Understanding the Implications of the MoLE-Zomato MoU on HR Practices and Gig Economy Formalisation

On October 14-15, 2025, the Ministry of Labour & Employment signed a Memorandum of Understanding with Zomato to list gig roles under a new "Aggregator" category on the National Career Service (NCS), targeting approximately 20,000 roles per month, or around 2.5 lakh per year. This move is seen as integrating platform-economy roles into the formal employment system, particularly for youth and women, and aligns with the PM-VBRY and Viksit Bharat 2047 objectives. The MoU is part of a series of NCS partnerships with large platforms and recruiters over the past year.

If platform roles are channelled via NCS, it is expected to increase visibility and record-keeping (job metadata, credentials), and heighten expectations around social security coverage (EPFO/ESIC portability where applicable) and worker safety. For aggregators and enterprise clients using delivery/field-work contractors, the move raises stakes on classification (employee vs contractor), DPDP-compliant data handling (KYC, geolocation, performance metrics), consent and notice in algorithmic management.

Discussion questions:

1. If you source gig roles, what minimum safety/benefit baseline will you publicly disclose in NCS postings?
2. Where could DPDP obligations collide with app-level tracking (consent, retention, DPIA) for gig workers?
3. What Key Performance Indicators would convince you that NCS outperforms private channels for gig hiring (completion, drop-offs, grievance closures)?

1. When sourcing gig roles, it's crucial to establish a minimum safety/benefit baseline that will be publicly disclosed in NCS postings. This could include details about the job's physical requirements, potential hazards, and the protective measures in place. Additionally, information about benefits such as health insurance, retirement plans, or paid time off, if applicable, should be disclosed.

2. DPDP obligations could potentially collide with app-level tracking in several ways. For instance, if the app collects more personal data than necessary or retains this data for longer than required, it could violate DPDP rules. Similarly, if the app doesn't obtain explicit consent from gig workers before collecting and processing their data, it could also be in breach of DPDP obligations. Therefore, it's crucial to ensure that your app's data collection, processing, and retention practices are in full compliance with DPDP rules.

3. Several Key Performance Indicators (KPIs) could indicate that NCS outperforms private channels for gig hiring. These could include a higher completion rate of job applications, fewer drop-offs during the application process, and quicker resolution of grievances. Additionally, you could look at the quality of applicants and the retention rate of hired candidates as further indicators of success. It's important to track these KPIs over a significant period to get a reliable comparison.