The Karnataka government has recently issued the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024 (Bill) and has invited objections/ suggestions from stakeholders.
The provisions of the Bill will apply to all platform aggregators in Karnataka engaged in providing ride-share, food delivery, logistics, professional, healthcare, travel and hospitality, and content and media services, as well as e-commerce marketplaces. The Bill requires the Karnataka government to establish a welfare board as a monitoring mechanism, and all aggregators and gig workers will have to register with this welfare board.
The Bill mandates the execution of a fair contract between the aggregator and the gig worker, with termination to take place only on the predetermined grounds for termination listed in the contract. The Bill requires aggregators having more than 50 gig workers to constitute an Internal Dispute Resolution Committee, and the Bill also provides gig workers an option to seek resolution of their disputes through the mechanism provided under the Industrial Disputes Act, 1947.
The Bill provides for the setting up of the Karnataka Gig Worker’s Social Security and Welfare Fund for the benefit of registered gig workers. Among other contributions, the fund will be credited with a welfare fee charged from the aggregators, to be determined based on the pay of the gig worker in each transaction or on the annual turnover of the aggregator in Karnataka.
Industry bodies like the National Association of Software and Service Companies (NASSCOM) and the Internet and Mobile Association of India (IAMAI) have pointed out a few gaps in the Bill. Currently, gig workers are recruited as independent contractors and not employees; however, the Bill imposes the presumption of an employer-employee relationship between aggregators and gig workers.
The consultation period for the Bill is ongoing. Assuming the Bill is tabled and passed in the monsoon session of the Karnataka Assembly, beginning today (i.e., July 15, 2024), it will change the employment dynamics of these new age industries in the state of Karnataka.