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Karnataka Assembly passes gig workers' Bill; proposes 1%-5% fee on online aggregators
Karnataka Assembly passes gig workers' Bill; proposes 1%-5% fee on online aggregators

The Hindu

timea day ago

  • Business
  • The Hindu

Karnataka Assembly passes gig workers' Bill; proposes 1%-5% fee on online aggregators

With the rise in the number of gig workers in cities and towns, the State legislative Assembly on Tuesday passed the Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2025, to protect the rights of workers, set up a welfare fund for them, and place obligations on aggregators. During the debate on the Bill, Labour Minister Santosh Lad said the Bill proposed a welfare fee in the range of 1% to 5% on the payout to the worker during each transaction, for different categories of aggregators of platforms. 23.5 million by 2030 The NITI Aayog said there would be 23.5 million gig workers in India by 2029-30. At present, there are four lakh gig workers, including part-time and full-time, in the State. About 10,500 workers have registered. The Minister said health issues were a major concern for the workers due to riding two-wheelers and pollution. Many workers earn ₹1,800 by working 16 hours a day, Mr. Lad said. He said the welfare board would take decisions on issuing health cards, safety guards, and other social security issues of workers. What Bill aims at The Bill is aimed at providing dispute resolution mechanisms, creating a welfare fund for gig workers, registering workers with the board, registering aggregators or platforms, and providing income security and reasonable working conditions to the workers. The Gig Worker's Social Security and Welfare Fund would be created for the benefit of registered platform-based gig workers. The fund would receive money from all contributions made by individual platform-based gig workers; grant-in-aid from the State Government and Central Government; and grants, gifts, donations, benefactions, bequests or transfers. A gig workers' welfare board will be established to ensure registration of workers by the platforms, welfare fee collection and implementation of social security schemes. Administrative costs It said not more than 5% of the fund would be used for administrative costs of the board or employees of the board. Aggregators include ride-sharing services, food and grocery delivery services, logistics services, e-Marketplace for wholesale/retail sale of goods and/or services, business-to-business /business-to-consumer, professional activity provider, healthcare, travel and hospitality and content and media services. The Bill has replaced the Ordinance.

Karnataka passes gig workers welfare bill; rules for welfare fee soon, says Labour Minister Santosh Lad
Karnataka passes gig workers welfare bill; rules for welfare fee soon, says Labour Minister Santosh Lad

Indian Express

timea day ago

  • Business
  • Indian Express

Karnataka passes gig workers welfare bill; rules for welfare fee soon, says Labour Minister Santosh Lad

The Karnataka Legislative Assembly on Tuesday passed legislation aimed at protecting the rights of gig workers, placing obligations on aggregators for the social security, occupational health and safety of the gig workers. This would cover around 4 lakh gig workers employed by various platforms across the state. The Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2025, was taken up for discussion on Tuesday, after months of deliberations by various stakeholders regarding the contents of the proposed legislation. Labour Minister Santosh Lad, piloting the Bill, said that it would apply to eight services provided by aggregators—ride sharing, food and grocery delivery, logistics services, e-marketplace, professional activity provider, healthcare, travel and hospitality, and content and media services. The Bill allows the government to levy a welfare fee ranging from 1 to 5 per cent on aggregators meant for a welfare fund of gig workers. 'The fee cannot be implemented uniformly (from all aggregators). When rules are framed, the government will also determine the welfare fee,' he said. Deputy Leader of Opposition Arvind Bellad argued that variation in the fee for various aggregators could lead to corruption. 'Fixing one rate is appropriate,' he suggested. Lad, in response, said that it would not be possible to do so as there were differences among various aggregators. 'For instance, Namma Yatri (ride-hailing app) transfers the amount charged directly (to drivers). Should we then take it from the user fee? Companies such as Urban Clap will pay service and transportation charges. How should it be collected from them?' he asked, adding that the government has held discussions with experts to finalise the fee. Explaining the necessity of the Bill, he said that some gig workers were putting in 16-hour shifts to earn around Rs 1,600 to Rs 1,800. Due to the kind of work, these workers will face health problems in the future, Lad said. BJP legislator Dheeraj Muniraju asked whether the government could fix minimum wages and stipulate maximum working hours for a gig worker. The minister said that all gig workers were employed on a 'flexi-hour basis' and were free to work as much as they wanted. 'They have the right to reject work too,' he added. Before the Bill was tabled in the Legislature, it was promulgated as an ordinance earlier this year.

One Act and 3 Bills on, gig workers say there is progress, but not enough
One Act and 3 Bills on, gig workers say there is progress, but not enough

Business Standard

time31-07-2025

  • Business
  • Business Standard

One Act and 3 Bills on, gig workers say there is progress, but not enough

With the publication of Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Bill, 2025, Telangana is all set to join the list of states with a legislation to ensure social security, and regulate working conditions for gig workers. The only state to currently have a gig workers Act in place is Rajasthan. The state assembly had passed the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act in July 2023. In Karnataka and Jharkhand, the Cabinet has cleared the respective Bills. They are expected to be introduced in the Monsoon session of the assemblies. These developments point to increasing state-level efforts to bring India's gig workers under some form of welfare net. While they see these developments as welcome efforts, gig workers' unions say they are, at the same time, insufficient. For many worker unions, and gig workers themselves, these welfare boards and registration drives are only partial answers to deeper issues of recognition, accountability, and rights. These efforts by states are also seen as a follow-up after the central government introduced the Code on Social Security in 2020, which, for the first time, tried to include gig workers under the legal ambit. Section 2(35) of the Code defines a 'gig worker' as someone who performs tasks or participates in work arrangements and earns from such activities outside of traditional employer-employee relationship. Sunand, president of the Rajdhani App-Based Workers' Union who goes by only his first name, says the state Bills are similar to the social security code. Neither the code nor the Bills, he says, talk about the kind of welfare schemes that will be implemented and where the money for these schemes will come from. For gig workers, fixed working hours, a guarantee of sufficient wages within that period, and ID blocking or termination from work by the platform at will are the most pressing issues. 'Platforms have undue control over workers,' says Sunand. 'These issues of algorithmic control and arbitrary deactivation directly affect workers' livelihoods, yet remain absent from the legal discourse.' Shaik Salauddin, national general secretary of the Indian Federation of App-Based Transport Workers, and president of the Telangana Gig and Platform Workers' Union, also says there are missing links in the Telangana Bill, and the issue of wages are not addressed in it. That said, Salauddin considers the Telangana Bill to be better than others. 'Grievance redressal mechanism is better in this Bill; the time to lodge complaints is mentioned. There is a provision of penalty as well,' says Salauddin. Sunand echoes the same sentiment: 'There is greater government monitoring of platforms in the Telangana and Jharkhand Bills.' Employer-employee relationship at the core The social security code explicitly states that gig workers fall outside of traditional employer-employee relationships. At the heart of the dissatisfaction is this broader structural issue. The unions highlight that none of the Bills consider gig workers as employees of a company. All legislation focuses on welfare boards, registration, and modest benefits such as accident insurance or health schemes. They stop short of challenging the aggregator platforms' insistence that gig workers are 'partners' or 'independent contractors'. 'Gig workers should come under traditional employer-employee relationships, and platforms should work as traditional employers. This is the core problem. Unless this is resolved, other things don't matter,' says Sunand. A traditional employer-employee relationship is a structured, long-term one between the employer and employee, with the employee getting certain benefits such as gratuity and provident fund (PF). Sunand says since governments are not addressing the core problems of wages, working hours and blocking, there has been minimal resistance from the companies, except in Karnataka, where gig workers appear to have been equated with traditional employees. Industry body the National Association of Software and Service Companies (Nasscom) issued a statement highlighting this concern around the Karnataka Bill: 'It assumes gig work to be a part of employer-employee relationship, which risks unsettling the conceptual and legal basis of gig work. This assumption is core of the Bill and basis this, it prescribes several obligations, which may be relevant only in an employer-employee relationship.' Uber, one of the largest players in India's ride-hailing and gig economy sector, said it is engaging with state-level policymakers as new laws take shape. It called for consistency, operational clarity, and inclusivity across the ecosystem in emerging frameworks. 'We look forward to ongoing dialogue with governments at all levels and remain committed to constructive engagement on matters concerning the platform economy,' a spokesperson of the company said. States and gig workers Feature Telangana (draft Bill) Karnataka (draft Bill) Jharkhand (draft Bill) Rajasthan (Act) Definition of gig worker Work arrangement falling outside the traditional employer-employee relationship Work through an online platform, with pay determined by terms and conditions Work falls outside the traditional employer-employee relationship, obtained through an online platform, contractual, piece-rate Work falls outside the traditional employer-employee relationship, obtained through an online platform, contractual, piece-rate Platform worker's definition Persons obtaining work through an online platform No distinction between a gig worker and platform worker No distinction between a gig worker and platform worker No distinction between a gig worker and platform worker Rights Registration, social security schemes, and grievance redressal mechanism Registration, social security schemes, and grievance redressal mechanism Registration, social security schemes, and grievance redressal mechanism Registration, social security schemes, grievance redressal mechanism, participation in board discussions Gig worker registration Self-registration as prescribed. Aggregators provide a database of workers registered with them within 60 days from commencement of the Act Workers must be registered by aggregators within 60 days from commencement of the Act Workers must be registered by aggregators within 60 days from commencement of the Act Workers must be registered by aggregators within 60 days from commencement of the Act Aggregators registration Must register within 45 days from the commencement of the Act Must register within 60 days from commencement of the Act Must register within 60 days from commencement of the Act Must register within 60 days from commencement of the Act Algorithm transparency Aggregators must inform workers about how to access information on automated systems that monitor and affect their work Aggregators must inform workers about: (i) rating systems, (ii) worker classification, (iii) use of personal data, and algorithms affecting work conditions Aggregators must inform workers about: (i) rating systems, (ii) worker classification, (iii) use of personal data, and algorithms affecting work conditions No provision for transparency in automated monitoring and decision-making systems Termination of work Reason for termination must be given in writing, with a seven-day prior notice Reasons must be included in the contract, and a 14-day prior notice Reasons must be included in the contract, and a 14-day prior notice No provision for termination of work Grievance redressal Grievances can be filed via a portal or through an officer. Order within 30 days Grievances can be filed via a portal or an officer. Appeals within 90 days Grievances can be filed via a portal or an officer. Appeals within 90 days Grievances can be filed via a portal or an officer. Appeals within 90 days Welfare fee 1 to 2% of the individual payout to the gig worker, paid by the aggregator quarterly Based on worker pay per transaction or aggregator turnover, paid quarterly Percentage of transaction value, as specified by the state government Percentage of transaction value, as specified by the state government Sources of fund Welfare fund fee, contributions by platform and workers, grants-in-aid from the Centre and state government, CSR fund, grants, gifts, or donations Welfare fee, contributions by platform-based gig workers, grants-in-aid from both central and state government, grants, bequests or transfers Welfare fee, contributions by platform-based gig workers, grants-in-aid from both central and state government, grants, bequests or transfers Welfare fee, grants-in-aid from state government, any other sources Usage of fund Not specified Prescribed by the state government Prescribed by the state government Prescribed by the state government

Draft bill for T'gana gig workers' social security published
Draft bill for T'gana gig workers' social security published

Hindustan Times

time01-07-2025

  • Politics
  • Hindustan Times

Draft bill for T'gana gig workers' social security published

The Congress-led Telangana government has published a draft bill to provide social security and regulate the working conditions for gig workers—one of the political priorities for the party. The draft bill, named The Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Bill, 2025, proposes a 'Gig and Platform Workers Social Security and Welfare Fund', which will be financed by the government and the aggregators. Draft bill for T'gana gig workers' social security published The bill stipulates that an aggregator may terminate a gig worker only by giving valid reasons in writing and with prior notice of seven days. It says every aggregator or platform shall mandatorily make pay-out with no delay and must provide and maintain a working environment that is safe and without risk to the health of the platform-based gig worker. The bill comes weeks after Lok Sabha's Leader of the Opposition, Rahul Gandhi, described the condition of gig workers, who work without any social benefits, as 'modern day slavery' during a debate in Parliament. In 2023, Rajasthan's Ashok Gehlot government became the first administration to enact a law to provide social safety to gig workers. The Telangana bill says 'The State Government shall… constitute a Board to be known as the Telangana Gig and Platform Workers Welfare Board.' This board 'shall, as and when necessary, notify general or sector specific social security and other benefits which shall be implemented by the Board as notified by the State Government.' Congress leader Jairam Ramesh tweeted that after Rajasthan and Karnataka, Telangana is the third state where legislation are being made on this issue. 'It is only Congress governments that have ensured justice and better working conditions for lakhs of gig workers. Workers' justice has been a crucial part of the Congress Party's and Rahul Gandhi ji's central vision - this bill is proof of that commitment.' During the 17th Lok Sabha, the standing committee on labour—then led by BJD (now BJP) lawmaker Bhartruhari Mahtab—had proposed a unique identity for all unorganized workers. The panel felt that the unorganised sector-which constitutes more than 90% of India's workforce—needs a unique ID to access targeted benefits. The bill says, 'An aggregator or platform may terminate a gig or a platform worker by following the principles of natural justice after due enquiry only by giving valid reason/s in writing and with prior notice of seven (07) days. However, in case a threat (physical or mental) is foreseen to the end consumer, the gig worker may be terminated immediately.' It added that 'Every aggregator / platform shall mandatorily make pay-out as per the contract with no delay in disbursal of pay. Reasonable working conditions. The aggregator must provide and maintain, as far as is reasonably practicable, a working environment that is safe and without risk to the health of the platform-based Gig worker.' Based in Hyderabad, the board will be headed by the state's labour minister, a representative of the Union labour ministry, top-ranking state officials, four representatives each from gig workers and aggregators and two civil society members. The board will ensure registration of Gig and Platform workers, registration of aggregators or platforms, 'Set up a monitoring mechanism to certify that welfare fund fee is being duly collected' and 'Ensure implementation of general and specific social security schemes based on contributions made, as may be notified by the State Government and disburse the social security benefits to the Gig and Platform workers.' Under the proposed law, a Gig and Platform worker shall have the right to register with the government 'on being onboarded on any platform, irrespective of the duration of the work.' The workers will be provided a 'Unique ID applicable across all platforms, have access to general and specific social security schemes based on contributions made by them subject to minimum number of transactions/gig 12 work undertaken by the gig and platform worker with any aggregator or platforms in a quarter.'

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