Karnataka has come up with a draft Bill to mandate app-based delivery and ride-hailing platforms to give social security benefits to gig workers and propose other welfare measures. The state government has placed the draft in the public domain seeking comments from stakeholders.

The Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, would impose a fee on each transaction on the platform. The bill proposes to impose a fee on each transaction on the platform. For failure to comply with its provisions, the bill proposes monetary penalties.

Labor minister Santosh Lad says, “This proposed Bill is an improvised version of the Rajasthan law. Rajasthan, by passing a Bill in July last year, became the first state in the country to introduce a law for platform workers.”

“Ours is a rights-based Bill aiming to protect the rights of the gig and platform workers,” says Lad.
The proposed Bill is intended to ensure basic minimum social security for workers. It seems to end arbitrary illegal termination of employees, says the minister.

There are an estimated 200,000 gig workers in Bengaluru working for delivery platforms such as Dunzo, Swiggy, and Blinkit. 2 years ago, Dunzo gig workers protested against the platform's introduction of an incentive-based payment model to delivery companies. The move was in effect a per-delivery payment model.

The move would have effectively reduced per-delivery payments. The proposed law promises a grievance mechanism and seeks to prevent arbitrary and illegal dismissals.

The bill is the product of several rounds of discussions with aggregators and a conference held in conjunction with the International Labor Organization.

According to the government, every platform-based gig worker and aggregator must register with the labor department. The aggregator must also enter into a fair compensation agreement as per the contract guidelines and templates the government would notify.