While there are challenges in implementation and regulating a gig economy, it has the potential to be the next big revolution in employment and workforce outlook. The current market situation has accelerated the need for agile organizational structures fuelled by agile talent. Therefore, large organizations, will begin their transition towards a gig economy.
The immediate step, however, would be to create an internal talent marketplace within the organization, to make sure that people can be deployed and utilized more effectively and efficiently. This would enable greater efficiency without the challenges and complexities of transitioning from an employment agreement to an engagement agreement.
It is however entirely up to corporations, legal specialists, lawmakers and workers’ associations to start evolving the model, to keep pace with such shifts in their talent and labour market.
(This article is written by Ajit Krishan, Partner and Tax Talent Leader, EY India. Other EY senior tax professionals who have contributed to the article include Ayush Moodgal, Kapil Manoch and Komal Grover, and Nishant Arora from PDS Legal.)