The Rise of Gig Economy: Redefining Work, Wages, Worker Autonomy and the Challenges of Classification

Nandini Sharma; Dr. Chitra Rathore

doi:10.36948/ijfmr.2025.v07i06.62119

The Rise of Gig Economy: Redefining Work, Wages, Worker Autonomy and the Challenges of Classification

Author(s)	Dr. Nandini Sharma, Dr. Chitra Rathore
Country	India
Abstract	The rise of the gig economy has fundamentally reshaped labour markets across the world, introducing new forms of flexible, platform-mediated work that allow individuals to earn income on-demand, often with minimal entry barriers. Digital platforms such as ride-hailing, food delivery, online freelancing, home-services apps, and micro-tasking sites have rapidly integrated themselves into the economic fabric of both developed and developing nations. While this transformation has offered workers unprecedented autonomy in choosing when and how much they work, it has simultaneously raised urgent and complex questions about legal classification, employment status, and the scope of labour protections. A core challenge emerges from the fact that most gig platforms classify their workers as independent contractors rather than employees, thereby avoiding obligations related to minimum wage, social security, insurance benefits, occupational safety, collective bargaining, and job security. The rapid expansion of the gig economy has fundamentally altered the world of work, reshaping labour markets, income patterns, and worker experiences. From ride-hailing and food delivery to freelance digital services, gig work offers flexible opportunities while disrupting conventional employment structures. This paper provides a comprehensive study of how the gig economy is redefining work, wages, and worker autonomy, and how these factors collectively influence worker productivity. By integrating academic literature, policy analyses, and primary insights from gig workers, the research examines both the empowering and exploitative dimensions of gig labour. The findings highlight that while autonomy and flexibility enhance motivation and productivity, income insecurity, algorithmic control, and lack of social protection create volatility and burnout, ultimately affecting long-term productivity.
Keywords	Gig economy, Employment status, Labour protections, Independent Contractors, Algorithmic supervision, Rating systems
Field	Business Administration
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-10
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.62119

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The Rise of Gig Economy: Redefining Work, Wages, Worker Autonomy and the Challenges of Classification

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