EDITORIAL ANALYSIS : The problem with the Karnataka gig workers Bill
Kartavya Desk Staff
Source: The Hindu
• Prelims: Indian Economy(WEF, employment, gig workers, GDP, Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023, Unorganized Workers Social Security Act, NITI Ayog etc
• Mains GS Paper III: Indian economy and issues related to planning, mobilization of resources, Effect of liberalization on the economy etc
ARTICLE HIGHLIGHTS
• Karnataka introduced the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, seeking to provide social security and welfare measures for platform-based gig workers in the State.
INSIGHTS ON THE ISSUE
Context
Gig Workers:
• As per the Code on Social Security 2020, a gig worker is a person who performs work or participates in a gig work arrangement and earns from such activities outside of traditional employer-employee relationship.
• Gig Economy: A free market system in which temporary positions are common and organizations contract with independent workers for short-term engagements.
• A 2022 NITI Aayog report estimates that India will have5 million gig workers by 2029-30.
Key Highlights of the Karnataka Bill:
● Creation of Welfare Board: Board comprising Karnataka labor minister, two aggregator officials, two gig workers, and one civil society member to be formed.
● A two-level grievance redressal mechanism for workers
○ transparency with regards to the automated monitoring and decision-making systems deployed by platforms has been envisaged by the draft bill.
● Timely Payment: The draft mandates aggregators to make payments at least every week and to inform the worker about the reasons for any payment deductions.
● Unique ID: Gig workers can apply to receive a Unique ID applicable across all platforms upon registration with the board.
● Social Security and Grievance Redressal: Access to general and specific social security schemes based on contributions along with a grievance redressal mechanism for gig workers.
● Autonomy and Contractual Rights: The Bill aims to provide greater autonomy to the gig workers to terminate contracts and resist being over worked by employers.
● The aggregator shall not terminate a worker without giving valid reasons in writing and prior notice of 14 days.
● Work Environment and Safety: There is a mandate for aggregators to maintain a safe working environment for gig workers.
● Welfare Fund: Proposed fund financed by a welfare fee from aggregators along with state and worker contributions.
● Penalties: Basic penalty of Rs 5,000 extendable up to Rs 1 lakh for aggregators violating conditions under the Bill.
#### Complications:
#### ● Those who run the platform prefer to call themselves as aggregators and consider gig workers as independent contractors/workers.
#### ● Aggregators believe that they are providing the technology and bringing together independent workers and consumers.
#### ○ Independent workers are masters of their own work, according to aggregators.
#### ● Workers in the gig economy consider aggregators as their employers as the conditions of service and terms of employment are set by the aggregators.
#### ○ For example, in an app-cab operation, the price of the ride is determined by the app/aggregator
#### ○ The entire ecosystem of working conditions and terms for the ride are decided by the app company only.
#### ○ Gig workers seek fair treatment, improved working conditions, and access to social security as legal entitlement
#### U.K. ruling:
#### ● The United Kingdom Supreme Court ruled that Uber is an employer and that the existing labor laws of the U.K. do apply to Uber drivers.
#### India:
#### ● Gig and platform workers are included in Code on Social Security 2020 as a kind of informal self-employed workers
#### ○ No mention of such workers has been made in the other three new labor codes, namely Code on Wages, Industrial Relations Code and Occupational Safety, Health and Working Conditions Code.
#### ● The Rajasthan and Karnataka legislations are recent additions to this legal landscape.
Issues:
• Like the Rajasthan Act, the Karnataka Bill has skirted the issue of defining employment relations in gig work. It has preferred the term ‘aggregator’ for app companies rather than employer.
• It has preferred the term ‘aggregator’ for app companies rather than employer.
• Without the recognition of employment relations: protective labor laws that ensure a minimum wage, occupational safety and health, working hours and leave entitlements and right to collective bargaining cannot be applied.
• There is no guarantee on minimum earnings from gig work even when a worker is available for the greater part of the day. There is no regulation on working hours also.
• There is no regulation on working hours also.
• There are regular incidents of overworked app cab drivers being involved in accidents late in the night or early in the morning, jeopardizing their own lives along with that of passengers.
#### ● India has seen protests and agitations by gig workers on the issue of revenue sharing, working hours and various other working conditions and terms of employment.
#### ● Solving issues within the existing legal framework as employment relations in the gig economy are non-existent at worst or complicated at best.
#### ○ The legal framework in labor laws is inherently based on employer-employee relation.
Way Forward
• Employment relations do exist in gig work, and regulations should acknowledge this. Aggregators are the de-facto employers as they set the terms and conditions of employment. They may present the platform as a tool connecting workers and consumers, they are responsible for designing it and establishing its terms. The platform is merely a tool, and is not an independent entity, making the aggregators the actual employers.
• Aggregators are the de-facto employers as they set the terms and conditions of employment.
• They may present the platform as a tool connecting workers and consumers, they are responsible for designing it and establishing its terms.
• The platform is merely a tool, and is not an independent entity, making the aggregators the actual employers.
• The welfare board model adopted by Rajasthan and Karnataka provides some welfare schemes for gig workers but it does not replace institutional social security benefits such as provident fund, gratuity, or maternity benefits, which regular workers are legally entitled to. Historically, welfare board models have been poorly implemented, as evidenced by the Construction Workers Welfare Act of 1996 and the Unorganized Workers Social Security Act, where funds were available but inadequately used. The Karnataka Bill does not address the issue of minimum wages or working hours for gig workers. Section 16 discusses income security regarding payment deductions but does not guarantee a minimum income, wage entitlements, or revenue sharing between aggregators and gig workers. Section 16(2) only requires weekly payments, without specifying a minimum amount. The proposed Karnataka Bill, like the Code on Social Security, 2020 and the Rajasthan Act 2023, fails to address the employment relationship in the gig economy. This oversight confuses employment relations and absolves employers of legal obligations, making it difficult to fully protect workers’ rights. Young men need jobs: As increasing numbers of young and underemployed males are leading to more crime and violence, and sexual assaults of women in Indian cities. Capitalism needs to reinvent itself: The paradigm of “growth, growth, growth” treats human society and nature as a means to its goals of producing more wealth for investors and more GDP. Human work and intelligence are commodities for producing value for investors in capitalist enterprises. The state must take care of its citizens.
• but it does not replace institutional social security benefits such as provident fund, gratuity, or maternity benefits, which regular workers are legally entitled to.
• which regular workers are legally entitled to.
• Historically, welfare board models have been poorly implemented, as evidenced by the Construction Workers Welfare Act of 1996 and the Unorganized Workers Social Security Act, where funds were available but inadequately used.
• The Karnataka Bill does not address the issue of minimum wages or working hours for gig workers. Section 16 discusses income security regarding payment deductions but does not guarantee a minimum income, wage entitlements, or revenue sharing between aggregators and gig workers. Section 16(2) only requires weekly payments, without specifying a minimum amount.
• Section 16 discusses income security regarding payment deductions but does not guarantee a minimum income, wage entitlements, or revenue sharing between aggregators and gig workers.
• Section 16(2) only requires weekly payments, without specifying a minimum amount.
• The proposed Karnataka Bill, like the Code on Social Security, 2020 and the Rajasthan Act 2023, fails to address the employment relationship in the gig economy.
• This oversight confuses employment relations and absolves employers of legal obligations, making it difficult to fully protect workers’ rights.
• Young men need jobs: As increasing numbers of young and underemployed males are leading to more crime and violence, and sexual assaults of women in Indian cities.
• Capitalism needs to reinvent itself: The paradigm of “growth, growth, growth” treats human society and nature as a means to its goals of producing more wealth for investors and more GDP. Human work and intelligence are commodities for producing value for investors in capitalist enterprises. The state must take care of its citizens.
• Human work and intelligence are commodities for producing value for investors in capitalist enterprises.
• The state must take care of its citizens.
QUESTION FOR PRACTICE
Do you agree that the Indian economy has recently experienced recovery ? Give reasons in support of your answer.(UPSC 2021) (200 WORDS, 10 MARKS)
Editorial Analysis – 15 July 2024