In an uncertain environment, urbanization is an inexorable force. Currently, 50% of the world's population lives in cities, 22% in the top 600 cities, and 75% in emerging economies. Since the beginning of urbanization, several types of smart cities have emerged and flourished, each facing distinct obstacles and taking different approaches. A smart city is defined as one that employs information and communication technology to improve its liveability, workability, and sustainability. In industrialized nations, the use of existing infrastructure through an IT platform, including sustainable development, is being implemented. while in India, the smart cities project will have to focus on meeting fundamental requirements using IT-enabled solutions, as many towns lack basic infrastructure, an institutional framework, and proper administration. And also because of the emergence of smart cities, the Urban informal worker organizations are growing in size, power, and unity in response, and they are calling for more inclusive urban policies and practices to support their livelihoods. Some of these organizations have worked together over the past year or so to include a focus on informal livelihoods in the policy discussions leading up to and at the Habitat III summit as well as in the New Urban Agenda document that will be adopted at that summit, with assistance from the WIEGO Network. The emergence of these smart cities, is stoking an increase in on-demand jobs through digital platforms (Uber, Helpingo, Deliveroo, etc.). Because these platforms work better as population density grows, the majority of activities centered on these new sorts of employment take place in metropolitan areas. The question then becomes, what about the folks who work in the informal sectors? The informal sector, often known as the grey economy, is the portion of the economy that is not taxed or controlled by any official authority. The informal sector, unlike the formal economy, does not contribute to a country's gross national product or gross domestic product. . The informal sector might be compared to a labour grey market. How the development affects the informal sector. What effect has this had on the workers who are employed in the informal sector? What effect has it had due to covid? All these questions will be dealt with in a detailed manner, as their position in law is also seen.