Analyze the governance challenge of regulating non-employment relationships in a rapidly expanding digital labour market.

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• The rapid expansion of the digital labour market, including gig and platform-based work, has blurred traditional employment boundaries, creating complex governance challenges. • NITI Aayog (2022) es...

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• Regulatory classification challenge: – Platforms designate workers as independent contractors or partners. – This excludes them from minimum wages, job security, and collective bargaining under labour laws. – Traditional binary employer–employee frameworks fail to capture hybrid work arrangements.

• Algorithmic control and accountability gap: – Platforms exercise control through ratings, pricing algorithms, and automated deactivation. – Decision-making lacks transparency and due process. – High managerial control exists without corresponding legal responsibility.

• Social security and welfare deficits: – The Code on Social Security, 2020 recognises gig and platform workers. – Implementation remains weak due to poor registration, funding uncertainty, and lack of portability. – Informality persists despite formal digital platforms.

• Enforcement and regulatory capacity constraints: – Labour inspectorates are designed for physical workplaces and standard employment. – Platform operations are cross-jurisdictional and data-driven, complicating oversight.

• Weak collective representation: – Non-employment status restricts unionisation and formal grievance redressal. – Workers have limited bargaining power over wages and working conditions.

• Way forward: – Adopt functional regulation based on control and economic dependency. – Mandate platform contributions to universal, portable social security. – Strengthen institutional capacity and algorithmic transparency.

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