Karnataka Gig Workers Bill: Aggregators, industry bodies seek more time, wider consultation

On July 12, CM Siddaramaiah conducted a breakfast meeting with more than 200 CEOs from IT, semiconductor and electronics, AVGC, biotech, and startup organisations ahead of the Bengaluru Tech Summit on November 19-21.

Aggregators and tech industry bodies have urged the Karnataka government to extend the deadline for submitting suggestions and objections on the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Draft Bill, 2024.

On July 12, Karnataka Chief Minister Siddaramaiah had conducted a breakfast meeting with more than 200 CEOs from IT, semiconductor and electronics, AVGC, biotech, and startup organisations ahead of the Bengaluru Tech Summit on November 19-21. At the meeting, many aggregators, start-ups and industry bodies had raised concerns about the bill.

Siddaramaiah had assured them that he would speak to the labour minister. “The Karnataka government recognises the pivotal role that the technology industry plays in the socio-economic development of our state. As part of this mission, I look forward to your suggestions and opinions to take our state to new heights in the technology-driven industry,” he had said.

Speaking at the meeting, Karnataka IT-BT minister Priyank Kharge said, “We recognise that the welfare of gig workers is very important. We will do a deep dive and ensure the Bill will be a win-win for all.”

Later, Kharge told reporters: “Companies have sought more time and also requested the CM and Deputy CM for a wider consultation on the Bill. They said 10 days for feedback was too short, and they need more time. The CM will take the final call on this.”

The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Draft Bill, 2024, was published on the Karnataka State Unorganized Workers Social Security Board website on June 29, with the deadline to submit objections and suggestions ending on July 10.

Also, read: Karnataka draft bill: Aggregators cannot terminate gig workers without 14-day notice

Labour department officials said they are planning to table the draft bill during the monsoon session of the legislature, which will be held for 11 days starting July 15.

“We have conducted 18 meetings with more than 50 stakeholders including aggregators, unions, law experts, and others. We have received around 30 suggestions/objections on the draft bill. We have not received any information on the extension of the deadline,” a senior labour department official told Moneycontrol.

The breakfast discussion was facilitated by industry associations including the National Association of Software and Service Companies (Nasscom), India Electronics and Semiconductor Association, TiE Bengaluru, and ABLE.

In a letter to the CM, Nasscom flagged several provisions of the gig workers bill proposed by the Karnataka government, saying they can have an adverse impact on aggregators’ businesses. “The public consultation period should be extended to at least 45 working days from 10 working days for ‘meaningful’ consultation,” it said.

Also, read: Karnataka Gig Workers' Bill: Nasscom says notice period for termination, data disclosures to hit operations

“The government should convene a meeting of the departments of labour, electronics, information technology, biotechnology and science & technology, and commerce and industries. Such a meeting should invite participation from platform businesses operating in Karnataka, industry associations, and other relevant stakeholders," Nasscom said.

Separately, Internet and Mobile Association of India (IAMAI) has raised concerns over the Karnataka Gig Workers' draft bill, warning that it could hinder business operations and negatively impact the ease of doing business in the state.

Also, read: Karnataka Gig Workers' Bill could impact ease of business in the state, warns IAMAI

IAMAI, representing more than 600 Indian and multinational corporations in the digital services industry, urged the Karnataka government to provide another 30-60 days for stakeholder consultation.