Taking up gig work? Here are a few things to keep in mind

There are certain aspects of gig work that every candidate should weigh before taking up this kind of work. (Illustration by Suneesh K)

As mass layoffs hit employees hard across sectors, headhunters say there is a silver lining. If they wish to, those who have lost their jobs can take up gig work, which promises greater flexibility. A Razorpay report has highlighted that many companies have begun hiring gig workers in addition to permanent employees.

NITI Aayog defines gig workers as those who are employed “outside the traditional employer-employee arrangement”. These workers broadly fall into two categories: platform and non-platform-based workers.

While platform workers are those whose work is based on online applications or digital platforms, non-platform workers are usually casual wage workers and own-account workers in conventional sectors, working either part-time or full-time.

Both kinds of workers are on contract, which need to be thoroughly reviewed and understood, especially by gig workers, before being signed.

Indeed, there are certain aspects of gig work that every candidate should weigh before taking up this kind of work.

Sign transparent contracts

Gig workers should only sign formal contracts in which the terms and conditions (T&C) are transparent and clearly understood by them, says Suyash Srivastava, Partner, DSK Legal, a law firm.

“It should not be in a form wherein they are compelled to accept the terms and conditions in the form of a pop-up appearing on the application,” he added.

Srivastava says clauses such as payment of minimum wages, social security benefits and medical and accidental insurance should be provided for in such formal contracts. “There may be additional costs involved if such benefits are accorded; however, it will ensure the creation of a healthy gig ecosystem that will benefit the workers as well as the organisation.”

The T&C document is critical, especially for blue-collar gig workers. For example, if a client is paying a gig worker for house help, it is not uncommon for the client/customer to make the worker put in extra labour/overtime for a lower cost or no cost, says Manish Singhal, Founder & CEO, Gigzeu, a platform for domestic workers in gig mode.

“With the help of T&C documents, the rights of the blue-collar workers can be safeguarded,” he adds.

Discuss the earnings potential

For gig opportunities in the frontline workspace, one aspect that candidates should primarily consider before taking up the gig work is the earnings per hour potential, says Nilabh Kapoor, COO of Workforce Fulfilment & Enterprise Business at BetterPlace, a blue-collar workforce management firm.

As earning potential in the frontline workspace is far more granular and delivery dependent, it becomes imperative for candidates to assess the monetary value that it brings in on a daily, weekly or contractual basis, he adds.

For instance, a delivery worker should always check with the client on the assured benefits or minimum guarantee that can be expected after executing the work. On the other hand, for a salesperson, whose work is more performance-driven, securing a prior understanding of the leads and incentive structure available is of greater importance, explains Kapoor.

Another important point is the travel allowance and the distance it covers.

“For travel beyond a certain distance, how will the gig worker be reimbursed or incentivised? That should be checked with the client in advance,” says Kapoor.

Go through the Code on Social Security

Unlike full-time jobs, which guarantee minimum wages, bonuses, provident fund contributions, gratuity etc, gig work often does not come with such benefits due to lack of enforcement, warns Himesh Thakur, Senior Associate, PSL Advocates & Solicitors, a law firm.

However, to cover up the lacuna in the previous legal regime, Thakur says the Code on Social Security, 2020, recognises both gig workers and platform workers through distinct statutory definitions that have been incorporated into the Code.

“Thus, gig or platform workers must be alive to the statutory benefits that can be claimed by them under the Code, after satisfaction of the necessary prerequisites,” says Thakur.

Once the prerequisites are met, Thakur says gig and platform-based workers will be entitled to a slew of social security schemes formulated by the Central government, such as life and disability cover, accident insurance, health and maternity benefits etc

Therefore, platform-based workers such as social media influencers, travel vloggers, and food bloggers will be entitled to a variety of benefits under the social security code, provided they are aware of the same, he adds.

Join sectors that depend on gig workers

Depending on the industry, there are a plethora of resources and platforms designed to help them get started and stay profitable. Experts say candidates can consider joining existing businesses that depend on gig workers to drive business, such as ride-sharing businesses, e-commerce deliveries etc.

“Contemplating and discussing which sector to join while entering the gig economy is important so that candidates can hone their skills and abilities in the best way possible,” says Sidharth Agarwal, Co-Founder and Director of staffing firm Spectrum Talent Management.

For instance, he explains, if a candidate offers a content service such as writing, editing or graphic design, or a financial service such as accounting or tax consulting, he/she can contract directly with companies and clients.

“Understanding how you want to use your skills and abilities is the first step to joining the flexible workforce,” Agarwal says.