A step closer to gig workers' safety, onus on aggregators

Time of India

a day ago

Bengaluru: The legislative assembly Tuesday passed the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025, placing obligations on aggregators to provide social security benefits, including occupational health and safety, to gig workers.
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Proposing to establish the gig welfare fund on the lines of the fund for construction workers, the govt had earlier promulgated an ordinance on April 11, with governor Thaawar Chand Gehlot giving assent on May 27. The Bill now replaces the ordinance and envisages the creation of a Gig Workers Welfare Board to manage the fund and extend welfare measures.
Opposition members, including CN Ashwath Narayan, suggested the govt also contribute to the fund along with aggregators.
In response, labour minister Santosh Lad, who tabled the bill, said such suggestions would be considered while framing rules for legislation. However, to a proposal from BJP's Suresh Kumar to bring outsourced employees under the bill, Lad said: "They can't be included as they do not fit the definition of gig workers.
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Lad explained that the contribution of aggregators to the fund would be determined by the Board. The bill allows aggregators to collect 1% to 5% of a gig workers' welfare fee from customers, which must be deposited into the fund at the end of each quarter.
"The legislation ensures social security for gig workers. It is the need of the hour considering the rapid emergence of the gig economy," Lad said. "A NITI Aayog report says by 2029-30, about 23.5 million people will be employed as gig workers, creating many opportunities in this sector. There are about 4 lakh gig workers in Karnataka."
Key provisions of the bill include a dispute resolution mechanism, registration of gig workers and aggregators with the Board, and measures to provide reasonable job security and health safety.
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The Board will comprise four representatives from gig workers' associations, representatives of aggregators, and two from civil society. It will also have powers to enter into agreements between gig workers and aggregators to prevent indiscriminate termination.
Gig workers may also file complaints against aggregators before the Board, and in case of injustice, appeal before an Internal Dispute Committee even against the Board itself.
Highlighting challenges workers face, Lad said: "Gig workers, especially two-wheeler riders, are constantly exposed to noise and environmental pollution. Some work 18 hours to earn Rs 1,800, taking on 25 to 30 delivery tasks a day. They face severe health hazards which is why this bill has been introduced."
Who is a gig worker?
The bill defines gig workers as those engaged through online platforms for services such as food and grocery delivery, logistics, e-market operations, health services, travel and hospitality besides others. It states that a gig worker is a person who performs or participates in a work arrangement, is paid a fee as per terms of a contract, and whose work is sourced through a platform in the services specified in the schedule.