Karnataka's Gig Workers Bill: Consumers May Face Higher Charges For Online Orders

The Karnataka government has released a draft platform-based gig workers (social security and welfare) bill to protect the rights of gig workers. The draft proposes a fee be charged to platforms for each transaction. 

The aggregator will be charged a welfare fee, referred to as "The platform-based gig worker welfare fee." The fee will be a percentage of each state transaction, or a share of the state's annual revenue. The state government will collect the fee, and the aggregators are required to pay it at the end of each quarter.

The draft proposes that obligations be placed on aggregators in relation to social security, occupational health and safety, transparency in automated monitoring, and decision-making systems. The plan includes the provision of dispute resolution mechanisms, the creation of a welfare board to establish a welfare fund for gig workers, and the registration of aggregators and gig workers in the state.

The administration has made the draft available to the public, and has invited objections and suggestions from stakeholders.  

The state government will also be establishing the “Karnataka Platform-Based Gig Workers Welfare Board." The board will ensure registration of gig workers, and aggregators  in accordance with the provisions of the Act, set up a monitoring mechanism to certify the collection of welfare fees, monitor the schemes for social security, and constitute a committee to provide recommendations, among other functions. 

Karnataka's draft bill is an improvised version of the Rajasthan Platform Based Gig Workers (Registration & Welfare) Act 2023. Rajasthan became the first state to establish a platform worker law in July of last year when it passed the bill.

The government will also be establishing a fund called “The Karnataka Gig Worker's Social Security and Welfare Fund” for the benefit of registered gig workers, and the money shall form part of and be paid into all sums received from welfare fees levied under this Act, all contributions made by individual gig workers, and all sums received as grant-aid from the state and central government.

If an aggregator contravenes any of the provisions of the Act or rules, the aggregator shall be liable to a penalty not less than Rs 5,000 and may extend up to Rs 1 lakh and Rs 5,000 for every continued day of contravention, the draft bill noted.