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The state of Karnataka is poised to introduce a groundbreaking initiative aimed at enhancing the social security and welfare of its burgeoning gig worker population. This initiative involves levying a fee on online platforms, specifically targeting the commissions they pay to gig workers. The collected funds will be channeled into social security and welfare schemes designed to provide a safety net for these workers, who often operate outside the traditional employer-employee framework. This move represents a significant step towards formalizing the gig economy and ensuring that its participants have access to essential benefits and protections. The decision to revive this bill, which had previously been put on hold due to resistance from various sectors, underscores the government's commitment to addressing the unique challenges faced by gig workers. The initiative gained renewed momentum following a meeting between All-India Congress Committee (AICC) leader Rahul Gandhi and Karnataka Chief Minister Siddaramaiah. Gandhi's support for the proposed law has been instrumental in propelling it forward. The government plans to establish a dedicated gig workers' welfare board, which will be responsible for planning and implementing schemes tailored to their specific needs. In addition to the fees collected from online platforms, the government will also contribute directly to the scheme, demonstrating a shared responsibility for the well-being of gig workers. The initial proposal suggested a 5% fee on commissions paid to gig workers, but sources indicate that the final figure may be adjusted to a lower percentage after further deliberation. The Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024 will be carefully reworked and presented to the Cabinet for a final decision, ensuring that all stakeholders' perspectives are considered. The bill is expected to include provisions for grievance redressal mechanisms and safeguards against arbitrary or illegal termination, addressing some of the key concerns raised by gig workers themselves. IT/BT minister Priyank Kharge, labour minister Santosh Lad, and industries minister MB Patil have all contributed their expertise to the development of the bill, further highlighting the collaborative approach being taken by the government. Representatives from the gig worker community, including Rakshitha Dev (Karnataka), Salahuddin (Hyderabad), and Nikhil Dev, also participated in discussions, ensuring that their voices are heard and their concerns are addressed. Rahul Gandhi has praised the eight-point proposal prepared by the labour department and has called for its swift implementation, emphasizing the urgency of providing support to gig workers. This initiative aligns with the Congress party's long-standing commitment to gig workers' welfare, which was a prominent theme during Gandhi's Bharat Jodo Yatra in 2022. The Congress party's manifesto for the Karnataka assembly polls included a pledge to establish a gig workers' welfare board and to set a minimum hourly wage for workers in the unorganized sector, demonstrating a clear intention to address the challenges faced by this segment of the workforce.
The proposed bill draws inspiration from the Rajasthan law, which was enacted in July 2023, making Rajasthan the first state in India to introduce legislation specifically targeting platform workers. The Karnataka government initially postponed tabling the bill last year to allow for broader consultation, particularly after concerns were raised by top executives of tech firms during a breakfast meeting with Chief Minister Siddaramaiah. This demonstrates the government's willingness to engage with industry stakeholders and to address their concerns in a constructive manner. The government's efforts to develop this legislation began soon after coming to power, spurred by Gandhi's interaction with gig workers in Bengaluru shortly before the assembly polls. During this interaction, Gandhi listened to their concerns and even participated in a 2 km ride with a delivery partner, gaining firsthand insight into their daily challenges. Bengaluru is estimated to be home to approximately 200,000 gig workers across various platforms, including Dunzo, Swiggy, Blinkit, and other delivery services. These workers play a crucial role in the city's economy, providing essential services to its residents. In the past, gig workers from Dunzo protested against the platform's decision to introduce an incentive-based payment model, which effectively reduced their per-delivery earnings. This incident highlights the precarious nature of gig work and the vulnerability of workers to changes in platform policies. The bill, as drafted last year, aims to address these issues by providing a grievance redressal mechanism and preventing arbitrary and illegal termination. App-based aggregators have expressed concerns about the potential impact of the proposed law on job creation, arguing that it could hinder growth in the sector. However, the government maintains that the bill is designed to protect the rights of gig workers and to ensure that they receive basic social security benefits. Labour minister Santosh Lad has emphasized that the bill is rights-based and intends to provide gig and platform workers with the protection they deserve. He has also stated that the bill seeks to end arbitrary and illegal termination of employees, a common concern among gig workers.
The draft bill is the result of extensive discussions with aggregators and a conference held in collaboration with the International Labour Organisation (ILO). These consultations have allowed the government to gather input from a wide range of stakeholders and to develop a bill that is both effective and fair. Labour department officials have stated that the draft law was released after discussions with various platforms, including Amazon, Flipkart, Uber, Ola, Rapido, Zomato, and Dunzo. This demonstrates the government's commitment to transparency and collaboration in the legislative process. The introduction of this bill marks a significant step towards recognizing the rights and needs of gig workers in Karnataka. By providing them with access to social security and welfare schemes, the government is helping to create a more equitable and sustainable gig economy. The bill also addresses key concerns such as grievance redressal and protection against arbitrary termination, ensuring that gig workers are treated with fairness and respect. The implementation of this bill is likely to have a significant impact on the gig economy in Karnataka, potentially setting a precedent for other states to follow. It is a testament to the government's commitment to social justice and to ensuring that all workers, regardless of their employment status, have access to basic rights and protections. The success of this initiative will depend on the effective implementation of the bill and on the ongoing engagement with stakeholders to address any challenges that may arise. However, the groundwork has been laid for a more equitable and sustainable gig economy in Karnataka, one that values the contributions of its gig workers and provides them with the support they need to thrive. The focus will be on finding the right balance between protecting worker rights and fostering a business environment that encourages innovation and growth in the gig economy. This law could serve as a model for other regions looking to address the challenges of the evolving workforce. The implementation details, including the final fee percentage and the specific welfare schemes offered, will be crucial in determining the long-term success of this initiative. The government's continued commitment to dialogue and collaboration with both gig workers and platform companies will be essential for navigating the complexities of this rapidly changing landscape.
Source: Coming soon: Karnataka plans 5% fee on online platforms to fund gig worker welfare