Archive · 15 Sep 2025
India's Gig Workers Need Better Protections in Insolvency
Imagine delivery drivers and other gig workers who work for apps.
If the company goes bankrupt, they often get left with nothing, unlike regular employees.
Current laws in India don't protect them.
By 2030, there could be many more gig workers.
The article suggests changing the law so these workers get paid what they're owed, like regular employees.
They want these workers to have more legal rights to ensure they are not taken advantage of and to protect the economy.
India's insolvency laws currently disadvantage gig workers in bankruptcy proceedings.
Gig workers are classified as 'operational creditors,' placing them low in the payment hierarchy.
By 2030, India could have 90 million gig workers, increasing the issue's importance.
Proposed reforms include amending the IBC to recognize gig workers as 'workmen'.
Some international examples show improved protections for gig workers in insolvency cases.
- Who
- Gig workers, digital platforms, Indian government
- What
- Debate over insolvency protections for gig workers in India
- When
- The issues stem from present laws; future changes are proposed
- Where
- India
- Why
- To address financial insecurity and potential economic consequences due to inadequate legal protections
- Bill Discussed
- IBC Amendment Bill, 2025
- Gig Worker Definition
- Currently classified as 'operational creditors'
- Potential Gig Workers in India by 2030
- 90 million
- Impact of Low Priority
- Gig workers risk losing unpaid dues and social security in insolvency
- Proposed Reforms
- Amend IBC, revise COSS, create separate rules for gig workers