No adverse long-term impact of code for gig workers, in talks with Govt: Eternal tells shareholders

Food delivery and quick-trading platform Eternal said in a statement on Saturday that the financial impact of the new social security law, which came into effect on Friday, will not harm the company’s long-term prospects. The Deepinder Goyal-founded company added that the exact financial and operational implications will only be known once the rules are formally notified, and that it is actively working with the government for clarity.“For our shareholders, the exact financial and operational contours of CoSS will only become clear once the associated rules are announced. We have been working with the government over the past years and providing input during this process, and we will continue to do so. We do not believe that any financial impact resulting from these rules will be detrimental to the long-term health and sustainability of our business. We have been anticipating and planning for these social security-related contributions in our businesses for some time,” the company statement said.

Players like Eternal (Zomato, Blinkit) and Swiggy employ gig workers for their operations and the Code on Social Security, 2020 (CoSS) will impact their businesses.

In a landmark move, the government on Friday implemented the four labor laws, which have been pending since 2020. The new rules aim to ensure labour-friendly practices, including a timely minimum wage for all and universal social security, including gig and platform workers, while allowing longer working hours, broader fixed-term contracts and employer-friendly austerity rules.

The Wages Code, 2019, Industrial Relations Code, 2020, Social Security Code, 2020 and Occupational Safety, Health and Working Conditions Code, 2020 were passed by Parliament five years ago and replaced 29 fragmented laws with a unified and modern framework.

Welcoming the move, the company said the consolidation of 29 central laws into four labor laws is a major systemic reform and “we welcome the Indian government’s focus on simplifying and modernizing the labor framework. The consolidation of labor laws will provide clearer, more uniform and consistent rules, which will support both the country and our ecosystem.” Eternal, we are deeply committed to the well-being of gig workers and already offer a range
comprehensive insurance and wellness benefits, free of charge,” the company statement said.

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