Draft Karnataka Platform-based Gig Workers

Context:

Recently, the Karnataka government published the draft of the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, making it the second Indian State to initiate such a move, the first being Rajasthan.

Relevance:

GS II: Polity and Governance

Dimensions of the Article:

1. Key Features of the Draft Bill
2. Who is a ‘gig worker’?
3. Concerns related to gig workers and the proposed labour codes in India
4. Measures to address the issues related to gig workers

Key Features of the Draft Bill

The draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill introduces several key provisions aimed at regulating and safeguarding the rights of platform-based gig workers in the state. Here are the main features of the draft bill:

• Termination Regulations:
  • The bill mandates that contracts between aggregators (platforms) and gig workers include a comprehensive list of grounds for termination.
  • Aggregators cannot terminate a worker without valid reasons provided in writing and a prior notice period of 14 days.
  • This addresses concerns of arbitrary terminations and aims to ensure fair treatment of workers.
• Payment Regulations:
  • Aggregators are required to make payments to gig workers at least weekly.
  • Workers must be informed about any deductions in payments and the reasons for these deductions, ensuring transparency in financial transactions.
• Right to Refuse Gigs:
  • Gig workers have the right to refuse a specified number of gigs per week without facing adverse consequences, provided they have reasonable cause.
• Welfare Fund:
  • A welfare fee will be levied on each transaction between the worker and the company, or based on the company’s total revenue.
  • Contributions from both the Union and State governments will also fund this welfare fund.
  • All gig workers must be registered, and aggregators are required to maintain a database of these workers.
• Working Conditions:
  • Aggregators are obligated to provide reasonable and safe working conditions for gig workers. However, the draft bill does not specify what constitutes “reasonable” conditions.

Who is a ‘gig worker’?

• Gig workers are those who work outside the traditional employer-employee relationship.
• There are two groups of gig workers – platform workers and non-platform workers.
• Gig workers who use online platforms are called platform workers, while those who work outside of these platforms are non-platform workers.
• Gig workers have characteristics of both employees and independent contractors and do not fit into any rigid categorization.
• As a result, gig workers have limited recognition under current employment laws and fall outside the ambit of statutory benefits.

Concerns related to gig workers and the proposed labour codes in India:

Limited benefits and protections:

• Gig workers are excluded from the benefits and protections offered by the other proposed labour codes, such as minimum wage and occupational safety.
• They are also not allowed to create legally recognised unions.

Lack of effective remedy:

• Gig workers are excluded from accessing the specialised redressal mechanism under the Industrial Disputes Act, 1947.
• This denies them an effective remedy for grievances against their employers.

No right to collective bargaining:

• Gig workers do not have the right to collective bargaining, which is a fundamental principle of modern labour law crucial to safeguard the rights of workers.

Poor working conditions:

• A 2022 report by Fairwork India highlighted the deplorable working conditions of digital platform workers in India.
• There is a need for statutory affirmation of the rights of gig workers.

Delay in implementation:

• The proposed labour codes have received the assent of the President, but are still awaiting implementation three years on.
• The Centre has cited the delay in framing of rules by the States as the reason for the delay.

Measures to address the issues related to gig workers:

• Evaluating scale of Gig economy: As of now there exists no authoritative estimate on the total number of gig workers in India, though the centralised nature of the platforms, and the larger platform labour market should make the collating of this data relatively straightforward for the Labour Ministry.
• Making regulations related to Gig economy: A more viable strategy then would involve conditional government partnerships with platforms under some of its flagship schemes. Here, the successful pilot of Swiggy’s Street Food Vendors programme under the PM SVANidhi, or PM Street Vendor’s Atma Nirbhar Nidhi scheme, may prove to be an illustrative example.

-Source: The Hindu