Draft Karnataka Gig Workers (Conditions of Service and Welfare) Bill, 2024
Kartavya Desk Staff
#### GS Paper 2
Syllabus: Government Policies and Interventions
Source: The Print
Context: Following the footsteps of Rajasthan, Karnataka has introduced the Draft Karnataka Gig Workers (Conditions of Service and Welfare) Bill, 2024 aiming to become the second state to enact legislation specifically catering to the welfare of gig economy workers.
What is a gig economy?
It is a labour market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees.
Who are Gig workers?
Gig workers refer to workers outside of the traditional employer-employee relationship. There are two groups of gig workers.
• Platform workers: When gig workers use online algorithmic matching platforms or apps to connect with customers, they are called platform workers. E.g. Zomato Food Delivery
• Non-platform workers: Those who work outside of these platforms are non-platform workers, including construction workers and non-technology-based temporary workers.
Status: According to the NITI Aayog estimates, nearly 23 million workers will be engaged in the gig economy by 2029 (currently the number is around 7.5 million)
Gig workers face significant challenges due to the nature of their employment:
• They often lack basic rights such as minimum wages, overtime pay, and medical leave.
• Resolution of employer-employee disputes is not statutorily bound.
• Their status as both employees and independent contractors excludes them from statutory benefits under various labour acts, including the Minimum Wages Act, EPF Act, Payment of Bonus Act (for employees), and the Contract Labour Act (for contract labourers).
• Gig workers are excluded from the category of ‘unorganised workers’ or ‘wage workers’.
• They also do not have the right to collective bargaining– a fundamental principle of modern labour law.
• All the above leads to the violation of their fundamental rights under Articles 14 and 21 and comes within the meaning of forced labour under Article 23.
Key Provisions of the Karnataka Gig Workers Bill include:
• Ensuring income security for gig workers.
• Guaranteeing occupational safety
• Imposing penalties on aggregators for violations.
• Setting up a state-level welfare board for gig workers.
• Implementing a central transaction monitoring system.
• Charging aggregators gig workers’ welfare fees.
• Mandating fair terms of contract between aggregators and gig workers.
• Strict norms for termination of work and ensuring income security.
• Registration of gig workers with the welfare board.
• Providing gig workers with a ‘human point of contact’ for grievance resolution.
• Mandating aggregators to provide details of all registered gig workers to the board.
• Establishing a robust grievance redressal mechanism.
Previously, in 2023 Rajasthan government had made a similar bill.
Key provisions of the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023
Features | Details
About | The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill aims to extend social security and welfare benefits to gig workers operating in the state.
Registration of Gig Workers | The bill mandates the registration of all gig workers with the state government to bring them under the ambit of labour regulations. Each gig worker will be assigned a unique ID, which will facilitate tracking their employment history and entitlements.
Access to Social Security Schemes | Gig workers will be granted access to a range of social security schemes. These schemes may include health insurance, accident coverage, and other welfare measures to provide financial support during emergencies.
Grievance Redressal Mechanism | The bill ensures that gig workers have the right to be heard and address any grievances they may have.
Establishment of Platform-Based Gig Workers Welfare Board | This board will be responsible for overseeing the welfare and rights of gig workers in the state. The Welfare Board comprises State officials, five representatives each from gig workers and aggregators, and two others (“one from Civil Society and another who evince interest in any other field”). At least one-third of the nominated members should be women.
Platform-Based Gig Workers Fund and Welfare Fee | The bill introduces a “Platform-Based Gig Workers Fund and Welfare Fee” to finance the social security measures for gig workers. The fund will be utilized to provide financial support and welfare benefits to gig workers during challenging times.
Fee Levied on Aggregators | Aggregators will be required to pay a fee for each transaction involving a platform-based gig worker. The specific percentage of the fee will be determined by the state government to contribute to the welfare fund.
Penalties for Non-Compliance | Aggregators failing to pay the welfare fee on time will be charged an interest rate of 12% per annum from the due date. The state government can impose fines of up to Rs 5 lakh for the first contravention and up to Rs 50 lakh for subsequent violations of the Act by aggregators.
Statutory Framework for Gig Economy in India:
• Code on Social Security, 2020: Provides for extension of social security benefits to gig workers as well.
• Occupational Safety, Health and Working Conditions Code, 2020: To promote a safe and healthy work environment and it also regulates contract labour.
Other best practices:
• Germany’s Temporary Employment Act provides for equal pay and equal treatment of gig workers.
• Singaporehas also proposed legislative changes to extend work injury insurance and pension coverage to such workers.
Insta Links:
• Issues faced by gig workers in India
• Gig economy
Mains Links:
Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC 2021)
How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? (UPSC 2016)