Labour codes will boost social security access for gig workers: Eternal

Eternal Ltd on Saturday welcomed the implementation of the four labour codes, which it said will help strengthen the social security access for gig workers, including for it Zomato and Blinkit businesses.

In a regulatory filing, Eternal, the parent entity of Zomato and Blinkit said it does not think the financial impact on account of these rules will be detrimental to long-term health and sustainability of its business.

The government on Friday notified the four labour codes, which have rationalised 29 existing labour laws. These will formalise employment, strengthen worker protection, and make the labour ecosystem simpler, safer and globally aligned.

The four labour codes are -- the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020.

Under the new codes, 'gig work', 'platform work', and 'aggregators' have been defined for the first time.

The codes stipulate that aggregators must contribute 1 to 2 per cent of the annual turnover, capped at 5 per cent of the amount paid/payable to gig and platform workers.

"The consolidation of labour laws provides clearer, more uniform, and consistent rules, which supports both the country and our ecosystem. One of these four labour codes is Code on Social Security, 2020 (CoSS) which helps strengthen the social security access for gig workers across the country, including those who power our Zomato and Blinkit businesses," Eternal said.

A unified, nationwide framework brings much-needed uniformity for gig workers, and at the same time improves ease of doing business for platforms and is a step in the right direction, it added.

Eternal said it is deeply committed to the wellbeing of gig workers and already provides a range of comprehensive insurance and welfare benefits, free of cost.

"We are committed to supporting measures that further improve outcomes for gig workers and hence welcome this announcement," the company added.