Latest news with #KarnatakaPlatform-basedGigWorkers'
Time of India
29-05-2025
- Business
- Time of India
New cess for gig workers' welfare likely to raise costs for consumers
Bengaluru: While Karnataka has taken the lead in addressing the welfare of gig and platform-based workers, it is likely to come at a cost to consumers as they may have to shell out more for cab rides, food deliveries, and other app-based services. The proposed Karnataka Platform-based Gig Workers' (Social Security and Welfare) Ordinance, 2025, will introduce a 1%-5% cess aimed at creating a welfare fund for an estimated 30,000 gig workers in the state. Officials say contribution will be split three ways — among consumers, digital platforms, and gig workers themselves — though they admit the heaviest burden may fall on the end user. The state cabinet's decision to introduce an ordinance has been widely welcomed since it acknowledges rights of a workforce that is rapidly expanding. The real test, though, lies in implementation. With the law yet to be formally notified, attention has now shifted to how the cess will be collected on the ground. "The Act has been framed in such a manner that all three stakeholders can contribute to the welfare fund," said Dr Manjunath, additional labour commissioner. "Even gig workers themselves can top up on social security by paying extra to the board." He said rules are likely to be finalised within a week. Despite the inclusive design, several experts are raising red flags over how the policy will play out. Balaji Parthasarathy, principal investigator, Fairwork India and professor at the International Institute of Information Technology, Bengaluru, said: "The legislation outlines the terrain, but implementation will hinge on rules, particularly how wage protection, dispute resolution, and algorithmic accountability are addressed." Parthasarathy expressed concern over the lack of guaranteed wages. "Transparency in deductions is a start, but without wage-floor guarantees or clear limits on unilateral payout cuts, platforms can still reduce per-task payments to offset the cess," he said. He also criticised the imbalance in stakeholder engagement: "Platforms refuse to negotiate with worker collectives, but did not hesitate to make collective representations through bodies such as Nasscom and IAMAI, which opposed many sections of the June 2024 bill that was circulated." From a legal lens, the ordinance marks a formal recognition of gig worker arrangements, potentially curbing the risk of misclassification. But Vikram Shroff, partner at AZB & Partners, said: "Termination provisions in the ordinance are likely to be legally tested, especially where they conflict with existing contracts between aggregators and workers." Shroff also cautioned that with the eventual roll-out of the national social security code, platforms operating across states may have to navigate overlapping regulations. "Two sets of laws may govern gig worker entitlements, potentially leading to regulatory confusion," he said. Draft rules state platforms will be placed in cess slabs depending on the nature of business — delivery, transportation, or personal services. Officials estimate the annual corpus from the cess to be around Rs 150 crore. Despite concerns, some platforms have responded positively. Athira, vice-president, public policy and govt relations at Porter, called the ordinance a progressive and much-needed step that "acknowledges the role of gig workers and the importance of social security". "We remain committed to working closely with both state and central govts to strengthen the welfare ecosystem for gig workers across the country," she said.
Time of India
29-05-2025
- Business
- Time of India
Consumers in Karnataka may have to pay more for cab rides, food deliveries and other services. Here's why
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Bengaluru News 1. Bengaluru rains: Get ready for another week of rains as IMD predicts showers till May 31 Karnataka is preparing to bring in a new welfare law for gig and platform workers. According to a TOI report, while the move has been widely appreciated, it may result in consumers paying more for cab rides, food deliveries, and other app-based proposed Karnataka Platform-based Gig Workers' (Social Security and Welfare) Ordinance, 2025 includes a 1%–5% cess to create a welfare fund for nearly 30,000 gig workers in the state. Officials said the cost would be shared between customers, platforms, and the workers themselves, though the end user is expected to bear the Karnataka cabinet's decision to introduce the ordinance has been seen as a positive step. But the real challenge lies in how the cess will be collected and the law enforced on the Manjunath, Additional Labour Commissioner, said, as quoted by TOI, 'The Act has been framed in such a manner that all three stakeholders can contribute to the welfare fund.' He added that gig workers could also voluntarily contribute more to improve their social security. He said the rules will likely be finalised within a concerns have been raised about the fine print. Balaji Parthasarathy, Principal Investigator at Fairwork India and professor at IIIT-Bengaluru, told TOI, 'The legislation outlines the terrain, but implementation will hinge on rules, particularly how wage protection, dispute resolution, and algorithmic accountability are addressed.'He warned that there's no wage-floor guarantee. 'Transparency in deductions is a start, but without clear limits on payout cuts, platforms can reduce per-task payments to make up for the cess,' he said. Parthasarathy also noted, as quoted by TOI, that while platforms don't talk to worker groups, they have made collective representations through bodies like Nasscom and IAMAI to oppose parts of the a legal perspective, the law is a formal recognition of gig work. However, Vikram Shroff, partner at AZB & Partners, said as quoted by TOI, that some of the termination-related clauses may face legal challenges, especially if they clash with current agreements between platforms and also warned of possible confusion once the national social security code is implemented, saying, 'Two sets of laws may govern gig worker entitlements, potentially leading to regulatory overlap.'According to the draft rules, platforms will be placed in different cess slabs depending on whether they provide delivery, transport, or personal services. Officials expect to raise around ?150 crore a year through this the worries, some companies support the plan. Athira, Vice-President for Public Policy at Porter, called the ordinance a 'progressive and much-needed step' that recognises gig workers and their social security needs. 'We remain committed to working with both state and central governments,' she said, as quoted by from TOI
Time of India
28-05-2025
- Business
- Time of India
New cess for gig workers' welfare likely to raise costs for consumers
Bengaluru: While Karnataka has taken the lead in addressing the welfare of gig and platform-based workers, it is likely to come at a cost to consumers as they may have to shell out more for cab rides, food deliveries, and other app-based services. The proposed Karnataka Platform-based Gig Workers' (Social Security and Welfare) Ordinance, 2025, will introduce a 1%-5% cess aimed at creating a welfare fund for an estimated 30,000 gig workers in the state. Officials say contribution will be split three ways — among consumers, digital platforms, and gig workers themselves — though they admit the heaviest burden may fall on the end user. The state cabinet's decision to introduce an ordinance has been widely welcomed since it acknowledges rights of a workforce that is rapidly expanding. The real test, though, lies in implementation. With the law yet to be formally notified, attention has now shifted to how the cess will be collected on the ground. "The Act has been framed in such a manner that all three stakeholders can contribute to the welfare fund," said Dr Manjunath, additional labour commissioner. "Even gig workers themselves can top up on social security by paying extra to the board." He said rules are likely to be finalised within a week. Despite the inclusive design, several experts are raising red flags over how the policy will play out. Balaji Parthasarathy, principal investigator, Fairwork India and professor at the International Institute of Information Technology, Bengaluru, said: "The legislation outlines the terrain, but implementation will hinge on rules, particularly how wage protection, dispute resolution, and algorithmic accountability are addressed. " Parthasarathy expressed concern over the lack of guaranteed wages. "Transparency in deductions is a start, but without wage-floor guarantees or clear limits on unilateral payout cuts, platforms can still reduce per-task payments to offset the cess," he said. He also criticised the imbalance in stakeholder engagement: "Platforms refuse to negotiate with worker collectives, but did not hesitate to make collective representations through bodies such as Nasscom and IAMAI, which opposed many sections of the June 2024 bill that was circulated." From a legal lens, the ordinance marks a formal recognition of gig worker arrangements, potentially curbing the risk of misclassification. But Vikram Shroff, partner at AZB & Partners, said: "Termination provisions in the ordinance are likely to be legally tested, especially where they conflict with existing contracts between aggregators and workers." Shroff also cautioned that with the eventual roll-out of the national social security code, platforms operating across states may have to navigate overlapping regulations. "Two sets of laws may govern gig worker entitlements, potentially leading to regulatory confusion," he said. Draft rules state platforms will be placed in cess slabs depending on the nature of business — delivery, transportation, or personal services. Officials estimate the annual corpus from the cess to be around Rs 150 crore. Despite concerns, some platforms have responded positively. Athira, vice-president, public policy and govt relations at Porter, called the ordinance a progressive and much-needed step that "acknowledges the role of gig workers and the importance of social security". "We remain committed to working closely with both state and central govts to strengthen the welfare ecosystem for gig workers across the country," she said.
