Evolving Future of Workforce in India

In order to succeed in this evolving landscape, the workforce in India needs to be adaptive and eager to continuously upskill, while employers must invest in their workforce's development.

Introduction:

Since the era of Independence, India can be said to be an agrarian economy where most of the people have been carrying out the farming activities. Most of the employment avenues have also been associated with the jobs required in farming/agriculture sector. Recently, due to the advent of technology such as Information Technology ("IT") and Information Technology enabled Services ("ITeS"), in contrast to agriculture sector, the service sector has been majorly contributing to the Indian economy.

Over a period of time, industrialization and evolution of economy of India has led to employment being generated in organized sectors including factories and offices, etc., where employees work in an organized sector during their fixed office hours. Keeping in view of the said pattern, the labour and employment laws in India were enacted in accordance with International Labour Organisation (ILO) standards. For instance, the provisions of the Factories Act, 1948 and the local state shops and establishment enactments prescribed that the normal working hours of an employee shall not be exceeding 9 (nine)/8 (eight) hours a day and 48 (forty-eight) hours a week. It also imposes certain restriction such as prohibition of employment of women in night shift etc.

Gig and Platform Employees

The rapid advancement of technology and evolving societal trends require a more flexible and barrier free employment structure, which must not be governed by the regulations prescribed under the existing labour and employment enactments. Therefore, the concept of gig and platform employees is evolving in India driven by various factors, including the rapid urbanisation, young population, widespread adoption of smartphones and associated technology, increasing preference for flexible work arrangements and the growth of digital platforms connecting freelancers with employers etc. Such employees are usually referred to as consultants or business partners in the absence of specific provisions under Indian labour and employment enactments.

However, the non-applicability of any specific enactments also comes with challenges, such as job insecurity, inconsistent income and working hours, and a lack of traditional benefits like healthcare and retirement plans. Therefore, the Indian Government, in order to provide social security benefits to gig and platform employees, introduced a separate chapter under the proposed Code on Social Security, 2020 ("SS Code"), rendering benefits upon gig, platform and unorganised workers.

The proposed SS Code defined the concept of 'gig workers' as "a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship" and 'platform workers' as "a person engaged in or undertaking platform work which means a work arrangement outside of a traditional employer-employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment". In fact, the chapters dealing with Employees Provident Fund ("EPF") and Employees' State Insurance ("ESI") also stipulate the framing of schemes for gig and platform workers. Recently, the Government of Rajasthan became the first State in India to enact “Rajasthan Platform Based Gig Workers (Registration and Welfare), Act, 2023 and certain other state Governments such as Karnataka and Maharashtra are also in the process of framing legislations to protect the interest of gig and platform workers and extend the social security benefits to them.

Impact of Automation and Artificial Intelligence ("AI")

Automation and AI technologies are revolutionizing the way people work across various sectors. While these innovations promise increased efficiency and productivity, they also raise concerns about job displacement, reduced job growth, adaptation to new roles, privacy and ethical concerns. In India, industries like manufacturing, customer service, and data entry are experiencing automation at a rapid pace. Currently in India, there is no legislative framework for the regulation of AI and its usage in industries.

Recently the Ministry of Electronics and Information and Technology (MEITY) has constituted a few committees for the introduction, implementation and integration of AI into the mainstream as part of Digital India Scheme. Further, NITI Aayog has been issued paper-Principles for Responsible AI (available on https://www.niti.gov.in/sites/default/files/2021-02/Responsible-AI-22022021.pdf) and have taken steps for collaborating with several universities to devise strategy to enable the workforce in India to adapt and learn using AI tools. .

In the absence of any specific legislation in India, the Information Technology Act, 2000 ("IT Act") primarily regulates the functioning and usage of computer system and software which may include AI. Similarly, newly enacted Digital Personal Data Protection Act, 2023 ("DPDP Act") also prescribes penalty for violation or breach in protection of data.

Changing Work Structure

Traditional working hours of 9 (nine) to 5 (five) work models are evolving to accommodate the changing expectations and needs of the gig workforce. Remote work, once considered a rarity, has become a norm due to advancements in technology and the Covid-19 pandemic. Remote work, compressed workweeks, and job-sharing are becoming increasingly common and many organizations have adopted flexible work arrangements, emphasizing on outcomes and productivity rather than physical presence.

During the Covid-19 pandemic, the Central as well as various State Governments released notifications directing organisations and employers to allow employees as far as practicable to work from home. For instance, Ministry of Commerce and Industry, released the work from home guidelines for establishments located in Special Economic Zones ("SEZs"). There are certain enactments which also allow employees to carry out work from home, such as the Maternity Benefit Act, 1961, which allows female employees to work from home during their pregnancy provided their nature of employment allows them to do so. Similarly, the model standing orders for service sector released under the proposed Industrial Relations Code, 2020 ("IR Code"), also made the reference of the work from home structure subject to the agreement between employer and workers.

Similarly, certain State Governments, for instance Government of Karnataka carried out amendment under the Factories Act, 1948, allowing employees to work under different shifts i.e., 6 (six) days a week, 5 (five) days a week or 4 (four) days a week depending upon the number of hours the employee works in a day. Similarly, under the draft rules notified by certain States under the proposed Occupational Safety, Health and Working Conditions Code, 2020 ("OSH Code"), the workers have been provided an option to work 6 (six) days a week, 5 (five) days a week or 4 (four) days a week depending upon the number of hours the employee work in a day.

The Indian Government has started adopting and shifting towards remote and flexible work structures thereby allowing organisations to open up opportunities for young individuals living in rural areas and smaller towns, who can now access a broader range of job opportunities without relocating to urban centers. This decentralisation of work is helping bridge regional economic disparities.

Organisations are also evolving their structures, promoting flatter hierarchies and encouraging a culture of innovation and collaboration by making relevant changes in their existing policies and handbook and introducing certain new policies such as "telecommuting" and "staggered working hours". This shift is not only driven by the need to attract and retain top talent but also to adapt to rapidly changing market dynamics.

Need for new skills and training:

To thrive in the evolving job market, workforce in India must adapt to the recent changes by acquiring new skills. The future of work in India demands a diverse skill set, including technical skills like data analysis and AI proficiency, as well as soft skills like adaptability, communication, and problem-solving.

The skills that are currently in high demand and are expected to remain relevant in the future include digital literacy, data analysis, critical thinking, creativity, adaptability, and emotional intelligence. For individuals, this means taking the initiative to upskill and staying updated with industry trends. Online courses, bootcamps, and mentorship programs can be invaluable tools for gaining new skills.

Employers, on the other hand, should focus on providing opportunities for employee development and creating a learning culture within their organisations. The Central Government had made amendments in the Apprentices Act, 1961, mandating minimum period of compulsory apprenticeship (training) in establishments and factories covered under the said enactment. In order to give effect to the provisions of the Apprentices Act, 1961, the education regulatory authorities like All Indian Council of Technical Education (AICTE) included apprenticeship as part of the course structure. In addition to it, the Central Government in order to promote skill development among the youths of India, has undertaken several initiatives such as introduction of various schemes including Pradhan Mantri Kaushal Vikas Yojna (PMKVY), Pradhan Mantri Kaushal Kendra, Technical Intern Training Program (TITP), Skill Impact Bond, Seekho or Kamao, Specified Skilled Worker (SSW), Market Lead Fee Based Services, Swades, Project Amber etc.

Conclusion:

With the rapid change in the dynamics and evolution of work environment in terms of rise of the gig economy, the integration of automation and AI, and the embrace of changing work structures, the Indian Government is taking all efforts by implementing changes, introducing new enactments and policies to skill the workforce and to provide them conducive environment to meet the requirements of the changing business needs across all its sectors. Further, in order to facilitate ease of doing business in India, the government has also provided several relaxations and exemptions from the labour and employment laws in order to reduce the burden of unnecessary compliance and obligations.

However, in order to succeed in this evolving landscape, the workforce in India needs to be adaptive and eager to continuously upskill, while employers must invest in their workforce's development. By addressing these challenges, India can harness the potential of its young, vast and diverse workforce to remain competitive on the global stage and promote inclusive economic growth.