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ARTICLE · 10 DECEMBER 2019

The On-Demand Economy

In contrast to a number of other jurisdictions, India has yet to witness significant litigation regarding characterisation issues of ODE workers.

IndiaStrategy
Nishith Desai Associates
Nishith Desai Associates
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In contrast to a number of other jurisdictions, India has yet to witness significant litigation regarding characterisation issues of ODE workers. In any misclassification disputes based on the classic employee versus independent contractor question, the focus is on control by the organisation and the worker's degree of economic dependence.

The current nature of workforce engagement in the ODE sector in India has potential for creating co-employment risks. This is because, in practice, organisations (known as principal employers) usually engage their ODE workers for their core activities and continue to exercise material control over them. The use of an ODE platform may not necessarily change the level of control exercised by the organisations over their workers. In addition, contract labourers and independent contractors are frequently economically reliant on the employers. Consequently, if there is litigation in these situations, the

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