Food delivery and quick-commerce platform Eternal said in a statement on Saturday that the financial impact of the new social security code that took effect on Friday will not hurt the company’s long-term prospects. The Deepander Goyal-founded firm added that the exact financial and operational implications will be known only after the rules are formally notified, and that it is actively engaging with the government for clarification.

“For our shareholders – the exact financial and operational profile of CoSS will be clear only once the corresponding rules are notified. We have been engaging with the government for years and providing inputs during this process, and we will continue to do so. We do not think any financial impact due to these rules will be detrimental to long-term health and this reflects our social security contributions related to occupational safety and social security. In our businesses for some time now,” 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 four labor codes, which are due from 2020. The new rules aim to ensure worker-friendly practices that include a timely minimum wage for all and universal social security, including gig and platform workers, while allowing for longer working hours, broader fixed-term employment and employer-friendly rules.

The Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 were passed by Parliament five years ago and have 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 codes is a major system reform and “We welcome the Government of India’s focus on simplifying and modernizing the labor infrastructure. Consolidation of labor laws provides clearer, more uniform and consistent rules, supporting both the country and our ecosystem.”

“A unified, nationwide framework brings much-needed uniformity to gig workers, and at the same time improves the ease of doing business for the platform and is a step in the right direction. At Eternal, we are deeply committed to the well-being of gig workers and already offer a diverse range.
Comprehensive insurance and welfare benefits, free of charge,” the company said in a statement.

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