Karnataka Government Releases Draft Bill to Regulate Social Security and Welfare of Gig Workers

On Saturday, the Karnataka government released the draft of the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024. This proposed legislation seeks to regulate the social security and welfare of platform-based gig workers in the state. The draft bill, which aims to address the needs and rights of gig workers, is expected to be tabled during the Monsoon session of the state Assembly this month. This move fulfills a promise made by the Congress party in Karnataka ahead of the 2023 Assembly elections.

The bill proposes the establishment of a welfare board and a grievance cell specifically designed to address the concerns and welfare of gig workers. It defines a gig worker as an individual who earns from work arrangements outside the traditional employer-employee relationship. This definition covers a substantial number of workers associated with various online platforms such as Zomato, Porter, Swiggy, and Dunzo.

One of the significant features of the bill is the creation of "The Karnataka Gig Worker’s Social Security and Welfare Fund." This fund will be primarily financed through contributions from the aggregator companies, who will be required to pay a percentage of the worker’s income or their revenue towards the fund. The state government and the gig workers themselves will also contribute financially to the fund. This fund aims to provide gig workers with access to general and specific social security schemes based on the contributions made.

The draft bill mandates aggregators to ensure a safe working environment for gig workers. It outlines clear obligations concerning social security, occupational health, and safety. Additionally, the proposed legislation aims to bring transparency to automated monitoring and decision-making systems used by these platforms.

Upon joining a platform, gig workers will be able to register with the welfare board and receive a unique ID, which can be used across all platforms. This registration will enable them to access social security schemes and grievance redressal mechanisms. The welfare board will include the state labor minister, two representatives from the aggregator companies, two gig workers, and a civil society member.

The draft bill also empowers the state government to review the contracts of gig workers and publish sector-specific guidelines from time to time. Aggregators that violate the provisions of the proposed law would face penalties ranging from Rs 5,000 to Rs 1 lakh. 

The state labor department has released the draft bill for public consultation, inviting feedback and suggestions from stakeholders before it is presented in the legislature. This inclusive approach aims to ensure that the final bill is comprehensive and addresses the concerns of all parties involved.

Karnataka's initiative follows Rajasthan, which became the first state to pass a similar law in July last year. The lack of comprehensive government data on gig workers highlights the importance of such regulatory measures to protect the rights and welfare of this growing workforce.

This proposed legislation represents a significant step towards recognizing and addressing the unique challenges faced by gig workers. By ensuring their welfare and security, the Karnataka government aims to create a more equitable and supportive environment for workers in the evolving gig economy.

Author: Anushka Taraniya

News writer