Karnataka Gig Workers draft bill: Deadline for objections ends, likely to be tabled in legislative session

In 2023, Rajasthan, then ruled by the Congress, became the first state to pass a law for the welfare of platform-based gig workers. The Congress is in power in Karnataka.

With the deadline for objections and suggestions for the draft Karnataka Gig and Platform Workers' Bill ending on July 10, the state labour department is now fine-tuning the draft bill.

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 from July 15.

In 2023, Rajasthan, then ruled by the Congress, became the first state to pass a law for the welfare of platform-based gig workers. The Congress is in power in Karnataka.

Additional labour commissioner (Industrial Relations) Manjunath Gangadhara told Moneycontrol: "We have received 26 objections/suggestions on the draft bill from representatives of aggregators, gig workers' unions, civil society groups, law firms, and others."

Also, read: Karnataka to make registration must for aggregators to hire gig workers, law in the works

"We are now analysing the suggestions, and some of them are valid, which will be incorporated to strengthen the draft bill. We will soon send this to the state government, and it is likely to be tabled in the upcoming monsoon session of the legislature," he said.

The draft bill proposes the establishment of a welfare board and a fund for platform-based gig workers, among other things. Aggregators include those providing services like ride-sharing, food and grocery delivery, logistics, e-marketplaces, professional services, healthcare, travel and hospitality, and content and media services.

While the state government doesn't have data on gig workers, a 2022 report by the Centre’s think tank, the NITI Aayog, put their number at around 2.33 lakh in Karnataka. The draft states that under the 'Platform-Based Gig Workers Welfare Fee,' a percentage of the transaction value or the aggregator's annual turnover in Karnataka will be deposited by the aggregator in the welfare fund.

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

Gig workers welcome, aggregators oppose

United Food Delivery Partners Union welcomed the bill. "This is a first-of-its-kind attempt by any state government to comprehensively address the overall welfare of gig workers. We also applaud the recognition of the workers as 'gig workers' rather than 'partners, " the Union stated.

The Union also called for common toilet and restroom facilities in public spaces for gig workers, a 2-3% cess from aggregators for each transaction involving gig workers, and robust health and social security coverage similar to the ESI scheme and EPF.

Also, read: Draft gig worker bill: Karnataka likely to impose per transaction fee for welfare fund

The Indian Federation of App-based Transport Workers (IFAT) and Vidhi Centre for Legal Policy also welcomed the bill, highlighting its potential to set a global standard for gig workers' rights. They emphasised the need for transparency in algorithms and effective implementation from day one.

Aggregators oppose it

Many aggregators opposed the bill. The Internet and Mobile Association of India (IAMAI) raised concerns over the draft bill, warning it could hinder business operations and negatively impact the ease of doing business in the state.

Representing more than 600 corporations, IAMAI urged the Karnataka government to provide an additional 30-60 days for stakeholder consultation. "The gig economy is evolving, and any new regulations will have far-reaching ramifications for workers, platforms, and the larger ecosystem. All stakeholders must have an opportunity to provide input and voice their concerns before such a law is enacted," IAMAI stated in a letter to the state labour department.

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