How to Extend Employee Engagement Programmes to Gig Workers

India’s gig workforce has grown from a flexible staffing option into a critical part of how businesses operate. From freelancers and platform workers to fixed-term specialists, gig talent now supports core business functions—yet most engagement programmes still stop at full-time employees. This creates a clear gap between how organisations rely on gig workers and how they support them. 

With the new Indian Labour Codes coming into effect from November 2025, gig and platform workers are formally recognised under the Code on Social Security 2020, reinforcing the need for more structured, inclusive workforce practices. Engagement can no longer be informal or optional—it has to be intentional. 

In this blog, we explore why gig worker engagement matters, how the new labour laws change employer responsibilities, and practical ways HR teams can extend engagement programmes to include gig workers effectively. 

Who comes under gig workers under the new labour codes? 

With the rollout of the Labour Code 2025, gig workers are formally brought into India’s social security framework for the first time. The Code on Social Security, 2020 legally recognises a gig worker as an individual who earns income through work arrangements that exist outside a conventional employer–employee relationship. This recognition becomes operational when all four labour codes take effect from 21 November 2025. 

Gig workers typically engage in task-based, on-demand, or platform-led work, without fixed schedules or long-term contracts. Their income is often driven by digital or app-based assignments, and despite being an essential part of the modern workforce, they previously operated without structured statutory social security protections. 

Who is considered a gig worker under the new codes?  

• Delivery partners working with food, grocery, and commerce platforms.  
• Ride-hailing drivers (two-wheeler, three-wheeler, four-wheeler).  
• Freelancers and independent contractors servicing digital platforms.  
• On-demand task workers such as repair technicians, beauticians, tutors, fitness trainers, or home-service providers.  
• Part-time digital earners who work through multiple apps simultaneously.  

India has several million such workers, many of whom contribute to essential urban services but previously lacked any financial or social safety net.  

How to engage gig workers effectively 

Engaging gig workers requires a different mindset from managing full-time employees—especially as India’s new labour codes formally recognise gig and platform workers within the country’s social security and welfare framework. With this shift, organisations are no longer engaging gig talent in a regulatory grey area. Instead, there is a growing expectation of structured engagement, transparency, and inclusive practices that go beyond transactional work arrangements. 

Gig professionals value clarity, flexibility, fairness, and growth. The Labour Code 2025 reinforces these expectations by encouraging transparent work arrangements, fair compensation practices, and worker dignity across employment models. Organisations that align their engagement strategies with this evolving legal environment are far more likely to build reliable, high-performing gig ecosystems. 

Here’s how employers can meaningfully engage gig workers and create long-term value on both sides: 

1. Set clear expectations from day one 

Successful gig engagements start with clarity. Clearly define the scope of work, deliverables, timelines, and success metrics before the project begins. A structured onboarding process helps align expectations and reduces friction later. 

Under the new labour codes, gig workers are formally recognised as part of the workforce ecosystem, making clarity of work arrangements, roles, and responsibilities increasingly important from both a compliance and engagement perspective. 

Effective onboarding should cover: 

• A clear project brief outlining outcomes and deadlines 
• An introduction to company culture and values 
• A designated point of contact for queries 
• Scheduled check-ins for progress updates and feedback 

When expectations are transparent, misunderstandings reduce, productivity improves, and gig workers are better positioned to deliver quality work. 

2. Offer flexibility and autonomy 

Flexibility is one of the biggest reasons people choose gig work. Allowing gig workers to decide how and when they work fosters trust and improves outcomes. 

India’s labour reforms explicitly acknowledge non-traditional and platform-based work arrangements, reinforcing flexibility as a legitimate mode of work rather than an informal exception. 

Organizations can support flexibility by: 

• Letting gig workers choose their schedules where possible 
• Supporting remote or hybrid work arrangements 
• Offering outcome-based incentives rather than rigid hours 
• Encouraging healthy work patterns and open communication 

Autonomy leads to higher satisfaction, lower burnout, and stronger engagement—key factors in retaining top gig talent. 

3. Pay fairly and transparently 

Competitive, market-aligned compensation is critical. Gig workers often bear costs that full-time employees don’t, such as taxes, benefits, and downtime between projects. Employers should research market rates and factor in the value and expertise each gig worker brings. 

As per the new labour code framework, timely and transparent wage payment is a core principle across all categories of workers, reinforcing the need for clearly defined payment structures even in gig arrangements. 

Equally important is transparency. Clearly communicate: 

• How compensation is calculated 
• Payment timelines and methods 
• Any performance-linked incentives 

Fair pay and open communication build trust and motivate gig workers to consistently deliver their best work. 

4. Support skill development and growth 

Many gig workers are motivated by learning and career progression. Offering development opportunities signals that the organization values them beyond a single project. 

The labour reforms place strong emphasis on building a future-ready workforce, where skill development and employability extend beyond permanent employment models. 

This can include: 

• Access to online courses or certifications 
• Mentorship from experienced professionals 
• Optional in-person or virtual training sessions 

Flexible, accessible learning options help gig workers sharpen their skills while improving the overall quality of work for the organization. 

5. Build an inclusive team environment 

Even though gig workers may be temporary, inclusion matters. When gig workers feel respected and connected, engagement improves significantly. 

The new labour codes reinforce principles of dignity, non-discrimination, and equitable treatment, making inclusion an essential part of modern workforce engagement. 

Inclusive practices include: 

• Introducing gig workers to teams and company values 
• Inviting them to relevant meetings or events 
• Encouraging collaboration and knowledge sharing 
• Promoting diversity, equity, and bias-awareness across hiring and management 

Inclusive environments attract diverse talent, improve innovation, and strengthen employer reputation. 

6. Simplify administrative processes 

Complex paperwork and delayed payments are major pain points for gig workers. Streamlining administrative workflows makes collaboration smoother and more attractive. 

With the labour codes pushing for simplified registrations, digitisation, and reduced compliance friction, employers are encouraged to adopt smoother, tech-enabled workflows for all worker categories. 

Employers should: 

• Use digital onboarding for documents and resources 
• Automate invoicing and payments 
• Provide tools for time tracking, expense reporting, and communication 

Reducing administrative friction allows gig workers to focus on meaningful work rather than logistics. 

7. Foster long-term engagement 

While gig work is often project-based, long-term relationships benefit both parties. Employers who nurture continuity gain access to trusted, high-performing talent. 

As gig workers gain formal recognition and access to social security mechanisms under the new labour codes, expectations around continuity, fairness, and ongoing engagement are naturally rising. 

Ways to build long-term engagement include: 

• Consistent onboarding experiences 
• Recognition programs and incentives 
• Opportunities for repeat projects or expanded roles 
• Creating a sense of belonging through communication and support 

Strong relationships reduce rehiring costs and improve consistency in delivery. 

8. Recognize and reward contributions 

Recognition fills a gap gig workers often experience. Timely, personalized appreciation reinforces motivation and loyalty. 

The labour reforms emphasise worker dignity and wellbeing, making recognition a meaningful extension of compliant and responsible workforce practices. 

Effective recognition systems should be: 

• Based on clear, fair criteria 
• Consistent across gig workers 
• Timely and relevant 
• Aligned with individual preferences 

Recognition doesn’t always need to be monetary—public appreciation, testimonials, or priority access to future projects can be equally powerful. 

9. Offer paths for career advancement 

Gig workers also aspire to grow. Providing pathways to more complex projects, leadership opportunities, or long-term collaborations demonstrates commitment to their development. 

By promoting formalisation and skill continuity, the new labour codes encourage organisations to think beyond one-off engagements and support longer-term workforce capability. 

Best practices include: 

• Regularly assessing skills and interests 
• Offering mentorship and advanced assignments 
• Encouraging self-directed career planning 
• Rewarding high performers with growth opportunities 

Career progression increases satisfaction and strengthens long-term engagement. 

10. Maintain regular feedback and performance reviews 

Continuous feedback helps gig workers improve and align their work with organizational goals. Regular, structured reviews show that the organization is invested in their success. 

The shift toward facilitation, guidance, and transparency under India’s labour reforms mirrors this approach—focusing on improvement rather than enforcement alone. 

Effective feedback practices include: 

• Scheduled review sessions 
• Clear, actionable feedback 
• Encouraging self-assessment 
• Open, two-way communication 

When gig workers feel heard and supported, engagement, performance, and retention all improve. 

Why ignoring gig workers is a risk businesses can’t afford 

In India, gig workers are no longer a fringe workforce—they are becoming central to how businesses scale, innovate, and stay competitive. According to NITI Aayog’s report on India’s gig economy, over 77 lakh workers were engaged in gig and platform work in 2020–21, and this number is projected to grow to 2.35 crore by 2029–30, accounting for nearly 6–7% of India’s total workforce. 

Despite this rapid growth, many organizations still treat gig workers as temporary help rather than critical contributors. The assumption is that engagement efforts are unnecessary because gig workers are short-term, mobile, or cost-intensive to retain. While some gig workers do move frequently between assignments, disengagement often stems from how they are managed—not from lack of commitment. 

India’s new Labour Codes directly address this gap. For the first time, gig and platform workers are formally recognized under the Code on Social Security, 2020, with provisions for social security coverage, portability of benefits, and aggregator contributions toward worker welfare  

This signals a policy shift: gig workers are now part of India’s protected workforce, not outside it. 

Ignoring gig workers today carries real business risk. Disengaged gig talent can lead to: 

• Lower quality output and missed deadlines 
• Higher rehiring and onboarding costs 
• Safety lapses in field, logistics, and platform-driven roles 
• Loss of skilled, experienced freelancers to competitors 

Younger workers, in particular, are driving this shift. A PwC India workforce survey found that a large share of Indian millennials and Gen Z workers prefer flexible or project-based work for income diversification and autonomy. 

The new Labour Codes reinforce an important reality: productivity, safety, and wellbeing cannot be limited to permanent employees alone. When gig workers are excluded from communication, recognition, or basic protections, organizations lose both efficiency and trust.  

When they are engaged thoughtfully, businesses gain a more resilient, motivated, and scalable workforce—aligned with the direction India’s labour reforms are clearly moving toward. 

How Xoxoday helps HR leaders engage gig workers under the new labour codes 

India’s Labour Code 2025 brings gig and platform workers into the formal workforce framework, especially through the Code on Social Security, 2020, which expands recognition and welfare intent for non-traditional worker categories. But real impact depends on execution. Gig workers are mobile, distributed, and often deskless, so engagement can’t rely on email-only HR flows or office-first programmes. HR teams need practical ways to deliver communication, recognition, and everyday support at scale. 

Xoxoday’s deskless workforce engagement helps organizations extend employee engagement programmes to gig workers in ways that align with the new labour code direction, while fitting how gig work actually operates. 

1) Mobile-first engagement built for deskless, distributed workers 

Most gig workers don’t have access to HR portals or corporate desktops. Xoxoday enables mobile-first engagement so gig workers can stay connected without depending on office infrastructure. With a simple mobile experience, organizations can: 

• Share updates, guidelines, and essential announcements in real time. 
• Keep gig workers aligned to policies, service standards, and safety practices. 
• Enable self-serve access to rewards and entitlements without HR bottlenecks. 
• Maintain engagement across locations, cities, and shifting work schedules. 

This supports the labour code’s broader intent of inclusion and accessibility, ensuring benefits and communication are not restricted to “on-roll” employees alone. 

2) Engagement beyond compliance: motivation, stability, and wellbeing 

The labour codes strengthen welfare expectations, but they don’t solve day-to-day gig workforce challenges like income volatility, low attachment to a single employer, or limited recognition. Xoxoday helps organizations bridge that gap by layering practical engagement on top of statutory alignment, including: 

• Early wage access to support financial wellbeing when gig workers face irregular cash flow. 
• Incentives and rewards tied to performance metrics like service quality, attendance, customer ratings, or task completion. 
• Discounts and savings benefits that improve perceived earnings and reduce financial stress. 
• Wellbeing-first nudges that reinforce healthy, safe, and sustainable work habits. 

This turns engagement into a retention lever, not a one-time campaign. 

3) Centralized programmes across gig, contract, and permanent workers 

Engagement often becomes fragmented when gig workers are managed through multiple vendors, locations, or operational teams. Xoxoday provides a unified layer where HR and business teams can: 

• Run consistent engagement and recognition programmes across worker types. 
• Ensure equitable access to benefits for deskless and frontline roles. 
• Track reward distribution and participation for transparency and governance. 
• Standardize communication across regions without losing local flexibility. 

This reduces ad-hoc engagement and builds a more structured workforce support system. 

4) Trust-building in a new era of gig work expectations 

As labour reforms formalize gig work recognition, gig workers will expect more transparency, fairness, and support from employers and aggregators. Xoxoday’s workforce engagement solution helps build that trust through: 

• Clear visibility into rewards, benefits, and eligibility 
• Timely recognition that reinforces performance and belonging 
• Consistent communication that reduces confusion and churn 

When gig workers feel seen, supported, and rewarded, engagement programmes stop being “employee-only” initiatives and become a workforce-wide strategy aligned with the new labour code environment.