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

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.

Also, read: Only 3,000 gig workers have registered for insurance scheme so far: Karnataka labour department

The bill also mandates aggregators to enter into fare contracts, the guidelines of which will be published by the labour department.

The bill also proposes transparency in algorithm control through automated monitoring and decision-making systems. It proposes reasonable working conditions and OSH (Occupational Safety and Health) standards, which will be prescribed by the state government.

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It also proposes to levy a fee on the transaction cost undertaken by each aggregator or on the annual state-specific turnover of the aggregators.

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.

"The present bill is an improved version of the Rajasthan Gig Workers Bill," Mohsin said, adding it would be tabled during the monsoon session.

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Additional labour commissioner (industrial relations) Manjunath Gangadhara told Moneycontrol: "This is the first time aggregators hiring gig workers will be registering with the labour department." At present, some firms register under the Shops and Commercial Establishments Act for setting up their offices.

Also, read: Karnataka govt seeks inputs, suggestions on Gig and Platform Workers' Bill

Aggregators divided over cess collection

Sources said the labour department meet around 20 aggregators, including Ola, Uber, Rapido, Amazon, Flipkart, Zomato, Swiggy, Dunzo, Zepto, UrbanCompany and Porter. They, however, are yet to agree on the proposal to levy a fee either on the transaction cost or the annual state-specific turnover of the aggregators. While some favour a cess on each transaction, others want it to be based on the company's total turnover.

Gangadhara said multiple consultation meetings were held with aggregators and other stakeholders.

“The bill is the outcome of several rounds of discussions with the aggregators and a conference held in collaboration with the International Labour Organisation (ILO). The bill was sent to the state parliamentary affairs and legislation department for vetting," he said.

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The draft bill would be soon released to invite feedback from all stakeholders and the public. The government would also seek the opinion of tax experts and chartered accountants on managing cess collection and “then we will decide whether it will be based on each transaction or annual turnover”, Gangadhara said.

“It will take another three to four days to finalise it before presenting it in the state legislature," he said.

In September, the state government unveiled an insurance scheme with a Rs 4 lakh cover for gig workers, offering a life cover of Rs 2 lakh and an accident cover of Rs 2 lakh.