Gig Workers and Platform Employees: Legal Grey Areas for HR

Introduction--

Once a candidate accepts an offer, the period between acceptance and joining becomes a critical phase in the recruitment lifecycle. This pre-joining window influences whether a candidate actually joins, how prepared they feel on Day One, and how quickly they settle into the organisation. For HR, effective pre-joining engagement and onboarding planning are essential to convert offers into confident, committed employees.

This article outlines practical approaches HR teams can adopt to manage pre-joining engagement and establish strong onboarding foundations—without overcomplicating the process.

Gig workers and platform-based employees are now part of everyday workforce reality in India. From delivery partners and drivers to freelance professionals and project-based specialists, organisations increasingly rely on non-traditional work arrangements.

However, Indian labour laws have not fully caught up with this shift. For HR teams, gig engagement sits in a legal grey zone — where misclassification, control, and dependency can trigger unexpected compliance risks.

This article explains how Indian law views gig and platform workers, where ambiguity exists, and what HR should do to manage risk responsibly.

1. Who Are Gig Workers and Platform Employees?

Broadly:

• Gig workers: Individuals engaged for specific tasks or projects, usually without long-term employment

• Platform workers: Workers accessing assignments through digital platforms or aggregators

Under traditional labour laws, these workers are neither clearly employees nor fully independent contractors.

The Social Security Code, 2020 introduces formal recognition of gig and platform workers, but detailed implementation is still evolving.

2. Traditional Tests Used by Courts

In disputes, Indian courts typically apply tests such as:

• Degree of control and supervision

• Nature of work (core vs non-core activities)

• Economic dependency

• Continuity and exclusivity of engagement

If these indicators resemble employment, courts may treat gig workers as employees in substance, regardless of contract wording.

HR must therefore look beyond labels.

3. Social Security Obligations: Emerging Landscape

The Social Security Code proposes:

• Separate social security schemes for gig and platform workers

• Contributions from aggregators/platforms

• Central and state-level welfare mechanisms

Until full implementation, HR must stay alert to state notifications, pilot schemes, and sector-specific rules.

Ignoring this evolving framework can create retrospective exposure.

4. Misclassification Risks for Employers

Key HR risk areas include:

• Issuing “consultant” contracts while exercising tight supervision

• Fixing working hours or attendance for gig workers

• Restricting gig workers from working with others

• Integrating gig workers fully into employee hierarchies

Such practices increase the risk of reclassification as employees, with liabilities for wages, PF, ESI, bonus, and gratuity.

5. Documentation and Contract Discipline

HR must ensure that gig engagements are supported by:

• Clearly worded service or engagement agreements

• Defined scope of work and deliverables

• Payment linked to output, not time

• Explicit absence of employer–employee relationship

Contracts alone are not decisive, but poor documentation weakens the employer’s position.

6. Practical HR Safeguards

To manage uncertainty, HR should:

• Use gig workers for genuinely project-based or non-core work

• Limit supervision to outcome-based reviews

• Avoid employee-style benefits or policies

• Review gig arrangements periodically

The goal is consistency between intent, contract, and actual practice.

Conclusion

Gig and platform work is here to stay, but the legal framework in India remains a work in progress. For HR teams, the challenge is not to avoid gig engagements, but to manage them with legal awareness and discipline.

Until clarity fully emerges, conservative classification, strong documentation, and minimal control remain the safest HR approach.

🗹 HR Risk Checklist: Managing Gig & Platform Workers

🗹 Identify roles suitable for gig or project-based engagement
🗹 Avoid treating gig workers like regular employees
🗹 Draft clear, output-linked engagement contracts
🗹 Limit control to deliverables, not working hours
🗹 Monitor legal developments under the Social Security Code
🗹 Avoid exclusivity clauses without legal review
🗹 Review long-term gig engagements periodically
🗹 Maintain consistency between contract and practice

Gig Workers – Legal Position and HR Risk View

Conclusion--

Effective labour law compliance depends on how well HR operations, payroll, and business processes work together. When compliance is embedded into everyday workflows, organisations reduce risk, improve accuracy, and build sustainable governance systems. HR teams that prioritise integration over isolation are better positioned to manage compliance confidently and consistently.