Managing Gig Workers in Sri Lanka - Challenges and HRM Implications


Given the present economic environment in Sri Lanka, many organizations have been faced with rising overhead expenses (Ramamoorthy and Adikaram, 2024). In this case, there has been an increasing challenge of providing competitive salaries to employees, paying for EPF and ETF contributions, and investing in staff development. This has led to the recruitment of gig employees becoming common practice.

Gig workers refer to people who do not have permanent jobs but rather engage in working in brief jobs, as freelancers, or under short term contracts. The use of platforms like Upwork and Fiverr allows workers to offer their services both virtually and physically, and they get compensated according to the task, project, or hour worked. While organizations enjoy this arrangement, there is increasing concern about how gig workers are treated fairly.


However, regarding social security coverage, gig workers in Sri Lanka are less fortunate than those in other nations. Gig workers are often not eligible for social securities such as EPF, ETF, insurance, or pensions, which are typically granted to employees who engage in formal labor. Moreover, the government does not provide any social security protection services for gig workers. Consequently, gig workers earn irregular and volatile incomes that are greatly influenced by market dynamics and the overall economy.

For instance, when it comes to drivers using apps like Uber and PickMe, shortages of fuel and variations in prices can greatly affect their operations. When prices are raised, customers might not be willing to hire them, hence reducing their earning potential.

In addition, it is quite difficult for gig workers in Sri Lanka to seek legal redress since the country’s labour laws cater mainly to permanent workers. On top of that, there is poor negotiation capability among gig workers because of stiff competition, especially online freelancers.

Another important factor is the reliance on digital platforms. Gig workers are very dependent on mobile apps and customer ratings, which have a direct impact on securing more work in the future. Also, they do not get any kind of training or job advancement support. Due to this, gig workers in Sri Lanka work under highly insecure conditions, especially when there is an economic or global crisis, which may adversely affect their well being (Keith, Harms, and Long, 2020).


Conclusion

There is no doubt that gig workers are valuable assets in organizational and economic development due to their ability to provide flexible and affordable services (Roy and Shrivastava, 2020). Nonetheless, there is a need to address the issues relating to the absence of social security, unstable earnings, and legal backing to guarantee gig workers' welfare. It is important to implement effective HRM policies and strategies to safeguard gig workers.


References

  • Ramamoorthy, V. and Adikaram, A.R., 2024. Pushed or Pulled? Becoming Gig Workers in Sri Lanka. Kelaniya Journal of Management, 13(1).
  • Keith, M.G., Harms, P.D. and Long, A.C., 2020. Worker health and well-being in the gig economy: A proposed framework and research agenda.
  • Roy, G. and Shrivastava, A.K., 2020. Future of gig economy: opportunities and challenges. Imi Konnect, 9(1), pp.14-27.




Comments

  1. Shewan SundarampillaiApril 11, 2026 at 6:40 AM

    Your article provided a clear perspective on the growing reliance on gig workers within Sri Lanka. It emphasizes on both the benefits for organizations such as cost reduction and flexible work culture and the critical challenges faced by them which includes the likes of unstable income, fragile legal protection and lack of social security. Adding to this the reliance on digital platforms and its impact on worker security is really insightful. The blog also highlights the urgent requirement for HRM policies that bring in a balance to a firms efficiency with fair treatment to gig workers.
    What are the HRM strategies or policy inventions that can be utilized to improve social protection and job security of gig workers ?

    ReplyDelete
  2. Hashini Dhanasekara -E296722April 13, 2026 at 4:10 AM

    This is a very insightful blog. You have highlighted both the practical values and challenges of gig work in Sri Lanka.

    Are gig workers choosing this model out of preference, or is it mainly a lack of better employment opportunities?

    ReplyDelete
    Replies
    1. E.M SampathApril 21, 2026 at 9:36 AM

      Flexible working is what attracts many gig workers to adopt the model, but others could end up becoming financially reliant on it.

      Delete
  3. S Adam- E297385April 13, 2026 at 10:57 PM

    This provides a clear and insightful perspective on managing the gig economy, especially highlighting how flexibility and digital platforms are reshaping work in Sri Lanka.
    Since gig work offers flexibility but lacks job security and social protection for many workers , how can organizations balance efficiency with fair treatment to ensure long-term sustainability in this model?

    ReplyDelete
  4. Nadun HeeraluarachchigeApril 13, 2026 at 11:03 PM

    Your post clearly defines on the rise of gig work in Sri Lanka. You clearly highlight the cost advantages for organizations while also addressing the serious concerns around job security, income instability, and lack of social protection. The examples of platform-based workers effectively illustrate real challenges in the local context.

    ReplyDelete
  5. Nathasha JayamannaApril 15, 2026 at 5:51 PM

    Your blog provides a very timely and realistic discussion on the growing reliance on gig workers in Sri Lanka, particularly within the current economic context. I found your use of examples, such as private drivers (Uber, PickMe etc), especially effective in illustrating how external factors like fuel prices directly impact income stability. While gig work offers flexibility and cost advantages for organisations, it also raises important concerns around fairness, job security, and employee well-being. From an HRM perspective, this reflects a shift towards more transactional employment relationships, which may have long-term implications for workforce commitment and organisational capability. In this context, it raises an important question: is the growing reliance on gig workers a sustainable long term workforce strategy, or does it risk weakening organisational capability and commitment over time?

    ReplyDelete
  6. Prabash HerathApril 18, 2026 at 1:09 AM

    This is a clear and simple point about the value of gig workers. I like how you show both the benefits and the challenges they face. But how can companies protect gig workers while still keeping the flexibility they need? Finding that balance seems like an important issue to think about.

    ReplyDelete
  7. Nimesha EkanayakaApril 20, 2026 at 10:00 AM

    Your analysis correctly identifies a critical shift in the Sri Lankan labor market: the transition from formal employment to informal gig arrangements as a survival mechanism for firms facing high overheads.

    ReplyDelete
  8. Sanjeewa RathnayakeApril 21, 2026 at 12:30 AM

    Great analysis on Strategic HRM. While gig economy is cost-effective for companies, it often leaves workers without traditional safety nets like insurance or job security. Do you think the future of SHRM should include 'ethical frameworks' to protect gig workers' rights, or is the pure 'pay-per-task' model sustainable in the long run?

    ReplyDelete
  9. Inoka DassanayakeApril 21, 2026 at 2:01 AM

    This is a very relevant discussion, especially in the current Sri Lankan economic context. It clearly highlights both the benefits and challenges of gig work. The issues around job security and lack of social protection are particularly important and show why better policies and HR practices are needed

    ReplyDelete
  10. Umesh edirisingheApril 21, 2026 at 10:19 AM

    Absolutely! Recognizing the value of gig workers is essential, and addressing their challenges can lead to a more equitable workforce. By implementing thoughtful HRM policies, organizations can improve job security and support for gig workers, ultimately enhancing their contributions to economic development while fostering a more sustainable working environment.

    ReplyDelete

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