The Karnataka Assembly recently passed the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill. This law aims to provide social security and better working conditions for gig workers in the state. It comes at a time when gig workers continue to face challenges like income instability and health risks, especially during extreme weather events.
Overview of the Karnataka Gig Workers Bill
The bill establishes a welfare board dedicated to gig workers. This board will create a welfare fund to support workers in need. It also sets up a registration system for workers, platforms, and aggregators. The bill includes provisions for income security and a dispute resolution mechanism to address grievances. It aims to ensure reasonable working conditions for those delivering services through digital platforms.
Significance Amidst Current Challenges
The bill’s passage coincides with heavy rains and flooding in parts of India. Despite such conditions, gig workers continue to deliver goods and services. They face threats from air pollution, traffic hazards, and lack of paid leave. The bill recognises these risks and attempts to offer protections that were previously unavailable.
Gig Economy Growth in India
India’s gig economy began expanding around 2010 with food delivery and ride-hailing platforms. According to Niti Aayog, the sector had 7.7 million workers in 2020. This number is expected to triple to 23.5 million by 2029-30. The gig economy has become source of employment and has transformed work practices across the country.
Regulatory Landscape in India
Until now, India lacked a comprehensive regulatory framework for gig workers. Rajasthan was the first state to pass a law for gig worker welfare in 2023. Karnataka’s bill is the second such initiative and will benefit around 400,000 workers once enacted. The bill still requires approval from the legislative council to become law.
Need for Institutional Support
The gig economy’s rapid growth has created new labour challenges. These include lack of health insurance, income insecurity, and absence of social dialogue platforms. There is a pressing need for business organisations and institutions to engage more actively. Their role in shaping policies and organising workers is crucial for sustainable development of the gig sector.
Future Implications
The Karnataka bill may set a precedent for other states to follow. It reflects a growing recognition of gig workers’ contributions and vulnerabilities. Improved social security and welfare measures could enhance the quality of work and life for millions in the gig economy.
Questions for UPSC:
- Critically discuss the challenges faced by gig workers in India and analyse the role of state legislation in addressing these challenges.
- Examine the impact of the gig economy on traditional labour markets in India and point out the need for regulatory frameworks.
- Estimate the potential socio-economic effects of expanding social security coverage to informal sector workers in India.
- Analyse the role of business organisations and social dialogue in improving labour welfare in emerging employment sectors like the gig economy.
