ST Technologies Pvt. Ltd., a digital platform company running an online food delivery application across several metropolitan cities, engages a large number of delivery partners to deliver orders placed through its platf
CS Professional · Labour Laws and Practice · PYQS · June 2026
ST Technologies Pvt. Ltd., a digital platform company running an online food delivery application across several metropolitan cities, engages a large number of delivery partners to deliver orders placed through its platform. The company maintains that these delivery partners function as independent contractors associated with the platform and therefore are not eligible to receive statutory social security benefits. A group of delivery workers disputes this position and contends that, considering the nature of their work and their dependence on the platform, they should be treated as eligible beneficiaries under the statutory framework governing gig and platform workers. Accordingly, they submit a representation before the competent authority seeking coverage under the relevant social security schemes established under the Code on Social Security, 2020. Examine the legal issues involved and determine whether such delivery personnel can claim social security protection under the Code on Social Security, 2020.
Answer & Explanation:
The issue must be examined under the provisions of the Code on Social Security, 2020, which expressly recognizes gig workers and platform workers within the social security framework. Under Code on Social Security, 2020, a platform worker means a person engaged in or undertaking platform work. Whereas, platform work means a work arrangement outside of a traditional employer-employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment. Food delivery personnel engaged through an online food delivery application therefore fall within this statutory definition. Further, Section 114 of the Code on Social Security, 2020 empowers the Central Government to frame social security schemes specifically for gig and platform workers, including benefits relating to life and disability cover, accident insurance, health protection, maternity benefits, crèche and old-age protection. The Code further provides for the registration of such workers on a designated portal in order to avail these benefits. The platform aggregator is also required to contribute a prescribed percentage of its annual turnover toward social security funds for gig workers and platform workers. Hence, the company cannot deny coverage merely by labeling the workers as independent contractors. The delivery workers are entitled to seek registration and inclusion in social security schemes under the Code on Social Security, 2020.
Topics: Code on Social Security, 2020
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