provide an independent Contents assessment of platforms.
This is the second year of rating Indian Executive Summary platforms.7 In the first year, twelve 02 platforms were scored. This year too, the goal was to score twelve platforms Editorial but that number came down to eleven 04 due to a merger. The range in Fairwork scores we report here, across various principles, points to heterogeneity in 06 The Fairwork Framework the organisation of platforms across domains, and differences in their Overview of the Indian Platform interpretation of regulation. Based 08 Economy on the scores and findings, some platforms have expressed an interest in creating fairer working conditions. The Legal and Policy Context Another purpose of the scores is to 11 sensitise and influence the customers who seek the services offered by Fairwork Scores these platforms, to consider working 12 conditions when choosing between them. These scores can also add to the Platform in Focus: Urban Company resources available to collective bodies 15 of workers when they raise demands. Thus, our hope is that platforms, Workers’ Stories workers, regulators, and consumers, 17 will all use the Fairwork framework and ratings to imagine, and realise, a fairer Theme in Focus: Precarity platform economy in India. 19 21 Impact and Next Steps 24 Appendix I: Fairwork Scoring System Appendix II: Identifying Platforms and 29 Workers Appendix III: Estimates of Platform 30 Workforces
Appendix IV: Funds Raised by 32 Platforms
Balaji Parthasarathy, 33 Appendix V: Additional Resources International Institute of Information Technology, Credits and Funding Bangalore (IIIT-B). 34
35 Endnotes 6 | Fairwork India Ratings 2020
The five 01 principles Fair Pay Workers, irrespective of their employment classification, should earn the mandated minimum wage in their home jurisdiction after taking account of work-related costs.
Fair Conditions Platforms should have policies in place to protect workers from risks arising from the processes of work, and should take proactive measures to protect and promote the health and safety of The workers. Fair Contracts Terms and conditions should be accessible, readble and Fairwork comprehensible. The party contracting with the worker must be subject to local law and must be identified in the contract. If workers are genuinely self- Framework employed, the terms of service must be free of clauses which unreasonably exclude liability on the part of the The Fairwork project studies platform. the working conditions of digital Fair Management platforms and scores them on There should be a documented process through which workers can be heard, how well they fare. Its goal is can appeal decisions affecting them, to show that better, and fairer, and be informed of the reasons behind those decisions. There must be a jobs are possible in the platform clear channel of communication to workers involving the ability to appeal economy. management decisions or deactivation. The use of algorithms must be transparent and result in equitable To do this, the project uses five principles that digital platforms outcomes for workers. There should should comply with in order to be considered to be offering ‘fair be an identifiable and documented work’. Fairwork scores platforms against these principles to policy to ensure equity in management show not only what the platform economy is, but also what it of workers on a platform (for example, could be. The five Fairwork principles were initially developed in the hiring, disciplining, or firing of at a multistakeholder workshop at the International Labour workers). Organization. Follow-up workshops were then held for local stakeholders in Berlin, Bangalore, Cape Town and Johannesburg. These workshops, and subsequent conversations with platform Fair Representation workers, platforms, trade unions, regulators, academics, and Platforms should provide a documented labour lawyers allowed the project to revise and fine-tune the process through which worker voice principles, and ensure that they were applicable to the Indian can be expressed. Irrespective of their context. employment classification, workers should have the right to organise in Further details on the thresholds for each principle, and collective bodies, and platforms should the criteria used to assess the collected evidence to score be prepared to cooperate and negotiate platforms, can be found in Appendix I. with them. Labour Standards in the Platform Economy | 7
Methodology 02 The Fairwork project uses three approaches to effectively measure fairness at work. Desk Research The process starts with desk research to gain an understanding of the platforms in operation, by identifying the largest and most influential ones. Worker Interviews This research establishes the range The third method involves and types of the platforms that will interviewing workers of each platform. be ranked, and identifies points of These interviews do not aim to build a contact or ways to access workers. representative set of experiences. They Desk research also serves to identify instead seek to understand the work any public information that could be processes and how they are carried out used to score a platform, for instance and managed. They allow the project the provision of particular services to team, for instance, to see contracts workers or ongoing disputes. and learn about platform policies that pertain to workers. The interviews also In India, desk research helped identify allow the team to verify the policies eleven prominent platforms operating and practices which are in place. See How we in Bangalore, based on the size of Appendix II for details on recruitment of 03 score their workforce, customer base, and workers for interviews. investments.8 Each Fairwork principle is broken down into two points: a basic point Putting it all together and a more advanced point that can Platform Interviews This threefold approach provides a only be awarded if the basic point The second method involves way to cross-check the claims made has been fulfilled. Every platform approaching platforms for evidence. by platforms, while also providing the receives a score out of 10. Platforms Platform managers are interviewed opportunity to collect evidence from are only given a point when they and evidence is requested for each multiple sources. Final scores are can satisfactorily demonstrate their of the Fairwork principles. This step collectively decided by the Fairwork implementation of the principles. provides insights into the operation team based on all three forms of and business models of the platforms, evidence. The scores are peer reviewed Failing to achieve a point does not and opens up a dialogue through which by the country team, the Oxford necessarily mean that a platform platforms can agree to implement team, and two reviewers from other does not comply with the principle in changes. In cases where platform Fairwork country teams. This provides question; it simply means that we were managers do not agree to engage with consistency and rigour to the scoring unable to evidence its compliance. Fairwork, scoring is limited to evidence process. Points are only awarded obtained through desk research and if clear evidence exists for each See Appendix I for further details on worker interviews. threshold. the Fairwork scoring system. 8 | Fairwork India Ratings 2020
Overview of the Indian Platform Economy Ever since the launch of the e-commerce site Flipkart in 2007, India has witnessed the emergence of several platforms that offer “work on-demand via apps” in sectors including ride- hailing, courier services, food delivery, and domestic and personal care services (such as beauty, carpentry, electrical, or plumbing services).
However, there is little reliable data on, principles. While interviews with from services, with the rest coming for instance, how many platforms there workers were conducted between from industry. Likewise, between are, or their revenues. Further, while November 2019 and February 2020 1984 and 2010, the annual growth in the Indian government has proposed (i.e., before the outbreak of the productivity in services (4.9 percent) that platforms should provide data on COVID-19 pandemic in India), desk was ahead of the national figure (3.7 jobs,9 there is no definitive estimate research and interactions with the percent).14 But services include a of the size of the platform economy platforms continued until November range of activities which vary in the workforce. By assembling evidence 2020.10 productivity and the skills they employ. from various sources (see Appendix In 2016, for instance, as Figure 2 III), we estimate that the eleven A prominent feature of the Indian shows, the productivity per worker in platforms featured in this report have economy is its decreasing dependence trade, and in transport, storage and a total workforce of over three million on agriculture for employment, as communications was barely a third of 11 (30 lakh) workers. Figure 1 shows. The figure also shows what it was for business, and less than that trade, and transport and storage a fourth of financial services.15 Figure This section of the report offers an (service sub-sectors in which many of 2 also shows that the differences in explanation for the growth of location- the platforms studied by this report productivity correspond to differences based platform services in terms of operate), have led the way in offering in education. In 2005, the share of 12 macro-economic shifts that have taken jobs over the last two decades. employees with a secondary education place in India in recent years. Later in sub-sectors such as transport and Despite remaining the largest source of sections describe the work and work communication, and wholesale and employment, agriculture’s contribution conditions in the platform economy in retail trade, was less than half of what to gross value-added in 2016 was more detail, drawing on our study of it was in financial services and in only 15.23 percent.13 The biggest eleven platforms using the Fairwork business services.16 contribution of 51.13 percent came Labour Standards in the Platform Economy | 9
Figure 1 Changing proportion of employment by sector, 1991-2016
70%75% 1991
62.6% Agriculture Industry Services
52.5%
50% 2016
45.1%
35% 2016 employment Proportion of of Proportion 31.9%31.9% 2016 25% 1991 24.0%24% 21.7% 17.5% 1991 Trade
15.7% 14.6%14.6% Others
Transport & Storage Transport 9.9%9.9% 7.4%7.4%
Source: Generated from references in endnotes 11 and 12
Figure 2 Comparing worker productivity in current Rupees (2016), and levels of secondary education (2005), by services sub-sectors
Transportation Business Financial Trade and Storage Services Services Completed at least 23% 35%35% 34%34% 23% 84%84% 16%16% secondary 65%65% 66%66% 78%78%
(2005) education
Proportion of of Proportion employees with with employees 1400000 secondaryeducation 1,500,000 ₹ 12,59,280
1120000
1,000,000 1 840000 ₹ 8,11,680 (2016) sectors sectors 560000 500,000
in services’ sub-
Worker productivity productivity Worker
280000 ₹ 2,35,780 ₹ 2,55,390
Source: Generated from references in endnotes 15 and 16
1 10 | Fairwork India Ratings 2020
Figure 3 Changing proportions of employment in the organised economy with access to social protection, 2000- 2012
Proportion of casual Proportion of regular Proportion of regular Proportion of non- employment employment employment regular employment (within non-regular (with social protection) (without social protection) employment) 100% 40% 20% 20% 16.5% 17.4% 31.2% 15.9% 75% 30% 15% 15% 61.9% 51.3% 21.5% 50% 20% 10% 10%
25% 10% 5% 5% 3.1%
2000 2012 2000 2012 2000 2012 2000 2012
Source: Generated from reference in endnote 27
As the employment profile of the venture capital investments in India,25 labelled “independent contractors” country has changed, those leaving an estimated US$14.82 billion went to or “partners”, belong to either of the agriculture have increasingly found nine of the eleven platforms studied in (growing) regular non-protected or livelihood opportunities in relatively this report (see Appendix IV). A final casual worker categories. How these low-value added sectors, with low factor in this growth is an ambiguous contractors or partners (i.e. workers) educational barriers to entry.17 Cities legal environment, which is discussed perceive and experience platforms beckon with opportunities,18 and the in The Legal and Policy Context section are considered in the Theme in Focus: resulting migration is male-dominated of the report. Precarity section. But, before that, the and rarely permanent.19 Once in the next section will present an overview city, at least some of them find work Having outlined some of the reasons of the legal context of the platform in the app-based platforms, attracted behind the recent growth in location- economy in India. in part by the higher income, and based platform services in India, the short and relatively predictable we turn to considering how work payment cycles, in comparison with conditions have changed in the other work alternatives. economy. Since the platforms studied in this report belong to the organised A second factor that has facilitated economy, the conditions of work in this the growth of the platform economy segment of the economy are worth in India is the proliferation of mobile examining.26 Although employment phones with internet connectivity. A in the organised economy is relatively “Between 2013 country that had barely 1.1 telephones small, it accounted for 45.6 percent of and 2019, of a total per 100 people in 1994,20 had 93.27 total output in 2012.27 In services too, by 2018. By 2018, 98.12 percent of the organised economy contributed of US$39.7 billion all telephone connections were mobile 50.6 percent to the total sectoral access,21 of which 34.7 percent had output, whereas it accounted for only in venture capital broadband internet connections.22 25.6 percent of sectoral employment. A third factor in the growth of the investments in platform economy has been the Despite the productivity of the India...US$14.82 increasing last-mile access for platform organised economy, including in the workers to reach customers. India services sector, Figure 3 shows that billion went to is the world’s biggest two-wheeler the proportion of regular employment (motorcycle and scooter) market, with with social protection has declined. nine of the eleven a third of households owning one.23 A This decline has been accompanied fourth factor is the supply of venture by an increasing proportion of regular platforms studied in capital to support the expansion of employment without social protection, this report.” the industry.24 Between 2013 and and non-regular employment, 28 2019, of a total of US$39.7 billion in especially the casualisation of labour. Most platform workers, euphemistically
1 Labour Standards in the Platform Economy | 11
The Legal and Policy Context Much like in other countries, Indian platform companies and workers operate within a murky and rapidly evolving legal and policy context.
Two axes of contention are the be covered by an existing workplace- The dual uncertainties of employment classification of workers (i.e. are related legislation,39 or whether new status and regulatory classification they independent contractors/self- legislation was needed to cover gig arguably allow platform companies employed, or are they employees of workers.40 to make their own rules with respect the platform?), and the applicability to wages and working conditions. of sector-specific regulations (e.g. A second issue that affects platform As shown in the rest of this report, transport or food safety) to platform workers is the classification of the these uncertainties can leave workers companies which describe themselves platform companies and the range vulnerable. It is imperative that the primarily as technology companies.29 of entities involved in regulating labour department at the central 41 different aspects of their operations. and state levels, along with other Being treated as independent Historically, platform companies departments and regulators, come contractors limits the protections have argued that they are merely together to draft robust legislation and 42 (minimum wages, working hours, technology platforms. But over regulations for platform workers and gratuity pay), social security time, these companies have been other non-standard forms of work. (Employees Provident Fund, brought under the purview of certain Employees State Insurance), and sectoral regulations pertaining to collective bargaining rights available transportation, food delivery, and other to platform workers under law, as services. For example, the Food Safety orders or judgements from the Delhi30 and Standards Authority has issued and Karnataka31 High Courts have specific guidelines for “ecommerce indicated.32 Some have even argued food business operators.”43 Similarly, that, in the absence of regulatory the Motor Vehicles (Amendment) Act, “For the most part, clarity, worker grievances should 2019, requires platform companies be taken up under the Consumer offering transport services to possess platform work Protection Act instead, by treating an “aggregator” classification and workers as “consumers” of the a state license to operate.44 The as a whole has platform company.33 For the most Motor Vehicle Aggregator Guidelines, part, platform work as a whole has 2020, provides a framework of remained largely remained largely invisible in the rules for states to regulate the invisible in the context of labour laws, including labour service conditions and tariffs of the contracting.34 It was only in 2019 that aggregators.45 These sector-specific context of labour “gig” or “platform” work even found regulations can also affect the earnings explicit mention in a labour code. A and working conditions of platform laws. It was only draft Code on Social Security—the only workers. Given the range of entities one of four proposed labour codes that potentially involved in regulating in 2019 that ‘gig’ mentions this category of workers35— platform companies,46 a concern is or ‘platform’ work was introduced in 2019,36 studied by that this may take place without a clear a Standing Committee and passed demarcation of accountability between even found explicit by Parliament in September 2020.37 these entities.47 As a consequence, no There have also been attempts to draft one entity is currently held accountable mention in a a law for platform work and workers for ensuring workers’ rights or by states. For instance, Karnataka38 regulating their working conditions in labour code.” initiated discussions in 2019 to this regulatory landscape. examine whether gig workers could 12 | Fairwork India Ratings 2020
Fairwork Scores Score (Out of 10)*
Urban Company 8
Flipkart (Ekart) 7
Dunzo 4
Grofers 4
Amazon (ATS) 2
Bigbasket 2
Housejoy 2
Ola 2
Swiggy 1
Uber 1
Zomato 1
* The breakdown of scores for individual platforms can be seen at: www.fair.work/ratings Labour Standards in the Platform Economy | 13
The platform scores in this report longer hours on the platform, these too our study demonstrated sufficient rely on data gathered using the contributed to extended hours of work. evidence that satisfied all the criteria Fairwork Framework as laid out Finally, even in cases where platforms for the advanced point. in the Methodology section. After promised a minimum guaranteed desk research was conducted, amount to workers, on the condition workers from all eleven platforms that they were logged on to the were interviewed,48 and evidence platform for a stipulated duration (and was collected from the platform satisfied other conditions), earnings managements of four (namely, Dunzo, fell below minimum wage rates once Fair Management Flipkart, Uber and Urban Company). fuel costs were taken into account. Appendices I and II provide further The basic point on Fair Management details of the evidence used to score was awarded to platforms that each point, and how it was gathered. demonstrated due process in decisions affecting workers. Of the eleven platforms studied, seven offered Fair Conditions communication channels for workers that served this purpose, including A basic point was awarded to helpline numbers, management- Fair Pay platforms if they were able to mitigate created Whatsapp groups and, in some risks faced by workers, by offering cases, one-on-one communication Of the eleven platforms we studied accident insurance while logged in, channels with managers or team leads. this year, workers on eight earned the safety gear and safety training (paid for However, workers from the other hourly minimum wage before factoring and conducted by the platform), and four platforms (namely Ola, Swiggy, in their costs (see Appendix I for having an SOS button or emergency Uber and Zomato), were increasingly details on how the hourly minimum helpline for workers. There was dissatisfied with the communication wage is derived). However, there was enough evidence to award the basic channels made available to them. The insufficient evidence that workers point to seven of the eleven platforms: helpline numbers provided were either on Bigbasket, Housejoy and Swiggy Bigbasket, Dunzo, Flipkart, Grofers, unresponsive most of the time or had earned the minimum wage before Housejoy, Swiggy and Urban Company. premeditated responses. Workers on costs. While within Housejoy, there these platforms added that ID blocks was sufficient evidence that beauty The advanced point was awarded without warning were frequent, and workers and home service providers to platforms that went beyond risk that there was no documented process (electricians, plumbers, technicians mitigation and took active steps to appeal when they were blocked etc.) earn above the minimum wage, to improve conditions for workers. (see the accounts of ID blocks in there was insufficient evidence Only Urban Company and Flipkart Workers’ Stories section ). Workers also that professional cleaning crews, demonstrated sufficient evidence for complained that they had to report the hired through subcontrators, earn this point. Urban Company provided block at the platform hub in order to the minimum wage as well. On the health insurance (for top performers be unblocked, which effectively meant advanced point, workers on Flipkart, in selected categories), redesigned losing out on daily earnings and daily / Grofers, Ola, and Urban Company equipment to reduce material weekly incentives. earned the hourly minimum wage handling-related injuries and offered after accounting for fuel costs (see skill certification, while Flipkart Hub-based platforms fared better Appendix I for an analysis of other provided career progression programs with regards to the basic point for costs which are not accounted for in for their delivery workforce. Fair Management. Workers from our calculations.) platforms like Bigbasket and Flipkart contacted their hub manager directly if It is worth pointing out here that pay they faced an issue, and hub-specific on platforms proved hard to estimate, WhatsApp groups for workers were with even workers finding it hard to also maintained by the management. compute their costs and hours of Fair Contracts Housejoy and Urban Company also work. For one, even where workers maintained category-wise Whatsapp made the (hourly) minimum wage For Fair Contracts, platforms were groups for their workers. The concerns criterion, they did so by working awarded a basic point if a contract raised by workers on these Whatsapp more than the 48 hour work week existed and was made readable, groups were similar across platforms; (see Appendix I for more details). comprehensible and accessible to workers recalled sorting out navigation Additionally, on some platforms, workers by the platform. There was issues, order allocations, and how pay has several components, with sufficient evidence for only Dunzo to deal with rude customers. Urban incentives constituting a large share. and Urban Company to merit this Company also sent its workers multiple Since incentives tended to be tied to basic point. None of the platforms in messages if their rating dropped below 14 | Fairwork India Ratings 2020
JasonArora / Shutterstock.com
a certain threshold before blocking and training to sensitise workers to the serve as a channel for workers to re-training them. Their application also issue, and provides separate locker collectively express their opinion about remained accessible to workers who rooms for men and women. various policies to the management. were blocked, allowing them to appeal Beyond these examples, there was the blocking decision. no evidence of platform management supporting or acknowledging worker The advanced point for this principle is collectivisation in the platforms awarded to platforms that demonstrate studied.50 Furthermore, in cases where inclusiveness by proactively seeking Fair Representation worker strikes had taken place in the to employ marginalised populations. past (mainly in ride-hailing and food The basic point on this principle was Only two platforms, Flipkart and Urban delivery platforms), platforms had awarded where there were worker Company, were awarded this point. reacted in different ways. Zomato, for voice mechanisms and freedom of As detailed in the next section, Urban example, blocked the IDs of several association, and the advanced point Company provided documentation workers who participated in a strike, where there is evidence of worker of instances when they had publicly as detailed in the Workers’ Stories collectivisation being permitted. supported their workers who faced section.51 Additionally, the Zomato One of the two examples of spaces discrimination. They also agreed to contract explicitly states that any or fora for worker voices were the add a no discrimination clause in the partner who is found “indulging in acts regular, face-to-face meetings that customers terms of use. Flipkart, such as creating ruckus / strike / or any Urban Company conducted with small meanwhile, provided examples of activity against Zomato, which could be groups of workers from each service initiatives it has established to diversify detrimental to the Zomato’s brand and category. These meetings were called its last-mile workforce by proactively its image” will be terminated.52 employing women and physically and run by the management to take disabled persons.49 It also conducts up worker concerns and facilitate For the advanced point, there was sensitisation programs for its supply a two-way conversation between insufficient evidence that any platform chain workers to ensure an inclusive workers and management. The other currently recognised or was willing working experience for differently was the monthly town hall meetings to recognise worker trade unions. abled and women workers. Besides its of Flipkart which brought together Overall, none of the platforms showed zero-tolerance policy towards sexual workers, Team Leads, HR staff and an interest in acknowledging, or harassment, the platform also provides subcontractors. These meetings encouraging, worker collectivisation. Labour Standards in the Platform Economy | 15
Platform in Focus: Urban Company Total
Principle 1: Pays at least the local Pays the local minimum 2 minimum wage wage plus costs POINTS Fair Pay
Principle 2: Actively improves working Mitigates task-specific risks 2 POINTS Fair Conditions conditions
The contract genuinely Principle 3: Clear terms and conditions reflects the nature of the 1 are available POINT Fair Contracts empplyment relationship
Principle 4: Fair Provides due process for There is equity in the 2 POINTS Management decisions affecting workers management process
There is a collective body of Includes freedom of Principle 5: Fair workers that is recognised, and association and worker 1 that can undertake collective POINT Representation voice mechanism representation/bargaining
Urban Company overall score 08
Urban Company is an at-home service minimum wage while working (on Successful workers are encouraged provider platform headquartered in average) a 48-hour working week for to apply for a Recognition of Prior Gurugram, Haryana. Using its app and most categories of services. It is worth Learning (RPL) certification which website, Urban Company connects noting, however, that some categories could prove useful towards their career its customers to the providers of of Urban Company workers, particularly progression. As of February 2020, 70 various services, including beauty, beauty workers, are mandated to buy percent of Urban Company’s workforce deep cleaning and maintenance work, their equipment and products from had received this certification. among others. Towards this, Urban the platform.53 This practice increases Urban Company has also redesigned Company first screens and onboards the costs for workers, although it is equipment to improve worker comfort service providers (who it refers to as justified by the platform as a means and safety. For instance, massage “service partners” but whom the report of ensuring standardised service tables were redesigned to make them will refer to as “workers”, consistent provision. lighter so that workers did not struggle with the rest of the report), trains them while transporting them to customer for specific services, assigns them Urban Company has introduced locations. It is for these reasons that jobs based on customer demand, and several innovative measures in working Urban Company is one of only two finally, facilitates their payment. conditions. It provides dedicated platforms that scored the advance training sessions for its workers in point for Fair Conditions. Conversations with Urban Company several service categories, including workers and data from the company beauty and massage services, house Urban Company workers are provided indicate that most workers earn above cleaning and appliance repair, once with an oral explanation of their the local minimum wage after factoring they sign up with the platform. For contracts during their onboarding in costs. Amongst the eleven platforms many categories of work, Urban and training. They are also given a scored in this report, Urban Company Company workers participate in photocopy of the contract to keep. was the only platform to provide training sessions over ten days and After engaging with Fairwork, Urban evidence that its workers earn above are evaluated at the end of this period. Company has agreed to translate 16 | Fairwork India Ratings 2020
its worker contract into multiple workers and / or by customers.55 of workers are an example. These languages and notify workers by the For example, Urban Company has worker-centred discussions, one first quarter of 2021.54 resisted requests from some workers of which the team witnessed, are to segregate jobs by partner identity hosted either at the Urban Company Urban Company also offers clear (based on their caste or region) offices or in cafes on the field based channels of communication for and blocked a customer who did on the convenience of the group. workers’ grievances, including a not want Muslim service providers. The management has also rolled out helpline and Whatsapp groups created After engaging with Fairwork, Urban quarterly job satisfaction surveys in by the management that workers found Company has also agreed to add a no three languages for feedback from responsive. Where worker accounts discrimination clause in its customers partners on their experience with are deactivated, workers are still able terms of use. Urban Company and their inputs on to access the Urban Company app policies they would like changed. While and raise appeals, a provision that Besides the helpline and Whatsapp such discussions and surveys may almost no other platform provides at groups that are focussed on individual foster a conversation and participation present. Though the Urban Company grievances or queries, Urban Company by partners, these fora remain management is yet to take proactive has also created fora to enable management-led. Urban Company is steps to employ marginalised groups, conversations between workers and yet to encourage and accept worker- there were examples that showed that management to discuss collective governed bodies as a channel for the management had reacted strongly grievances. Regular Focussed Group interaction between partners and to instances of discrimination against Discussions (FGDs) with small groups management. Labour Standards in the Platform Economy | 17
Workers’ Stories
Antony* hails from Kerala. He is 33 and married city when estimating ride durations, making with children. Prior to joining Uber, Antony the target number of rides for various incentive worked as a driver in Saudi Arabia. He returned levels unrealistic. Frequent blocking is another Antony to India to be closer to his family. His family threat drivers face, with implications for their resides in Kerala while he stays in Electronic daily / weekly incentives. Antony was blocked Uber Cab Driver City, Bangalore, sharing a flat with two others. recently from the platform. “A customer had Uber seemed the best option for him since he complained that my driving was rash and I was had previously worked as a driver. He also tried immediately blocked. I tried sending them food delivery for a while, but couldn’t bear the messages and calling them but they were exposure to the pollution in the city that driving unresponsive. So I had to go to their office, wait a two-wheeler entailed. in line, and ask them to unblock me only after which they let me go with a warning.” Falling When we interviewed Antony on Church Street, incentive rates are a concern as well—the Bangalore, he told us that he had been driving weekly incentives dropped from Rs 6000 to Rs with Uber for 17 months. Until a month ago, 2000 during the time he’d been with Uber. he did not own the car he drove—he leased the car from Uber’s subsidiary and had to pay Antony pointed out that there are no regular Rs 17,000 a month for 16 months to clear and reliable channels through which to raise the lease, which he just had. Antony said he these issues. While he did receive a couple drives on average for 16 hours a day everyday, of messages about ‘Samaaj’ meetings being which is in the highest bracket of working hours conducted at the Uber hub, the pressure to amongst our interviewees. With a sense of meet his monthly lease obligations left him urgency in his voice, he said, “I needed to clear with little time to attend. Besides, parking the lease right? So I had to keep driving”. space for all drivers would probably not be available. Despite moving from Saudi Arabia to Antony has his share of issues with Uber. He Bangalore to be closer to his family, he finally complained that the Uber navigation system visited them only last month, after clearing does not take into account the traffic in the Uber’s lease.
*Names changed to protect worker identity
The Road Provides / Shutterstock.com 18 | Fairwork India Ratings 2020
JasonArora / Shutterstock.com
Vikrant*, 35, delivers for Zomato in incentives.” Koramangala, Bangalore. He hails from New Delhi and previously worked as a hotel While these issues remain, and need manager in Bangalore. He later signed up with to be resolved, Vikrant says that riders’ Vikrant Swiggy but left after seven months because dissatisfaction mainly stems from the long Zomato delivery rider they didn’t pay him enough, and he didn’t working hours combined with the lack of safety like their mandatory 10-hour login policy. He and benefits. When asked whether Zomato then moved to Zomato and has been with the provided them any insurance he laughs grimly platform for the past two years. and says, “Insurance, yeah there is insurance. After death is confirmed…they roll it out based As the interview progressed, other riders joined on the priority of the case. I was injured a few the conversation and we were soon talking to months back while working but they did not a group of about eight. Most of them are with pay anything because I wasn’t hospitalised. Zomato (judging by their uniforms) but a couple Recently another boy was injured and deliver for Uber Eats and Swiggy as well. The hospitalised, they rolled out 1 lakh.” riders highlight the major issues they have been facing with Zomato in particular, and the Another Zomato rider adds, “In the meeting 3 food delivery sector in general. or 4 months ago, they told us that if your bike is punctured, take a rental bike and finish the One Zomato rider complains about not delivery first. If you meet with an accident, first receiving orders in areas other than finish the delivery and then go wherever you their chosen pick-up zone (in his case, have to go.” Koramangala). As a result of this rule, when workers deliver food outside of this zone, Vikrant and the other riders mobilised support they are not allocated any orders on their way via Whatsapp groups and organised a strike back. Riders thus incur fuel costs on their a few months ago. Their set of demands return journey, without a means of covering included fixed salaries, fixed working hours and these costs. Unstable incentive structures benefits like ESI and PF. While Zomato did not are another concern. When Vikrant brings acknowledge the demands and the protest, the this up, the other riders immediately agree. platform did block the IDs of the riders who Vikrant, who has already been blocked twice participated in the strike. The riders say they by Zomato, says, “If you cancel too many expected this response. As one of them said, orders you get blocked. If your ID is blocked, “Zomato, Swiggy and Uber are like the Modi you have to visit the office to get unblocked. government. If you protest, they’ll just shut you Once you do, you have to start afresh with the up.” *Names changed incentive structures of a new joinee. But if you Shifting to other platforms in the food to protect worker get blocked more than three times, you will be delivery sector is also not a viable option. As identity permanently blocked from the platform. We an UberEats rider points out, “We just wear think they sometimes just block at random different colours. But we all work for the same so that this way, they have to pay us lower company really.” Labour Standards in the Platform Economy | 19
Theme in Focus: Precarity As the report pointed out in an earlier section, precarity—in the sense of labour and income insecurity, and the lack of work-based identity—has long featured in the lives of a large proportion of Indian workers. It is not new, nor unique, to platform work in India. Yet, the reasons for its existence and the characteristics it takes on specifically within platform work merit attention.
Based on worker interviews in Discussions with workers, and other depending on their experience on the Bangalore, this section highlights data collected, confirms that earnings platform and their relationship with the form precarity takes in platform on a platform can vary widely across it (how many times they have been work along these dimensions (to the workers, and by work location and time blocked, or participated in strikes may extent they overlap with the Fairwork of day. “Incentives” play an important make a difference, for example).58 principles): income insecurity, labour role in bringing about these variations insecurity (reflected in working in several platforms. Shifts in income Besides all these variations in conditions, some of which are a depend first on how big a chunk of the incentives in the short run, incentives result of the ambiguous location of earnings comes from incentives and that were offered to bring workers on platform companies in the regulatory this is different for different platforms. board have also declined, and often landscape), and a lack of work-based For instance, incentives could with little notice. For instance, the identity due to various models of constitute as much as 40-50 percent incentives offered by Ola and Uber subcontracting by platform companies. of earnings on some of the food when they started their operations delivery platforms;56 and a lower but in Bangalore in 2011 and 2013 59 still significant percentage for drivers respectively, had declined drastically Insecurity in Income 60 of cabs (about 20 percent, based on by 2017. Similarly, incentive The “gig” or “flexible” labels that are interview data). However, they barely structures offered by Zomato and associated with platform work may played a part in home service platforms Swiggy too had become significantly 61 suggest that platform workers take on such as Housejoy and Urban Company, less favorable by 2019. Indeed, this work part time or in addition to or for an ecommerce service like many worker strikes and attempts at other work they undertake. However, Flipkart. organisation among platform workers, workers were overwhelmingly in various parts of India, since that time 62 working full time on these platforms Incentive amounts and offers have been related to this drop. (with Dunzo, Housejoy, and some also change weekly, monthly and occupations on Urban Company seasonally, and at short notice: food Labour Insecurity the exceptions) and were mainly delivery workers are offered incentives dependent on the platforms for their during festival seasons and cricket and Precarity in livelihood. Further, the asset-light matches, but they also vary for less Working Conditions business model of platforms shifts to predictable reasons such as the the worker daily expenses like fuel platform’s expansion into new areas or The platform economy as it is currently 57 and maintenance costs, unexpected investor pressure to stop cash burn. structured offers workers no job costs including traffic fines and towing At any given time, incentive offers also security in the longer term and this charges, and fixed capital costs. It is vary based on the worker’s registered presents a fundamental precarity against this backdrop that the nature geographical location within the in their work (conditions). But of precarity in income for platform city. Furthermore, even at the same conversations with workers revealed workers must be understood. location, and in the same time period, that they were not assured of a job incentives may vary across workers even in the shorter term, with workers 20 | Fairwork India Ratings 2020
on some platforms, including Zomato, they are subsumed under the their delivery workers both directly69 Ola and Uber complaining that they “unorganised” label or an altogether and through labour contractors such as had experienced temporary ID blocks new category). Such ambiguities add Blowhorn, Bikeninja and Shadowfax.70 and permanent suspensions without to the precarity of these workers’ the means to appeal these decisions. positions in the labour market. Critics A more recent phenomenon is of data The growing automation and opacity of argue that the broader landscape of contractors such as Betterplace who worker management systems further labour regulations in India and recent process worker data for platform complicates the process of redressal shifts—especially the consolidation of companies. This raises additional appeal.63 a range of labour laws into four labour concerns about the security and codes which have been perceived by privacy of worker data. While the data One of the benefits that is often labour unions and others as diluting collected by platforms from workers associated with working on platforms existing provisions of these laws for is cause for concern even without is the “flexibility.” It supposedly offers all workers—further reinforce this subcontracting, concerns about how workers the ability to choose when precarity.67 worker data is collected, used, stored, and how many hours they work for shared with or sold to third parties, and when. While some of the workers or how accessible it is to workers did mention this as an advantage, the Lack of work-identity themselves should they wish to port interviews also drive home the point and precarity or transfer their work experience that workers work unpredictable with other job providers, or check and long hours to achieve an income through contracting the veracity of their data, are thrown that can sustain them. Most workers In addition to the ambiguity of worker into sharper relief with the entry of 71 interviewed worked much longer classification brought up earlier, there subcontractors. than the legally permissible 48 hour- is a further issue around contracts week (without overtime wages). that emerges for platform workers. Moreover, these hours were not always Increasingly, components of the predictable and could also involve long platform supply chain are being periods of waiting between orders contracted out to entities outside of the (for which they were not paid). Finally, platform company. Furthermore, these not everyone had equal control over subcontracting models are still evolving how long or when they worked. A (and rapidly so). Interviews and desk female Swiggy worker pointed out that research suggest the prevalence of at female workers on the platform were least two types of subcontracting: that 64 automatically logged out at 6:00 pm of labour and of data. “Most workers based on the platform’s belief that this would ensure their safety.65 Subcontracting of the first type is of interviewed worked interest because it further increases In addition to the long-term health the distance between workers and the much longer 66 consequences of working such long platform, which has implications for than the legally hours, workers are also faced with their working conditions, payment, and more immediate health concerns mechanisms of grievance redressal. permissible 48 arising out of accidents and physical A van driver for Amazon who worked harm (including being mugged) during for a contractor said his insurance hour-week (without the provision of services. The lack of was determined by his contractor, reliable insurance—and one that is who decided not to provide it. A overtime wages).” not restricted only to severe cases— Swiggy worker who worked through compounds this issue as the Zomato Shadowfax68 said he was concerned group interview in the previous section how to reach out to Shadowfax in case indicated. he had issues with his order. In such cases, it is also difficult to determine The very location of platform at what stage of the order a platform companies within the Indian regulatory hands off to subcontractors and landscape is the reason for some of whether the customer encounters this precarity in workers’ conditions. the platform’s brand or the As mentioned earlier, it is unclear subcontractor’s. Furthermore, platform which laws and regulations cover companies deploy many of these platforms (technology only or domain contracting models in parallel, further regulations as well), and platform complicating issues of accessibility workers (independent contractors, and accountability for workers. For employees or self-employed; whether instance, Amazon and Flipkart hire Labour Standards in the Platform Economy | 21
Impact and Next Steps
This report not only highlights the work It is to bring about change in the conditions of work, that Fairwork opportunities generated by the platform engages with platforms, consumers, government, platform workers and economy; it also highlights how the work their representatives. is mostly characterised by low pay, poor Notwithstanding their claims to the conditions, inequity, and a lack of agency contrary, platforms have substantial control over the nature of the jobs that and voice. But there is no basis for workers they mediate. The scores show that the platform economy, as we know it who find their jobs through platforms to currently, takes many forms, with some platforms displaying greater concern be denied the key rights and protections for workers’ needs than others. Thus, that their counterparts in the formal sector there is nothing inevitable about the working conditions in the platform enjoy. economy. The Fairwork project—by highlighting the contours of today’s platform economy—helps paint a picture of what it could become.
In this second year of scoring in India, Fairwork deepened its engagement with platforms. This year, we engaged with four platform companies—Dunzo, Flipkart, Uber and Urban Company— to take an active role in improving the conditions and standards of work in the platform economy and for these to become encoded and formalised. For example, as a result of our collaboration, Urban Company agreed to translate its contracts with workers into Hindi, Tamil, Telugu and Kannada and make them available on the worker application by March 2021. In addition, Urban Company has also agreed to add a no descrimination clause to their customers’ terms of use which explicitly prohibits customers discriminating against workers.
Fairwork’s engagement with policy makers and the government is meant to ensure that platforms’ business imperative and workers’ needs are balanced. Policy advocacy efforts Fairwork’s Pathways to Change by Fairwork advocate the extension of relevant legal protections to all 22 | Fairwork India Ratings 2020
Fairwork’s Principles: Continuous Worker-guided Evolution
Fairwork Principles
Changes to Principles
(agreed at annual Fairwork symposium that brings together all country teams)
Periodic International Annual Country-level Yearly Fieldwork Stakeholder Stakeholder across Fairwork Consultations Consultations Countries
(involving gig workers’, workers’ (involving gig workers’, workers’ (involving surveys and in-depth organisations, cooperatives, etc) organisations, cooperatives, etc) interviews of gig workers)
Ongoing Advocacy Efforts
(involving campaigns for worker rights and support to workers’ organisations)
platform workers, irrespective of their mutual support,72 and through workers’ allies in the fight for a fairer legal classification. emerging unions and organizing at the platform economy. The scores can national level.73 Fairwork’s Principle also help inform the procurement, Central to the Fairwork model are 5 in particular, which involves fair investment and partnership policies of workers and workers’ representatives. representation for workers, is a means large organisations, including firms or Through continual engagement of drawing attention to worker voice. resident welfare associations, keen to with workers’ representatives and ensure they are supporting fair labour advocates, Fairwork is committed Human empathy is a powerful force practices. to support workers in asserting that Fairwork’s theory of change their rights and requirements in a draws on. Through the yearly ratings collective way. A key challenge in the the aim is to empower platform users Fairwork in 2021 platform economy is that workers are with enough information to make Fairwork’s research thus far, has often isolated, atomised, and placed informed decisions about which revealed at least two directions along in competition with one another. platform they would like to give their which future work must proceed to The platform work model presents business to. Consumers can use the better understand platform work. challenges for workers to connect scores to choose the highest scoring First, as platforms modify their service and create networks of solidarity. platform operating in a sector, thus offerings to respond to demands for Despite this, many of the workers contributing to pressure on platforms profitability with shifting business interviewed have started to organize, to improve their working conditions. conditions. The COVID-19 pandemic, through WhatsApp groups to provide The scores enable consumers to be which has hastened the adoption of Labour Standards in the Platform Economy | 23
some platform services by customers As this segmentation of gig workers and consumers are the immediate over offline alternatives, while is continuously evolving, future work stakeholders in the platform economy, diminishing others, is one instance of will attempt to focus on the ‘weakest- this economy is sustained by a larger the shifting conditions. The pandemic, link’ i.e., on the more precarious work ecosystem: investors and venture and the ensuing lockdowns, have arrangements within each platform capitalists, both foreign and domestic, brought to the fore the precarity faced rather than on all platform workers. It freelancers and third-party firms that by platform workers who provide will also require alternative approaches design and develop technologies for essential (and invaluable) services. to identifying and interviewing workers, platform companies, data contractors engaging with platform management, who store worker data for the Among the various ways by which and perhaps even revisiting which platforms, and ‘man-power’ agencies platforms respond to shifting platforms and sectors to study. that provide the workforce for these business conditions is to rely on a platforms.74 Looking ahead, we hope to range of work arrangements, from Second, research thus far has also identify, engage and influence actors employees with benefits, to part time made evident that while platform upstream in the ecosystem as they are piece-rate workers, to using workers management, policy makers and equally relevant in Fairwork’s vision for provided by man-power agencies. government, workers and unions, a fairer world of work. 24 | Fairwork India Ratings 2020
Appendix I: Fairwork Scoring System
The five Principles of Fairwork were into two thresholds. Accordingly, for that point. developed through an extensive each Principle, the scoring system literature review of published research allows one ‘basic point’ to be awarded A platform can therefore receive a on job quality, stakeholder meetings corresponding to the first threshold, maximum Fairwork Score of ten points. at UNCTAD and the ILO in Geneva and an additional ‘advanced point’ Fairwork scores are updated on a (involving platform operators, policy to be awarded corresponding to the yearly basis; the scores presented in makers, trade unions, and academics), second threshold (see Table 1). The this report pertain to data gathered and in-country stakeholder meetings advanced point under each Principle between November 2019 and held in India (Bangalore and can only be awarded if the basic point November 2020. Worker interviews Ahmedabad), South Africa (Cape Town for that Principle has been awarded. were conducted between November and Johannesburg) and Germany The thresholds specify the evidence 2019 and February 2020, while (Berlin). This appendix explains the required for a platform to receive desk research and engagement with Fairwork scoring system. a given point. Where no verifiable platform managers continued upto evidence is available that meets a given November 2020. Each Fairwork Principle is divided threshold, the platform is not awarded
Table 1 Fairwork Scoring System
Principle Basic point Advanced point Total
Fair Pay 1 + 1 = 2
Fair Conditions 1 + 1 = 2
Fair Contracts 1 + 1 = 2
Fair Management 1 + 1 = 2
Fair Representation 1 + 1 = 2 Maximum possible Fairwork Score 10 Labour Standards in the Platform Economy | 25
months. platforms. It also relied on a tabulation Threshold 1.2 – Pays the of worker earnings or payslips from the minimum wage plus costs (one platform managements who provided additional point) us evidence. The award of the basic Principle 1: point was based on whether workers’ Fair Pay Workers earn at least the local hourly earnings without costs met minimum wage after work-related the (adapted) state minimum wage Threshold 1.1 – Pays at least costs, or there is a policy which threshold. The award of the advanced the local minimum wage (one requires payment above this level. point depended on workers reaching this figure after factoring in their point) The threshold for the minimum wage costs.80 For both points, the study plus costs varies between different Irrespective of the employment status used the Karnataka state floor level kinds of platform work. In order to 81 of the worker, workers earn at least daily minimum wage figures under establish a threshold, the platform is a local minimum wage, or there is a the semi-skilled workers category asked to provide an estimate for work- policy which requires payment above (skilled category for Urban Company related costs, which are then checked this level. and Housejoy workers). This number (by the Fairwork team) through worker was multiplied by six (one rest day per The threshold for 1.1 is based on the interviews.79 To be awarded this point, week) for the weekly minimum wage, level for a local minimum wage.75 there must be either: and then divided by the weekly working Workers on the platform must earn hours limit of 48 hours82 to arrive at an • A policy that guarantees workers more than the minimum wage rate in hourly minimum wage.83 earn at least the local minimum their working time,76 and this can be wage plus costs; or evidenced by either: • Evidence from the platform that • A policy that guarantees the workers earn at least the local workers receive at least the local minimum wage plus costs. minimum wage in their working time; or If the platform has completed Table 2, Principle 2: the mean weekly earnings minus the • The provision of summary Fair Conditions estimated work-related costs must be statistics of transaction data. above the local minimum wage (see Threshold 2.1 – Mitigates task- In the case of (b), the platform is asked Table 2 below). specific risks (one point) to submit a weekly earnings table (see The evaluation of Fair Pay for the India Table 2) that averages worker earnings There are policies to protect workers scoring drew more specifically on and worker hours for any three-month from risks that arise from the processes the self-reported earnings obtained period over the previous twelve of work. through worker interviews for all
Table 2 Weekly earnings table
X to Weekly earnings
Active hours less than 40 hours/week (part-time) % % % %
Active hours between 40 and 48 hours/week (full-time) % % % %
Active hours more than 48 hours/week (full-time plus overtime) % % % %
Note: X = the local minimum wage, calculated at 45 hours per week. This row is filled out by the Fairwork team, before submitting it to the platform for completion.78 26 | Fairwork India Ratings 2020
This threshold requires the platform insurance schemes, training sessions • The contract is written in clear and to ensure that there are safe working and equipment redesign from the three comprehensible language that conditions, and that potential harms platforms that provided evidence, the worker could be expected to are minimised.84 For 2.1, this means were used to arrive at these scores. understand; and, identifying the task-specific risks Observations of training, safety and for the worker when, for example, a orientation sessions in the offices • The contract is issued in the vehicle is used, or there is interaction of two platforms were also relied language/languages spoken by with customers. The specific practices on. For the basic point, examples workers on the platform; and, leading to the awarding of this point of mitigating risks faced by workers, • The contract is available for may vary by the type of work and the such as by offering accident insurance, workers to access at all times. risks involved. safety gear and safety training paid for and conducted by the platform, and Threshold 3.2 – The contract To be awarded a point for 2.1, the having an SOS button or emergency platform must demonstrate that: helpline for workers, were considered. genuinely reflects the nature of For the advanced point, scores relied the employment relationship • There are policies or practices in on instances and policies that went (one additional point) place that protect workers’ health beyond task-specific risks such as and safety from task-specific risks facilitating skill certifications, personal The party contracting with the worker loans, comprehensive health insurance must be subject to local law and must Threshold 2.2 – Actively for workers and redesigning equipment be identified in the contract. If workers improves working conditions to accommodate worker needs. are genuinely self-employed, the terms (one additional point) of service are free of clauses which unreasonably exclude liability on the There are proactive measures to part of the platform. protect and promote the health and safety of workers or improve working The threshold for 3.2 involves the conditions. platforms demonstrating that the Principle 3: contract issued to workers accurately For 2.2, the threshold is higher, describes the relationship between involving practices that go beyond Fair Contracts the platform, the workers, and the addressing the task-specific risks users. In the case where there is an addressed by 2.1. This means a Threshold 3.1 – Clear terms unresolved dispute over the nature of policy that goes beyond ameliorating and conditions are available the employment relationship, a point the direct task-specific risks, by (one point) will not be awarded. promoting greater health and safety or improvements in working conditions, The terms and conditions are To be awarded a point for 3.2, the beyond what is specified by local transparent, concise, and provided to platform must demonstrate that: regulations for employment. For workers in an accessible form. • The employment status of the example, an insurance policy that The threshold for 3.1 involves workers is accurately defined covers workplace accidents would demonstrating that the terms and in the contract issued by the meet the threshold for 2.1, while one conditions of the contract issued to platform; and, that also covers the worker or their workers are available in an accessible family outside of work would meet form.85 Platforms must demonstrate • There is no unresolved dispute 2.2. As policies and practices may be that the contracts are accessible about the nature of the focused on the specific form of work, for workers at all times, whether employment relationship; or, the examples that meet the threshold through the app itself or direct may vary by the type of work. • The self-employed status communication with the worker. of the worker is adequately This is necessary for workers to To be awarded a point for 2.2, the demonstrated and free from understand the requirements of their platform must demonstrate that: unreasonable clauses. work. The contracts should be easily • There is a documented policy (or understandable by workers, and The Fairwork India scoring relied on policies) that promotes the health available in the language/languages digital or hard copies of contracts and safety of workers or improves commonly spoken by the workers on that workers showed the researchers, working conditions, going beyond the platform. and copies of contracts provided by addressing task-specific risks platform management. If a contract To be awarded a point for 3.1, the (or Terms and Conditions document In the Indian case, interviews and platform must demonstrate all of the or employment agreement) existed observations of workers at work for all following: and was made accessible, readable, the platforms, and documentation of Labour Standards in the Platform Economy | 27
and comprehensible to workers by the communicate with the platform; risk of users discriminating against platform, a basic point was awarded. and, any group of workers in accessing For the advanced point, the platform’s and carrying out work. terms and conditions for all categories • The platform interface features of workers were analysed to assess if a process for workers to appeal In the India case, points for this they genuinely reflect the nature of the disciplinary decisions or principle were awarded based on employment relationship and that they deactivations; and, worker interviews supplemented do not have clauses that unreasonably by documentation on available • In the case of deactivations, the excluded liability on the part of the communication channels, grievance appeals process must be available platform. redressal and appeals processes to to workers who no longer have restore deactivated IDs, the platform access to the platform. company’s sexual harassment and zero tolerance discrimination Threshold 4.2 – There is equity policies, and details of inclusion in the management process initiatives provided by the platform (one additional point) managements mentioned earlier. Focus Principle 4: Group Discussions among workers Fair Management There is evidence that the platform at an Urban Company office were is actively seeking to prevent also observed in order to score this discrimination against workers from principle. Threshold 4.1 – There is due disadvantaged groups. process for decisions affecting workers (one point) To be awarded a point for 4.2 the platform must demonstrate the There is a documented process following: through which workers can be heard, can appeal decisions affecting them, • It has a policy which guarantees Principle 5: and be informed of the reasons that it will not discriminate against Fair Representation behind those decisions. There is a persons on the grounds of race, clear channel of communication to gender, sex, sexual orientation, Threshold 5.1 – There are gender identity, disability, religion workers involving the ability to appeal worker voice mechanisms and management decisions or deactivation. or belief, age or any other status which is protected against freedom of association (one The threshold for 4.1 involves a discrimination in local law; and, point) platform demonstrating the existence of clearly defined processes for • Where persons from a There is a documented process through communication between workers and disadvantaged group (such as which worker voice can be expressed. the platform. This includes access by women) are significantly under- There is no evidence of freedom of workers to a platform representative, represented among its workers, it association being prevented by the and the ability to discuss decisions has a plan to identify and remove platform. There is no evidence that made about the worker. Platforms must barriers to access by persons from platforms refuse to communicate with be able to evidence that information that group, resulting in improved designated representatives of workers. about the processes is also easily representation; and The first step for the justification of 5.1 accessible to workers. • It takes practical measures to is establishing the platform’s attitude To be awarded a point for 4.1, the promote equality of opportunity towards and engagement with workers’ platform must demonstrate all of the for workers from disadvantaged voice. This includes both listening to following: groups, including reasonable and responding to worker voice when accommodation for pregnancy, raised with the platform, as well as • The contract includes a disability, and religion or belief; documenting for workers the process documented channel for workers and for engaging the platform in dialogue. to communicate with a designated Workers should be able to organise and representative of the platform; and, • If algorithms are used to associate with one another, regardless determine access to work of employment status. Workers must • The contract includes a or remuneration, these are not suffer discrimination for doing so. documented process for workers transparent and do not result in This includes the freedom to associate to appeal disciplinary decisions or inequitable outcomes for workers beyond the remit of organisational deactivations; and, from historically or currently spaces (for example, via instant disadvantaged groups; and messaging applications).86 • The platform interface features a channel for workers to • It has mechanisms to reduce the To be awarded a point for 5.1, a 28 | Fairwork India Ratings 2020
platform must demonstrate that: This threshold requires the platform to representation or bargaining; engage with, or be prepared to engage • There is a documented process for with, collective bodies of workers If such a body does not exist, it must: the expression of worker voice. that could take part in collective • Sign a public statement of representation or bargaining. The its willingness to recognise a Threshold 5.2 – There is a collective body must be independent collective body of workers or trade collective body of workers of the platform. It may be an official union. that is recognised, and that trade union, or alternatively a network can undertake collective or association of workers. Where such For this principle, the India report representation and bargaining organisations do not exist, the platform relied on desk research for evidence can sign a public statement to indicate (one additional point) of platforms curbing workers’ freedom that they support the formation of a to associate in addition to accounts There is a collective body of workers collective body. from worker interviews. Documented that is publicly recognised and the processes/channels that enable worker To be awarded a point for 5.2, the platform is prepared to cooperate voice (like Urban Company’s Focus platform must: with collective representation and Group Discussions) and formation of bargaining (or publicly commits to • Publicly recognise an independent, collectives, and platform evidence recognise a collective body where none collective body of workers or suggesting public recognition of a yet exists) trade union and not have refused workers’ collective body, were also to participate in collective used as evidence. Labour Standards in the Platform Economy | 29
Appendix II: Identifying Platforms and Workers
The top twelve platforms that provided workers. Finally, inputs from secondary Workers on ride-hailing and food location-based platform work in India sources such as news articles, reports, delivery platforms were identified in 2020 were identified based on the and academic publications were in public spaces and recruited after size of their workforce, customer base added. explaining the study and securing and investment. During the course of their consent to participate. Food- the study, Uber Eats was acquired by A decision was made to not rely delivery platform workers were also Zomato, and therefore removed from on platforms to access workers in covered by identifying restaurants the study. For each of the remaining order to avoid any harm to potential with high delivery volumes. As workers eleven platforms, worker interviews participants or biased responses. on domestic service and hub-based were conducted, platform evidence The study was advertised in worker delivery platforms were harder to was sought, and secondary research WhatsApp groups, where available, reach, participants were recruited by carried out. after securing the consent of the group placing orders for services / goods owners. Only workers who expressed from addresses that researchers had Worker interviews were conducted an interest in participating in the access to. Once the transaction was with six to ten participants for each of research were recruited. complete, and ratings were provided, the eleven platforms, through fieldwork workers were asked if they would Efforts were made to capture as much undertaken in Bangalore between participate in the study. Workers were variety among workers as possible. For November 2019 - March 2020. The also recruited at check-in points in the domestic service platforms, the aim goal of the interviews was to build an offices and apartment complexes that was to cover the top four occupations understanding of the conditions of the researchers had access to. Female on the platform. Similarly, for ride- work in the platform economy. In total, beauty workers were interviewed hailing platforms a minimum number of 113 workers were interviewed in a by a female researcher since these auto rickshaw drivers (two), along with total of 92 interviews, with interviews platforms provide same-sex services a variety of cab categories (hatchback, ranging between 15 to 90 minutes. only. Most were conducted by two research sedan, SUV), were included. Where assistants with input from other team possible, attempts were made to speak Participants in the study (except for members. In parallel, platforms were to under-represented groups, such those participating in group interviews) contacted for evidence on conditions of as women in the delivery and ride- were compensated with either a gift work, including data on their workers, hailing sectors. Unfortunately, it was card, monetarily, or by purchasing and examples of management action not possible to capture all variations additional services as suggested by the across the principles. These include of work; for example, part-time participants. Three participants refused cases of intervention when there is workers who only worked at night, or compensation. discrimination, helping workers file exclusively on the weekends, on the insurance claims, setting up training food delivery platforms Swiggy and programs, and holding meetings with Zomato, were not included. 30 | Fairwork India Ratings 2020
Appendix III: Estimates of Platform Workers
Pan-India estimates of platform workers and employees87
Platform Platform Employees Sources88 Name Workers Ola and 2,200,000 Ola: 4,150 https://inc42.com/buzz/jobs-are-being-created-ola-uber-added-2-2-mn- Uber (2019) Uber: 2,400 jobs-niti-aayog-ceo-kant/ https://www.livemint.com/companies/start-ups/ola-to-fire-1-400- employees-as-revenue-down-by-95-in-2-months-11589961627720.html
https://www.business-standard.com/article/companies/uber-trims-a-quarter- of-its-india-workforce-lays-off-600-employees-120052600120_1.html Swiggy 250,000 10,000 https://www.livemint.com/companies/start-ups/swiggy-raises-43-million-to- (2019) expand-new-businesses-11586170828417.html https://careers.swiggy.com/ Zomato 230,000 4,000 https://twitter.com/deepigoyal/status/1169552564184113153?lang=en (2019) https://www.business-standard.com/article/companies/covid- 19-impact-zomato-to-cut-13-jobs-asks-for-organisation-wide- paycuts-120051500765_1.html Flipkart 120,000# 36,000 https://www.owler.com/company/flipkart?pendo=kUUes6C7jD_ (Ekart) rqETPliseSRbPjmA Amazon 100,000#* 50,000 The expectation is that Amazon will have at least 100,000 workers since (ATS) (2018) its market share nearly equals that of Flipkart https://www.spglobal.com/ marketintelligence/en/news-insights/latest-news-headlines/flipkart-is-no-1- in-india-but-faces-formidable-foe-in-amazon-say-experts-54083920
In addition, Amazon says it hires 100,000 seasonal workers. https://www. thehindu.com/business/Industry/amazon-india-creates-over-1-lakh- seasonal-job-opportunities-ahead-of-festive-season/article32729807.ece
https://www.thehindubusinessline.com/info-tech/amazon-india-to-hire-over- 2000-people-for-tech-and-non-tech-roles/article25624631.ece Housejoy 65,000 350 https://www.housejoy.in/
https://www.owler.com/company/housejoy Urban 25,000 1,300 https://www.urbancompany.com/about Company https://craft.co/urbanclap Labour Standards in the Platform Economy | 31
Platform Platform Employees Sources Name Workers BigBasket 18,800* 4,000 Using daily order volume of 283,000 and assuming 15 orders delivered per worker https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/e-grocers- like-bigbasket-grofers-others-surge-ahead-on-deliveries/articleshow/75284089. cms?from=mdr https://craft.co/bigbasketcom Dunzo 18,000 500 https://yourstory.com/2019/08/dunzo-bicycle-delivery-partners https://www.owler. (2019) com/company/dunzo1 Grofers 12,600* 3,400 Using daily order volume of 190,000 and assuming 15 orders delivered per worker https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/e-grocers- like-bigbasket-grofers-others-surge-ahead-on-deliveries/articleshow/75284089. cms?from=mdr
https://craft.co/grofers TOTAL 3.03 Million
Notes: # Flipkart (Ekart) and Amazon (ATS) estimates includes workers across the supply chain. * Approximations used for Amazon (ATS), Bigbasket and Grofers. 32 | Fairwork India Ratings 2020
Appendix IV: Funds Raised by Platforms
Platform Company Name Funds Raised89, 2013- 2019 (USD billion) Flipkart Flipkart Internet Private Limited 7.09 Instakart Services Private Limited Ola ANI Technologies Private Limited 3.60
Swiggy Bundl Technologies Private Limited 1.47
Bigbasket Supermarket Grocery Supplies Private Limited 0.99
Zomato Zomato Media Private Limited 0.80
Grofers Grofers India Private Limited 0.59
Urban Company UrbanClap Technologies India Private Limited 0.18
Dunzo Dunzo Digital Private Limited 0.07
Housejoy Sarvaloka Services On Call Private Limited 0.03
Total 14.82
Note: Amazon and Uber have been excluded since their Indian operations are funded internally.
The table below shows the cumulative funds raised by nine platforms between 2013 and 2019. The nine platforms included are Bigbasket, Dunzo, Grofers, Housejoy, Ola, Swiggy, Urban Company, Zomato.90 Amazon and Uber have been excluded since their Indian operations are funded internally.
Year Cumulative Funds Raised by 9 platforms (USD Billion) 2013 0.42 2014 2.25 2015 2.06 2016 0.2 2017 6.21 2018 2.4 2019 1.27 Labour Standards in the Platform Economy | 33
Appendix V: Additional Resources Additional Resources on platform work in India
1. Aneja, U. and Shridhar, A. 2019. Worker Wellbeing on Digital Work Platforms in India: A Study of Ola Cabs and UrbanClap in New Delhi. Goa: Tandem Research. https://tandemresearch.org/assets/Worker-Wellbeing-Tandem-Research-2019.pdf
2. Anwar, I. A., Pal, J. and Hui, J. 2020. Watched, but moving: Platformization of beauty work and its gendered mechanisms of control. Proceedings of the ACM Human Computer Interaction. 4, CSCW3, Article 250. https://doi.org/10.1145/3432949
3. Biswas, R. and Pahwa, A. 2015. ‘Foreword.’ In The Rise of the Sharing Economy: The Indian Landscape. NASSCOM and Ernst & Young. http://www.ey.com/Publication/vwLUAssets/ey-the-rise-of-the-sharing-economy/$FILE/ey-the-rise-of-the- sharing-economy.pdf
4. Chaudhary, R. 2020. India’s Emerging Gig Economy: The Future of Work for Women Workers. https://iwwage.org/wp- content/uploads/2020/08/IWWAGE-Gig-Economy-Report.pdf
5. Gray, M. L. and Suri, S. 2019. Ghost Work: How to Stop Silicon Valley from Building a New Global Underclass. San Francisco, CA: HMH Books.
6. Kashyap, R. and Bhatia, A. 2018. Taxi drivers and taxidars: A case study of Uber and Ola in Delhi. Journal of Developing Societies. 34(2): 169-194. https://doi.org/10.1177/0169796X18757144
7. Mawii, Z. 2019. Feminist Perspectives on the Future of Work in India. New Delhi: Friedrich-Ebert-Stiftung India office.https:// www.fes-asia.org/news/feminist-perspectives-on-the-future-of-work-in-india/
8. Raval, N. and Pal, J. 2019. Making a ‘pro’: ‘Professionalism’ after platforms in beauty-Work. ACM Transaction on Computer- Human Interaction. 3, CSCW, Article 175. https://doi.org/10.1145/3359277
9. Samuel, V.J. 2020. Uberizing informality: The case of non-owner, driver-partners in the city of Hyderabad. Indian Journal of Labour Economics. 63: 511–524. https://doi.org/10.1007/s41027-020-00231-8
10. Surie, A. and Koduganti, J. 2016. The emerging nature of work in platform economy companies in Bengaluru, India: The case of Uber and Ola cab drivers. E-Journal of International and Comparative Labour Studies. 5(3): September-October. http://ejcls.adapt.it/index.php/ejcls_adapt/article/view/224
11. Tandem Research. 2018. Emerging Technologies and the Future of Work in India. International Labour Organization. https:// www.ilo.org/newdelhi/whatwedo/publications/WCMS_631296/lang--en/index.htm 34 | Fairwork India Ratings 2020
Credits and Funding
Fairwork draws on the expertise and experience Janaki Srinivasan, Shelly Steward, Sophie Sun, Finally, we are grateful to all the workers who of staff at the International Institute of Pradyumna Taduri, Pitso Tsibolane, Anna Tsui, took time off their schedules to share their Information Technology Bangalore (IIITB), Funda Ustek-Spilda, Jean-Paul Van Belle, Zoya experiences with us. We are also pleased to the University of Oxford, the University of Waheed, Jing Wang, Robbie Warin, Nadine have worked with managers at Dunzo, Flipkart, Cape Town, the American University of Cairo, Weheba, Zermina. Urban Company and Uber and look forward to the Centre for Labour Research, the Chinese continuing our engagement with them. University of Hong Kong, FLACSO-Ecuador, Please cite as: Fairwork. (2020). Fairwork India iSocial, Tu Wien, Universitas Gadjah Mada, Ratings 2020: Labour Standards in the Platform Conflict of interest statement: None of the Universidad Adolfo Ibáñez, the University Economy. Bangalore, India; Oxford, United researchers have any connection with any of the of Manchester, the Technical University of Kingdom. platforms and the work undertaken received no Berlin, the University of the Western Cape, funding or support in kind from any platform or Please note that this report contains sections in Weizenbaum Institut, WZB Berlin Social any other company, and we declare that that common with other Fairwork reports, notably the Science Center, and XU Exponential University. there is no conflict of interest. Fairwork Framework section, parts of the Impact Project staff work to translate the Fairwork and Next Steps section, and part of Appendix I. Principles into measurable thresholds, conduct A collaboration rigorous research to score platforms against Creative Design: Srujana Katta; original those thresholds, and publish the results in a templates from One Ltd., Oxford. between: transparent manner. Funders: Fairwork is financed by the Federal Authors: Balaji Parthasarathy, Janaki Srinivasan, Ministry for Economic Cooperation and Mounika Neerukonda, Pradyumna Taduri, Funda Development (BMZ), commissioned by the Ustek-Spilda, Aradhana Cherupara Vadekkethil, Deutsche Gesellschaft für Internationale Mark Graham, Richard Heeks. Zusammenarbeit (GIZ).
Fairwork Team: Daniel Abs, Iftikhar Ahmad, Special Thanks to: John Gilbert, Eve Henshaw, María Belen Albornoz, Moritz Altenried, Branka Katia Padvalkava, Duncan Passey, Sharron Andjelkovic, Paula Alves, Arturo Arriagada, Pleydell-Pearce, Ornella Sciuoto, and David Amri Asmara, Priashish Basak, Alessio Sutcliffe at the University of Oxford for their Bertolini, Gautam Bhatia, Richard Boateng, extensive administrative support for the Manuela Bojadzijev, Macarena Bonhomme, project since its inception. The project would Maren Borkert, Rodrigo Carelli, Henry Chávez, additionally like to thank Sarah Fischer, Elisabeth Tat Chor Au-Yeung, Aradhana Cherupara Hobl, Mortiz Hunger, Shakhlo Kakharova, Bjoern Vadekkethil, Matthew Cole, Paska Darmawan, Richter, and Kathleen Ziemann at GIZ for their Darcy du Toit, Trevilliana Eka Putri, Fabian wide-ranging and crucial support throughout the Ferrari, Sandra Fredman, Mark Graham, Rafael life of the project. Grohman, Khadiga Hassan, Richard Heeks, Kelle Howson, Francisco Ibáñez, Svitlana IIITB provided the ideal home for the project. Iukhymovych, Vladan Ivanovic, Tanja Jakobi, Thanks to the Director, Professor S Sadagopan, Athar Jameel, Hannah Johnston, Zoran Kalinic, the Dean (Academics), Professor Chandashekar Srujana Katta, Chris King Chi Chan, Maja Kovac, Ramanathan, the Registrar, S R Sridhar, for their Martin Krzywdzinski, Larry Kwan, Jorge Leyton, unfailing support in various ways. We are also Funder: Shabana Malik, Évilin Matos, Paul Mungai, grateful to the Institute’s finance team, and BNA Tasnim Mustaque, Mounika Neerukonda, Sidra Technology Consulting Bangalore (in particular Nizamuddin, Sanna Ojanperä, Abigail Osiki, to Milind Priolkar), for administrative support. A Amelinda Pandu, Balaji Parthasarathy, Leonhard special word of thanks to faculty colleagues and Plank, Jack Qui, Ljubivoje Radonjić, Ananya researchers at IIITB’s Center for Information Raihan, Pablo Aguera Reneses, Nagla Rizk, Technology and Public Policy (CITAPP) for Nancy Salem, Julice Salvagni, Derly Yohanna providing a stimulating intellectual environment. Sánchez Vargas, Murali Shanmugavelan, Labour Standards in the Platform Economy | 35
Endnotes
1. Cusumano, M.A., Gawer, A. and Yoffie, conduct interviews in three Indian cities See, Majid, N. 2019. Stuctural Change D.B. 2019. The Business of Platforms: -- Bangalore in southern India, Mumbai in and Employment in India. ILO-SIDA Strategy in the Age of Digital Competition, the west and Delhi in the north -- had to Partnership on Employment Working Innovation, and Power. New York, NY: be reformulated in the wake of COVID-19 Paper No.1. Geneva, CH: International Harper Collins. p.13. and a nationwide lockdown by March Labour Organization (ILO), p.13. Accessed 2020 which made it challenging to carry on 16 November from https://www.ilo. 2. Scholz, T. 2016. Platform Cooperativism: out fieldwork without undue risk to org/wcmsp5/groups/public/---ed_emp/ Challenging the Corporate Sharing participants and researchers. documents/publication/wcms_735166. Economy. New York, NY: Rosa Luxemburg pdf. Productivity in construction was INR Stiftung. 9. Sharma, Y.S. and Suneja, K. 2019. 126,560 in 2106 (Bhattacharya, 2018) Professional bodies and gig economy and, in 2005, only 14.4 percent of its 3. Youth unemployment is a particularly players to file data on jobs: Govt to pressing concern. Of the world’s 1.2 workforce had a secondary education notify framework for collating data. (Amirapu and Subramanian, 2015). billion people between the ages of 15 Economic Times. 13 August. Accessed and 24, 87 percent are to be found in on 16 November from https:// 18. In 2012, 51.6 percent of net value- the Global South, two thirds of whom economictimes.indiatimes.com/jobs/ added in the economy was in urban are either unemployed or “trapped in professional-bodies-and-gig-economy- areas although they were home to only low quality jobs”. World Bank. 2015. The players-to-file-data-on-jobs-govt-to- 31.6 percent of the population. https:// Global Opportunity in Online Outsourcing. notify-framework-for-collating-data/ databank.worldbank.org/source/world- Washington, DC: The World Bank. p.46 articleshow/70651772.cms?utm_ development-indicators 4. Berg, J., Furrer, M., Harmon, E., Rani, source=contentofinterest&utm_ medium=text&utm_campaign=cppst 19. Tumbe, C. 2016. Urbanisation, U. and Silberman, M.S. 2018. Digital Demographic Transition, and the Growth of Labour Platforms and the Future of Work: 10. For more on how platforms performed Cities in India, 1870-2020. International Towards Decent Work in the Online World. during the pandemic, see Fairwork. Growth Centre Working Paper C-35205- Geneva, Switzerland: International Labour 2020. The Gig Economy and Covid-19: INC-1. Accessed on 1 November from Organization. Looking Ahead. Oxford, United Kingdom. https://www.theigc.org/wp-content/ 5. Standing, G. 2011. The Precariat: The New https://fair.work/wp-content/uploads/ uploads/2016/11/Tumbe-2016-Working- Dangerous Class. London, UK: Bloomsbury sites/97/2020/09/COVID-19-Report- paper.pdf. September-2020.pdf Academic. 20. Bell, T., Adam, J.A. and Lowe, S. J. 6. The initial plan was to conduct worker 11. Data accessed on 16 November from 1996. Communications. IEEE Spectrum. interviews in Mumbai and Delhi in https://databank.worldbank.org/source/ 33(1):30-41. world-development-indicators addition to Bangalore. But due to the 21. Department of Telecommunications (DoT). onset of COVID-19, in March 2020, it 12. Construction generated the most jobs in 2018. Telecom Statistics India – 2018. was reformulated to include only the this period (35.74 percent). Bhattacharya, Ministry of Communications, Government completed interviews from Bangalore. P. 2018. Which are the top sectors that of India. https://dot.gov.in/sites/default/ 7. To view the scorecard for each platform generate employment in India? Livemint. files/statistical percent20Bulletin-2018. please visit: https://fair.work/ratings/. 12 April. Accessed on 16 November pdf?download=1 Note that this year’s scores cannot be from https://www.livemint.com/ Politics/7XXmUWyxkSEGKoWXJqUuHM/ 22. Raman, A. 2020. The Power of Two directly compared with last year’s scores Wheels. Bike-Taxi: India’s New Shared since the scoring process and thresholds Which-are-the-top-sectors-that- generate-employment-in-India.html Mobility Frontier. Ola Mobility Institute. have changed between 2019 and 2020. Accessed on 16 November from https:// 8. The initial plan was to include worker 13. Data accessed on 16 November from olawebcdn.com/ola-institute/bike-taxi- interviews and evidence focused on https://databank.worldbank.org/source/ report.pdf world-development-indicators eleven platforms that were available 23. Kundu, T. and Bhattacharya, P. 2018. and popular in three metropolitan 14. Amirapu, A. and Subramanian, A. 2015. India runs on two wheels and animal areas in different parts of India. The Manufacturing or Services? An Indian carts, data shows. Livemint. 8 August. focus on cities in different regions was Illustration of a Development Dilemma. Accessed on 16 November from to account for variations in demand Working Paper 409. Washington DC: https://www.livemint.com/Auto/ and supply of services on the chosen Center for Global Development. Accessed N3Ixh0Mv3eu2vWfzeiRw3N/ India-runs- platforms across the country. The focus on 1 November from https://www.cgdev. on-two-wheels-and-animal-carts-data- on metropolitan cities was because org/publication/manufacturing-or- shows.html they are home to a large proportion of services-indian-illustration-development- the growing Indian platform economy. dilemma-working-paper-409. 24. Although most platforms are yet to show See Rao, M.M. 2019. The ‘gig’ economy a profit, their ability to attract investments is creating lakhs of jobs, but workers 15. Bhattacharya (2018). op.cit. is explained not merely by the returns don’t see a future. The Hindu. 30 August. from service provision but also by the Accessed on 16 November from https:// 16. Amirapu and Subramanian (2015), op.cit. potential value of digital data that is www.thehindu.com/business/Economy/ 17. It is suggested that, “construction generated “before, during, and after the-gig-economy-is-creating-lakhs-of- is becoming a refuge employment service provision”. See van Doorn, N. and jobs-but-workers-dont-see-a-future/ sector as its productivity declines.” Badger, A. 2020. Platform capitalism’s article29299673.ece. The plan to hidden abode: Producing data assets in 36 | Fairwork India Ratings 2020
the gig economy. Antipode 52(5):1475- 31. Ms Ayantika Mondal v State of introduced and passed by Parliament. 1495. Karnataka WP 6757/2020 (High Court PRS. n.d. The Code on Social Security, of Karnataka). Also see Raj, A. 2020. 2020. PRS Legislative Research. https:// 25. Sheth, A., and Krishnan, T.S. 2020. Scarce work, irregular earnings: drivers, www.prsindia.org/billtrack/code-social- Venture capital investments in India. delivery agents struggle. The Quint. 12 security-2020 India Venture Capital Report 2020: May. Accessed on 16 November from Perspectives on the Funding and Start-up https://www.thequint.com/news/india/ 37. This Code seeks to replace nine laws Ecosystem. Bain & Company. Accessed karnataka-gig-economy-scarce-work- related to social security, including the on 16 November from https://www.bain. irregular-earnings-drivers-delivery- Employees’ Provident Fund Act, 1952, com/insights/india-venture-capital- agents-struggle the Maternity Benefit Act, 1961, and the report-2020/. Unorganised Workers’ Social Security Act, 32. It is worth noting that existing laws, 2008. Social security refers to measures 26. “The unorganised sector [economy] such as those on minimum wages and to ensure access to health care and consists of all unincorporated private maternity benefits, do not apply to most provision of income security to workers. enterprises owned by individuals or segments of the Indian labour force, and Although this Code seeks to extend social households engaged in the sale and not just to platform workers. Additionally, security benefits to platform workers/ production of goods and services in the wake of COVID-19, the large-scale workers in the gig economy, it only operated on a proprietary or partnership migration of workers to their home states recognises them in the context of social basis and with less than ten total and the scarcity of workers in urban security, leaving them outside protections workers.” Thus, the organised economy is areas, various Indian states announced related to occupational health and anything that the unorganised economy that they would relax labour laws, as safety, wages and industrial relations. is not. See, the National Commission they pertain to either working hours, or The Code and the draft rules proposed of Enterprises in the Unorganised the monitoring of working conditions for to operationalise it indicate that platform Sector (NCEUS). 2009. The Challenge various labour segments and sectors companies will be required to make a of Employment in India: An Informal of work, in order to grow employment. contribution to workers’ social security Economy Perspective. Volume I – Main Many of these announcements have since funds. See PRS. n.d. The Code on Social Report. Accessed on 1 November from been withdrawn following domestic and Security, 2020. PRS Legislative Research. http://dcmsme.gov.in/The_Challenge_of_ international pressure, but others have https://www.prsindia.org/billtrack/code- employment_in_India.pdf. New Delhi: been operationalised. See for instance, social-security-2020 and Government of NCEUS, p.3. The Hindu. 2020. Major rehaul of labour India. 2020. Draft of the Code on Social 27. The share of the organised sector in total laws in Karnataka. 23 July. Accessed on Security(Central) Rules. 2020. Ministry of employment barely increased from 10.3 16 November from https://www.thehindu. Labour and Employment. https://labour. percent to 13.9 percent between 2000 com/news/national/karnataka/major- gov.in/whatsnew/draft-code-social- and 2012. Majid (2019), op.cit. rehaul-of-labour-laws-in-karnataka/ securitycentral-rules-2020 article32176633.ece). 28. The distinction here is between regular 38. Labour laws are legislated both centrally paid employment and non-regular 33. Bapna, N. and Saxena, A. 2017. Getting and by states in India. Ola and Uber drivers out of the regulatory employment. Regular paid employment 39. For an example of how existing statutory has some social security or contractual grey zone. The Wire. 21 March. Accessed on 16 November from https://thewire. and common law can be interpreted to protection associated with it, while provide basic rights for platform workers, regular paid (non-protected) employment in/business/uber-ola-drivers-classified- consumers see Fairwork. (2020). Code of Good has no such security or protection. Non- Practice for The Regulation of Platform regular employment includes casual 34. Even if platform workers are to be treated Work in South Africa. Cape Town, employment and self-employment. An as independent contractors, there is Western Cape; Oxford, United Kingdom. organised economy has both regular and scope for some legal coverage under the non-regular labour, while an unorganised Contract Labour Act, given the definition 40. The Hindu. 2019. Government to ensure economy is dominated by non-regular of “contractor” under section 2(c) of the labour benefits for gig economy workers. labour. See, Majid (2019), op.cit. Act. ‘Contract Labour (Regulations & 21 October. Accessed on 16 November Abolition) Act, 1970’. n.d. Chief Labour from https://www.thehindu.com/news/ 29. Uber has argued that it is “only a provider cities/bangalore/government-to-ensure- of a technology platform to be used Commissioner. https://clc.gov.in/clc/ acts-rules/contract-labour-regulation- labour-benefits-for-gig-economy- by drivers to offer their services to workers/article29760222.ece passengers and not a rental taxi provider abolition-act-1970. This Act regulates or an agency in the sense defined by the engagement of contract labour, 41. Most recently, the Code on Social Security, the Motor Vehicles Act.” Johnson. T. A. including work done through third party 2020 considers platform companies as 2016. New Karnataka rules ‘against tech’, contractors. But platforms do not seem “aggregators” -- a digital intermediary says Uber India. The Indian Express. 6 to be applying this law. See Rajkumar, that connects users of a service with July. Accessed on 16 November from M. 2020. The law for gig-workers in sellers or service providers -- and lists https://indianexpress.com/article/ India. Nyaaya. 28 April. Accessed on 16 nine categories of aggregators, including technology/tech-news-technology/new- November from https://medium.com/ “ride sharing services”, “food and grocery karnataka-rules-against-tech-says-uber- nyaaya/the-law-for-gig-workers-in-india- delivery services”, “logistic services”, india-2902392/ 4163cfaee18b “e-market place”, and “professional 35. The other three Codes are the Code of services provider.” See section 2(2) and 30. Press Trust of India. 2017. HC asks The Seventh Schedule of ‘The Code on striking drivers of Ola and Uber to end Wages Act 2019, Industrial Relations Code Code 2020, and the Occupational Social Security, 2020’. 29 September. stir. The Economic Times. 28 February. Ministry of Law and Justice. Accessed on 16 November from https:// Health, Safety and Working Conditions economictimes.indiatimes.com/news/ Code 2020. 42. See Satish N vs State Of Karnataka WP politics-and-nation/hc-asks-striking- 36. In September 2020, the Code of Social No.30917/2016 (High Court of Karnataka) drivers-of-ola-and-uber-to-end-stir/ Security Bill 2019 was withdrawn, where it is argued that an aggregator like articleshow/57393991.cms and the Code of Social Security 2020 Uber “merely creates a technology-based platform.” Even in official government Labour Standards in the Platform Economy | 37
documents, companies declare their Technology Act 2000. MEITY. https:// by customers or the platform. activities in somewhat ambiguous terms. www.meity.gov.in/content/information- For instance, the Altered Memorandum technology-act-2000 and PRS. n.d. The 56. The Gig Lane, a game based on food of Association (April, 2020) of Bundl Personal Data Protection Bill, 2019. delivery work in Bangalore, highlights the Technologies (Swiggy) includes the PRS Legislative Research. https://www. significance of incentives:https://www. objective of carrying on “the business prsindia.org/billtrack/personal-data- thegiglane.com/ or profession of providing a platform... protection-bill-2019 57. Medappa,K; Ray, R; and Hussain, M.S. to facilitate transactions, commerce, 47. Changes to regulatory frameworks are 2020. Confronting precarious work. electronic commerce...”. It further states Beyond social security for platform that the aim is to “provide, develop, being debated in several domains of activity in India, especially those shaped workers. The India Forum. November establish, run, manage, operate courier 6. Accessed on 16 November from services or logistics services and by the introduction of ICTs, and not just the platform economy. The division of https://www.theindiaforum.in/article/ manifestation for collecting and delivering confronting-precarious-work whether by own arrangements, engaging labour and distribution of accountability third parties or through agents...” It is among various regulatory authorities 58. The opacity in how jobs are allocated, therefore not unreasonable to interpret are a key component of this debate. and incentives are determined, makes it Swiggy as not just a technology company See Kapur, D and Khosla, M. 2019. The difficult to pinpoint the reason for these but as a logistics services company reality of regulation in India .In Kapur, variations. The report relies largely on managing the end-to-end courier process D and Khosla, M. (eds.), Regulation in our interviews and secondary literature including the workers themselves. India: Design, Capacity, Performance. to identify the factors that seem to New Delhi: Hart Publishing. However, matter. Workers have also tried to figure 43. For recent directives, see Food Safety platform services present an additional out some of these variations. As an Ola and Standards Authority of India. 2018. layer of complexity because their driver explained to us, he and his friends, Direction relating to FSS (Licensing and “users” include both service providers with whom he is in touch via Whatsapp Registration) regulations. FSSAI. https:// and end-consumers, which multiplies groups, observed that Ola tended to fssai.gov.in/dam/jcr:9a216a62-f67c- their regulatory requirements and the stop allocating rides to drivers who were 4ba1-93e4-9ba1ec749ca3/Direction_ regulatory entities that are involved. nearing their respective incentive targets. License_Registration_13_12_2018.pdf 48. On platforms such as Amazon, Bigbasket, This driver said he had experienced this 44. Motor Vehicle (Amendment) Act, Flipkart and Grofers that have large supply often and stopped receiving rides typically 2019, s. 93 r/w s.1A (‘definition of chains, the focus was limited to last-mile when he was just a couple of rides short aggregator’). http://egazette.nic.in/ delivery workers. of his target. WriteReadData/2019/210413.pdf 49. Project Vividithva was introduced in 59. See Olacabs. n.d. Smarter, faster and 45. These guidelines have several 2019 to employ more women in the better with the Ola app. Olacabs Blog. implications for drivers, including a cap last-mile infrastructure, specifically Accessed on 16 November from https:// of 20% aggregator commission per trip, as wishmasters. Flipkart also recruits blog.olacabs.com/smarter-faster-and- limiting login hours to 12 hours at a interpreters to train the differently abled. better-with-the-ola-app/ and Mohan, stretch followed by 10 hours of rest and R. 2013. Uber enters India; rolls out 10% cancellation charge for both driver 50. Fieldwork showed that workers formed first in Bangalore.Yourstory . 30 August. and passenger. See Sections 13(4), 7(2) their own Whatsapp groups to share Accessed on 16 November from https:// d, 14(1) of the Motor Vehicle Aggregator concerns, seek help, and mobilise around yourstory.com/2013/08/uber-enters- Guidelines, 2020. http://morth.nic. demands to be placed to the platform india-rolls-out-first-in-bangalore management. in/sites/default/files/notifications_ 60. Vignesh, J. and Bansal, V. 2017. Uber, document/Motor%20Vehicle%20 51. See also Chatterjee, S. 2019. Several Ola drivers hit hard by falling incentives. Aggregators27112020150046.pdf Even Zomato delivery execs in Bengaluru The Economic Times. 25 January. before the issue of these guidelines, suspended after protest on pay structure. Accessed on 16 November from https:// there has been regulation by states. For The News Minute, 18 September. economictimes.indiatimes.com/small-biz/ example, the Karnataka On-demand Accessed on 16 November from startups/uber-ola-drivers-hit-hard-by- Transportation Technology Rule 2016 https://www.thenewsminute.com/ falling-incentives/articleshow/56766997. capped surge pricing of app-based taxi article/several-zomato-delivery-execs- cms?from=mdr aggregators to ensure minimum earnings bengaluru-suspended-after-protest-pay- for non app-based cab drivers, and to structure-109095 61. Menezes, N. 2019. Zomato delivery protect consumers. Yadav, U. and Variar, executives up in arms against incentive M. 2016. Uber ordered to limit surge 52. See clause 10.2.iv.j of the Zomato delivery cuts. The Economic Times. 17 September. pricing, comply with Karnataka rules for agreement available at https://www.runnr. Accessed on 16 November from https:// taxi aggregators. The Economic Times, 11 in/delivery-partner-tandc.html (accessed economictimes.indiatimes.com/ November. Accessed on 16 November on 16 November). small-biz/startups/newsbuzz/zomato- delivery-executives-up-in-arms-against- from https://economictimes.indiatimes. 53. Although Urban Company provides loans com/small-biz/startups/uber-ordered- incentive-cuts/articleshow/71161229. to its partners, it charges an interest rate cms?from=mdr to-limit-surge-pricing-comply-with- on them that may vary between 18.5 and karnataka-rules-for-taxi-aggregators/ 23.2 percent. 62. For examples, refer or: Press Trust articleshow/55364437.cms of India. 2017. Uber, Ola drivers in 54. Urban Company provided us templates of Bengaluru protest with indefinite fast. 46. Various other laws such as competition its contracts in Hindi and Kannada. Plans laws, the Information Technology Act Gadgets 360. 2 March. Accessed on 16 to translate into Tamil and Telugu are November from https://gadgets.ndtv.com/ 2000, and the Personal Data Protection currently on hold in view of COVID-19. Bill 2019 also affect platform workers. So apps/news/uber-ola-drivers-in-bengaluru- will the Personal Data Protection Bill 2019 55. While the platform does have a protest-with-indefinite-fast-1665200 and that is being discussed by Parliament. documented zero-tolerance policy, that Business Today. 2019. Zomato delivery See.Ministry of Electronics and applies only to discrimination by and boys go on strike in Mumbai, Bengaluru Information Technology. n.d. Information among workers but not to discrimination after food app cuts incentives. 18 38 | Fairwork India Ratings 2020
September. Accessed on 16 November including before 6 a.m. and beyond 7 need-to-register-update-info-for-social- from https://www.businesstoday.in/ p.m., with their consent (see Section security-draft-rules-120111500631_1. current/corporate/zomato-delivery- 43 of the Code, https://www.prsindia. html boys-executives-strike-in-mumbai- org/sites/default/files/bill_files/ bengaluru-after-food-app-cuts-incentives/ Occupational percent20Safety percent2C 68. Shadowfax is a logistics firm that provides story/379576.html percent20Health percent20And last mile delivery services across food, percent20Working percent20Conditions pharmaceuticals, e-commerce and other 63. In an extension of their asset-light models percent20Code percent2C industries. Of the eleven platforms in our of operations, platforms have been cutting percent202020.pdf), place the onus on study, five (Amazon, Bigbasket, Flipkart, down on human management, either the employer to put in place mechanisms Swiggy and Zomato) outsource some of by delegating the task of performance to ensure the safety of the workers and their last-mile deliveries to Shadowfax. assessments to customers, or by prevent harassment at these times. See https://www.shadowfax.in/ (accessed installing automated systems to assign on 16 November). work or address issues at work. These 66. A survey by IFAT on working conditions automated systems rely on data from of Ola and Uber drivers in six cities 69. Such as with the AmazonFlex model.See workers’ phones (including location data in India reveals that 41.4 percent of https://flex.amazon.in/ (accessed on 16 and battery levels), workers’ inputs, workers rate their health as a one or November). and other metrics that are generated in a two on a five point Likert scale. A 70. While these are the more prominent the course of interactions with the app majority of workers stay in their cars for names, many smaller labour contractors (including acceptance rates, time taken ten to sixteen hours and 95.3 percent are also used by the platforms. to deliver) in order to match workers with have no form of insurance. Indian tasks and other aspects of management. Federation of App-based Transport 71. For more on data rights that platform The opacity of such systems can result Workers and International Transport workers require, see IT for Change. 2020. in a lack of redressal mechanisms. Workers’ Federation. 2020. Protecting Labour law must recognise platform Furthermore, “unions cannot collectively Workers in the Digital Platform Economy: workers’ rights. IT for Change. Accessed bargain with an algorithm, they can’t Investigating Ola and Uber Drivers’ on 16 November from https://itforchange. appeal to a platform, and they can’t Occupational Health and Safety. Accessed net/labour-law-platform-workers-rights- negotiate with an equation.” See on 16 November from https://cis-india. data-digital-economy. For more on the Gearhart, D. 2017. Giving Uber drivers org/raw/ifat-itf-locking-down-the-impact- surplus value that such data assets have a voice in the gig economy. In Graham, of-covid-19. the potential to generate and worker M. and Shaw, J. (eds.). Towards a Fairer efforts to reclaim such data assets, see, Gig Economy. Meatspace Press. https:// 67. These labour codes, including the Code van Doorn and Badger (2020), op.cit. meatspacepress.com/towards-a-fairer- on Social Security which explicitly Also see Lomas, N. 2020. Ola is facing a gig-economy/), p.13. mentions gig and platform workers, drivers’ legal challenge over data access have been criticised for their provisions, rights and algorithmic management. 64. See also Johari, S. 2018. Swiggy to for the procedurally non-consultative Techcrunch. 11 September. Accessed on employ 2000 women drivers in the next manner in which they have been drawn 16 November from https://techcrunch. 5 months. Medianama. 19 November. up and passed in Parliament, and for com/2020/09/10/ola-is-facing-a-drivers- Accessed on 16 November from https:// not stipulating a clear deadline for legal-challenge-over-data-access-rights- www.medianama.com/2018/11/223- enforcement of the Code. While the and-algorithmic-management/ swiggy-women-drivers/ and Balakrishnan, central government has since proposed R. 2019. Swiggy’s first female delivery draft rules to operationalize parts of the 72. Several food delivery and ride-hailing partner in Gujarat is now breaking Code on Social Security, when these workers we interviewed say they are barriers in Bengaluru. YourStory. 18 June. rules will be implemented is unclear. part of ad hoc WhatsApp groups where Accessed on 16 November from https:// See Working People’s Charter. 2020. members share information about wages yourstory.com/herstory/2019/06/swiggy- Why the new labour codes leave India’s or the location of platform offices. In first-female-delivery-partner-gujaratthat workers even more precariously poised some cases, workers also send out SOS reference this time limit. than before. Scroll. 23 September. messages seeking help when facing Accessed on 16 November from https:// a “fraud” customer, in the event of a 65. It is worth noting here that this time scroll.in/article/973877/why-the-new- robbery, or even a punctured tire. limit is not because of legal restrictions. labour-codes-leave-workers-even- While Section 66(1)(b) of the Factories 73. A recent example is the All India Gig more-precariously-poised-than-before; Workers’ Union that was formed in Act limited employment of women Srivastava, R. 2020. There is much in the beyond 7:00 pm, this was declared August, 2020 with members in the Delhi- labour codes that needs to be discussed National Capital Region. See Chhabra, R. unconstitutional by the Madras High and debated. The Indian Express. October Court (Vasantha R. vs Union Of India 2020. Striking for more wages, Swiggy 3. Accessed on 16 November from workers champion collective care. reported in (2001) II ILJ 843 [Madras https://indianexpress.com/article/opinion/ High Court]) and also upheld by the NewsClick. 18 September. Accessed on 16 columns/economic-crisis-migrant- November from https://www.newsclick. Karnataka High Court (Natural Textiles labour-bills-covid-19-change-6671565/ Pvt. Ltd. vs The Union Of India reported in/striking-wages-swiggy-workers- Government of India. 2020. Draft of champion-collective-care in 2007 (3) KAR LJ 286 [Karnataka High the Code on Social Security(Central) Court]). Furthermore, a 2019 Notification Rules. 2020. Ministry of Labour and 74. Firms which provide platform companies in Karnataka (see Employment of women Employment.Accessed on 23 November with technological and user-interface in factories in night shifts in Karnataka from https://labour.gov.in/whatsnew/ design are an example of such actors. In notification no. D 61 KaBaSe 2015 dated draft-code-social-securitycentral- an interview with the Fairwork team on 20th Nov 2019) that allowed women rules-2020 and Jha, S. 2020. Gig workers 12th November 2020, Rahul Gonsalves, to work night shifts in factories, and need to register, update info for social CEO of Obvious (https://obvious.in/), a the more recent national Occupational security: Draft rules. Business Standard, design consultancy with several platform Safety, Health and Working Conditions November 16. Accessed on 23 November companies as clients, explained that, in Code 2020, which states that women from https://www.business-standard. the early days (2013-2015) of platform are entitled to be employed in all com/article/economy-policy/gig-workers- companies, the focus was on using establishments for all types of work, Labour Standards in the Platform Economy | 39
design to encourage consumers to use traffic infractions costs and fixed capital of the worker in the organization of the platforms regularly. As a result, initial costs such as onboarding fees, vehicle enterprise; is performed solely or mainly versions of worker-facing applications and smartphone costs have not been for the benefit of another person; must had limited features. This gradually accounted for. be carried out personally by the worker; evolved to today’s worker applications is carried out within specific working which are a full-fledged suite of products. 81. See Karnataka State Floor Level hours or at a workplace specified or According to Gonsalves, this shift in Minimum Wages. Notification no: agreed by the party requesting the work; platforms’ attention to the worker KAE31LMW2017. Accessed on 16 is of a particular duration and has a application corresponded with a gradual November from: labour.kar.nic.in/labour/ certain continuity; requires the worker’s (and planned) decrease in the incentives Minimum percent20Rates percent20of availability; or involves the provision offered to workers. He highlights that, as percent20Wages percent20for of tools, materials and machinery by an external agency, Obvious does push percent20The percent20Year the party requesting the work’; (b) for particular perspectives, and that percent202019-20.htm. Since the periodic payment of remuneration to the individuals within platform companies Karnataka government does not classify worker; the fact that such remuneration do incorporate suggestions that can delivery workers, beauty workers constitutes the worker’s sole or principal be equitable for multiple stakeholders. and other occupations into specific source of income; provision of payment in Gonsalves goes on to argue that design skill categories, this report has used kind, such as food, lodging or transport; can influence policy and wonders what a Karnataka’s ‘car drivers’ and ‘light vehicle recognition of entitlements such as set of principles, akin to the Hippocratic drivers’ categories as a point of reference weekly rest and annual holidays; payment Oath taken by doctors, for designers and to categorize delivery workers, cab and by the party requesting the work for travel platform-developers would look like. autorickshaw drivers as semi-skilled. undertaken by the worker in order to carry Similarly, since there was no identifiable out the work; or absence of financial risk 75. The ILO defines minimum wage as the state or national level classification for for the worker’. “minimum amount of remuneration beauty workers, electricians, technicians that an employer is required to pay and other home service providers, they 86. See the ILO’s Freedom of Association wage earners for the work performed are classified as skilled workers for the and Protection of the Right to Organise during a given period, which cannot be purposes of scoring. Convention, 1948 (C087), which reduced by collective agreement or an stipulates that “workers and employers, individual contract.” Minimum wage 82. See Section 51 of The Factories Act, without distinction, shall have the right laws protect workers from unduly low 1948. Accessed on 16 November from to establish and join organisations of pay and help them attain a minimum https://labour.gov.in/sites/default/files/ their own choosing without previous standard of living. The ILO’s Minimum Factories_Act_1948.pdf. authorisation” (Article 2); “the public Wage Fixing Convention, 1970 C135 83. Hourly wages are a more precise indicator authorities shall refrain from any sets the conditions and requirements than daily wages given that workers on interference which would restrict the of establishing minimum wages and platforms work long hours. For this year’s right or impede the lawful exercise calls upon all ratifying countries to act in study, the minimum wage calculations do thereof” (Article 3) and that “workers’ accordance. Minimum wage laws exist in not consider two wage provisions. First, and employers’ organisations shall not more than 90 per cent of the ILO member that workers are entitled to overtime pay be liable to be dissolved or suspended states. for hours in excess of 48 hours a week. by administrative authority” (Article 4). Second, workers are also entitled to a Similarly the ILO’s Right to Organise and 76. According to the ILO’s (2018) report Collective Bargaining Convention, 1949 on “Digital Labour Platforms and the weekly rest day for which they are to be paid.See Section 7 (3) of The Code on (C098) protects the workers against acts Future of Work”, for every hour of paid of anti-union discrimination in respect work, workers spend 20 minutes on Wages (Central) Rules, 2020. Accessed on 16 November from https://labour.gov. of their employment, explaining that not unpaid activities, including, for example, joining a union or relinquishing trade searching for tasks and researching in/whatsnew/gazette-notification-draft- code-wagescentral-rules-2020 union membership cannot be made a clients. In order to account for this condition of employment or cause for additional time spent on searching for 84. The starting point is the ILO’s dismissal. Out of the 185 ILO member work, as well as time spent between Occupational Safety and Health states, currently 155 ratified C087 and work tasks, we define ‘working time’ Convention, 1981 (C155). This stipulates 167 ratified C098. as including both direct (completing a that employers shall be required “so task) and indirect (travelling to or waiting far as is reasonably practicable, the 87. This table is meant to be indicative of between tasks) working hours. workplaces, machinery, equipment and how the operations of platforms rely on a high ratio of service workers, most 77. The “+1” is one unit of the lowest processes under their control are safe and without risk to health”, and that of whom work with little or no wage or denomination of the currency, to ensure a social protection, to employees working boundary between the two figures. “where necessary, adequate protective clothing and protective equipment [should for the platform management. Neither 78. The table contains four columns of data. be provided] to prevent, so far as is is the number of employees / workers The first is the percentage of workers reasonably practicable, risk of accidents precise, nor is the distinction between the earning less than the minimum wage (X). or of adverse effects on health.” two categories. Thus, it is possible that The rows represent less than full time, full at least a certain proportion of platform time, and full time with overtime. 85. ILO’s Employment Relationship management employees also work Recommendation, 2006 (R198) without any wage or social protection. 79. Taxes are not considered to be a work- recommends that member countries related cost. develop legal and regulatory frameworks 88. All sources in this table were accessed on containing specific indicators that speak 16 November. 80. For home service providers on Housejoy to the existence of an employment and Urban Company, material costs and 89. Platform funds raised data accessed on relationship, which might include: (a) the 16 November from Crunchbase.com. other operational costs not including fixed fact that the work is carried out according capital costs are reflected. For workers to the instructions and under the control 90. Platform funds raised data accessed on on other platforms, costs including food, of another party; involves the integration 16 November from Crunchbase.com. data costs, vehicle maintenance costs, 40 | Fairwork India Ratings 2020
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