Karnataka unveils landmark draft gig worker welfare bill 2024. Check details here 

In a move aimed at protecting gig workers’ rights, the state government has released a draft of the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill-2024 and invited objections, if any.

Among the various provisions in the Bill, one of the key requirements is that firms operating as food and service aggregators in the state will have to register with the state’s labour department, ensuring that there is no unjust dismissal of gig workers and that they are provided with dispute resolution. Under the draft bill, the government will also offer grievance redressal to the workers.

The state labour department will set up a welfare board and a welfare fund for the workers, according to the draft bill released on Saturday.

The draft was published on the Karnataka State Unorganized Workers Social Security Board website on June 29. Those affected by this can submit objections and suggestions till July 9. The bill is likely to be placed in the upcoming monsoon session of the state legislature.

The draft bill proposes establishing a welfare board and creating a fund for platform-based gig workers.

It classifies aggregators as those providing services like ride-sharing, food and grocery delivery, logistics, e-marketplaces, professional services, healthcare, travel and hospitality, and content and media services.

“Aggregators shall register with the board within 60 days of the Act's commencement. The board will maintain and publish a register of aggregators in the state, including names and designations of authorised officeholders responsible for compliance, on its web portal," as per the draft bill.

It also has provisions of penalties ranging between Rs 5,000 and Rs 1 lakh on aggregators for violating rules and a daily penalty of Rs 5,000 for repeat violations.

The Bill requires aggregators to enter into fare contracts according guidelines to be issued by the labour department. It advocated for transparency in algorithmic management through automated monitoring and decision-making systems.

Additionally, the draft aims to establish reasonable working conditions and proposes 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.

Additionally, aggregators must notify platform-based gig workers of any proposed contract changes before 14 days. The registered workers can refuse a specified number of gigs per week, as agreed upon in their contract with the aggregator, the bill said.

According to the draft bill, aggregators must inform gig workers about work allocation, reasons for denying work, disclose reasons for deductions from pay and ensure weekly payments without delay.

Aggregators with over 50 platform workers must form an Internal Dispute Resolution Committee to handle issues. Gig workers can lodge grievances with the state government’s grievance redressal office or through a web portal provided on every aggregator’s platform under this Act.

Rajasthan, under the Congress rule, became the first state to pass a law for the welfare of platform-based gig workers in 2023.