Gig workers’ Act: Rules soon, cess quantum yet to be decided by Karnataka labour department

Bengaluru: Two months after passing the Karnataka Platform-based Gig Workers’ (Social Security and Welfare) Bill, which mandates levying a 1-5% cess per transaction on aggregators, the labour department is yet to finalise the quantum of cess for different aggregators.

As per the Act, the cess will be levied on aggregator platforms like Swiggy, Zomato, Ola and Uber, which employ gig workers. 

It mandates varied welfare fees for different categories of aggregators, which have their own mechanisms of channeling customers’ payments.

After passing the Act, the next phase is to publish rules. G Manjunath, additional labour commissioner, said there had been extensive pre-legislative consultations to take along all stakeholders.

“Aggregators like Swiggy and Zomato have initiated social security measures such as accident insurance and maternity benefits. They have provided their perspectives and suggestions,” he said.

Labour Minister Santosh Lad told DH, “We sought objections, after which the final file came to the government. We will finalise things in a week or 10 days”.  

Manjunath said once the rules are published, notification will be issued, in which the quantum of cess will be mentioned. Once notified, all aggregators will be mandated to pay welfare fee. The final call on the quantum of cess will be taken by the labour minister.

As per the proposed rules, each aggregator platform operating in Karnataka should register itself. They should also submit a database of all gig workers employed by them.

The aggregator shall automatically calculate welfare fee and self-declare it within five working days of each quarter.

The department is preparing a software to channel the collection of welfare fee, as registrations happen online and all payouts and details have to be submitted online. 

However, the process of calling for tenders, creating software and finalising it may take five-six months, by when the notification will be issued. The department has come up with an ad-hoc arrangement till then.

“The rules mandate having the payment through manual mode till the software is ready. Aggregators can file a statement of their payouts and pay the required welfare fee to the board. Once the software is ready, the process will be digitised,” Manjunath said.

However, trade unions are not satisfied with the consultation process. “We are very disappointed that the central trade unions have not been taken on board, either for consultations or in the working committee while framing rules,” Satyanand Mukund, state secretary of All India Trade Union Congress (AITUC).

Mukund said the transaction fee framed under the rules was “grossly inadequate” and won’t help achieve social security for gig workers.

Providing social security for gig workers is a pet project of leader of the Opposition in Lok Sabha Rahul Gandhi and was a part of the Congress’ manifesto for the 2023 Assembly elections. The law is expected to help around four lakh gig workers in state.

Key features

The Act proposes to form a welfare fund. Apart from the welfare cess, contributions by individual platform-based gig workers, central and state government grants will flow into the welfare fund.

The aggregators can make voluntary contributions over and above the welfare fee to the fund under corporate social responsibility.

The Act confers powers on the state government to form a welfare board comprising the labour minister, government officials and representatives of workers, aggregators and civil society.

Grievance redressal

The rules specify that any aggrieved gig worker should file his grievance with the internal dispute resolution committee of the aggregator within 7 working days. The committee shall comprise both members of the management and senior gig workers.

If any party is aggrieved by the final decision, they can file an appeal before the minimum wages board within 30 days. 

Background

Though the government released the draft bill for public consultations in July 2024, which was also supported by the joint committee of trade unions, it wasn’t immediately passed since there was opposition to the Bill from aggregators and industries, which was voiced in the Cabinet by the ministers concerned.

Finally, the government went ahead with an ordinance after Rahul Gandhi held extensive discussions in Delhi with Lad, Industries Minister M B Patil, IT/BT Minister Priyank Kharge and representatives of gig workers and evolved a consensus on the Bill.