Karnataka Gig Workers Bill 2024

Introduction of the Bill

Karnataka has proposed the Draft Platform-based Gig Workers (Social Security & Welfare) Bill, following Rajasthan’s enactment of the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023. The bill aims to address the social security and welfare needs of gig and platform workers.

Context and Background

Gig and platform workers are recognized under the Code on Social Security (CSS), 2020, but are not specifically mentioned in the three new labour codes. These codes are:

1. Code on Wages: Consolidates laws related to wages and bonus payments across all sectors in India.
2. Industrial Relations Code: Streamlines and modernizes labour laws concerning trade unions, industrial disputes, and employment conditions.
3. Occupational Safety, Health, and Working Conditions Code: Ensures safe and healthy working environments and regulates working conditions across various industries.

Need for Legislation

• Gig Economy Growth: The sector, particularly app-based services, is expanding rapidly and could potentially add 1.25% to GDP.
• Vital Source of Livelihood: Gig work is essential for many job-seekers, currently accommodating 7.7 million workers. NITI Aayog projects this number will grow to 23.5 million by 2030.
• Worker Agitations: Common issues include revenue sharing, working hours, and employment terms.
• Legal Challenges: Traditional labour laws are not well-suited to the gig economy’s non-traditional dynamics.
• Income Uncertainty: There is no guaranteed minimum earnings even for fully available workers.
• Safety Concerns: Unregulated working hours pose risks, such as overworked app cab drivers compromising safety.
• Employment Relations Recognition: Cases like the UK’s Uber decision highlight the need for recognizing employment relationships within gig work.

Challenges

• Complex Employment Relations: Legal battles and regulatory challenges complicate employment relations in the gig economy, as seen with Uber in the UK.
• Aggregator Perspective: Platforms like Zomato view themselves as technology providers connecting independent workers with consumers, not as employers.
• Worker Perspective: Gig workers often see aggregators as employers and seek legal entitlements, evidenced by protests like those of Bangalore Swiggy delivery partners.

Limitations of the Bill

• Deficient Definition: The bill does not clearly define employment relations, referring to ‘aggregators’ instead of ’employers’.
• Historical Failures: Similar welfare board models, such as the Construction Workers Welfare Act of 1996 and the Unorganized Workers Social Security Act, have been poorly implemented despite available funds.
• Welfare Board Model: While it establishes a committee to oversee social security and welfare benefits, it is more suited for self-employed informal workers and does not address employment relationships.
• Neglected Employment Relationship: The bill absolves employers of legal obligations, hindering the application of labour laws and worker protections.
• Partial Welfare: The schemes in the Karnataka and Rajasthan Acts lack comprehensive benefits and do not replace institutional social security benefits like provident fund, gratuity, or maternity benefits.
• Lack of Protections: The bill does not ensure minimum wage and working hours. Section 16 addresses income security regarding payment deductions but does not guarantee minimum income, wage entitlements, or revenue sharing between aggregators and gig workers.

Conclusion

The Karnataka Gig Workers Bill 2024 represents a significant step towards addressing the needs of gig workers. However, it faces several challenges and limitations that need to be addressed to provide comprehensive social security and welfare benefits to gig workers.