Gig workers laud new draft Bill, but feel there’s room for improvement 

Workers, experts, and various unions representing gig workers in the State have welcomed the recently published draft of the Karnataka Platform based Gig Workers Social Security and Welfare Bill, and have termed it “an honest intention to address the essential social security and welfare issues of platform-based gig workers.” 

Workers, experts, and various unions representing gig workers in the State have welcomed the recently published draft of the Karnataka Platform based Gig Workers Social Security and Welfare Bill, and have termed it “an honest intention to address the essential social security and welfare issues of platform-based gig workers.” 

While praising the fact that the Bill has adopted a workers’ rights-based approach, they also feel that there’s room for improvement. One of the viewpoints put forward by the workers is regarding the implementation of a “transaction-based cess model linked with existing social security legislation.”

The draft Bill proposes establishing a Gig Workers Welfare Board and a Karnataka Gig Workers’ Social Security and Welfare Fund which would be majorly financed through ‘welfare fee’ from platforms, contributions by the gig workers, and grants from the State and the Union governments.

According to the draft, the welfare fee shall be charged from an aggregator “which shall be at such rate (percent) of the pay of the platform based gig worker in each transaction or on the annual State specific turnover as may be notified by the State government.” 

Shaik Salauddin, national general secretary and co-founder of Indian Federation of App-based Transport Workers (IFAT), felt that levying a percentage on overall profits or turnover may not be the right approach. He pointed out that many large tech firms report minimal or no profits, which could make it difficult to collect a fee from their overall turnover. 

Also, many platforms, although they have gig workers, make their revenues from the cost of goods sold. Therefore, levying a share of revenue thus made for the welfare of gig workers may seem complicated. 

“Instead of levying cess from the aggregator turnover, there should be a cess on each transaction. And it should be clearly defined in the Bill,” says Salauddin, who was also part of a stakeholders’ meeting with the Labour Minister and other officials held on 1 July.