gig worker

BGV for FMCG/FMCD

Why Is Background Verification Crucial In The FMCG/FMCD Industry

The FMCG (Fast-Moving Consumer Goods) and FMCD (Fast-Moving Consumer Durables) sectors face unique challenges in an industry driven by speed, high-volume sales, and constant operational pressure. From the factory floor to product distribution, every link in the supply chain has the potential to create significant risk for your company. Whether it’s hiring employees, managing third-party vendors, or vetting gig workers, failing to conduct comprehensive background verification (BGV) at every level can result in financial loss, damage to reputation, legal penalties, and operational disruptions. Do note that we will be using the terms BGV and Background Verification interchangeably, and both convey the same meaning.

Take the recent warehouse license cancellation due to food safety violations or another q-commerce firm’s dark store suspension for failing to meet regulatory requirements. These examples showcase the severe consequences of failing to conduct thorough checks. In FMCG and FMCD, BGV becomes a necessity to ensure that every aspect of your business operates safely, securely, and in compliance with industry regulations.

In this blog, we will walk through the crucial role of BGV in FMCG and FMCD operations, focusing on how background verification mitigates risks and protects your company’s brand reputation.

The Importance Of BGV In The FMCG & FMCD Industries

The FMCG and FMCD sectors are filled with potential risks at multiple stages of the value chain. From recruitment and hiring to vendor management, each part of the process is vulnerable if background checks are not conducted properly.

1. Managing Vendor Risks in FMCG & FMCD

In FMCG and FMCD, vendors and third-party partners play a crucial role in the entire supply chain. Whether they are providing raw materials, manufacturing goods, or distributing products, vendors directly influence the quality of the end product and the smoothness of business operations. But how do you ensure these vendors aren’t a liability?

Without conducting proper vendor background checks, you expose your company to the following risks:

  • Regulatory Non-compliance: Vendors failing to meet regulatory standards (e.g., FSSAI for food, ISO for quality) can result in fines and operational shutdowns.

  • Fraud or Financial Instability: A vendor with questionable financial practices could lead to delayed deliveries, shoddy workmanship, or potential fraud.

  • Reputation Damage: A vendor involved in unethical practices (e.g., forced labour, unsafe working conditions) can severely tarnish your company’s brand image and customer trust.

Example: The Maharashtra q-commerce warehouse incident, where non-compliance with safety and hygiene standards resulted in license suspension, could have been prevented with a thorough vendor compliance check at the outset.

What Vendor Risk Checks Should Be Done To Prevent Compliance Issues?

  • Compliance Verification: Ensure vendors meet industry regulations (e.g., FSSAI, ISO).

  • Financial Background: Assess their financial stability to ensure they can maintain a long-term relationship without disruption.

  • Continuous Quality Audits: Conduct regular facility inspections to ensure their operations align with your product quality standards.

2. Employee Background Verification

Your employees, especially those working in sensitive roles, are crucial to your company’s success. Whether they’re working on the production line, handling customer data, or managing finances, each role carries its risks.

The key issues that can arise from neglecting employee BGV include:

  • Fraud and Theft: Employees with a history of financial fraud or unethical behaviour may misuse their access to products, money, or confidential data.

  • Safety Violations: A worker with an unreported criminal history or a history of workplace accidents could create unsafe work environments, especially in manufacturing or logistics.

  • Regulatory Violations: Non-compliant employees could inadvertently cause violations related to labour laws, product safety, or quality assurance.

Example: If an employee in a warehouse has undisclosed criminal convictions, they could pose a safety risk or may be involved in theft or tampering. This could severely impact the integrity of your supply chain.

What BGV Checks Should Be Done?

  • Criminal Record Check: Particularly important for employees in security-sensitive roles.

  • Employment History: Confirm past roles and ensure candidates have relevant experience and skills.

  • Health and Safety Screening: Ensure employees in high-risk roles (e.g., handling machinery, driving) pass health checks and drug screenings.

3. Gig Workers

The gig economy in FMCG and FMCD, especially in delivery, logistics, and temporary retail roles, is growing rapidly. While gig workers bring flexibility and agility to the business, they also present new risks. Gig workers typically don’t undergo the same background checks as full-time employees, but this shouldn’t mean they are any less reliable.

The risks of neglecting gig worker BGV include:

  • Product Mishandling: Unvetted gig workers can accidentally damage products or deliver wrong orders, impacting consumer satisfaction.

  • Safety Incidents: Gig workers operating machinery or driving vehicles without proper screening could cause accidents, leading to legal consequences.

  • Data Breaches: Gig workers handling customer data or proprietary information need to be thoroughly vetted to ensure there’s no risk of data theft.

What BGV Checks Should Be Done?

  • Identity Verification: Confirm the authenticity of their identity to prevent impersonation or providing access to key locations to unauthorised personnel.

  • Criminal History: Screen for previous crimes related to theft or fraud, particularly for delivery drivers and warehouse workers.

  • Health Checks: Ensure gig workers who handle sensitive materials or machinery are physically fit for their tasks.

The Risks of Ignoring Background Verifications In The FMCG/FMCD Space

Let me put up a simple question: What happens if you skip Background Verification?

Well, this question may sound like a pretty easy one. However, the consequences may be a lot more dire than one can imagine. 

  • Reputational Damage: A vendor violating safety protocols or an employee caught in fraud can severely damage the trust your customers place in you.

  • Legal Liability: Non-compliant employees or vendors can result in heavy fines, lawsuits, or even complete operational shutdowns.

  • Operational Disruption: An unvetted vendor or worker can create supply chain disruptions, affecting delivery times, product quality, and ultimately, your bottom line.

Example: If a vendor involved in food packaging fails to adhere to FSSAI standards, and you don’t check them properly, it could lead to a product recall. This scenario would cause not only financial loss but also irreparable damage to your brand’s trust and consumer confidence.

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AuthBridge’s Tailored BGV Solutions For FMCG & FMCD

At AuthBridge, we specialise in providing tailored background verification solutions specifically designed for the FMCG and FMCD sectors. We understand the unique challenges these industries face, from managing high-volume workforce needs to ensuring vendor compliance and gig worker integrity.

Our BGV Services for FMCG & FMCD Include:

  • Employee Verification: From entry-level positions to senior management, we provide comprehensive checks to ensure your workforce is reliable, qualified, and compliant.
  • Vendor & Supplier Compliance: We help you screen and vet third-party vendors and suppliers to ensure they meet all regulatory requirements, reducing the risk of operational disruptions and compliance violations.
  • Gig Worker Screening: With the rise of the gig economy, we offer streamlined solutions to verify temporary and contract workers, ensuring that your temporary workforce meets your company’s standards and more.

By partnering with AuthBridge, you gain access to cutting-edge technology that provides fast, accurate, and secure background checks, enabling you to protect your brand, mitigate risks, and maintain operational efficiency.

Conclusion

For FMCG and FMCD companies, background verification is now a strategic safeguard. Whether it’s verifying vendors, ensuring employee safety, or checking gig workers, BGV provides the foundation for a secure, compliant, and trusted operation. Don’t wait for a crisis to highlight the importance of BGV; take action now to protect your business from potential risks and ensure operational integrity. Get in touch with AuthBridge today to implement comprehensive background verification solutions designed specifically for your industry.

By Abhinandan, ago
Gig workers 2047 report

Gig & Platform Workers Vision 2047 Report: Key Takeways

India stands on the cusp of a new workforce revolution. As the country sets its sights on becoming a Developed Nation by 2047, the gig economy is expected to play a major role in shaping the nation’s future. In fact, according to the VV Giri National Labour Institute’s report, “Gig and Platform Workers: Vision 2047,” gig workers are projected to make up 14.89% of India’s non-agricultural workforce by 2047, a sharp rise from 2.6% in 2020-21.

This transformation is driven by several key factors: demographic shifts, the rise of technology, and the growing preference for flexible, project-based employment. In the next two decades, India’s gig workforce is expected to expand significantly, offering millions of workers opportunities to contribute to the economy in dynamic ways.

At the heart of this transformation is the platform economy, digital platforms that enable individuals to find short-term, task-based jobs. These platforms have disrupted traditional work patterns, enabling a global workforce to connect and collaborate in previously impossible ways.

But as businesses increasingly turn to gig workers, they must manage the unique challenges that come with managing a temporary, informal workforce. The report highlights not only the enormous growth potential of gig work but also the regulatory, economic, and social challenges that businesses and gig workers will face in the coming years.

The Gig Economy’s Rise

India’s gig economy is a rapidly expanding sector that is set to become a major contributor to India’s labour market by 2047. The report offers critical projections and data that highlight the transformative potential of gig work in India.

Gig Workforce Growth

As of 2020-21, India had approximately 7.7 million gig workers, constituting 2.6% of the non-agricultural workforce. Fast forward to 2047, and it’s projected that India’s gig workforce will reach 61.6 million, making up 14.89% of the non-agricultural workforce. This growth represents an increase of over sevenfold in the next 17 years, driven by several key factors, including digital platforms, technological advancements, and an increasing shift towards non-traditional work arrangements.

Contributions Of The Gig Economy To GDP

The gig economy is expected to make a significant economic contribution. As highlighted in the report, the total transaction volume of the gig economy in India could reach $250 billion by 2030, contributing 1.25% of GDP. 

The digitalisation of India’s economy will be a primary catalyst for this growth. As more sectors, such as healthcare, education, and consulting, embrace digital platforms to meet their needs, the gig economy will continue to expand its footprint across industries.

Drivers Of Gig Economy Growth

Several factors are driving the gig economy’s rapid rise:

  1. Technological Advancements: The expansion of smartphone use, internet penetration, and the development of platform technologies have made gig work more accessible.

  2. Digitalisation of Services: Platforms are expanding their reach, offering more gig roles across various sectors such as transportation, food delivery, household services, and personal care.

  3. Rise of Remote Work: The COVID-19 pandemic accelerated the adoption of remote work, further cementing the role of gig work in sectors such as IT, design, and writing. Remote work offers flexibility, which is one of the most attractive features of gig employment.

  4. Youth and Female Participation: As highlighted in the report, youth and women are embracing the gig economy, driven by the flexibility it offers. This has allowed women to break into traditionally male-dominated sectors like driving and handyman services.

Another interesting observation from the report states that the gig economy is not just confined to the metros; it is spreading across tier-2 and tier-3 cities as well. This regional distribution highlights the inclusive nature of the gig economy and its potential to provide income-generating opportunities across the country.

Challenges And Risks In The Gig Economy

While the gig economy offers substantial growth opportunities, it is not without its challenges. These challenges need to be understood by businesses that rely on gig workers for their operations. The report outlines several key issues that are critical to the future of gig work in India.

1. Informality of Gig Work: Lack of Social Protections

One of the most pressing issues within India’s gig economy is the informality of gig employment. According to the report, 82.5% of gig workers in India are informal employees. For instance, in a traditional employment model, workers are usually eligible for:

  • Maternity benefits

  • Health insurance

  • Pension plans

  • Paid sick leave

However, gig workers are typically excluded from such schemes due to their informal status. As a result, many gig workers, especially in sectors like ride-sharing, food delivery, and household services, lack adequate healthcare and sick leave protections. In the post-pandemic era, the absence of health insurance and other protections has become a critical issue, especially for high-risk workers like delivery personnel or drivers.

Without access to social benefits, gig workers are more vulnerable to financial instability in the event of an accident, illness, or economic downturn.

2. Wage Disparities: Income Inequality Among Gig Workers

The wage gap in the gig economy is another significant challenge. The report indicates that women gig workers earn less than their male counterparts. This wage disparity is particularly pronounced in female-dominated sectors such as beauty work, cleaning, and caregiving.

Gender-based wage gaps exist because women are often pushed into lower-paying roles, which typically require less skill or offer fewer opportunities for advancement. This is compounded by gender stereotypes and discrimination, both of which limit the income-earning potential for women in the gig economy. The report notes that women gig workers are less likely to get high-paying jobs than their male counterparts, especially in tech-driven roles like IT development or design. Instead, women are often confined to lower-paying sectors like home-based services and caregiving, where their work is undervalued.

In addition to gender disparities, age-based wage disparities also exist. Youth workers, although an integral part of the gig workforce, often face challenges in securing higher-paying, more stable work. Many young gig workers, especially those in the early stages of their careers, are limited to low-wage tasks, even if they possess relevant qualifications or skills.

3. Vulnerability To Exploitation: Inconsistent Payment And Job Insecurity

Because of the on-demand nature of gig work, workers are often subjected to inconsistent payment schedules, variable job opportunities, and uncertainty regarding workload. The report highlights that many gig workers are paid on a per-task basis, which leads to income fluctuations from week to week.

This lack of stable income can make it challenging for gig workers to meet their basic needs, such as paying for housing, healthcare, and education. Furthermore, many gig workers face challenges in getting paid on time. Some platforms have been criticised for delaying payments or providing inadequate payment structures, which create financial strain for gig workers. This payment instability can lead to discontent among workers, ultimately impacting their motivation and performance.

Moreover, job insecurity is a persistent issue. Gig workers do not have long-term employment contracts, leaving them with little recourse if they are dropped from a platform or face unfair treatment. This instability is often exacerbated by platform-based policies that allow companies to remove workers from the platform without clear justification or warning, further adding to the workers’ vulnerability.

4. Digital Literacy Barriers

Another significant challenge for gig workers, particularly for women and youth, is the issue of digital literacy. The report highlights that women in India are less likely than men to use the internet and less likely to own a mobile phone. This digital divide makes it harder for women to access gig work and limits their opportunities to engage in higher-paying digital gigs.

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New Sectors In The Gig Economy

The gig economy in India is no longer confined to a few traditional sectors such as ride-sharing or food delivery. Over the years, the demand for gig workers has significantly expanded into new industries, driving the evolution of platform-based work. These new sectors offer businesses and workers alike a broader spectrum of opportunities, and they will play a crucial role in the future growth of the gig economy.

Growth In Non-Traditional Sectors

Historically, gig work in India has been most visible in industries like transportation and food delivery. However, as more industries embrace digital platforms, we are witnessing an increasing spread of gig workers across non-traditional sectors. According to the report, gig roles are expanding into sectors such as:

  • Healthcare
  • Education
  • Professional Consulting
  • Creative Services
  • Marketing and Design

Healthcare

The healthcare gig economy is experiencing a surge in demand. In the wake of the COVID-19 pandemic, telemedicine and remote healthcare consultations became more popular, providing gig opportunities for doctors, nurses, and other medical professionals. 

For instance, telemedicine consultations, where doctors provide virtual consultations through platforms, have witnessed explosive growth. Similarly, the emergency services sector has also embraced gig work, with platforms offering on-demand healthcare services, including home nursing and physiotherapy.

Education

Education is another sector where gig workers are making a significant impact. The ed-tech sector in India has witnessed rapid growth in recent years, driven by digital learning platforms. The report states that gig workers in education include online tutors, content creators, and educational consultants.

These roles are expanding rapidly, particularly in subjects related to STEM (Science, Technology, Engineering, and Mathematics) education, as well as competitive exam preparation. With the rise of online learning, gig workers have the flexibility to work with multiple platforms, offering their expertise in a highly dynamic and flexible environment.

Professional Consulting

In the past, consulting was a career typically dominated by traditional firms. However, with the growth of gig platforms, there is now a growing demand for independent consultants across various industries. The report highlights that sectors such as management consulting, financial consulting, and legal services are increasingly relying on freelance consultants.

Many platforms have become hotbeds for highly skilled professionals to find short-term, project-based gigs that leverage their specialised knowledge. For instance, financial analysts can provide ad-hoc financial analysis, legal experts can offer contract review services, and business strategists can take on short-term strategic roles with clients across the globe.

Creative Services

The creative services sector is one of the most visible and fastest-growing in India’s gig economy. This includes professions like graphic design, content writing, video editing, and digital marketing. The demand for creative professionals is fueled by businesses seeking online content, advertising, and brand management.

According to the report, creative workers in digital marketing, copywriting, and graphic design are highly sought after on platforms. As brands shift to digital-first strategies, the need for creative talent in India is expected to grow significantly by 2030, representing a high-value sector for gig workers.

The Expanding Role Of Gig Work Across Sectors

The future of gig work in India is bright and diverse, with new sectors continuing to open up. As businesses seek flexible workforces that scale with demand, they increasingly turn to gig workers. The ability to onboard talent quickly, reduce overhead costs, and access a global talent pool has made gig work an attractive option for both companies and workers alike.

According to the report, the gig economy’s growth is set to expand beyond traditional sectors, creating opportunities in fields like agriculture, logistics, construction, and even government services. In these sectors, businesses will continue to adopt platform-based models, providing workers with flexibility and access to a wide variety of opportunities.

AuthBridge’s Solution For Gig Worker Verification

As gig work grows, businesses must ensure their gig workers are qualified, trustworthy, and compliant. AuthBridge’s Gig Worker Verification services provide an efficient, scalable solution for verifying large volumes of workers while minimising risks and ensuring fast onboarding.

Why Background Verification Is Essential

  1. Quick and Scalable Onboarding: AuthBridge automates the verification process, enabling businesses to verify gig workers quickly and at scale, significantly reducing turnaround time (TAT).

  2. Ensuring Compliance: Businesses must meet industry regulations. AuthBridge ensures gig workers are properly vetted for criminal records, identity, employment history, and professional certifications.

  3. Minimising Legal and Security Risks: Verifying workers ensures legal compliance and reduces the risk of hiring individuals with criminal backgrounds or unverified credentials, protecting your business from potential reputational damage.

Key Features of AuthBridge’s Verification Service

  • Identity Checks: Verifying gig workers’ identity with documents like Aadhaar, PAN, or Passport.

  • Criminal Record and Employment History: Ensuring workers meet legal requirements and confirming their professional background.

  • Licensing and Certification: Verifying required certifications (e.g., driver’s licenses, medical certifications) for job-specific roles.

  • Automated, Fast, and Reliable: Speed up the onboarding process with automated verification, reducing manual effort and improving efficiency.

Why Choose AuthBridge?

  1. Scalable and Efficient: AuthBridge’s automated platform allows businesses to verify large numbers of gig workers quickly and at scale.

  2. Industry-Specific Verification: Tailored solutions for healthcare, transportation, retail, and more.

Conclusion

India’s gig economy is poised for explosive growth, with gig workers expected to make up 14.89% of the non-agricultural workforce by 2047. The gig economy’s contribution to GDP is projected to rise from 1.25% in 2030 to 4% by 2047. This rapid expansion will be driven by digital platforms, sector diversification, and the increasing demand for flexible work.

However, businesses must address challenges such as informality, wage gaps, and the lack of worker protections to ensure a fair and sustainable gig economy. As the workforce diversifies, effective background verification will become crucial to maintaining compliance, ensuring worker safety, and building trust in the gig economy.

By Abhinandan, ago
eshram one stop solution launched

eShram: One Stop Solution Launched- All Key Details

India’s unorganised workforce, which contributes significantly to the country’s economy, often faces barriers in accessing social security schemes. These workers, whether daily wagers, gig workers, or others employed informally, form a major chunk of India’s total workforce. To address their welfare needs, the Government of India launched the eShram portal in August 2021. On October 21, 2024, this initiative received a major upgrade with the launch of the eShram – One Stop Solution.

launch of the eShram one stop solution

The new platform, as announced by Union Minister of Labour & Employment and Youth Affairs & Sports Dr Mansukh Mandaviya during the launch event, aims to provide “seamless access to different social security schemes for the unorganised workers registered on eShram.” Dr Mandaviya also highlighted the rapid growth of the platform, noting that “Every day, around 60,000 to 90,000 workers are joining the eShram platform, which demonstrates their confidence in this initiative.” This rise reflects the trust and growing reliance that workers have on the platform to access important welfare schemes.

eShram – One Stop Solution: Key Features And Benefits

The eShram – One Stop Solution is designed to bring multiple welfare schemes under a single platform, making it easier for unorganised workers to access social security benefits. As explained by the honourable minister, the primary objective of this platform is to “simplify the registration process for unorganised workers and facilitate their access to government welfare schemes.” This integration reduces the bureaucratic hurdles that have traditionally limited the reach of welfare programmes to this vast section of the workforce.

The platform provides access to a variety of welfare schemes such as:

This consolidation of schemes under a single platform highlights the government’s commitment to “acting as a bridge, connecting the workers to the numerous benefits offered by the government,” said Dr Mandaviya. Sushri Shobha Karandlaje, Union Minister of State for Labour & Employment, emphasised the importance of integrating state-level systems, stating that “this initiative will also help in ensuring saturation of the schemes through identification of left-out potential beneficiaries, State/District-wise.”

By making welfare access more efficient and transparent, the eShram platform is not only streamlining welfare distribution but also ensuring that no worker is left out.

The Impact Of eShram On Unorganised Sector  Workers

Since its launch on the 26th of August 2021, the eShram portal has played a key role in changing the way unorganised workers access welfare benefits in India. With nearly 30 crore workers already registered on the platform, the eShram – One Stop Solution aims to enhance this reach further by simplifying access to multiple social security schemes.

The portal is especially important for the unorganised workforce, which often struggles with fragmented welfare systems and complex registration processes. By bringing all schemes under one roof, eShram eliminates the need for workers to navigate through different platforms to claim benefits. This integration not only saves time but also reduces the chances of workers missing out on key benefits due to a lack of awareness or cumbersome processes.

eShram one stop solution launch 2

Dr Mandaviya emphasised the necessity of ensuring that all unorganised workers take advantage of this platform, encouraging them to “register on the eShram portal and benefit from the wide range of social security schemes designed to improve their livelihoods and ensure their well-being.” This clear call to action is intended to further expand the reach of the platform, ensuring that more workers are included in the welfare net.

The long-term goal is to ensure that unorganised workers, who are the backbone of the economy, receive the social security they deserve, thus improving their financial stability, health, and overall quality of life.

Integration Of State And Central Government Schemes

One of the key features of the eShram – One Stop Solution is the integration of both central and state government welfare schemes into a single repository. This approach, as mentioned by Sushri Shobha Karandlaje, is crucial for ensuring “last-mile connectivity” and expanding the platform’s reach to the most vulnerable and left-out workers across the country. By aligning state government systems with the eShram portal, the initiative allows for a State/District-wise identification of potential beneficiaries, ensuring that no eligible worker is missed.

This integration is in line with the government’s whole-of-government approach, where multiple ministries and departments work together to streamline access to welfare benefits. Over the first 100 days following the launch of the new government, several meetings were held to ensure the smooth integration of welfare schemes across central ministries and departments.

According to Ms. Sumita Dawra, Secretary of the Ministry of Labour and Employment, the platform will continue to evolve, with more schemes being onboarded in the future to provide workers with “seamless access to various government schemes.” This comprehensive approach ensures that the platform remains a central hub for the welfare of unorganised workers, addressing their diverse needs and offering a wide range of benefits under one system.

The Importance Of Verified Hiring From The Unorganised Sector

While the eShram – One Stop Solution plays an important role in providing welfare access, it also serves as a foundation for secure and verified hiring practices for the unorganised workforce sector. With the rise of the gig economy and an expanding unorganised workforce, businesses need to ensure that they are hiring individuals who are not only registered but also properly vetted.

According to our Annual Trend Report FY’24, there has been a 12.5% increase in discrepancy rates for gig worker verifications between FY 2021 and 2024. This shows a growing challenge for employers who rely on informal and gig workers. This include ride-hailing companies, food delivery platforms and more. These discrepancies can lead to significant risks, such as hiring unverified workers who may not have the required credentials or may present fraudulent documents.

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As the gig economy grows—expected to reach 25 million workers by 2030—employers must adopt stringent verification processes. This is where AuthBridge’s solutions become indispensable. By integrating with the eShram portal, businesses can ensure they are hiring verified workers with legitimate registrations. AuthBridge’s UAN (Universal Account Number) Verification provides an additional layer of security, ensuring that workers registered on eShram are fully vetted and their credentials are validated.

Table: Discrepancy Rates In Gig Worker Verifications (FY 2023-2024)

Verification TypeDiscrepancy Rate
Address Verification19.4%
Identity Verification0.9%
Court Record Check29.88%

These findings from AuthBridge showcase the importance of thorough background checks and reliable hiring practices, particularly when employing from the unorganised sector. The integration of eShram with AuthBridge’s verification services ensures that employers can reduce the risks associated with hiring unverified workers while contributing to a more secure and compliant workforce.

By leveraging both the eShram – One Stop Solution and AuthBridge’s background verification services, businesses can confidently hire from India’s growing unorganised workforce, ensuring compliance, security, and reduced risks of fraud.

FAQs around e-Shram

eShram is the national database of unorganised workers (NDUW) to facilitate delivery of social security and welfare schemes.

eShram was launched on August 26, 2021.

eShram: One Stop Solution was launched in October 21, 2024.

Unorganised workers between the age of 16 and 59 can register on the eShram portal.

Skill India Digital, NCS and PMSYM, PMSVANidhi ( for street vendors), MGNREGA, Pradhan Mantri Awas Yojana Gramin (PMAY-G), Ration Card, PMAY-U, PMJJBY( life insurance), PMSBY ( accident insurance), AB-PMJAY ( Ayushman Bharat), etc. have been mapped with the e-Shram database.

14434 is e-Shram helpline number. For solutions regarding grievance redressal, email can be sent to gms.eShram.gov.in.

The Ministry of Labour & Employment launched the eShram portal to create the first-ever National Database of Unorganised Workers (NDUW), linked with Aadhaar. This database will capture essential details such as name, occupation, address, type of work, educational qualifications, and skills, aimed at enhancing their employability and ensuring access to social security schemes. The portal includes unorganised workers from various sectors, including migrant, construction, gig, and platform workers.

  1. Go to https://register.eshram.gov.in/#/user/self 
  2. Enter Aadhaar linked mobile number
  3. Enter the Captcha shown on the screen
    Then, you will be asked if you are an active member of the Employees’ Provident Fund Organization (EPFO) and Employees’ State Insurance Corporation (ESIC). 
  4. Then, click on Send OTP, wherein an OTP will be sent to your Aadhaar-linked mobile number.
  5. After entering the OTP, you can get registered on the eShram portal.
By Abhinandan, ago
Gig worker meaning

Gig Worker: Meaning, Types & Significance

Meaning Of Gig Worker

Gig workers are individuals who engage in short-term, flexible jobs as opposed to traditional, long-term employment. These workers are a crucial part of the gig economy, which includes various roles facilitated by digital platforms. These platforms,  provide a medium for gig workers to connect with clients and secure jobs. The nature of gig work varies widely, ranging from freelance writing and graphic design to ridesharing and food delivery. According to Chapter I, Section 2(35) of the Code on Social Security, 2020, a Gig Worker means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship.

One of the defining features of gig work is the flexibility it offers. Gig workers have the autonomy to choose when, where, and how much they work, allowing them to balance their professional and personal lives effectively. This flexibility is particularly beneficial for those who need to juggle multiple responsibilities, such as students, parents, or individuals seeking supplementary income. The variety of tasks available in the gig economy enables workers to leverage their unique skills and explore diverse opportunities.

Gig workers operate independently, without the traditional employer-employee relationship. This independence means they manage their schedules, negotiate their rates, and are responsible for their taxes and benefits. However, it also means they do not have the same job security or access to benefits that traditional employees might enjoy. Despite these challenges, the gig economy continues to attract a growing number of workers due to its inherent flexibility and potential for varied income streams.

Differences Between Gig Workers And Independent Contractors

While gig workers and independent contractors share similarities, such as working independently and not being tied to a single employer, there are key differences between the two. Independent contractors often engage in longer-term projects or have ongoing contracts with specific clients. In contrast, gig workers typically handle short-term, ad-hoc tasks that can be completed quickly and often involve multiple clients.

Independent contractors usually have formal agreements outlining the scope of work, deadlines, and payment terms. These contracts provide a degree of stability and predictability. On the other hand, gig workers often rely on digital platforms to find work, which can lead to more variable and less predictable income streams. Many platforms facilitate this type of work by connecting workers with clients on a task-by-task basis.

Moreover, the dependency on digital platforms distinguishes gig workers from independent contractors. Gig workers rely heavily on these platforms not just for finding work but also for managing payments and customer interactions. This reliance can sometimes limit their bargaining power and control over their working conditions. Independent contractors, however, often work directly with their clients, allowing for more personalised negotiation and relationship-building.

Examples Of Gig Workers

For instance, a gig worker might spend their morning driving for a ride-sharing company, their afternoon delivering food for a food-delivery company, and their evening completing handyman tasks on another platform. This variety allows them to maximise their earning potential and keep their workday dynamic. Conversely, an independent contractor, such as a web developer, might have a six-month contract to redesign a company’s website, providing a stable and predictable work environment.

Characteristics of Gig Work

Gig work offers significant autonomy, allowing individuals to control their professional lives and balance work with personal commitments. This flexibility is particularly appealing to those who prefer to work on their terms rather than adhering to a rigid 9-to-5 schedule. Additionally, gig work enables workers to diversify their income sources by taking on multiple gigs, reducing dependency on a single employer.

The variety inherent in gig work also allows individuals to leverage their unique skills and gain experience in different areas. This can be particularly beneficial for those looking to build a diverse portfolio or explore new career paths. However, it’s important to note that the independence and flexibility of gig work come with trade-offs, including the lack of job security and access to traditional employment benefits.

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Types Of Gig Work

Common Gig Work Roles

The gig economy encompasses a wide range of job roles that cater to various skills and preferences, offering flexible work opportunities outside the traditional employment model. The types of gig work available are diverse, and each role comes with its own unique set of characteristics and requirements.

Common Types Of Gig Work
Common Gig Work Roles

  • Ridesharing Drivers

Ridesharing drivers use their vehicles to transport passengers. This role offers significant flexibility, allowing drivers to choose their working hours and areas. For many, this flexibility means they can work part-time to supplement their income or full-time to maximise earnings. Drivers must maintain their vehicles, provide good customer service, and ensure the safety of their passengers. Ratings and feedback from passengers can directly affect their ability to get more rides, making customer satisfaction a critical aspect of this job.

  • Delivery Personnel

Delivery personnel, working for food delivery companies are responsible for delivering food, groceries, and other items to customers. This role requires reliability, punctuality, and good navigation skills. Delivery workers often use bikes, scooters, or cars, depending on the delivery area and the platform’s requirements. The job can be physically demanding, particularly for those who deliver by bike or on foot, but it offers the flexibility to work during peak hours to increase earnings. Many delivery workers enjoy the autonomy of being able to work independently without direct supervision.

  • Freelancers and Consultants

Freelancers and consultants offer specialised services across various fields, such as graphic design, writing, programming, and business consulting. Many platforms enable these workers to find clients globally. Freelancers often juggle multiple projects at once, which requires excellent time management and organisational skills. They must also market their services, negotiate contracts, and manage client relationships. Freelancers enjoy the ability to choose projects that align with their skills and interests, providing a level of job satisfaction that is often higher than in traditional employment.

  • On-Demand Task Workers

On-demand task workers perform a variety of tasks ranging from home repairs and cleaning to furniture assembly and moving assistance. These workers often possess specific skills and tools necessary for the tasks they undertake. Flexibility and the ability to set their rates and schedules are significant advantages. However, the physical nature of many of these tasks can be demanding. Task workers need to be adept at managing client expectations and providing high-quality service to secure repeat business and positive reviews.

Blue-Collar Gig Workers

Blue-collar gig workers are an essential part of the gig economy, performing manual and skilled labour across various industries. These workers include construction labourers, electricians, plumbers, and maintenance personnel who often find gigs through platforms or word-of-mouth referrals. The flexibility of gig work allows these workers to take on diverse projects, gain varied experience, and manage their schedules. However, the challenges include inconsistent income, lack of job security, and limited access to traditional employment benefits such as health insurance and retirement plans.

  • Construction Labourers

Construction labourers who work gigs might find short-term projects on construction sites, performing tasks such as site preparation, material handling, and basic construction activities. These jobs require physical strength, endurance, and the ability to work in various weather conditions. Gig construction workers must also adhere to safety standards and regulations, making awareness and compliance crucial.

  • Maintenance Workers

Maintenance workers provide services such as plumbing, electrical repairs, and general home maintenance. These gigs can range from small, one-time tasks to larger projects requiring multiple visits. Skills, experience, and reliability are essential for building a reputation and securing steady work. Maintenance workers often rely on customer satisfaction and word-of-mouth referrals to build their client base.

How To Succeed As A Gig Worker?

The success of gig workers in these roles depends on several factors:

  • Reliability and Punctuality: Delivering high-quality work on time builds a strong reputation and leads to repeat business.

  • Skill Proficiency: Demonstrating expertise and continually improving skills attract more clients and higher-paying gigs.

  • Customer Service: Providing excellent service and maintaining positive client relationships are crucial for receiving good reviews and referrals.

Gig workers must be proactive in managing their schedules, marketing their services, and maintaining a high standard of work. The ability to adapt to different tasks and environments is also essential for thriving in the gig economy.

Legal And Regulatory Aspects

Employment Status And Legal Definitions

Gig workers around the world face varying legal definitions and employment statuses. Typically classified as independent contractors, gig workers do not receive the same protections and benefits as traditional employees. This distinction has significant implications for their rights and responsibilities. In many countries, the gig economy has outpaced existing labour laws, leading to ongoing debates and legal challenges.

In India, the gig economy has grown rapidly. Gig workers in India are usually classified as independent contractors, which means they do not receive benefits like health insurance, paid leave, or retirement savings. This classification is similar to the status of gig workers in many other countries, where they are considered self-employed and are responsible for their taxes and benefits.

Rights And Protections For Gig Workers

Globally, the rights and protections for gig workers vary significantly. In some countries, there has been a push to provide more protections and benefits to gig workers, recognising the precarious nature of their work.

In India, gig workers have started to receive more attention from policymakers. The Code on Social Security, 2020, aims to extend social security benefits to gig workers, including provisions for health and maternity benefits, old age protection, and other welfare measures. This legislation represents a significant step forward in recognising and addressing the needs of gig workers in India.

In contrast, other countries have implemented various measures to enhance the protections for gig workers. 

Tax Implications And Responsibilities

Gig workers must navigate complex tax responsibilities, which can vary significantly by country. In India, gig workers need to register as self-employed and are responsible for managing their taxes. This includes tracking income and expenses and paying Goods and Services Tax (GST) if their income exceeds the threshold limit.

Unlike traditional employees, gig workers do not have taxes automatically deducted from their payments. They must make advance tax payments and file annual tax returns, which requires diligent record-keeping. Many gig workers seek professional tax advice to ensure compliance and avoid penalties.

Globally, the tax treatment of gig workers can be complex, with variations in how different countries handle their income, deductions, and obligations. For instance, some countries offer simplified tax regimes for freelancers and gig workers, while others require more detailed reporting and compliance.

Challenges Faced By Gig Workers

  • Income Stability and Financial Security

One of the most significant challenges for gig workers globally is income stability. Unlike traditional employees who receive regular salaries, gig workers’ earnings can fluctuate dramatically based on the availability of work, seasonal demand, and competition within the platform. This instability can make it difficult for gig workers to plan for the future, manage day-to-day expenses, and achieve financial security.

In India, for example, gig workers in roles such as delivery personnel, or rideshare drivers, often face unpredictable income patterns. Factors such as fluctuating demand, changing commission structures, and competition among workers can significantly impact their earnings. This financial unpredictability makes it challenging for gig workers to budget and save, exacerbating their financial vulnerability.

  • Access to Benefits and Protections

Gig workers typically do not have access to the benefits and protections that traditional employees enjoy. This includes health insurance, retirement savings plans, paid leave, and unemployment benefits. The lack of these benefits places gig workers at a disadvantage, particularly in times of illness, injury, or economic downturns.

  • Job Security and Career Progression

The nature of gig work inherently lacks job security. Gig workers are often engaged on a per-task or per-project basis, meaning there is no guarantee of continuous employment. This lack of security can lead to anxiety and stress, as gig workers must constantly seek new opportunities to maintain their income.

Career progression is another challenge. Traditional employment offers a clear path for career advancement, skill development, and promotions. In contrast, gig workers may find it difficult to advance their careers, as their work is often fragmented and lacks formal recognition or development opportunities. This can make it challenging for gig workers to build long-term careers or transition to more stable employment.

Benefits Of Gig Work

Despite these challenges, gig work also offers several benefits that make it an attractive option for many individuals:

  • Flexibility and Autonomy

Gig work provides unparalleled flexibility, allowing individuals to choose when, where, and how much they work. This autonomy enables gig workers to balance their professional and personal lives effectively, making it an ideal option for those who need to manage other commitments, such as students, parents, or those pursuing other interests.

  • Variety and Opportunities for Skill Development

Gig work allows individuals to engage in diverse tasks and projects, providing opportunities to develop and refine various skills. For example, a freelance graphic designer might work on multiple projects for different clients, gaining experience in various industries and styles. This variety can lead to a more fulfilling and dynamic work experience compared to traditional employment.

  • Supplementary Income Sources

For many, gig work serves as a valuable source of supplementary income. Whether it’s to pay off debt, save for a specific goal, or simply increase their disposable income, gig work offers a way to earn extra money without the constraints of a traditional job. This flexibility in income generation can be particularly beneficial during economic downturns or personal financial crises.

How To Manage Gig Workers 

Best Practices for Employers

Employers who hire gig workers can benefit from implementing best practices to ensure a smooth and efficient working relationship. These practices include:

  • Clear Communication: Establishing open lines of communication helps ensure that gig workers understand their tasks and deadlines. This can be achieved through regular check-ins and providing detailed project briefs.

  • Fair Compensation: Offering competitive pay rates and timely payments fosters trust and encourages high-quality work. Recognising and rewarding good performance can also motivate gig workers to maintain high standards.

  • Providing Support and Resources: Employers can support gig workers by offering access to necessary tools and resources, such as software, training materials, or guidance on best practices. This support helps gig workers perform their tasks more effectively and efficiently.

Tools And Technologies For Managing Gig Workforces

Several tools and technologies can assist employers in managing gig workers. These include project management software, communication platforms, and payment processing systems. For example:

  • Project Management Software: Many project management tools help employers track progress, assign tasks, and manage deadlines.

  • Communication Platforms: Platforms such as Slack, Zoom, and Microsoft Teams facilitate seamless communication between employers and gig workers, ensuring that everyone stays informed and connected.

  • Payment Processing Systems: Payment processing services streamline the payment process, allowing for secure and timely compensation of gig workers.

Strategies For Ensuring Fair Treatment And Compliance

To ensure fair treatment and compliance with legal standards, employers should adopt the following strategies:

  • Adhering to Legal Requirements: Employers must stay informed about relevant labour laws and regulations to ensure compliance. This includes understanding the classification of gig workers and their rights.

  • Implementing Ethical Practices: Treating gig workers with respect and fairness is crucial for maintaining a positive working relationship. This includes providing fair compensation, recognising achievements, and addressing concerns promptly.

  • Monitoring Performance and Feedback: Regularly monitoring gig workers’ performance and seeking feedback helps identify areas for improvement and ensures that workers feel valued and heard.

    Long-Term Impact Of Gig-Work On The Labour Market

    The rise of the gig economy is likely to have profound long-term impacts on the labour market, including:

    1. Workforce Flexibility: The gig economy will continue to promote a more flexible workforce, with individuals increasingly seeking opportunities that allow them to balance work with personal commitments. This shift could lead to a decline in traditional 9-to-5 jobs and an increase in project-based and freelance work.

    2. Skill Development and Career Mobility: Gig work encourages continuous skill development and career mobility, as workers take on diverse projects and roles. This trend could lead to a more dynamic and adaptable workforce, with individuals constantly updating their skills to stay competitive.

    3. Economic Inclusion: The gig economy can promote economic inclusion by providing work opportunities to individuals who may face barriers to traditional employment, such as those in rural areas, individuals with disabilities, and older workers. By leveraging digital platforms, these individuals can access a broader range of job opportunities and participate more fully in the economy.

    FAQ on Gig Workers

    A gig worker is an individual who engages in temporary, flexible jobs, often referred to as “gigs.” These workers are typically hired for short-term tasks or projects rather than traditional, long-term employment. The gig economy encompasses various types of work, including freelance assignments, part-time jobs, and contract work.

    Gig workers are called “gig workers” because the term “gig” originally referred to short-term engagements or performances, particularly in the entertainment industry. Musicians, for example, often referred to their temporary performance engagements as “gigs.” This terminology has since expanded to encompass a wide range of short-term, flexible jobs across various industries.

    A freelancer is a self-employed professional offering specialised services, often on a project basis, directly to clients. A gig worker performs short-term, flexible tasks or jobs, typically through digital platforms.

    Hiring gig workers offers flexibility, cost savings, and the ability to quickly scale operations. Businesses can access a diverse talent pool for short-term or specialised tasks without the long-term commitment and overhead costs associated with full-time employees.

    In India, gig workers include drivers for ride-sharing apps, food delivery personnel, freelance professionals on online platforms, and workers offering various services such as cleaning, plumbing, and beauty treatments. through apps.

    Yes, a consultant can be considered a gig worker if they work on a project-by-project basis and are hired for short-term or specific tasks. However, consultants often have more specialised expertise and may engage in longer-term contracts compared to typical gig workers.

    The gig economy offers flexibility and opportunities for both workers and businesses, allowing for better work-life balance and cost savings. However, it also presents challenges such as job insecurity, lack of benefits, and inconsistent income, which can affect the financial stability and well-being of gig workers.

    By Abhinandan, ago

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