First attempt at defining Platform Work outside traditional employment category

First attempt at defining Platform Work outside traditional employment category

Part of: GS Prelims and GS-II & GS-III– Employment; Inclusive growth

In news

• The Code on Social Security, 2020, for the first time in Indian law, attempted to define ‘platform work’ outside the traditional employment category.

Key takeaways 

• Platform work means a work arrangement outside a traditional employer-employee relationship. 
• Organisations or individuals use an online platform to access other organisations or individuals for specific problems or services. 
• These activities may be notified by the Central Government, in exchange for payment.
• Significance: (1) It promises workers flexibility and ownership over work delivery ; (2) Employment Intensive Sector; (3) Potential Sector for growth due to fast pace of Urbanisation; (4) Development of rural areas due to remittances sent by platform workers.

Important value additions 

Code on Social Security, 2020 

• This will replace nine social security laws such as Maternity Benefit Act, Employees’ Provident Fund Act, Employees’ Pension Scheme, Employees’ Compensation Act, 
• It universalizes social security coverage to those working in the unorganised sector. 
• Provisions of social security will also be extended to agricultural workers also for the first time.
• It reduces the time limit for receiving gratuity payment from five years to one year for all kinds of employees.