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What does the Karnataka Bill promise gig workers? | Explained
What are some of the key measures proposed for the welfare of gig workers in the State? With the rise of several platforms like Swiggy, Zomato, Uber, Ola and others shaping the gig economy in India and impacting the labour market in a big way, why are safeguards necessary?
The story so far: On June 29, 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.
What does the Bill seek to do?
The Bill seeks to regulate the social security and welfare of platform-based gig workers in the State and is expected to be placed in the monsoon session of the Assembly.
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The draft defines a gig worker as “a person who performs a work or participates in a work arrangement that results in a given rate of payment, based on terms and conditions laid down in such a contract and includes all piece-rate work, and whose work is sourced through a platform, in the services specified in Schedule-1.” A 2022 NITI Aayog report estimates that India will have 23.5 million gig workers by 2029-30. Around 2 lakh gig workers work with platforms such as Swiggy, Zomato, Uber, Ola, Urban Company, Porter, Dunzo, Amazon, Flipkart and so on in Bengaluru alone reportedly. The last two decades have seen the rise of several such platforms shaping the gig economy in India and impacting the labour market in a big way.
Veering away from traditional employer-employee relationships, the aggregators do not onboard gig workers as their employees, but as ‘partners’ (or other similar terminologies). This essentially makes the workers independent contractors and leaves them outside the security net of labour protection laws. Although initially thought of as a great opportunity to make money while enjoying autonomy and flexibility, over the years workers started seeing reduced payments, arbitrary dismissals and other instances of exploitation in the absence of regulatory laws.
What are some of the highlights of the Bill?
Introduced as a ‘rights-based bill’, the Karnataka draft Bill seeks to protect the rights of platform-based gig workers and places obligations on aggregators in relation to social security, occupational health and safety of workers. The new draft aims to introduce safeguards against unfair dismissals, bring in a two-level grievance redressal mechanism for workers, and more transparency with regards to the automated monitoring and decision-making systems deployed by platforms.
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According to the draft Bill, the contract between the aggregator and the worker should contain an exhaustive list of grounds on which the contract would be terminated by the aggregator. It also stipulates that the aggregator shall not terminate a worker without giving valid reasons in writing and prior notice of 14 days.
Why is this important?
Arbitrary terminations have been a major complaint raised by gig workers for many years now. Instances of blacklisting workers or terminating them from work without hearing out their side have been aplenty. Often, platforms enact these through automated monitoring and decision-making systems which track the work and earnings of the gig worker, record customer feedback, and make decisions accordingly. Workers point out that this system is heavily skewed in favour of the customer and makes it a game of chasing ratings and pleasing the customer at any cost. The absence of human intervention leaves no room for grievance redressal for the latter.
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What are the other features of the draft?
Given that arbitrary deductions from payments have been another point raised by workers, the draft mandates aggregators to make payments at least every week and to inform the worker about the reasons for payment deductions if any. As per the new draft, a worker will have the right to refuse a specified number of gigs per week with ‘reasonable cause’ without any adverse consequences.
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Taking a leaf out of the Rajasthan Bill, the new draft also seeks to establish a welfare board and a social security and welfare fund for gig workers. A welfare fee would be levied either on every transaction between the worker and the aggregator or on the overall turnover of the company. The welfare fee as well as contributions from Union and State governments would go to the fund. All gig workers must be registered and the aggregators should furnish to the government the database of gig workers. Contracts must be written in a simple language and any change should be notified to the worker at least 14 days before the proposed change. The gig worker will have the option to terminate the contract accordingly without any adverse consequences for their existing entitlements. The aggregator must also provide reasonable and safe working conditions for workers, although the draft does not delve into what constitutes as ‘reasonable.’
Have there been initiatives in other States?
Around a year back, Rajasthan introduced the Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, making it the first-ever State to do so. The Bill that was introduced by the Congress government became an Act in September. In November, the BJP came to power in the State and the Act has gone into cold storage. The Haryana government is set to establish a State-level board dedicated to the social and economic security of gig workers. The Telangana government is also currently in the process of drafting a similar bill as per sources.
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As far as Union government initiatives are concerned, in 2020, the Code on Social Security was introduced. It recognised those who freelance or work under short terms, and mandated employers to provide them benefits similar to those of regular employees.
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