Fairwork India Ratings 2020: Labour Standards in the Platform Economy - Labour Standards in the Platform Economy
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Labour Standards in the Platform Economy | 1
Fairwork India
Ratings 2020:
Labour Standards in
the Platform Economy
2 | Fairwork India Ratings 2020
Executive Summary
As the scale and scope of work mediated by digital platforms has
grown in India, so has the number of workers registering on such
platforms. This rapid growth has also raised questions about the
work conditions that result from digital mediation.
As in other parts of the world, platform a cross-sectoral view of working after accounting for costs. Urban
workers in India are predominantly conditions, and provides new entrants Company, Flipkart, Grofers, and
paid a piece rate (i.e. per task), and are with a glimpse of what to expect from Ola were the exceptions. This
typically classified by the platforms platform work. highlights the need for regulation
as “independent contractors”, or and worker consultation on
as driver / delivery “partners”. One This is the second year of scoring matters of pay.
major concern is that such workers platforms using the Fairwork principles
do not benefit from labour regulations in India. Last year, twelve platforms, � Workers have little to no social
pertaining to wages, hours, working from sectors including ride-hailing, security. While some platforms
conditions, and the right to collective e-commerce, food-delivery, and home provide accident insurance,
bargaining. Consequently, there is an services, were scored. This year, eleven workers were unclear of the
urgent need to examine the nature platforms were scored, with nine being procedures to make claims.
of digitally-mediated work and its repeated from the first year. Data from Only two platforms (Urban
effect on the livelihoods of millions of multiple sources indicates that, as of Company and Flipkart) were able
workers in the country. February 2020, an estimated three to demonstrate that additional
million workers were registered on the measures were taken to actively
To this end, the Fairwork project eleven platforms scored this year (see improve working conditions.
evaluates working conditions on digital Appendix III).
platforms and scores them according � With the exception of Urban
to five principles of ‘fair work’, Key Findings Company and Dunzo, there
was insufficient evidence
developed through multi-stakeholder
meetings at UNCTAD, the International The 2020 platform scores that accessible. readable and
� comprehensible terms and
Labour Organisation, and in-country show the heterogeneity in
stakeholder meetings in India, working conditions amongst conditions were available to
Germany, and South Africa. The five platforms, corresponding to workers. With a growing reliance
principles are Fair Pay, Fair Conditions, the policies and management by some platforms on labour
Fair Contracts, Fair Management, and practices that platforms have recruited from subcontractors,
Fair Representation. Evidence for in place. Urban Company, a workers were often unclear who
compliance with these five principles home services platform, tops was responsible for their working
is collected through desk research, the list of platforms studied this conditions and for the payment of
worker interviews, and interviews with year, followed by Flipkart, an wages.
platform management. The evidence e-commerce platform. Interviews
� Platform companies fared better
is used to assign a “fairwork” score to with managers on both platforms
when it came to the principle
individual platforms. With a basic and revealed that the Fairwork
of Fair Management. There
an advanced point awarded for each of process had provided them
was sufficient evidence that
the five principles, a platform can earn with new perspectives from the
eight of the eleven platforms
a maximum score of ten. workers’ point of view - enabling
provided due process for workers
them to reflect on their policies.
The Fairwork project aims to study through a channel for workers
work conditions on platforms on an While the potential of high to communicate and appeal
� disciplinary decisions including
annual basis, with its scores offering wages and short payout cycles
an independent perspective on work continues to draw workers deactivations. Only Urban
conditions for policy makers, platform to platform work, there was Company and Flipkart were
companies, workers, and ethically- insufficient evidence that workers awarded the advanced point.
minded consumers. In particular, on seven of the eleven platforms Urban Company was awarded
it offers existing platform workers earned the minimum wage rate the point for actively blocking
Labour Standards in the Platform Economy | 3
customers who discriminate companies fared poorly when precarious livelihoods of all
against service providers. Flipkart it came to acknowledging a workers (platform or otherwise),
was awarded the point for its collective voice for workers. this report shows that the
proactive initiatives to employ However, no platform was pandemic has only exacerbated
women and physically-disabled agreeable to negotiating with a precarity already endemic to
persons in its last-mile workforce. worker associations and unions. platform work.
� With the exception of Urban � While the COVID-19 pandemic
Company and Flipkart, platform has brought to prominence the
Fairwork India 2020 Scores*
Urban Company 8
Flipkart (Ekart) 7
Dunzo 4
Grofers 4
Amazon (ATS) 2
Bigbasket 2
Housejoy 2
Ola 2
Swiggy 1
Uber 1
Zomato 1
* Scores are out of 10.
4 | Fairwork India Ratings 2020
Editorial:
Towards Fair Work
Platforms connect “individuals and organisations so they can
innovate or interact in ways not otherwise possible”.1 Digital
platforms enable interaction by providing the infrastructure to
mediate between actors who offer services and those who are
looking for them.2 With their ability to lower the transaction costs
of matching supply and demand, platforms are considered to
have the potential to address the employment challenge in the
Global South.3 This report will explore the extent to which that
potential is being realised in India.
This report examines a category A prominent issue with work on digital by healthy and safe working conditions.
of platforms which offer “work on- platforms is employment status, as The other three focus on whether the
demand via apps” in sectors such most workers are not classified as platform’s contract with the workers
as domestic and personal care employees with income security and is fair; management processes and
services, logistics, food delivery, and social protection. Rather, they are communication channels are clear and
transportation. The report points usually classified as independent transparent; and platforms allow for
out that the growth of the platform contractors. As a result of such the expression of worker voice through
economy has undoubtedly offered classification, workers find themselves open worker representation.
employment opportunities in a country in increasingly flexible labour markets
where there is growing concern that where their survival has become The Fairwork India team is
the number of workers seeking work precarious and vulnerable. Many lack spearheaded by the Centre for IT
has far exceeded the number of jobs labour and income security, and work- and Public Policy (CITAPP) at the
available. The section, Overview of the based identity, with little sense of a International Institute of Information
Indian Platform Economy, discusses future in what they are doing.5 Technology Bangalore (IIITB), along
the factors that have led to such with partners at the University
growth. This report presents the findings of of Oxford and the University of
a study conducted by the Fairwork Manchester. The partners at Oxford
Although digital platforms offer India team on how platform work include legal experts who look at
employment opportunities, it is far is perceived and experienced by potential government-level policy
from clear whether the work offered workers on these platforms. The actions and regulatory interventions
qualifies as what the International Fairwork project focuses on five core to better protect platform workers.
Labour Organisation calls decent work, principles of fair platform work: Fair The team assessed evidence against
or “work that is productive; ensures Pay, Fair Conditions, Fair Contracts, Fair each of the Fairwork principles through
equality of opportunity and treatment Management, and Fair Representation. a combination of desk research and
for all women and men; delivers a fair Scores are awarded out of ten to worker interviews conducted in
income, security in the workplace and a platform based on whether they Bangalore6 and, where possible, from
social protection for families; provides meet the basic standard (one point) evidence provided by the platforms.
prospects for personal development; and achieve a higher standard (an Given the often opaque and fast
and gives workers the freedom to additional point) for each of these five changing nature of the platform
express their concerns, organise and principles. The first two principles ask economy, reliable data is difficult to
participate in decisions that affect their if workers receive fair pay for their come by. Thus, a point is awarded
working lives.”4 work, and if their jobs are characterised only when there is evidence that the
Labour Standards in the Platform Economy | 5
Contents
platform fulfils the conditions. Being a
team of researchers with no affiliation
with workers, platforms or government,
our scores provide an independent
assessment of platforms.
This is the second year of rating Indian
platforms.7 In the first year, twelve 02 Executive Summary
platforms were scored. This year too,
the goal was to score twelve platforms
but that number came down to eleven 04 Editorial
due to a merger. The range in Fairwork
06
scores we report here, across various
principles, points to heterogeneity in The Fairwork Framework
the organisation of platforms across
08
domains, and differences in their Overview of the Indian Platform
interpretation of regulation. Based
Economy
on the scores and findings, some
platforms have expressed an interest
in creating fairer working conditions.
Another purpose of the scores is to
11 The Legal and Policy Context
sensitise and influence the customers
who seek the services offered by
these platforms, to consider working
12 Fairwork Scores
conditions when choosing between
them. These scores can also add to the
resources available to collective bodies 15 Platform in Focus: Urban Company
of workers when they raise demands.
Thus, our hope is that platforms,
workers, regulators, and consumers, 17 Workers’ Stories
will all use the Fairwork framework and
19
ratings to imagine, and realise, a fairer
platform economy in India.
Theme in Focus: Precarity
21 Impact and Next Steps
24 Appendix I: Fairwork Scoring System
29
Appendix II: Identifying Platforms and
Workers
30
Appendix III: Estimates of Platform
Workforces
32
Appendix IV: Funds Raised by
Platforms
Balaji Parthasarathy, 33 Appendix V: Additional Resources
International Institute of
Information Technology,
Bangalore (IIIT-B). 34 Credits and Funding
35 Endnotes
6 | Fairwork India Ratings 2020
01 The five
principles
Fair Pay
Workers, irrespective of their
employment classification, should earn
the mandated minimum wage in their
home jurisdiction after taking account
of work-related costs.
Fair Conditions
Platforms should have policies in place
to protect workers from risks arising
from the processes of work, and should
The
take proactive measures to protect
and promote the health and safety of
workers.
Fairwork
Fair Contracts
Terms and conditions should
be accessible, readble and
Framework
comprehensible. The party contracting
with the worker must be subject to
local law and must be identified in the
contract. If workers are genuinely self-
employed, the terms of service must
be free of clauses which unreasonably
exclude liability on the part of the
The Fairwork project studies platform.
the working conditions of digital
Fair Management
platforms and scores them on There should be a documented process
how well they fare. Its goal is through which workers can be heard,
can appeal decisions affecting them,
to show that better, and fairer, and be informed of the reasons behind
those decisions. There must be a
jobs are possible in the platform clear channel of communication to
workers involving the ability to appeal
economy. management decisions or deactivation.
The use of algorithms must be
transparent and result in equitable
To do this, the project uses five principles that digital platforms outcomes for workers. There should
should comply with in order to be considered to be offering ‘fair be an identifiable and documented
work’. Fairwork scores platforms against these principles to policy to ensure equity in management
show not only what the platform economy is, but also what it of workers on a platform (for example,
could be. The five Fairwork principles were initially developed in the hiring, disciplining, or firing of
at a multistakeholder workshop at the International Labour workers).
Organization. Follow-up workshops were then held for local
stakeholders in Berlin, Bangalore, Cape Town and Johannesburg.
These workshops, and subsequent conversations with platform Fair Representation
workers, platforms, trade unions, regulators, academics, and Platforms should provide a documented
labour lawyers allowed the project to revise and fine-tune the process through which worker voice
principles, and ensure that they were applicable to the Indian can be expressed. Irrespective of their
context. employment classification, workers
should have the right to organise in
Further details on the thresholds for each principle, and collective bodies, and platforms should
the criteria used to assess the collected evidence to score be prepared to cooperate and negotiate
platforms, can be found in Appendix I. with them.
Labour Standards in the Platform Economy | 7
02 Methodology
The Fairwork project uses three approaches
to effectively measure fairness at work.
Desk Research
The process starts with desk research
to gain an understanding of the
platforms in operation, by identifying
the largest and most influential ones. Worker Interviews
This research establishes the range The third method involves
and types of the platforms that will interviewing workers of each platform.
be ranked, and identifies points of These interviews do not aim to build a
contact or ways to access workers. representative set of experiences. They
Desk research also serves to identify instead seek to understand the work
any public information that could be processes and how they are carried out
used to score a platform, for instance and managed. They allow the project
the provision of particular services to team, for instance, to see contracts
workers or ongoing disputes. and learn about platform policies that
pertain to workers. The interviews also
03
allow the team to verify the policies
In India, desk research helped identify
eleven prominent platforms operating and practices which are in place. See How we
in Bangalore, based on the size of Appendix II for details on recruitment of score
their workforce, customer base, and workers for interviews.
investments.8 Each Fairwork principle is broken
down into two points: a basic point
Putting it all together and a more advanced point that can
Platform Interviews This threefold approach provides a only be awarded if the basic point
The second method involves way to cross-check the claims made has been fulfilled. Every platform
approaching platforms for evidence. by platforms, while also providing the receives a score out of 10. Platforms
Platform managers are interviewed opportunity to collect evidence from are only given a point when they
and evidence is requested for each multiple sources. Final scores are can satisfactorily demonstrate their
of the Fairwork principles. This step collectively decided by the Fairwork implementation of the principles.
provides insights into the operation team based on all three forms of
and business models of the platforms, evidence. The scores are peer reviewed Failing to achieve a point does not
and opens up a dialogue through which by the country team, the Oxford necessarily mean that a platform
platforms can agree to implement team, and two reviewers from other does not comply with the principle in
changes. In cases where platform Fairwork country teams. This provides question; it simply means that we were
managers do not agree to engage with consistency and rigour to the scoring unable to evidence its compliance.
Fairwork, scoring is limited to evidence process. Points are only awarded
obtained through desk research and if clear evidence exists for each See Appendix I for further details on
worker interviews. threshold. the Fairwork scoring system.
8 | Fairwork India Ratings 2020
Overview
of the
Indian
Platform
Economy
Ever since the launch of the e-commerce site Flipkart in 2007,
India has witnessed the emergence of several platforms that
offer “work on-demand via apps” in sectors including ride-
hailing, courier services, food delivery, and domestic and
personal care services (such as beauty, carpentry, electrical, or
plumbing services).
However, there is little reliable data on, principles. While interviews with from services, with the rest coming
for instance, how many platforms there workers were conducted between from industry. Likewise, between
are, or their revenues. Further, while November 2019 and February 2020 1984 and 2010, the annual growth in
the Indian government has proposed (i.e., before the outbreak of the productivity in services (4.9 percent)
that platforms should provide data on COVID-19 pandemic in India), desk was ahead of the national figure (3.7
jobs,9 there is no definitive estimate research and interactions with the percent).14 But services include a
of the size of the platform economy platforms continued until November range of activities which vary in the
workforce. By assembling evidence 2020.10 productivity and the skills they employ.
from various sources (see Appendix In 2016, for instance, as Figure 2
III), we estimate that the eleven A prominent feature of the Indian shows, the productivity per worker in
platforms featured in this report have economy is its decreasing dependence trade, and in transport, storage and
a total workforce of over three million on agriculture for employment, as communications was barely a third of
(30 lakh) workers. Figure 1 shows.11 The figure also shows what it was for business, and less than
that trade, and transport and storage a fourth of financial services.15 Figure
This section of the report offers an (service sub-sectors in which many of 2 also shows that the differences in
explanation for the growth of location- the platforms studied by this report productivity correspond to differences
based platform services in terms of operate), have led the way in offering in education. In 2005, the share of
macro-economic shifts that have taken jobs over the last two decades.12 employees with a secondary education
place in India in recent years. Later in sub-sectors such as transport and
sections describe the work and work Despite remaining the largest source of
communication, and wholesale and
conditions in the platform economy in employment, agriculture’s contribution
retail trade, was less than half of what
more detail, drawing on our study of to gross value-added in 2016 was
it was in financial services and in
eleven platforms using the Fairwork only 15.23 percent.13 The biggest
business services.16
contribution of 51.13 percent came
Labour Standards in the Platform Economy | 9
Figure 1 Changing proportion of employment by sector, 1991-2016
70%
75%
1991
62.6%
62.6%
Agriculture Industry Services
52.5%
50% 2016
45.1%
45.1%
Proportion of
employment
35% 2016
31.9%
31.9%
2016
Transport & Storage
25% 1991
24%
24.0%
21.7%
Trade
21.7%
17.5% 1991
Others
15.7%
15.7% 14.6%
14.6%
9.9%
9.9%
7.4%
7.4%
Source: Generated from references in endnotes 11 and 12
Figure 2 Comparing worker productivity in current Rupees (2016), and levels of secondary education (2005), by
services sub-sectors
Transportation Business Financial
Trade Services Services
and Storage
secondary education
Completed
employees with
Proportion of
at least
(2005)
35%
35% 34%
34%
66%
23%
23%
84%
84% 16%
16% secondary
65%
65% 66% 78%
78%
education
1400000
1,500,000
₹ 12,59,280
1120000
1
Worker productivity
1,000,000
in services’ sub-
840000 ₹ 8,11,680
sectors
(2016)
560000
500,000
280000 ₹ 2,35,780 ₹ 2,55,390
Source: Generated from references in endnotes 15 and 16
10 | Fairwork India Ratings 2020
Figure 3 Changing proportions of employment in the organised economy with access to social protection, 2000-
2012
Proportion of casual
Proportion of regular Proportion of regular
Proportion of non- employment
employment employment
regular employment (within non-regular
(with social protection) (without social protection)
employment)
100% 40% 20% 20%
16.5% 17.4%
31.2% 15.9%
75% 30% 15% 15%
61.9%
51.3% 21.5%
50% 20% 10% 10%
25% 10% 5% 5% 3.1%
2000 2012 2000 2012 2000 2012 2000 2012
Source: Generated from reference in endnote 27
As the employment profile of the venture capital investments in India,25 labelled “independent contractors”
country has changed, those leaving an estimated US$14.82 billion went to or “partners”, belong to either of the
agriculture have increasingly found nine of the eleven platforms studied in (growing) regular non-protected or
livelihood opportunities in relatively this report (see Appendix IV). A final casual worker categories. How these
low-value added sectors, with low factor in this growth is an ambiguous contractors or partners (i.e. workers)
educational barriers to entry.17 Cities legal environment, which is discussed perceive and experience platforms
beckon with opportunities,18 and the in The Legal and Policy Context section are considered in the Theme in Focus:
resulting migration is male-dominated of the report. Precarity section. But, before that, the
and rarely permanent.19 Once in the next section will present an overview
city, at least some of them find work Having outlined some of the reasons of the legal context of the platform
in the app-based platforms, attracted behind the recent growth in location- economy in India.
in part by the higher income, and based platform services in India,
the short and relatively predictable we turn to considering how work
payment cycles, in comparison with conditions have changed in the
other work alternatives. economy. Since the platforms studied
in this report belong to the organised
A second factor that has facilitated economy, the conditions of work in this
the growth of the platform economy segment of the economy are worth
in India is the proliferation of mobile
phones with internet connectivity. A
examining.26 Although employment
in the organised economy is relatively
“Between 2013
country that had barely 1.1 telephones small, it accounted for 45.6 percent of and 2019, of a total
per 100 people in 1994,20 had 93.27 total output in 2012.27 In services too,
by 2018. By 2018, 98.12 percent of the organised economy contributed of US$39.7 billion
in venture capital
all telephone connections were mobile 50.6 percent to the total sectoral
access,21 of which 34.7 percent had output, whereas it accounted for only
broadband internet connections.22
A third factor in the growth of the
25.6 percent of sectoral employment.
investments in
platform economy has been the Despite the productivity of the
organised economy, including in the
India...US$14.82
increasing last-mile access for platform
workers to reach customers. India services sector, Figure 3 shows that billion went to
the proportion of regular employment
nine of the eleven
is the world’s biggest two-wheeler
(motorcycle and scooter) market, with with social protection has declined.
platforms studied in
a third of households owning one.23 A This decline has been accompanied
fourth factor is the supply of venture by an increasing proportion of regular
capital to support the expansion of employment without social protection,
and non-regular employment,
this report.”
the industry.24 Between 2013 and
2019, of a total of US$39.7 billion in especially the casualisation of labour.28
Most platform workers, euphemisticallyLabour Standards in the Platform Economy | 11
The Legal and Policy
Context
Much like in other countries, Indian platform companies and
workers operate within a murky and rapidly evolving legal and
policy context.
Two axes of contention are the be covered by an existing workplace- The dual uncertainties of employment
classification of workers (i.e. are related legislation,39 or whether new status and regulatory classification
they independent contractors/self- legislation was needed to cover gig arguably allow platform companies
employed, or are they employees of workers.40 to make their own rules with respect
the platform?), and the applicability to wages and working conditions.
of sector-specific regulations (e.g. A second issue that affects platform As shown in the rest of this report,
transport or food safety) to platform workers is the classification of the these uncertainties can leave workers
companies which describe themselves platform companies and the range vulnerable. It is imperative that the
primarily as technology companies.29 of entities involved in regulating labour department at the central
different aspects of their operations.41 and state levels, along with other
Being treated as independent Historically, platform companies departments and regulators, come
contractors limits the protections have argued that they are merely together to draft robust legislation and
(minimum wages, working hours, technology platforms.42 But over regulations for platform workers and
gratuity pay), social security time, these companies have been other non-standard forms of work.
(Employees Provident Fund, brought under the purview of certain
Employees State Insurance), and sectoral regulations pertaining to
collective bargaining rights available transportation, food delivery, and other
to platform workers under law, as services. For example, the Food Safety
orders or judgements from the Delhi30 and Standards Authority has issued
and Karnataka31 High Courts have specific guidelines for “ecommerce
indicated.32 Some have even argued food business operators.”43 Similarly,
that, in the absence of regulatory
clarity, worker grievances should
the Motor Vehicles (Amendment) Act,
2019, requires platform companies
“For the most part,
be taken up under the Consumer offering transport services to possess platform work
Protection Act instead, by treating an “aggregator” classification and
workers as “consumers” of the a state license to operate.44 The as a whole has
platform company.33 For the most
part, platform work as a whole has
Motor Vehicle Aggregator Guidelines,
2020, provides a framework of
remained largely
remained largely invisible in the
context of labour laws, including labour
rules for states to regulate the
service conditions and tariffs of the
invisible in the
contracting.34 It was only in 2019 that aggregators.45 These sector-specific context of labour
“gig” or “platform” work even found regulations can also affect the earnings
explicit mention in a labour code. A and working conditions of platform laws. It was only
draft Code on Social Security—the only
one of four proposed labour codes that
workers. Given the range of entities
potentially involved in regulating
in 2019 that ‘gig’
mentions this category of workers35—
was introduced in 2019,36 studied by
platform companies,46 a concern is
that this may take place without a clear
or ‘platform’ work
a Standing Committee and passed demarcation of accountability between even found explicit
by Parliament in September 2020.37 these entities.47 As a consequence, no
There have also been attempts to draft one entity is currently held accountable mention in a
a law for platform work and workers
by states. For instance, Karnataka38
for ensuring workers’ rights or
regulating their working conditions in
labour code.”
initiated discussions in 2019 to this regulatory landscape.
examine whether gig workers could12 | Fairwork India Ratings 2020
Fairwork Scores
Score (Out of 10)*
Urban Company 8
Flipkart (Ekart) 7
Dunzo 4
Grofers 4
Amazon (ATS) 2
Bigbasket 2
Housejoy 2
Ola 2
Swiggy 1
Uber 1
Zomato 1
* The breakdown of scores for individual platforms can be seen at: www.fair.work/ratingsLabour Standards in the Platform Economy | 13
The platform scores in this report longer hours on the platform, these too our study demonstrated sufficient
rely on data gathered using the contributed to extended hours of work. evidence that satisfied all the criteria
Fairwork Framework as laid out Finally, even in cases where platforms for the advanced point.
in the Methodology section. After promised a minimum guaranteed
desk research was conducted, amount to workers, on the condition
workers from all eleven platforms that they were logged on to the
were interviewed,48 and evidence platform for a stipulated duration (and
was collected from the platform satisfied other conditions), earnings
managements of four (namely, Dunzo, fell below minimum wage rates once Fair Management
Flipkart, Uber and Urban Company). fuel costs were taken into account.
Appendices I and II provide further The basic point on Fair Management
details of the evidence used to score was awarded to platforms that
each point, and how it was gathered. demonstrated due process in decisions
affecting workers. Of the eleven
platforms studied, seven offered
Fair Conditions communication channels for workers
that served this purpose, including
A basic point was awarded to helpline numbers, management-
Fair Pay platforms if they were able to mitigate created Whatsapp groups and, in some
risks faced by workers, by offering cases, one-on-one communication
Of the eleven platforms we studied accident insurance while logged in, channels with managers or team leads.
this year, workers on eight earned the safety gear and safety training (paid for However, workers from the other
hourly minimum wage before factoring and conducted by the platform), and four platforms (namely Ola, Swiggy,
in their costs (see Appendix I for having an SOS button or emergency Uber and Zomato), were increasingly
details on how the hourly minimum helpline for workers. There was dissatisfied with the communication
wage is derived). However, there was enough evidence to award the basic channels made available to them. The
insufficient evidence that workers point to seven of the eleven platforms: helpline numbers provided were either
on Bigbasket, Housejoy and Swiggy Bigbasket, Dunzo, Flipkart, Grofers, unresponsive most of the time or had
earned the minimum wage before Housejoy, Swiggy and Urban Company. premeditated responses. Workers on
costs. While within Housejoy, there these platforms added that ID blocks
was sufficient evidence that beauty The advanced point was awarded without warning were frequent, and
workers and home service providers to platforms that went beyond risk that there was no documented process
(electricians, plumbers, technicians mitigation and took active steps to appeal when they were blocked
etc.) earn above the minimum wage, to improve conditions for workers. (see the accounts of ID blocks in
there was insufficient evidence Only Urban Company and Flipkart Workers’ Stories section ). Workers also
that professional cleaning crews, demonstrated sufficient evidence for complained that they had to report the
hired through subcontrators, earn this point. Urban Company provided block at the platform hub in order to
the minimum wage as well. On the health insurance (for top performers be unblocked, which effectively meant
advanced point, workers on Flipkart, in selected categories), redesigned losing out on daily earnings and daily /
Grofers, Ola, and Urban Company equipment to reduce material weekly incentives.
earned the hourly minimum wage handling-related injuries and offered
after accounting for fuel costs (see skill certification, while Flipkart Hub-based platforms fared better
Appendix I for an analysis of other provided career progression programs with regards to the basic point for
costs which are not accounted for in for their delivery workforce. Fair Management. Workers from
our calculations.) platforms like Bigbasket and Flipkart
contacted their hub manager directly if
It is worth pointing out here that pay they faced an issue, and hub-specific
on platforms proved hard to estimate, WhatsApp groups for workers were
with even workers finding it hard to also maintained by the management.
compute their costs and hours of Fair Contracts Housejoy and Urban Company also
work. For one, even where workers maintained category-wise Whatsapp
made the (hourly) minimum wage For Fair Contracts, platforms were groups for their workers. The concerns
criterion, they did so by working awarded a basic point if a contract raised by workers on these Whatsapp
more than the 48 hour work week existed and was made readable, groups were similar across platforms;
(see Appendix I for more details). comprehensible and accessible to workers recalled sorting out navigation
Additionally, on some platforms, workers by the platform. There was issues, order allocations, and how
pay has several components, with sufficient evidence for only Dunzo to deal with rude customers. Urban
incentives constituting a large share. and Urban Company to merit this Company also sent its workers multiple
Since incentives tended to be tied to basic point. None of the platforms in messages if their rating dropped below14 | Fairwork India Ratings 2020
JasonArora / Shutterstock.com
a certain threshold before blocking and training to sensitise workers to the serve as a channel for workers to
re-training them. Their application also issue, and provides separate locker collectively express their opinion about
remained accessible to workers who rooms for men and women. various policies to the management.
were blocked, allowing them to appeal Beyond these examples, there was
the blocking decision. no evidence of platform management
supporting or acknowledging worker
The advanced point for this principle is collectivisation in the platforms
awarded to platforms that demonstrate studied.50 Furthermore, in cases where
inclusiveness by proactively seeking Fair Representation worker strikes had taken place in the
to employ marginalised populations. past (mainly in ride-hailing and food
Only two platforms, Flipkart and Urban The basic point on this principle was
delivery platforms), platforms had
Company, were awarded this point. awarded where there were worker
reacted in different ways. Zomato, for
As detailed in the next section, Urban voice mechanisms and freedom of
example, blocked the IDs of several
Company provided documentation association, and the advanced point
workers who participated in a strike,
of instances when they had publicly where there is evidence of worker
as detailed in the Workers’ Stories
supported their workers who faced collectivisation being permitted.
section.51 Additionally, the Zomato
discrimination. They also agreed to One of the two examples of spaces
contract explicitly states that any
add a no discrimination clause in the or fora for worker voices were the
partner who is found “indulging in acts
customers terms of use. Flipkart, regular, face-to-face meetings that
such as creating ruckus / strike / or any
meanwhile, provided examples of Urban Company conducted with small
activity against Zomato, which could be
initiatives it has established to diversify groups of workers from each service
detrimental to the Zomato’s brand and
its last-mile workforce by proactively category. These meetings were called
its image” will be terminated.52
employing women and physically and run by the management to take
disabled persons.49 It also conducts up worker concerns and facilitate For the advanced point, there was
sensitisation programs for its supply a two-way conversation between insufficient evidence that any platform
chain workers to ensure an inclusive workers and management. The other currently recognised or was willing
working experience for differently was the monthly town hall meetings to recognise worker trade unions.
abled and women workers. Besides its of Flipkart which brought together Overall, none of the platforms showed
zero-tolerance policy towards sexual workers, Team Leads, HR staff and an interest in acknowledging, or
harassment, the platform also provides subcontractors. These meetings encouraging, worker collectivisation.Labour Standards in the Platform Economy | 15
Platform in Focus:
Urban Company Total
Principle 1: Pays at least the local Pays the local minimum 2
minimum wage wage plus costs POINTS
Fair Pay
Principle 2:
Mitigates task-specific risks
Actively improves working 2
Fair Conditions conditions POINTS
Principle 3: Clear terms and conditions
The contract genuinely
reflects the nature of the 1
Fair Contracts are available POINT
empplyment relationship
Principle 4: Fair Provides due process for There is equity in the 2
decisions affecting workers management process POINTS
Management
There is a collective body of
1
Principle 5: Fair Includes freedom of
workers that is recognised, and
association and worker
Representation that can undertake collective POINT
voice mechanism
representation/bargaining
Urban Company overall score 08
Urban Company is an at-home service minimum wage while working (on Successful workers are encouraged
provider platform headquartered in average) a 48-hour working week for to apply for a Recognition of Prior
Gurugram, Haryana. Using its app and most categories of services. It is worth Learning (RPL) certification which
website, Urban Company connects noting, however, that some categories could prove useful towards their career
its customers to the providers of of Urban Company workers, particularly progression. As of February 2020, 70
various services, including beauty, beauty workers, are mandated to buy percent of Urban Company’s workforce
deep cleaning and maintenance work, their equipment and products from had received this certification.
among others. Towards this, Urban the platform.53 This practice increases Urban Company has also redesigned
Company first screens and onboards the costs for workers, although it is equipment to improve worker comfort
service providers (who it refers to as justified by the platform as a means and safety. For instance, massage
“service partners” but whom the report of ensuring standardised service tables were redesigned to make them
will refer to as “workers”, consistent provision. lighter so that workers did not struggle
with the rest of the report), trains them while transporting them to customer
for specific services, assigns them Urban Company has introduced locations. It is for these reasons that
jobs based on customer demand, and several innovative measures in working Urban Company is one of only two
finally, facilitates their payment. conditions. It provides dedicated platforms that scored the advance
training sessions for its workers in point for Fair Conditions.
Conversations with Urban Company several service categories, including
workers and data from the company beauty and massage services, house Urban Company workers are provided
indicate that most workers earn above cleaning and appliance repair, once with an oral explanation of their
the local minimum wage after factoring they sign up with the platform. For contracts during their onboarding
in costs. Amongst the eleven platforms many categories of work, Urban and training. They are also given a
scored in this report, Urban Company Company workers participate in photocopy of the contract to keep.
was the only platform to provide training sessions over ten days and After engaging with Fairwork, Urban
evidence that its workers earn above are evaluated at the end of this period. Company has agreed to translate16 | Fairwork India Ratings 2020
its worker contract into multiple workers and / or by customers.55 of workers are an example. These
languages and notify workers by the For example, Urban Company has worker-centred discussions, one
first quarter of 2021.54 resisted requests from some workers of which the team witnessed, are
to segregate jobs by partner identity hosted either at the Urban Company
Urban Company also offers clear (based on their caste or region) offices or in cafes on the field based
channels of communication for and blocked a customer who did on the convenience of the group.
workers’ grievances, including a not want Muslim service providers. The management has also rolled out
helpline and Whatsapp groups created After engaging with Fairwork, Urban quarterly job satisfaction surveys in
by the management that workers found Company has also agreed to add a no three languages for feedback from
responsive. Where worker accounts discrimination clause in its customers partners on their experience with
are deactivated, workers are still able terms of use. Urban Company and their inputs on
to access the Urban Company app policies they would like changed. While
and raise appeals, a provision that Besides the helpline and Whatsapp such discussions and surveys may
almost no other platform provides at groups that are focussed on individual foster a conversation and participation
present. Though the Urban Company grievances or queries, Urban Company by partners, these fora remain
management is yet to take proactive has also created fora to enable management-led. Urban Company is
steps to employ marginalised groups, conversations between workers and yet to encourage and accept worker-
there were examples that showed that management to discuss collective governed bodies as a channel for
the management had reacted strongly grievances. Regular Focussed Group interaction between partners and
to instances of discrimination against Discussions (FGDs) with small groups management.Labour Standards in the Platform Economy | 17
Workers’ Stories
Antony* hails from Kerala. He is 33 and married city when estimating ride durations, making
with children. Prior to joining Uber, Antony the target number of rides for various incentive
worked as a driver in Saudi Arabia. He returned levels unrealistic. Frequent blocking is another
Antony to India to be closer to his family. His family threat drivers face, with implications for their
resides in Kerala while he stays in Electronic daily / weekly incentives. Antony was blocked
Uber Cab Driver City, Bangalore, sharing a flat with two others. recently from the platform. “A customer had
Uber seemed the best option for him since he complained that my driving was rash and I was
had previously worked as a driver. He also tried immediately blocked. I tried sending them
food delivery for a while, but couldn’t bear the messages and calling them but they were
exposure to the pollution in the city that driving unresponsive. So I had to go to their office, wait
a two-wheeler entailed. in line, and ask them to unblock me only after
which they let me go with a warning.” Falling
When we interviewed Antony on Church Street, incentive rates are a concern as well—the
Bangalore, he told us that he had been driving weekly incentives dropped from Rs 6000 to Rs
with Uber for 17 months. Until a month ago, 2000 during the time he’d been with Uber.
he did not own the car he drove—he leased
the car from Uber’s subsidiary and had to pay Antony pointed out that there are no regular
Rs 17,000 a month for 16 months to clear and reliable channels through which to raise
the lease, which he just had. Antony said he these issues. While he did receive a couple
drives on average for 16 hours a day everyday, of messages about ‘Samaaj’ meetings being
which is in the highest bracket of working hours conducted at the Uber hub, the pressure to
amongst our interviewees. With a sense of meet his monthly lease obligations left him
urgency in his voice, he said, “I needed to clear with little time to attend. Besides, parking
the lease right? So I had to keep driving”. space for all drivers would probably not be
available. Despite moving from Saudi Arabia to
Antony has his share of issues with Uber. He Bangalore to be closer to his family, he finally
complained that the Uber navigation system visited them only last month, after clearing
does not take into account the traffic in the Uber’s lease.
*Names changed
to protect worker
identity
The Road Provides / Shutterstock.com18 | Fairwork India Ratings 2020
JasonArora / Shutterstock.com
Vikrant*, 35, delivers for Zomato in incentives.”
Koramangala, Bangalore. He hails from
New Delhi and previously worked as a hotel While these issues remain, and need
to be resolved, Vikrant says that riders’
Vikrant manager in Bangalore. He later signed up with
Swiggy but left after seven months because dissatisfaction mainly stems from the long
Zomato delivery rider they didn’t pay him enough, and he didn’t working hours combined with the lack of safety
like their mandatory 10-hour login policy. He and benefits. When asked whether Zomato
then moved to Zomato and has been with the provided them any insurance he laughs grimly
platform for the past two years. and says, “Insurance, yeah there is insurance.
After death is confirmed…they roll it out based
As the interview progressed, other riders joined on the priority of the case. I was injured a few
the conversation and we were soon talking to months back while working but they did not
a group of about eight. Most of them are with pay anything because I wasn’t hospitalised.
Zomato (judging by their uniforms) but a couple Recently another boy was injured and
deliver for Uber Eats and Swiggy as well. The hospitalised, they rolled out 1 lakh.”
riders highlight the major issues they have
been facing with Zomato in particular, and the Another Zomato rider adds, “In the meeting 3
food delivery sector in general. or 4 months ago, they told us that if your bike
is punctured, take a rental bike and finish the
One Zomato rider complains about not delivery first. If you meet with an accident, first
receiving orders in areas other than finish the delivery and then go wherever you
their chosen pick-up zone (in his case, have to go.”
Koramangala). As a result of this rule, when
workers deliver food outside of this zone, Vikrant and the other riders mobilised support
they are not allocated any orders on their way via Whatsapp groups and organised a strike
back. Riders thus incur fuel costs on their a few months ago. Their set of demands
return journey, without a means of covering included fixed salaries, fixed working hours and
these costs. Unstable incentive structures benefits like ESI and PF. While Zomato did not
are another concern. When Vikrant brings acknowledge the demands and the protest, the
this up, the other riders immediately agree. platform did block the IDs of the riders who
Vikrant, who has already been blocked twice participated in the strike. The riders say they
by Zomato, says, “If you cancel too many expected this response. As one of them said,
orders you get blocked. If your ID is blocked, “Zomato, Swiggy and Uber are like the Modi
you have to visit the office to get unblocked. government. If you protest, they’ll just shut you
Once you do, you have to start afresh with the up.”
*Names changed incentive structures of a new joinee. But if you
to protect worker Shifting to other platforms in the food
get blocked more than three times, you will be
identity delivery sector is also not a viable option. As
permanently blocked from the platform. We
an UberEats rider points out, “We just wear
think they sometimes just block at random
different colours. But we all work for the same
so that this way, they have to pay us lower
company really.”Labour Standards in the Platform Economy | 19
Theme in Focus:
Precarity
As the report pointed out in an earlier section, precarity—in
the sense of labour and income insecurity, and the lack of
work-based identity—has long featured in the lives of a large
proportion of Indian workers. It is not new, nor unique, to
platform work in India. Yet, the reasons for its existence and
the characteristics it takes on specifically within platform work
merit attention.
Based on worker interviews in Discussions with workers, and other depending on their experience on the
Bangalore, this section highlights data collected, confirms that earnings platform and their relationship with
the form precarity takes in platform on a platform can vary widely across it (how many times they have been
work along these dimensions (to the workers, and by work location and time blocked, or participated in strikes may
extent they overlap with the Fairwork of day. “Incentives” play an important make a difference, for example).58
principles): income insecurity, labour role in bringing about these variations
insecurity (reflected in working in several platforms. Shifts in income Besides all these variations in
conditions, some of which are a depend first on how big a chunk of the incentives in the short run, incentives
result of the ambiguous location of earnings comes from incentives and that were offered to bring workers on
platform companies in the regulatory this is different for different platforms. board have also declined, and often
landscape), and a lack of work-based For instance, incentives could with little notice. For instance, the
identity due to various models of constitute as much as 40-50 percent incentives offered by Ola and Uber
subcontracting by platform companies. of earnings on some of the food when they started their operations
delivery platforms;56 and a lower but in Bangalore in 2011 and 2013
Insecurity in Income still significant percentage for drivers respectively,59 had declined drastically
by 2017.60 Similarly, incentive
of cabs (about 20 percent, based on
The “gig” or “flexible” labels that are interview data). However, they barely structures offered by Zomato and
associated with platform work may played a part in home service platforms Swiggy too had become significantly
suggest that platform workers take on such as Housejoy and Urban Company, less favorable by 2019.61 Indeed,
this work part time or in addition to or for an ecommerce service like many worker strikes and attempts at
other work they undertake. However, Flipkart. organisation among platform workers,
workers were overwhelmingly in various parts of India, since that time
working full time on these platforms Incentive amounts and offers have been related to this drop.62
(with Dunzo, Housejoy, and some also change weekly, monthly and
occupations on Urban Company seasonally, and at short notice: food Labour Insecurity
delivery workers are offered incentives
the exceptions) and were mainly
dependent on the platforms for their during festival seasons and cricket and Precarity in
livelihood. Further, the asset-light matches, but they also vary for less Working Conditions
business model of platforms shifts to predictable reasons such as the
the worker daily expenses like fuel platform’s expansion into new areas or The platform economy as it is currently
and maintenance costs, unexpected investor pressure to stop cash burn.57 structured offers workers no job
costs including traffic fines and towing At any given time, incentive offers also security in the longer term and this
charges, and fixed capital costs. It is vary based on the worker’s registered presents a fundamental precarity
against this backdrop that the nature geographical location within the in their work (conditions). But
of precarity in income for platform city. Furthermore, even at the same conversations with workers revealed
workers must be understood. location, and in the same time period, that they were not assured of a job
incentives may vary across workers even in the shorter term, with workers20 | Fairwork India Ratings 2020
on some platforms, including Zomato, they are subsumed under the their delivery workers both directly69
Ola and Uber complaining that they “unorganised” label or an altogether and through labour contractors such as
had experienced temporary ID blocks new category). Such ambiguities add Blowhorn, Bikeninja and Shadowfax.70
and permanent suspensions without to the precarity of these workers’
the means to appeal these decisions. positions in the labour market. Critics A more recent phenomenon is of data
The growing automation and opacity of argue that the broader landscape of contractors such as Betterplace who
worker management systems further labour regulations in India and recent process worker data for platform
complicates the process of redressal shifts—especially the consolidation of companies. This raises additional
appeal.63 a range of labour laws into four labour concerns about the security and
codes which have been perceived by privacy of worker data. While the data
One of the benefits that is often labour unions and others as diluting collected by platforms from workers
associated with working on platforms existing provisions of these laws for is cause for concern even without
is the “flexibility.” It supposedly offers all workers—further reinforce this subcontracting, concerns about how
workers the ability to choose when precarity.67 worker data is collected, used, stored,
and how many hours they work for shared with or sold to third parties,
and when. While some of the workers
did mention this as an advantage, the
Lack of work-identity or how accessible it is to workers
themselves should they wish to port
interviews also drive home the point and precarity or transfer their work experience
that workers work unpredictable
and long hours to achieve an income
through contracting with other job providers, or check
the veracity of their data, are thrown
that can sustain them. Most workers In addition to the ambiguity of worker into sharper relief with the entry of
interviewed worked much longer classification brought up earlier, there subcontractors.71
than the legally permissible 48 hour- is a further issue around contracts
week (without overtime wages). that emerges for platform workers.
Moreover, these hours were not always Increasingly, components of the
predictable and could also involve long platform supply chain are being
periods of waiting between orders contracted out to entities outside of the
(for which they were not paid). Finally, platform company. Furthermore, these
not everyone had equal control over subcontracting models are still evolving
how long or when they worked. A (and rapidly so). Interviews and desk
female Swiggy worker pointed out that research suggest the prevalence of at
female workers on the platform were least two types of subcontracting: that
automatically logged out at 6:00 pm64 of labour and of data. “Most workers
based on the platform’s belief that this
would ensure their safety.65 Subcontracting of the first type is of interviewed worked
In addition to the long-term health
interest because it further increases
the distance between workers and the much longer
consequences66 of working such long
hours, workers are also faced with
platform, which has implications for
their working conditions, payment, and
than the legally
more immediate health concerns
arising out of accidents and physical
mechanisms of grievance redressal. permissible 48
A van driver for Amazon who worked
harm (including being mugged) during for a contractor said his insurance hour-week (without
the provision of services. The lack of
reliable insurance—and one that is
was determined by his contractor,
who decided not to provide it. A overtime wages).”
not restricted only to severe cases— Swiggy worker who worked through
compounds this issue as the Zomato Shadowfax68 said he was concerned
group interview in the previous section how to reach out to Shadowfax in case
indicated. he had issues with his order. In such
cases, it is also difficult to determine
The very location of platform
at what stage of the order a platform
companies within the Indian regulatory
hands off to subcontractors and
landscape is the reason for some of
whether the customer encounters
this precarity in workers’ conditions.
the platform’s brand or the
As mentioned earlier, it is unclear
subcontractor’s. Furthermore, platform
which laws and regulations cover
companies deploy many of these
platforms (technology only or domain
contracting models in parallel, further
regulations as well), and platform
complicating issues of accessibility
workers (independent contractors,
and accountability for workers. For
employees or self-employed; whether
instance, Amazon and Flipkart hireYou can also read
