Labour codes will unlock far-reaching benefits for workers: Swiggy

On-demand convenience firm Swiggy Ltd on Saturday termed the newly notified labour codes as a "transformative step" that will unlock far-reaching benefits for millions of workers.

While supporting the government's vision of a modern and inclusive social security net, in a regulatory filing, Swiggy said it does not anticipate any material impact from the CoSS (the Code on Social Security, 2020) on its business sustainability, cost structure, or long-term financial performance.

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.

Under the new codes, 'gig work', 'platform work', and 'aggregators' have been defined for the first time. The codes stipulate that aggregators employing gig workers must contribute 1-2 per cent of annual turnover to social security, with the total contribution not exceeding 5 per cent of the amount payable by the aggregator.

"This reform represents a landmark restructuring of India's welfare and regulatory architecture, a transformative step toward building an inclusive, coherent, and future-ready social-security framework that extends across formal employment, the unorganised sector, and the rapidly expanding platform economy," Swiggy said.

The company further said, "We recognise the significance of this moment and the far-reaching benefits these reforms can unlock for millions of workers." 

  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.

Referring to the Code on Social Security, 2020 (CoSS), Swiggy said it is a welcome development that brings much-needed uniformity, clarity, and predictability to all stakeholders.

"The framework is expected to simplify and strengthen benefit access for workers on digital platforms, while also easing compliance for enterprises operating across diverse geographies," it added.

Stating that the detailed financial and operational contours of CoSS will be fully understood once the government notifies the corresponding rules, the company said, "We remain focused on readiness." 

  Swiggy further said it is strengthening its digital systems and internal processes to integrate the new requirements into its operating model seamlessly.

"Based on available information, we do not anticipate any material impact of CoSS on our business sustainability, cost structure, or long-term financial performance," it added.

The company also welcomed the government's commitment to engage with industry participants, platform companies, worker groups, and state governments to ensure that the rules are practical, implementable, and aligned with the operational realities of the digital economy.

"Swiggy welcomes this inclusive approach and has constructively participated in industry dialogues and submissions over the years. We will continue to support the consultative process so that the final regulatory architecture is robust, scalable, and beneficial to all stakeholders," it noted.

Stating that its commitment to the welfare of delivery partners has been long-standing, Swiggy said, "guided by the principle that platform workers should have access to essential protections irrespective of formal classification frameworks, we have, at no cost to partners, extended accidental insurance, health-insurance access, maternity benefits, and a range of welfare and financial-resilience programmes."  These initiatives reflect the company's belief that the platform economy must grow responsibly, humanely, and in alignment with long-term societal wellbeing, it noted.