Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025

Context

Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025 was passed for establishing a criminal framework for protecting and helping gig workers across the state.

Key Highlights

• Section 2(35) of the Code on Social Security, 2020 defines a gig worker as “a person who participates in a work arrangement and earns from such activities outside the traditional employer–employee relationship.”
• In the current report titled India’s Booming Gig and Platform Economy, projected that the wide variety of gig workers in India may also rise to 23.5mn by 2030.

Key Provisions of the Law

• Gig Workers Welfare Board: The board might be established to put into effect the gig workers’ welfare law. The Board will look after all the troubles of gig people and systems.
• Platform and Worker Registration: Aggregator structures like Zomato, Ola, Swiggy, Amazon have to check in with a state welfare board and join all their gig workers, who will get hold of a completely unique ID.
• Welfare Contributions: Aggregator structures like Zomato, Ola, Swiggy, Amazon have to make contributions 1% to 5% in their payout to workers into a state-run welfare fund for social security.
• Disclosing Algorithmic Logic: Platforms want to provide an explanation for how their algorithms function for project allocation, pay, scores, and access, ensuring no discrimination.
• Grievance Redressal and Working Conditions: A 2-tier grievance system is established, beginning with an Internal Dispute Resolution Committee inside the platform, and escalating to the Welfare Board.
• Interest and Penalties for Non-Compliance: Late payment of welfare fees incurs a 12% annual interest. Non-compliance can result in fines of up to Rs 5,000 for the primary violation and up to Rs 1 lakh for subsequent violations.

Challenges to Gig Workers

• Job Insecurity and Lack of Social security
• Low Wages and Income Inequality
• Algorithms manipulate project allocation, pay prices, performance rankings, or even deactivation, but their good judgment is often hidden from workers.
• The unclear employment reputation of gig workers makes it tough to apply existing exertions legal guidelines, which had been designed for conventional employment.

Steps Taken through India for Gig Workers

• Social Security Code, 2020: This code recognizes gig workers as a separate class and ambitions to increase social security advantages to them.
• E-Shram Portal: This is a national database for unorganized sector workers, which includes gig and platform workers.
• Union Budget 2025-26: Included provisions of issuance of identification cards, and healthcare policy under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
• Rajasthan Platform-Based Gig Workers Act, 2023: This is India’s first state-level rules specially addressing gig workers rights.

Source: The Hindu

Mains PYQ

Q. Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (2021)

a) Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025 was passed for establishing a criminal framework for protecting and helping gig workers across the state.

b) Section 2(35) of the Code on Social Security, 2020 defines a gig worker as “a person who participates in a work arrangement and earns from such activities outside the traditional employer–employee relationship.”

c) In the current report titled India’s Booming Gig and Platform Economy, projected that the wide variety of gig workers in India may additionally rise to 23.5mn by 2030.

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