Swiggy Limited on Saturday said that the implementation of four labor codes is a transformative step, which will provide far-reaching benefits to millions of workers. Swiggy supports the government’s vision of creating a modern and inclusive social security net.
The company told the stock market that it does not expect COSS (Code of Social Security, 2020) to have any significant impact on its business sustainability, cost structure or long-term financial performance. The government on Friday notified all four labor codes, through which the existing 29 labor laws have been integrated.
These codes are – Wage Code 2019, Industrial Relations Code 2020, Social Security Code 2020 and Occupational Safety, Health and Working Conditions Code 2020. Definitions of ‘gig work’, ‘platform work’ and ‘aggregator’ have been given for the first time in the new codes.
According to the rules, aggregator companies will have to deposit 1-2 per cent of their annual turnover (with a maximum limit of five per cent) into the social security fund based on the payments made to gig and platform workers.
Swiggy said, this reform is a major change in India’s welfare and regulatory framework. This is a big step towards creating a social security structure that will take everyone along.
This spans formal jobs, the unorganized sector and the rapidly growing platform economy. The company said, we understand the importance of this moment and the huge benefits these reforms will bring to millions of workers.
The company further said that this initiative reflects the company’s belief that the platform economy must grow responsibly, humanely and for the long-term good of society.
