Union hails Rajasthan’s move to announce legislation, provide welfare fund for gig workers

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The Indian Federation of App Based Transport workers (IFAT) hailed the Rajasthan government’s announcement to have legislation for gig and platform workers and set up a welfare board for them.

In the state Budget, Rajasthan Chief Minister Ashok Gehlot said that he will be bringing in a ‘Gig Workers Welfare Act’, which would be the first of its kind in the country. Gehlot gave the example of companies such as Ola, Uber, Swiggy and Zomato who engage gig workers and pay them only for that transaction, as they are not on the rolls of the company.

As they are not on the rolls of the company, gig workers do not receive a salary and are currently not entitled to any social security measures that salaried employees have.

“Along with the whole world, the scope of gig economy is also increasing continuously in the state. Today their number has increased to 3-4 lakh in the state. These big companies do not make any arrangements for social security for these 'gig workers'. With a view to protect such workers from exploitation and to provide them support, I propose to bring 'Gig Workers Welfare Act',” he said.

Under this, a Gig Workers Welfare Board will be established, and a Gig Workers Welfare and Development Fund will be set up with a fund of Rs 200 crore.

IFAT hailed the efforts of the state government to find “concrete solutions to one of the most complex problems of the labour market and the world of work”

“IFAT believes that this is a monumental moment not only for gig workers, but for entire informal sector workers and industries both. These efforts will go a long way in solving many unanswered and complex questions of the informal economy where over 94%/50 Crores of India's total workforce are employed,” IFAT said in a statement.

It added that the union hopes that this spreads beyond the state as well.

“We won't be wrong if we say that this move will motivate other sectors of the informal economy to strengthen its demand and struggle, and march towards accessing their due entitlements,” they said.

The Code on Social Security was the first time gig and platform workers were recognised by the government, which sought to give workers social security benefits. However, this has not been notified yet. In this case, the rules have to be notified by both the Central as well as state goverments.

A report by the NITI Aayog on gig workers that was put out in June 2022 estimated that the country will have 2.35 crore gig workers by 2029-30, up from the 68 lakh gig workers in 2019-20. Drivers and sales persons accounted for more than 52 percent of the gig workers in 2019-20.