NEWS –

• Karnataka may become the second state after Rajasthan to introduce a law for platform-based gig workers.
• The Bill aims to address the lack of formal protections for gig workers in sectors like food delivery, ride-hailing, and logistics.
• Covers gig workers from platforms like Swiggy, Zomato, Ola, Uber, Amazon, Flipkart, etc.

HIGHLIGHTS

Why Legislation Was Needed

• Rising Gig Workforce: ~2 lakh gig workers in Bengaluru alone.
• Lack of Protections: Gig workers are not covered by traditional labour laws.
• Neglect and Exploitation: Increasing cases of unfair treatment and arbitrary terminations.
• Pending Central Action: The 2020 Code on Social Security (CoSS) yet to be implemented.

Timeline and Development

• Draft Published: June 2024 by the Siddaramaiah-led government.
• Opposition from Industry Bodies: NASSCOM and IAMAI raised objections.
• Political Support: Discussion with Rahul Gandhi, and cleared by Cabinet on April 11, 2025.

Key Provisions of the Bill

• Definition of Gig Worker: Includes all platform-based, piece-rate workers.
• Welfare Fund: Funded by a 1%-5% welfare fee per worker transaction.
• Welfare Board: To register workers, collect fees, and implement benefits.
• Database Requirement: Aggregators must share gig worker data.
• WFVS (Welfare Fee Verification System): Tracks all payments and fee deductions.

Worker Protections Introduced

• Safe Working Conditions: Access to restrooms, safety, and rest periods.
• Protection from Arbitrary Termination:
  • 14-day notice required (waived if bodily harm caused).
  • Termination only with written reason.
• Fair Contracts: Mandatory transparent contracts and algorithm transparency.
• Grievance Redressal Mechanism:
  • Two-tiered: Internal committee followed by escalation to board.

Objections Raised

• Definition Conflict: Not clearly excluding employer-employee relationships.
• Welfare Fee Structure: Unfit for all business models.
• Double Contribution Concern: Conflict with CoSS requirements.
• Grievance Redressal via Industrial Disputes Act: Deemed inapplicable.
• Transparency Requirements: Algorithm disclosures opposed as trade secrets.
• State Overreach: Concerns over state interference with business operations.

Amendments and Changes Made

• Removed Industrial Disputes Act Reference: Now has a custom grievance process.
• No Criminal Liability: Non-compliance decriminalized.
• Retained 14-day Notice: With exemption for bodily harm cases.
• Clarified Welfare Fee: Resolved ambiguity around fee collection.
• Sunset Clause Introduced: Avoids duplication once CoSS is implemented.
• CTIMS Replaced with WFVS: Simpler API-based system with less burden.
• Definition Maintained: Employer-like obligations only for social security.