Gig Economy: A Guide To Drafting Contracts And Resolving Issues
10XTD | There can be no denying that India’s gig economy is witnessing a steady growth. This boom, also acknowledged by the Government of India, has prompted the need to bring in a new social security Code to protect gig workers of the country.
The Code, once implemented by the government, will be the first of its kind, as gig workers in India are currently not covered under any Indian law. The only legal recourse available for them is under contract laws, placing reliance on the contracts signed with clients for protection of their rights.
The Importance Of Contracts In A Gig Economy
In India, like all other employment contracts, a gig contract is also governed by the Indian Contract Act, 1872. As per this Act, when a contract is broken, the party who suffers is entitled to receive compensation for any loss or damage caused to them by the party who has broken the contract.
Because of the absence of any other legal protection, gig workers should ideally pay attention to even the minutest of details in contracts. Drafting or reading a contract can be tough in the beginning and so it can be a good option to consult an experienced person, like a legal or recruiting expert.
Even though a gig worker may have exchanged emails with the client, regarding work and payment details, it is advisable for the parties to sign a mutually-acceptable contract. In the case of breach of contract, a long email chain, without signatures, is not the best proof in a court of law.
