Karnataka Cabinet clears platform-based gig workers Bill

Karnataka Cabinet approves Bill for gig workers' welfare fund, welfare fee, and grievance redressal mechanism.

The Karnataka Cabinet has cleared the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, which aims to create a welfare fund for platform-based gig workers in the State and place obligations on aggregators. The government is expected to take the Ordinance route to implement the welfare provisions.

The Bill, which emphasises the rights of gig workers, proposes a welfare fee of 1%-5% of the payout to the worker during each transaction. All such sums received will go to the welfare fund for the workers. 

A gig workers’ welfare board will be established to ensure registration of workers by the platforms, welfare fee collection and implementation of social security schemes. Aggregators have been mandated to furnish their database of all gig workers to the board within 45 days from the commencement of the Act. 

The Bill also seeks to introduce a Payment and Welfare Fee Verification System (PWFVS) in a bid to introduce transparency to the collection of welfare fee. Every payment made to the workers and the welfare fee deducted by the aggregators shall be sent to the system. 

“The details of the welfare fee collected and spent at the gig workers’ level shall be disclosed and made available on the Welfare Fee Verification System,” reads the Bill.  

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No worker can be terminated without a valid written reason in writing and prior notice of 14 days, except in instances where the gig worker has caused bodily harm.