E-Commerce, Gig Economy & Cloud Kitchen EPF & ESIC Compliance | NWC 2025 Ready

E-commerce, Gig Economy, & Cloud Kitchens Compliance

The New Frontier

The E-commerce, Food Delivery, and Cloud Kitchen sectors represent the newest and most complex frontier for social security and labour compliance in India.

The EPF/ESIC/Social Security Challenge: Gig & Platform Workers

The primary risk for e-commerce and food aggregators is the shift from treating their field force (riders, drivers, technicians) as independent contractors to providing mandated social security coverage under the new Labour Codes.

Statutory Recognition and New Levy (Code on Social Security, 2020)

The Code on Social Security, 2020 marks a major shift by formally recognizing Gig Workers and Platform Workers, bringing them into India’s social security framework for the first time. Under this law, aggregators—including e-commerce, logistics, and delivery platforms—must contribute 1% to 2% of their annual turnover to a dedicated Social Security Fund, capped at 5% of total payments made to gig workers.

State-Level Divergence and Complexity

As states like Rajasthan and Karnataka introduce their own gig worker welfare laws—such as the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025—platform companies face new obligations, including state-specific welfare fees of 1–5% per transaction and separate welfare funds. This creates a complex overlay on top of the central Code on Social Security, 2020, requiring platforms to comply with both frameworks simultaneously.

The 'Employee' vs. 'Contractor' Overlap

While gig and field workers fall under the upcoming CoSS framework, office and in-house staff—such as HR, finance, engineers, warehouse staff, and kitchen employees—are full-time employees and must be covered under traditional EPF (20+ employees) and ESIC (10+ employees) thresholds. Many e-commerce startups, cloud kitchens, and platform companies overlook these obligations while focusing on gig operations, resulting in unpaid PF/ESIC contributions and hidden statutory liabilities.

The Cloud Kitchen & Food Safety Challenge: FSSAI

For Food Delivery and Cloud Kitchens, FSSAI (Food Safety and Standards Authority of India) compliance is as critical as labour law, as it determines the right to operate and list on aggregator platforms (Zomato/Swiggy).

Mandatory FSSAI License

Every cloud kitchen or food preparation unit must hold a valid FSSAI license—Basic, State, or Central, depending on turnover. Operating without one is a serious offense, carrying fines of up to ₹5 lakh and, more importantly, the risk of being delisted from major food delivery platforms, causing immediate operational shutdown. Ensuring timely licensing and renewal is essential for both legal compliance and uninterrupted business visibility.

Sanitation, Hygiene, and Schedule 4 Compliance

FSSAI’s Schedule 4 imposes strict hygiene and sanitation standards on cloud kitchens, covering kitchen layout, pest control, waste disposal, temperature monitoring, and staff hygiene practices. Because cloud kitchens operate at high speed and low margins, these requirements are often overlooked—resulting in violations during inspections. Maintaining continuous adherence to Schedule 4 is essential to avoid penalties, protect food quality, and ensure uninterrupted operations on delivery platforms.

Our Unique Solution: Gig/E-Commerce Compliance Gateway (GCEG)

Our solution is a two-pronged system designed to address both the new social security levy and the non-negotiable food safety requirements.

Automated CoSS Contribution Calculator

The Automated CoSS Contribution Calculator ensures seamless compliance with the upcoming gig‐worker obligations under the Code on Social Security (CoSS). By integrating directly with the platform’s accounting system, it tracks real-time annual turnover and total payouts to gig workers, automatically computing the mandatory 1–2% Social Security Fund levy (capped at 5% of payouts). The system also manages Aadhaar-linked UAN identities for all platform workers, ensuring contributions are accurately mapped and fully portable across states. This guarantees financial readiness and eliminates compliance risk the moment CoSS becomes enforceable.

Cloud Kitchen Health & Safety Auditor (for Aggregators)

The Cloud Kitchen Health & Safety Auditor gives aggregators a robust compliance shield by enforcing strict onboarding and continuous monitoring of partner kitchens. Before listing, every vendor must pass mandatory checks for a valid FSSAI license and GSTIN, ensuring only compliant kitchens join the platform. A digital Schedule 4 audit checklist—with required photo evidence of hygiene, storage, and waste management practices—provides the aggregator with a solid due-diligence defense against food safety liability. Automated alerts for FSSAI license renewals and staff medical certificate expirations further prevent disruptions and protect the platform from operational or regulatory risks.