Karnataka govt set to introduce draft Bill to protect gig workers' rights

The draft Bill will reportedly ensure protections such as grievance redressal and safeguards against unjust dismissal for gig workers in ride-hailing and delivery services

In a move aimed at protecting gig workers’ rights, the Karnataka government is set to introduce new regulations for food delivery platforms and ride-hailing companies in the state, Moneycontrol reported, citing sources.

The proposed Karnataka Gig and Platform Workers’ Bill requires companies to register with the state’s Labour department, ensuring protections such as grievance redressal and safeguards against unjust dismissal for gig workers in ride-hailing and delivery services, the report said.

The draft Bill stipulates that all platform-based gig workers and aggregators must register with the department. Although the state government currently lacks specific data on gig workers, a 2022 report by NITI Aayog estimated that there are approximately 233 thousand gig workers in Karnataka.

 

Key provisions of the Bill include requiring aggregators to enter into fare contracts, with guidelines to be issued by the labour department. The Bill also seeks to enhance transparency in algorithmic management through automated monitoring and decision-making systems.

Additionally, the draft Bill aims to establish reasonable working conditions and Occupational Safety and Health (OSH) standards, which will be defined by the state government. It also proposes a fee on either the transaction cost of each aggregator or their annual turnover in the state.

“The Bill is rights-based and aims to protect the rights of gig and platform workers by providing basic social security,” the report quoted Mohammad Mohsin, principal secretary of the labour department, as saying.

Rajasthan, under the Congress rule, became the first state to pass a law for the welfare of platform-based gig workers in 2023. Congress is currently in power in Karnataka. Mohsin told Moneycontrol that the present Bill is an improved version of the Rajasthan Gig Workers Bill and will be tabled during the monsoon session.

The labour department met with around 20 aggregators, including Ola, Uber, Rapido, Amazon, Flipkart, Zomato, Swiggy, Dunzo, Zepto, UrbanCompany, and Porter, the report noted. However, these companies have yet to reach an agreement on the proposed fee, whether it should be a cess on each transaction or based on the company’s total turnover.

The draft Bill is expected to be released soon for feedback from stakeholders and the public. The government also plans to seek opinions from tax experts and chartered accountants on managing cess collection before deciding whether it will be based on each transaction or annual turnover.

It will take another three to four days to finalise it before presenting it in the state legislature, Moneycontrol said, citing a Labour department official.