• by  Sreel Shah
• Gig Economy

Gig Economy and Flexibility it offers

What is the so-called "gig" economy, a phrase increasingly in use, and seemingly so in connection with employment related news?

According to one definition, it is "a labour market characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs".

While another definition goes as “A gig economy is a free and global market where companies and contractors (independent workers) set short-term and on-demand professional relationships that are both flexible and skill-based”

The latest attempt to bring a degree of legal clarity to the employment status of people in the gig economy has been beneficial. Gig workers should be entitled to basic rights, including holiday pay and many more rights, which will be discussed further in article. Flexibility - In the gig economy, instead of a regular wage, workers get paid for the "gigs" they do, such as a food delivery or a car journey. However, now a days it is not limited to the blue-collar jobs, but it has also gained a lot of traction into technology jobs and technology offering gigs are rising.

 An example of flexibility, Gig Economy is offering is of UK. In UK alone, it's estimated that five million people are employed in this type of capacity. Jobs include couriers, ride-hailing drivers and video producers. Proponents of the gig economy claim that people can benefit from flexible hours, with control over how much time they can work as they juggle other priorities in their lives. In addition, the flexible nature often offers benefits to employers, as they only pay when the work is available, and don't incur staff costs when the demand is not there.

The problem which arises here is workers in the gig economy are classed as independent contractors. That means they have no protection against unfair dismissal, no right to redundancy payments, and no right to receive the national minimum wage, paid holiday or sickness pay.

On a positive note, last October Uber drivers in the UK won the right to be classed as workers rather than independent contractors. The ruling by a London employment tribunal meant drivers for the ride-hailing app would be entitled to holiday pay, paid rest breaks and the national minimum wage.

The article in mint says - India’s gig economy is still at a nascent stage, but the young and not-so-skilled flexi workforce will gradually shift to better-paid and more productive work, the report said. “We estimate that the gig economy has the potential to service up to 90 million jobs in India’s non-farm economy alone, transact more than $250 billion in volume of work, and contribute an incremental 1.25% approximately to India’s GDP over the long term."

Gigs are creating a new form of economy that is believed not only to sustain but grow to 1.5 Trillion USD by 2025.

Dignifiedme.com is tapping in to Gig Economy – by offering pre vetted and qualified freelance Professionals to startups who can not afford hiring permanent employees and to established enterprises who are looking to explore the way how contract base projects works and do marvels.

Reference: Unlocking the potential of the GIG Economy in India by Boston Consulting Group (BCG) & Michael and Susan Dell Foundation and other internet references.

Image Credit: Freepik.com 

About Author: Sreel Shah is an HR intern at Dignifiedme Technologies. Sreel loves writing blogs and playing chess. He is currently pursuing his Masters in Human Resource Management from M.S. University, Vadodara. You can reach out to Sreel on his Linkedin and follow Sreel for exciting freelancing opportunities on Dignifiedme.com. 

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