In a shocking, sweeping round of layoffs that took place on April 1, the tech giant shocked the entire industry by letting go of around 30,000 employees globally with just one cold email. What has drawn more attention is not just the scale of the cut altogether, but the profiles of those affected
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Labour reforms prompt gig firms for compliance push

Employers of gig workers are consulting experts to assess the cost and operational impact of the draft rules on four labour codes. Experts told ET that several companies are conducting internal readiness exercises and consulting professionals from staffing agencies and law firms to ensure compliance with the four new labour codes, including a social security scheme for gig workers.
As reported earlier by ET, the ministry of labour and employment last year notified draft Rules for Code on Wages, Code on Social Security, the Industrial Relations Code and the Code on Occupational Safety, Health and Working Conditions and has sought comments from all stakeholders on the draft rules within 30-45 days after which the final rules will be notified.
ETtech
A spokesperson for online marketplace Flipkart said the company is reviewing the labour codes and state-level rules as they get operationalised. “We have conducted a detailed internal assessment and are working with legal and HR experts to ensure full compliance with emerging rules, even as they are being clarified,” said the spokesperson, adding that several provisions regarding wages, benefits and safety are already established at the company.
A lawyer working with at least half a dozen such companies said several issues have come to the fore, including “implementation complexity, worker registration and awareness gaps, and operational and cost concerns”.
Quick commerce companies, too, are revisiting cost models and some are even going slow with their expansion plans. “As the social security (SS) provisions of the SS Code are yet to be fully operationalised, we are yet to see any structural changes to their operations or workforce models,” said Akanksha Dua, partner at law firm Obhan & Associates. She said some platforms are also “strengthening their digital systems and internal processes to integrate the new requirements into their operating models”.
Executives at Quess Corp, a staffing and recruitment services firm, have conducted 800 in-person meetings with clients, including those from gig platforms, ride-hailing, e-commerce and quick commerce companies, since the labour codes were introduced on November 21.
“There are primarily three main areas of focus in these interactions. The first is to understand labour law itself. The second is to understand how the restructuring needs to get done, and the third is the time period for implementation,” said Lohit Bhatia, CEO of Quess Corp.
Many large enterprises, he said, operate across multiple states, and the states have not finalised whether they will completely follow what the government has provided or if they might want to make slight changes. This is where many firms are still in limbo, said Bhatia. “This is where most companies are taking help from consultants and employment and labour law practitioners,” he said.
Among the companies expected to be impacted the most are Uber, Ola, Zomato, Swiggy, Urban Company and Zepto. “All these firms together employ a bulk of gig workers in India, about 40 lakh gig workers in total,” said an expert, who did not wish to be named.
Email queries sent to Amazon, Zomato, Uber, Ola, Swiggy, Urban Company and Zepto remained unanswered till as of press time.
Source: EconomicTimes
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