Question

The Code on Social Security, 2020 has for the first time extended social security benefits to which group of workers, who were not formally recognized earlier?

• A. Bank employees
• B. IT employees
• C. Gig workers
• D. Railway staff

Hint:

The Code on Social Security, 2020 is the first major Indian labour legislation to formally recognize:

• Gig Workers

• Platform Workers

• Unorganized Workers
Remember: \[ \text{Food Delivery Apps} \rightarrow \text{Gig Workers} \] \[ \text{Ride-Hailing Platforms} \rightarrow \text{Platform Workers} \]

Answer 1

The Correct Option is C

Concept: India's labour law reforms sought to modernize employment regulations and accommodate new forms of work emerging in the digital economy. Traditionally, social security legislation primarily covered workers engaged in formal employer-employee relationships. However, the rapid growth of platform-based and app-based work created a large workforce that remained outside the scope of conventional labour welfare protections.

Step 1: Understand the purpose of the Code on Social Security, 2020. The Code on Social Security, 2020 consolidated several existing labour welfare laws into a single comprehensive framework. Its objective was to extend social security coverage to a wider category of workers and simplify compliance mechanisms for employers and workers alike.

Step 2: Identify the new category recognized under the Code. For the first time in Indian labour legislation, the Code formally recognized:

• Gig Workers

• Platform Workers

• Unorganized Workers
A gig worker is generally a person who performs work outside the traditional employer-employee relationship and earns income through temporary assignments, freelance engagements, or digital platforms. Examples include:

• Food delivery partners.

• Ride-hailing drivers.

• Freelance professionals.

• App-based service providers.

Step 3: Examine the social security benefits envisioned. The Code empowers the government to formulate schemes relating to:

• Life and disability cover.

• Health and maternity benefits.

• Accident insurance.

• Old-age protection.

• Other welfare measures.
These protections were specifically designed to address the vulnerabilities of workers operating in the gig economy.

Step 4: Eliminate the incorrect options.

• Bank employees already enjoyed organized-sector social security protections.

• IT employees were covered under various labour and social welfare laws applicable to formal employment.

• Railway staff have long been protected through government service rules and welfare schemes.
The major innovation of the Code was the formal recognition of gig workers and platform workers. Therefore, Option (C) is correct.