Shares of Swiggy and Eternal dropped by almost 2% after the Union government announced a fresh set of labour codes that place new social-security obligations on digital platforms. The announcement, made on 21 November, introduces a framework that requires food delivery, e-commerce and quick-commerce firms such as Swiggy and Zomato to contribute up to 2% of their annual turnover towards the welfare of gig and platform workers.
According to the Ministry of Labour and Employment, the new reforms are designed to extend retirement savings through provident fund, medical benefits under the Employees’ State Insurance Corporation (ESIC), insurance cover, and other social-security protections to millions of workers who have so far remained outside the traditional labour net. Officials said the move marks a significant shift in how India defines and safeguards the rights of gig and platform workers, a segment that has grown rapidly with the rise of digital services.
The government notified all four labour codes on Friday, bringing them into immediate effect. These codes streamline the country’s existing maze of 29 labour laws and, for the first time, provide clear definitions for terms such as “gig workers,” “platform workers,” and “aggregators.” Industry watchers believe the new rules may temporarily impact margins for digital platforms, which explains the market’s initial reaction, but they also noted that the move could strengthen the workforce ecosystem in the long run by improving retention and worker satisfaction.
As of 9:19 AM, Eternal shares were trading 1.26% lower at Rs 298.15. On the other hand, Swiggy shares were trading 1.84% lower at Rs 378.35.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
