<p>The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, aims to protect the rights of gig workers and impose certain obligations on the aggregators regarding social security, occupational health, and safety. However, it is unlikely to be introduced in the ongoing winter session of the legislature due to opposition from the industry and concerns raised by some ministers.</p>.<p>Gig workers who form the backbone of the digital platform industry are classified as independent contractors and are thus excluded from the protection afforded by traditional labour laws. The proposed bill outlines several key measures including the creation of a corpus financed by a cess on each transaction conducted on aggregator platforms. It also envisages weekly payouts to workers, the establishment of a welfare board, and better working conditions.</p>.<p>However, industry bodies like NASSCOM argue that the bill treats gig workers like regular employees, disregarding the fundamental differences in the nature of work between the two. Gig work is characterised by flexibility and lack of employer control over terms of employment – qualities that set it apart from a conventional employer-employee relationship. Forcing gig platforms to adhere to traditional employment standards, they say, could undermine the very nature of the rapidly growing sector.</p>.Karnataka: Belagavi session to give gig workers bill a miss.<p>A recent Karnataka High Court ruling that cab-aggregator drivers are to be treated as employees under the prevention of sexual harassment (POSH) Act could have broader implications for gig workers, if extended to other areas of labour law. Karnataka’s bill follows the lead of Rajasthan, the first state to pass a gig worker protection law that provides workers with medical insurance and emergency cover. The centre’s Social Security Code also aims to bring gig workers under some form of social security.</p>.<p>Despite opposition, it is crucial for aggregators to recognise their moral and ethical responsibility to gig workers who are critical to their business model. Without legal protection, gig workers are vulnerable to exploitation with no recourse in case of unfair dismissal, harassment, or poor working conditions. Karnataka’s draft bill is an important step in rectifying this imbalance, but it must strike a balance.</p>.<p>Rigid regulations may stifle the industry’s growth, but without protection, workers will remain at the mercy of platforms that benefit from their labour but offer little in return. As the gig economy continues to evolve, the government should engage in wide-ranging consultations with all stakeholders including gig workers and platform companies.</p>.<p>The Bill is a step in the right direction and the government must not buckle under corporate pressure. Instead, it should ensure that the laws are in tandem with the gig economy, safeguarding workers while enabling businesses to thrive.</p>
<p>The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, aims to protect the rights of gig workers and impose certain obligations on the aggregators regarding social security, occupational health, and safety. However, it is unlikely to be introduced in the ongoing winter session of the legislature due to opposition from the industry and concerns raised by some ministers.</p>.<p>Gig workers who form the backbone of the digital platform industry are classified as independent contractors and are thus excluded from the protection afforded by traditional labour laws. The proposed bill outlines several key measures including the creation of a corpus financed by a cess on each transaction conducted on aggregator platforms. It also envisages weekly payouts to workers, the establishment of a welfare board, and better working conditions.</p>.<p>However, industry bodies like NASSCOM argue that the bill treats gig workers like regular employees, disregarding the fundamental differences in the nature of work between the two. Gig work is characterised by flexibility and lack of employer control over terms of employment – qualities that set it apart from a conventional employer-employee relationship. Forcing gig platforms to adhere to traditional employment standards, they say, could undermine the very nature of the rapidly growing sector.</p>.Karnataka: Belagavi session to give gig workers bill a miss.<p>A recent Karnataka High Court ruling that cab-aggregator drivers are to be treated as employees under the prevention of sexual harassment (POSH) Act could have broader implications for gig workers, if extended to other areas of labour law. Karnataka’s bill follows the lead of Rajasthan, the first state to pass a gig worker protection law that provides workers with medical insurance and emergency cover. The centre’s Social Security Code also aims to bring gig workers under some form of social security.</p>.<p>Despite opposition, it is crucial for aggregators to recognise their moral and ethical responsibility to gig workers who are critical to their business model. Without legal protection, gig workers are vulnerable to exploitation with no recourse in case of unfair dismissal, harassment, or poor working conditions. Karnataka’s draft bill is an important step in rectifying this imbalance, but it must strike a balance.</p>.<p>Rigid regulations may stifle the industry’s growth, but without protection, workers will remain at the mercy of platforms that benefit from their labour but offer little in return. As the gig economy continues to evolve, the government should engage in wide-ranging consultations with all stakeholders including gig workers and platform companies.</p>.<p>The Bill is a step in the right direction and the government must not buckle under corporate pressure. Instead, it should ensure that the laws are in tandem with the gig economy, safeguarding workers while enabling businesses to thrive.</p>
