Are Gig Workers Being Left Behind: A Social ESG Perspective

Authors – Barron Lau Jia Jie, Deepthi Saravanan, Maximarth Ybañez, Noholie Bonnerjee, Raseen Mohsina Shah, Tejal Karad

1. INTRODUCTION

Merriam-Webster broadly defines the gig economy as “economic activity that involves the use of temporary or freelance workers to perform jobs typically in the service sector.” However, other definitions also include workers outside the service industry who work on a contract, including freelance writers, Ola, Uber, Zomato drivers, and graphic designers.

The gig economy in India has witnessed rapid growth over the past decade. Post-2015 platforms like Swiggy, Zepto, Rapido, and Instamart have achieved high employment rates. Adding on, the gig economy played a major role in maintaining urban life due to the COVID pandemic. With the rapid expansion of this economy, this study has great relevance in contemporary times.

This article analyzes key factors such as the working conditions, mental health and well-being, access to social benefits, and the level of inclusion of minorities and marginalization in the economy for a better understanding of the daily challenges faced by workers while contributing their part to this sector. Most research attempts to highlight the economic benefits of the gig workers while ignoring the social aspect of the ESG. Therefore, it becomes important to bring the social perspective of the ESG for better policy implementations in the future.

2. ANALYSIS OF THE SOCIAL CONDITIONS OF THE GIG ECONOMY UNDER ESG

2.1 Working Conditions & Basic Rights

The gig economy in India is expanding rapidly, with various platforms, including Zomato, Swiggy, and Uber, offering various job opportunities with minimal qualifications. However, at the same time, there exists a gap between the ESG laws that were promised and implemented. Suresh Chand Agarwal’s research on gig workers in India presents an overview of the gig economy system that lacks social security and skill alignment, reinforcing the need for proper implementation of policies and schemes such as E-shram and Code on Social Security. Similarly, Purain and Madhavi’s study on navigating the gig economy, exploring challenges and motivations for the well-being of Gen Y and Gen Z workers, found that flexibility motivates workers, but insecurity harms well-being.

Gig workers in India face a lot of issues, including overtime, which comes up to 12 hours a day, covering up to 100 km, which leads to both mental and physical exhaustion. The main key advantage is flexibility, due to which workers face a lot of challenges. Several workers join the gig economy due to the loss of jobs and financial pressure. Initially, the workers appreciated the lack of a formal boss, but over time, they experienced instability, lack of transparency, and lack of implementation of existing laws, adding more problems, leading to unstable lives. Irregular payments and app errors are common problems faced by workers. They are more concerned about safety, especially during night shifts or when dealing with aggressive customers. Support and grievance redressal mechanisms are unresponsive. The lack of dignity and respect for them in society remains an area of focus. Gig workers are not entitled to benefits like maternity leave, overtime pay, and provident funds etc. This remains a critical area of concern.

Though schemes like E-shram and ode on social security exist, there lies a gap between proper implementation, which is ineffective on the ground level. The economic instability of the workers makes them more vulnerable to exploitation. Absence of skilling initiative results in la ack of upward mobility in the lives of gig workers. Therefore, there is an urgent need to update and implement laws to protect the rights of the gig workers, including regulating proper working hours, fair and equal wages, and basic worker benefits.

2.2 Access to social benefits

Gig workers in India have difficulties in enjoying their rights and access to social security. They do not enjoy the same social security benefits as other regular or formal employees because they are mostly considered as “contractors” and not as “employees” (Chand, 2023). In effect, gig workers are excluded from important benefits for their integral development such as health insurance, paid vacations, sick leave, retirement savings, and unemployment protection. This ends up increasing their financial vulnerability, while generating weak bargaining power and exposes them to greater health and safety risks (Dwivedi and Deepak, 2024; Sanjaya and Kumar, 2024; Gaurav and Sharma, 2023).

This situation ought to be addressed. To begin with, some platforms have provided limited benefits, such as health insurance and accident coverage, which fall short of meeting the broader needs of workers (Berg 2021, cited in Dwivedi and Deepak, 2024). Next, what would come to be the most important effort, on the part of the Indian government, is the implementation of the Social Security Code of 2020, as amended in 2022. According to this document, social security comprises “protective measures provided to employees, unorganized workers, casual workers and platform workers to ensure access to health care and provide income security, particularly in cases of old age, unemployment, sickness, disability, industrial injury, maternity or loss of breadwinner, using the entitlements and schemes provided” in the Code (Beevi, 2024).

However, the Code has been shown to present difficulties in its implementations, failing to live up to workers’ expectations (Gaurav and Sharma, 2023). In fact, after its launch in 2020, strikes by gig workers took place in 2022 to claim excessive working hours and access to labor benefits (Beevi, 2024). One of the challenges is with respect to social security registration for workers. Their legal title remains ambiguous when it comes to identifying and distinguishing them from other workers. As a result, temporary workers have difficulty accessing the benefits offered by traditional programs (Dwivedi and Deepak, 2024).

Another challenge is the mandatory linkage of AADHAAR, whereby it becomes mandatory to link this document to receive social security benefits. This encourages discrimination in that it ignores the fact that still a small portion of rural India does not have access to AADHAAR. Thus, those who do not receive this document or do not link it to their cell phones are excluded from benefits. Continuing with the challenges, Chapter VI of the Parent Act of the Social Security Code indicates that maternity benefits are extended to traditional female employees under Chapter VI of the Parent Act. However, this provision does not apply to delivery workers classified as independent contractors. Thus, insecurity is created for women in these sectors, as they are excluded from receiving benefits such as an average daily wage and other related benefits (Beevi, 2024).

2.3 Gender-based Experiences

In the past decade, the gig economy, which involves tasks that can be done flexibly, has grown much more in cities and digital job markets. Although there are many advantages to self-employment, the ESG framework is increasingly expected to deal with obvious gender imbalances within the field.

In the gig economy, women experience difficulties mainly because of traditions, cultural barriers, and the design of online platforms. It means that women are more likely to work in low-income tasks like cleaning homes and tutoring, yet fewer women do reputable and highly paid delivery and ride-sharing jobs, as the data from the ILO indicates (2021). As a result of this occupational breakdown, inequality of incomes keeps recurring. The problem is made worse because there are not enough guidelines against discrimination that can be enforced.

Concerns about their well-being generally affect women’s ability to be part of public life. Fairwork Foundation survey suggests that some female workers opt to avoid night work as it may be too risky for them in India, Brazil, and South Africa. Most platforms fail to include useful safety options such as emergency helplines, validated customer IDs, and designated places to share complaints. These problems go against the “S” (Social) part of ESG by not providing workers with dignity, fairness, and a proper working environment.

Moreover, since digital platforms tend to be designed for everyone, they ignore concerns such as maternity leaves, menstrual sick days, and taking care of family, all of which mainly impact women working in the gig industry. Since platforms for gigs don’t offer parental support, women are often required to withdraw or work less, which negatively affects their long-term security in the economy (Chaudhary & Banerjee, 2022).

Things become more complicated due to the effect of intersectionality. This is why women from marginalized groups like the Dalit, tribal, migrant, or LGBTQ+ are especially easy targets for people who take advantage of them. Such frameworks ought to use inclusive metrics to address these difficulties, make sure diversity, equity, and inclusion (DEI) indicators appear in their reports, and help repair these inequalities.

For the gig economy to meet ESG requirements, gender checks in organizations, clear disclosure of payroll, rules for preventing harassment, and improving women’s skills should be mandatory. Businesses operating in the gig economy should change from focusing on profits to protecting the careers of those who work for them. Today, including concerns about gender equity is mandatory in reviewing digital labor platforms for ESG, and this is essential to maintain sustainability and justice in the economy.

2.4 Mental Well-being of Workers

While the flexibility of the job attracted large employment in the sector, the Organization for Economic Co-operation and Development (OECD) states that the majority of the gig workers face complexities, including psychological challenges. With no time to breathe, especially on weekends, they are burdened with time constraints and workload, only to be compensated after task completion (Lee Woon, Cheah Sze, Cheah Ying, Yeo Fern, et al. 2023). Additionally, they confront financial instability due to unstable wage systems, lack of work-related benefits, identity issues stemming from the absence of organizational support, and emotional difficulties such as isolation and anxiety (Mukherjee and Datta et al., 2024).

The excessive burnout due to increased job dissatisfaction is one of the severe work-related challenges among gig workers. Though there is a direct connection with digital platforms connecting freelancers, clients, and companies, the management of proper work-life balance becomes challenging (Mukherjee and Datta et al. 2024). The provisions for holidays and leaves become available only for educated workers due to their awareness. However, the uneducated workers are left with no added value, only to be driven by the spirit of living. Along with these, work insecurity became a significant hazard, limiting the progress of the worker’s career and salary. These complexities lead to a negative influence on the worker’s mental health, both in the immediate and long term (Taylor, Djik Van, Newnam, Sheppard, et al. 2023).

When compared with the fully employed population, the mental health of the gig workers seemed miserable due to a lack of job security and worsening working conditions with incompatible wage systems. However, a contrasting image is created when compared to the unemployed section of society. Mental health was seen in a stable condition due to factors such as employability and earnings. The gender difference in motivation for work in the gig economy was also believed to be negligible by Tyagi (July-September 2024) based on extensive research and assessment. Therefore, the mental well-being of the gig worker is largely based on factors such as organizational behavior and the employment of human resources, as it can have either positive or negative psychological impacts.

2.5 Positive Impacts from the Financial Markets

The burgeoning gig economy, characterized by flexible, short-term work arrangements facilitated by digital platforms, has fundamentally reshaped the global labor landscape. While discussions often center on the precariousness of gig work and the social safety net, it is crucial to recognize the significant, albeit often indirect, positive impacts that financial markets have exerted on this sector. From a social Environmental, Social, and Governance (ESG) perspective, financial markets have been instrumental in fostering the growth of gig platforms, driving financial innovation for workers, and increasingly, nudging companies towards better labor practices, thereby offering new avenues for inclusion and opportunity for gig workers.

Firstly, the very existence and explosive growth of the gig economy are inextricably linked to the capital provided by financial markets. Venture capitalists, angel investors, and later public markets through Initial Public Offerings (IPOs) have poured billions into gig platforms like Uber, Grab, and DoorDash. This infusion of capital is not merely a profit-driven endeavor; it directly enables these platforms to scale their operations, invest in technology, and expand into new geographies and service sectors. For gig workers, this translates into a vast expansion of income-generating opportunities that might not have existed otherwise. The ability of platforms to reach a wide user base and offer diverse tasks, from ride-hailing to food delivery and freelance professional services, is a direct consequence of the significant financial backing they receive. Without robust financial markets providing the necessary funding, these platforms would struggle to achieve the network effects and operational efficiency that underpin their ability to connect millions of workers with demand, thus limiting the reach and scope of gig work (Gregory & Buchak, 2021).

Secondly, financial markets, particularly through the rise of FinTech, have spurred significant financial innovation tailored to the unique needs of gig workers, thereby enhancing financial inclusion. Traditional banking models often struggle to accommodate the irregular income streams and lack of traditional employment verification common among gig workers. However, driven by the investment and innovation within financial markets, specialized FinTech solutions have emerged to address these challenges. These innovations include instant payout capabilities, allowing gig workers to access their earnings immediately rather than waiting for traditional payroll cycles, which significantly alleviates cash flow challenges and financial stress (Thunes, 2025; FinTech Strategy, 2025). Furthermore, some platforms and FinTech companies, backed by market funding, offer micro-loans, expense tracking tools, and even access to credit-building products based on alternative data like earnings history and payment behavior, rather than traditional credit scores (Avibra, 2024; Samsung Insights, 2024). This enhanced access to financial services empowers gig workers to manage their finances more effectively, build resilience against income fluctuations, and invest in necessary equipment or skills, ultimately improving their financial well-being and agency.

Thirdly, the growing prominence of ESG investing is increasingly influencing gig platforms to adopt more worker-centric practices, demonstrating a positive, albeit evolving, social impact. Investors, particularly institutional ones, are placing greater scrutiny on the “S” (Social) component of ESG, which includes labor practices, worker welfare, and fair treatment. While challenges remain, the increasing pressure from ESG-conscious investors means that companies seeking capital or aiming to maintain investor confidence must increasingly demonstrate their commitment to social responsibility. This can translate into platforms exploring portable benefits models, offering training programs, or improving transparency regarding worker earnings and conditions (AllianzGI, 2025; ResearchGate, 2025). Although the direct influence of minority ESG funds on highly concentrated ownership structures in Asian markets might be limited, public criticism and engagement strategies can still sway “symbolic companies” sensitive to reputational damage (Oxford Law Blogs, 2025). As the market for sustainable investments expands, the financial imperative to demonstrate good social governance could compel gig platforms to proactively address worker concerns, moving beyond mere compliance to genuinely embedding workers’ welfare into their business strategies.

In conclusion, while the gig economy undeniably presents challenges concerning worker protections and benefits, financial markets play a pivotal role in its positive evolution from a social ESG perspective. By providing the essential capital for platforms to grow and innovate, enabling tailored financial solutions that enhance inclusion for gig workers, and increasingly, by exerting pressure through ESG investing for better labor practices, financial markets are not merely detached entities. Instead, they are active facilitators of opportunity, driving technological advancements that empower individual workers with greater financial control and access. As the gig economy continues to mature, sustained attention from financial markets, particularly through the lens of social responsibility, will be crucial in ensuring that its growth is inclusive and contributes positively to societal well-being.

2.6 Inclusion of the Minorities & the Marginalized Communities

The minority and marginalized communities face significant sociological disparities in the gig economy in India. These workers often face insecure employment characterized by low wages, long hours, and a lack of social security, as a result of their socio-economic status. A substantial portion of marginalized workers relies on informal financial institutions, which can perpetuate cycles of poverty and limit economic mobility (Prabhakar et al., 2014).

The rise of the gig economy in India has become a significant source of employment for many individuals, including drivers for ride-sharing services like Ola. This sector has provided flexible job opportunities but also comes with inherent vulnerabilities (Mehta, 2022). The exploitation faced by gig workers was exacerbated during crises like the COVID-19 pandemic. Gig workers often lack job security, benefits, and protections, making them particularly vulnerable during economic downturns. Research finds that gig workers, especially ride-sharing service drivers, faced exploitation from employers during the pandemic. Many drivers reported unfair practices, such as reduced pay and lack of support from the platform, which added to their vulnerability during this crisis.

The Digital India initiative, launched in 2015, aims to create a digitally empowered society and economy in India. However, it has not successfully reached all segments of society, particularly the Scheduled Tribes (STs), who face significant barriers to accessing digital services. Many STs lack the necessary digital literacy and skills, which are crucial for navigating the internet and utilizing digital services effectively, especially if you are a part of the ever-growing gig economy.

Research suggests a limited understanding of how workers with disabilities engage with gig economy platforms. They emphasize the importance of exploring their experiences to foster inclusivity in labor platforms. Most of the challenges faced by women and racial minorities are characterized by algorithmic control and bias. Gig platforms heavily rely on algorithms for managing workers, perpetuating biases against racial, ethnic minorities and women. This leads to unfair treatment and additional emotional labour demands (managing feelings to fulfil the emotional requirements of a job).

On the other hand, some argue that the gig economy offers flexibility and opportunities for income generation, which can be beneficial for marginalized individuals seeking alternative employment avenues. However, this perspective often overlooks the systemic issues of exploitation and insecurity that prevail in these roles. The LGBTQ+ community encounter additional risks due to stigma in workplace settings. A positive aspect of the gig economy could be that LGBTQ+ individuals may have more control over their work circumstances, allowing them to choose contracts and clients or to leave unsafe situations more easily (Kavenagh et al., 2024).

The absence of formal recognition in labour laws further marginalizes these workers, limiting their ability to advocate for better conditions (S & V, 2023). Therefore, legal frameworks should focus on promoting their agency and safety in the context of economic vulnerabilities. Some companies are leading efforts to create inclusive environments, recognizing that diversity can enhance business performance.

3. RECOMMENDATIONS

One of the major recommendations for developing a better work environment for gig workers is to enhance the payment system to motivate them and appreciate their work in the current economic climate through organizational equipment and benefits. This involves providing safe working conditions such as safety kits, jackets, helmets, and 24/7 emergency support, especially for those who work during the night shift, alongside other social benefits.

Another core problem, which should be addressed, is the lack of connectivity of the organizations within the gig workers. A collective organization must be encouraged by formally recognizing workers’ associations and ensuring their participation in decision-making spaces. They should also make an efficient team or a department that will be involved in the matters of gig workers. Accountability and transparency for the issues faced by these workers, such as compensation for extra hours at work, should also be addressed within these organizations, through conducting routine audits for discriminatory results, and incorporating ethical AI principles. A collaboration between the government, organizations, and NGOs through initiatives such as training for soft skills, language, and digital literacy needs to be exercised for value addition to their jobs.

To improve gig workers’ access to social security in India, it is necessary to reform their legal classification, recognizing them as a distinct category beyond independent contractors to ensure access to essential benefits. The government should acknowledge and implement welfare schemes for gig workers, along with setting up more co-working places, even in tier-II cities. The process of linkage to AADHAAR should be made more flexible to avoid excluding workers from rural areas. The Social Security Code should be able to clarify the status of platform workers and create mechanisms to monitor its enforcement.

Workers from lower socio-economic strata often experience discrimination, which compounds their challenges in the gig economy (Pankaj & Jha, 2024). Gig workers from marginalized communities need to be officially recognized as employees under Indian labour laws to guarantee protection and inclusivity. They should benefit from social welfare programs, such as housing subsidies, pensions, and health insurance, for an improved livelihood. Gender-sensitive provisions must be incorporated to extend maternity benefits to women delivery workers.

Additionally, tailored contributory schemes that reflect the income fluctuations of gig workers should be developed, alongside co-financing obligations for platforms. Initiatives should aim to provide affordable financial services to Scheduled Castes (SCs), Scheduled Tribes (STs), and religious minorities, reducing poverty and enhancing economic participation. Anti-discrimination policies, diversity sensitization training, and strong grievance redressal procedures can lessen workplace stigma and emotional labour, particularly for women and LGBTQ+ employees. Promoting unions or worker collectives can also improve workplace safety and collective bargaining. Racial, caste, and gender biases are frequently reinforced by platform algorithms. To stop bias against women, LGBTQ+ people, and ethnic minorities, platforms should be compelled to guarantee algorithm transparency.

4. CONCLUSION

Implementing ESG principles in the gig economy means dealing with challenges and finding new opportunities. We covered many aspects of social life, for example working rights, social security, mental health, inclusion, and gender issues, with ESG factors in mind. The results show that the gig economy offers a lot to many, but it doesn’t usually promote social fairness or workers’ dignity.

Because of changing work conditions, inadequate access to healthcare, issues connected to being a minority, and stress, gig work’s social sustainability is weak. Since digital platforms are not usually regulated, they can skip following labor laws, putting the risk on workers, especially those who are already having difficulties. Frameworks for ESG were originally meant to rate the ethics of companies but now should consider the different aspects of platform-based labor.

The changes in the financial industry are closely affected by investors and regulators. When ESG factors are considered in investing, financial markets can urge platforms to change for the better and explore more inclusive ways of operating. At the same time, governments and civil society should oversee the situation, make sure policies fit together, ask for transparency, and recognize gig workers in the labor system.

To sum up, a responsible gig economy comes from being both compliant and conscious. To be true, ESG policy must be based on what workers experience, mainly those who come from underrepresented and vulnerable communities. Since technology is changing the way people get jobs, we should make sure social justice is the base and not just a side issue in the new digital economy.

Contributions-

Barron Lau Jia Jie- Positive impacts from the financial markets
Deepthi Saravanan- Working Conditions and Basic Rights, Introduction
Maximarth Ybañez- Access to Social Benefits
Noholie Bonnerjee- Mental Health and Well-Being of Workers, Introduction
Raseen Mohsina Shah- Inclusion of marginalized and minority communities, Introduction
Tejal Karad- Gender-based experiences, Conclusion