Recently, the Rajasthan government took a significant step towards ensuring social security for gig workers by presenting the Rajasthan Platform Based GIG Workers (Registration and Welfare) Bill, 2023. This groundbreaking legislation is the first of its kind in the country and aims to protect the rights and welfare of gig workers while holding aggregators accountable for their action.
Establishing the Platform-based Gig Workers Welfare Board
Rajasthan Platform-based Gig Workers (Registration and Welfare) Bill 2023 lays the establishment of the Platform-based Gig Workers Welfare Board. This board is designed to act as a mothership for over three lakh gig workers employed by various online service providers in the state. One of the primary functions of the board is to develop welfare policies and address the grievances of gig workers hired on a piece-rate basis, where their payment depends on the units of work performed.
Automatic Registration and Unique ID System
The bill ensures that all platform-based workers in Rajasthan will be automatically registered with the Gig Workers Welfare Board, regardless of their employment period with the respective platforms. Each registered worker will receive a unique ID with three-year validity, facilitating their access to government welfare schemes such as the PM Sambhal scheme, which provides old-age pensions. Furthermore, this unique ID system allows gig workers to lodge complaints over payment disputes and other issues, thus safeguarding their interests.
Seeding the Gig Workers Welfare Board
To ensure the effective functioning of the Gig Workers Welfare Board, the government has allocated a substantial Rs 200 crore seed fund. This financial support is intended to kickstart the board’s activities and ensures that gig workers can immediately avail themselves of the welfare benefits offered under the new legislation.
Determining the Social Welfare Fund
The bill grants the Gig Workers Welfare Board the authority to determine the amount of cess each aggregator must pay towards the social welfare fund. This fund will be utilized to provide essential social security measures and welfare benefits to gig workers, further enhancing their economic and social well-being.
Data Integration and Enforcement Mechanisms
The Rajasthan Platform Based GIG Workers (Registration and Welfare) Bill, 2023, includes robust provisions for data integration. It requires aggregators to share data on all transactions that take place on their platforms with the Gig Workers Welfare Board. This measure helps to ensure transparency and fairness in gig workers’ earnings and enhances accountability.
Strict Enforcement and Fines for Violations
The bill takes a firm stance against any aggregator found in violation of its provisions. For the first offense, a platform that fails to comply with the specified clauses could face a fine of Rs 10 lakhs. For subsequent offenses, the fine could escalate to as much as Rs 1 crore. Additionally, the board has the authority to recommend the temporary or permanent suspension of an aggregator’s operations in the state if deemed necessary to protect gig workers’ interests.
Understanding the Gig Economy
To grasp the significance of the Rajasthan bill, it is essential to comprehend the nature of the gig economy. A gig economy is characterized by a free-market system in which organizations hire or contract workers for short spans of time. These positions are typically temporary and meet the company’s specific requirements through short-term engagements. Gig workers include independent contractors, online platform workers, contract firm workers, on-call workers, and temporary workers, as defined by the Code on Social Security, 2020 (India).
Last Modified: February 22, 2024