Lately, many organisations I’ve spoken with are eager to embrace the gig worker model, lured by its flexibility and reduced compliance burden. However, before you jump on the bandwagon, understand that the gig model isn’t as simple or risk-free as it seems.

Companies such as Zomato, Ola, and Urban Company engage people under gig worker contracts, granting workers complete freedom and flexibility in exchange for pay based on work completed. Gig worker’s model relies on specific conditions that most businesses can’t replicate.

Most businesses require workers at specific locations, with clearly defined roles and fixed working hours. This clashes with the core tenets of gig work, making your “gig workers” more likely to be classified as employees by government authorities, even if you engage them through a staffing agency.

Such misclassification can result in hefty fines, wiping out any potential cost savings. Understand the nuances of labour laws before you embark on any such project.