22 days left — Registration closes 2026-10-31.

Logical Reasoning · 6 questions · about 1 min to read

The Gig Economy in India

Read the passage, answer the questions, then open each answer to check it. The explanation says why the right option is right.

The passage

Read, then answer

The gig economy — work arrangements mediated through digital platforms, in which individuals work on discrete tasks or projects rather than as employees with long-term contracts — has grown rapidly in India over the past decade. Platforms like ride-hailing services, food delivery applications, and freelance marketplaces have created a new category of worker: the platform-dependent independent contractor.

Proponents of gig work argue that it offers flexibility unavailable in traditional employment — workers can set their own hours, take on multiple clients simultaneously, and enter and exit work arrangements without the constraints of notice periods or termination procedures. Critics point out that this flexibility is often illusory: platform algorithms determine which workers receive orders and at what rates, and workers who deviate from platform norms — by declining orders too frequently, for instance — face effective penalties in reduced allocation. The relationship resembles employment in its practical structure while denying workers the statutory protections that employment status would provide.

The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023, was the first legislation in India specifically designed to address the legal status and welfare of gig workers. It established a registration system for gig workers and created a welfare fund financed by a levy on platform transactions.

  1. Q1. What is the main critique of gig work flexibility as described in the passage?

    1. Gig workers earn lower incomes than comparable employees
    2. The flexibility is often illusory because platform algorithms control order allocation and penalise non-compliance with norms
    3. Gig workers are required to purchase their own equipment, increasing their costs
    4. Gig platforms charge excessive commissions that reduce workers’ effective earnings
    Show answer

    Answer: B. The flexibility is often illusory because platform algorithms control order allocation and penalise non-compliance with norms

    The passage states: 'this flexibility is often illusory: platform algorithms determine which workers receive orders and at what rates, and workers who deviate from platform norms... face effective penalties in reduced allocation.'

  2. Q2. According to the passage, why is the gig worker’s relationship with platforms described as resembling employment in its practical structure?

    1. Because gig workers are entitled to the same benefits as employees under the Employees’ Provident Fund Act
    2. Because platforms exercise significant de facto control over workers’ conditions, despite their classification as independent contractors
    3. Because gig workers sign long-term contracts with platforms that mirror employment agreements
    4. Because platform work is the primary source of income for most gig workers
    Show answer

    Answer: B. Because platforms exercise significant de facto control over workers’ conditions, despite their classification as independent contractors

    The passage describes platforms controlling which workers get orders, at what rates, and penalising deviation — amounting to practical control similar to employment, even though workers are classified as independent contractors.

  3. Q3. The Rajasthan Platform Based Gig Workers Act, 2023, is significant because:

    1. It granted gig workers full employee status, including all statutory employment protections
    2. It was the first legislation in India specifically addressing the legal status and welfare of gig workers
    3. It set a minimum wage for gig workers across all Indian platform companies
    4. It required platforms to reclassify all workers as employees within five years
    Show answer

    Answer: B. It was the first legislation in India specifically addressing the legal status and welfare of gig workers

    The passage states: 'The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023, was the first legislation in India specifically designed to address the legal status and welfare of gig workers.'

  4. Q4. The welfare fund established under the Rajasthan Gig Workers Act is financed by:

    1. A percentage of each gig worker’s earnings deducted at source
    2. Direct government grants from the state budget
    3. A levy on platform transactions
    4. Contributions from employers who hire gig workers for extended periods
    Show answer

    Answer: C. A levy on platform transactions

    The passage states: 'created a welfare fund financed by a levy on platform transactions.'

  5. Q5. Which of the following would most strengthen the argument that gig workers should receive employment protections?

    1. A study showing that gig workers earn more per hour than minimum wage employees
    2. Evidence that platforms exercise detailed control over how gig workers perform their tasks, similar to employer direction
    3. A finding that most gig workers prefer their flexible arrangement to traditional employment
    4. Data showing that the gig economy has created more jobs than it has displaced
    Show answer

    Answer: B. Evidence that platforms exercise detailed control over how gig workers perform their tasks, similar to employer direction

    Employment protections are triggered by the existence of an employment-like control relationship. Evidence that platforms control task performance — not just outcomes — would most directly support treating gig workers as employees entitled to protections.

  6. Q6. The passage describes the gig worker as a ‘platform-dependent independent contractor.’ This phrase is best described as:

    1. A term of art from the Rajasthan Gig Workers Act defining a new legal category
    2. An oxymoron that captures the contradiction between the worker’s legal classification (independent) and their practical dependence on the platform
    3. A neutral description of the employment relationship as it currently exists in law
    4. A pejorative term used by critics of the platform economy to undermine its legitimacy
    Show answer

    Answer: B. An oxymoron that captures the contradiction between the worker’s legal classification (independent) and their practical dependence on the platform

    The phrase is introduced by the passage itself to characterise the worker's situation — legally labelled 'independent' but practically dependent on the platform for work allocation, rates, and continued access. This captures the central contradiction the passage explores.

Prepare with CLATcoach, free

A free account gives you a full mock, a past paper for every exam, the daily questions, twelve Legal GK headings and a report on where you stand.

Create a free account