Social Security for Gig Workers | Day 2: “Pull up your socks!” Supreme Court tells Union on delays in implementing the Social Security Code
Gig Workers’ Access to Social SecurityJudges: Dipankar Datta J, Manmohan J
A two-judge bench comprising Justices Dipankar Datta and Manmohan heard the Indian Federation of App Based Transport Workers’ (IFAT) petition, seeking social welfare benefits for gig workers.
In the previous hearing, the Court had briefly heard the matter, as none of the five Union ministries involved had filed their responses to the petition. On 20 December 2024, the Union filed an affidavit claiming that the introduction of the e-Shram portal will “enable unorganised workers including platform workers registered on e-Shram to access social security schemes and see benefits.” The Union sought dismissal of the case.
In today’s hearing, the Court sought a clear timeline from the Union on when the Code on Social Security, 2020—intended to cover gig and platform workers—would be implemented.
Background
On 9 September 2021, IFAT filed a petition before the Supreme Court, arguing that the current agreements between gig workers and companies such as Ola, Uber, Swiggy and Zomato violate Articles 14, 21 and 23. These agreements classify gig workers as ‘partners’ and not ‘employees’, thereby exempting companies from providing social security benefits.
Petitioners argued that the failure to recognise gig workers as ‘workman’ or ‘employee’ under social security regulations violates their constitutional right to equality, since they are unable to avail the benefits afforded to similarly situated workmen or employees.
Further, petitioners argued that denying them social security benefits, particularly during the pandemic, amounted to exploitation through forced labour. This, they asserted, violates the constitutionally protected right to work, right to livelihood and right to decent and fair conditions of work guaranteed under Articles 21 and 23.
They urged the Court to recognise gig workers as ‘unorganised workers’ under the Unorganised Workers (Social Security) Act, 2008, and extend the social security benefits outlined in the act to them.
Muralidhar: No clarity on when social welfare benefits will kick in for gig workers
Sr. Adv. S. Muralidhar, appearing for IFAT, stated that at this juncture of the case, IFAT was not seeking any relief. He acknowledged Finance Minister Nirmala Sitharaman’s announcement in the 2025 Budget of new welfare schemes for online platform workers and gig workers. Instead, IFAT was simply seeking clarification from the Union government regarding gig workers falling under the definition of “unorganised workers” in Section 2(m) of the Unorganised Workers Social Security Act, 2008.
Counsel for Bundl Technologies Pvt. Ltd. or Swiggy, reminded the Court the IFAT’s petition itself recognises that the Code includes gig workers and platform workers for the first time. Muralidhar countered that while they do exist, the Code has not been notified and is therefore not being implemented. Swiggy’s counsel responded that the Labour Ministry is formulating schemes under the Code “right now” in consultation with various stakeholders, including IFAT itself. “All that is required is a date for the government to formulate and implement these schemes” he said.
“We have no problem with any of this,” Muralidhar responded, but insisted on knowing when the Code would likely be implemented.
Justice Datta then asked Additional Solicitor General Aishwarya Bhati for a status update on the scheme. She informed the Court that deliberations were ongoing and that the schemes under the Code are being “formulated”. She assured that she would revert with a timeline for the implementation of these schemes.
Bhati also assured the Court and the parties that Chapter IX of the Code is “specifically dedicated” to social security for unorganised workers, gig workers and platform workers. Justice Manmohan quipped that “only astrologers can tell us when this new code will come into force.” Justice Datta told the Union, “You must pull up your socks!”
Bhati further informed the Court that 32 states and union territories had created draft rules. Justice Manmohan expressed concern that a vacuum currently exists, with gig workers unprotected under both the Unorganised Workers Act and the Code. He asked whether the Union could make a concession and declare that gig workers are included under the former. As Bhati clarified that gig workers are already covered under the Code and that the rules are being drafted, Justice Datta exclaimed that it has already been four years since the process began.
Order: Union to file update on timeline of implementation of the Code
Given that the Code includes provisions for gig workers and platform workers, the Bench directed the Union, through ASG Bhati, to provide an update on the timeline for completing the drafting of the rules.
Counsel for Uber India Systems Pvt. Ltd. requested the Court to modify the order to specify “schemes” instead of “rules”. He explained that Rules are not really necessary, as the identification process has started, Aadhaar portal is active and budget allocation has been made. “What really has to be done now is that schemes have to be formulated,” he argued.
Bench raises concerns about gig workers
When the respondents clarified that their clients did not oppose the schemes, Justice Manmohan asked, “Why can’t you [introduce welfare schemes] voluntarily?”
Counsel for Swiggy responded that even without the rules, the company was already offering benefits such as health, medical and accident coverage to its workers.
“You are all big employers, you are not hard of money, you’re doing so well,” Justice Manmohan said. “You don’t require the direction of the Court, make sure that this gets done,” he said.
Justice Datta also addressed the counsel for Zomato, recalling seeing a Zomato rider riding dangerously on the street. “Please discontinue this practice of supplying 10 minute deliveries,” he said. “These poor people will die on the road.”
The Court will likely hear the case in two weeks.
This report will be updated.