Karnataka to Release Draft Rules for Gig Workers’ Welfare in Two Weeks After New Ordinance

In a significant move to support the growing gig economy, the state of Karnataka has announced that it will release draft rules for the welfare of gig workers within the next two weeks. This follows the recent promulgation of an ordinance aimed at ensuring social security and better working conditions for platform-based gig workers across the state.

The ordinance, which has already received the Governor’s assent, introduces a framework to establish a Welfare Board and a dedicated Social Security Fund. These measures are designed to benefit approximately five lakh gig workers engaged in services like ride-hailing, food delivery, and online retail throughout Karnataka.

Under the proposed regulations, online platforms will be required to pay a service fee or cess, which will contribute to the welfare fund. This fund will also receive contributions from the state and central governments, ensuring sustainable support for gig workers. The rules, once finalized, will specify the exact rates of fees payable by platforms.

Karnataka’s Labour Minister, Santosh Lad, credited Congress leader Rahul Gandhi for inspiring this initiative, highlighting his vision for gig workers’ rights during interactions in the Bharat Jodo Nyay Yatra. The state aims to operationalize the fund by August, marking a historic step towards securing the livelihoods of gig workers.

The ordinance also mandates transparency from aggregators, requiring them to provide clear contracts detailing payment schedules, incentives, and workers’ rights, including the right to refuse tasks. This move is expected to address long-standing grievances related to arbitrary terminations and opaque working conditions.

As Karnataka takes the lead in formalizing protections for gig workers, this development could set a precedent for other states in India. Stakeholders are eagerly awaiting the draft rules to understand the full scope of implementation and its impact on the gig economy.