- In a gig economy, temporary, flexible jobs are commonplace and companies tend toward hiring independent contractors and freelancers instead of full-time employees.
- Sectors such as media, real estate, legal, hospitality, technology-help, management, medicine, allied and education are already operating in gig culture.
Why is Gig Economy preferred by workers?
- Profit through multiple work: One can work on freelancing as well as work full-time somewhere else.
- Women empowerment: It is very beneficial for womenwho work on this concept when they cannot continue their work or take a break from career due to marriage or child birth.
- Leisure and dependency: Retired peoplecan stay active after retirement as this will keep them engaged away from loneliness and depression and can earn as well on their own.
- Flexibility and diversity to the workers: It offers flexibility when workers can work according to their convenience and schedule rather than routine like in full-time jobs.
- Work from home: The travel costs and energy to travel to the workplace is reduced.
Challenges faced in Gig economy
- No perks and benefits: There are no labour welfare emoluments like pension, gratuity, etc. for the workers.
- Job insecurity: Gig workers may face unfair termination. They may also attain minimum wages and less paid leave.
- No legal protection: Workers do not have the bargaining power to negotiate a fair deal with their employers.
- Unionization of workers will be difficult.
- Confidentiality of documents etc. of the workplace is not guaranteed
- Urban nature: The gig economy is not accessible for people in many rural areas where internet connectivity and electricity is unavailable.
The gig economy has been on the rise and is expected to beat the pre-pandemic estimates due the expected influx of gig workers transitioning from full-time employment.
While the government has taken the initial steps to ensure social security of gig workers, the ‘Code on Social Security’ needs to be fine-tuned.
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