A draft bill meant to safeguard the rights of gig workers has drawn criticism as it does not address several issues such as wage fluctuations, poor working conditions, and lack of safeguards against termination by companies. The United Food Delivery Partners Union (UFDPU) has raised concerns over the proposed Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024. Members of the union are contracted to platforms like Zomato, Swiggy, and Uber.

The proposed bill aims to safeguard gig workers' rights on platform-based systems such as ride-hailing and delivery-based apps. It lays responsibilities on aggregators regarding social security, occupational health, and worker safety. The draft bill suggests measures to prevent illegal dismissals, establishes a two-tier grievance redressal mechanism for workers and mandates increased transparency in the automated monitoring and decision-making systems employed by platforms. 

The draft bill was published on June 29 by the Karnataka government and is likely to be tabled during the monsoon session of the Legislative Assembly this month.

The union has suggested 16 modifications to the draft bill to form a more inclusive legal structure that is sensitive to the challenges faced by gig workers in the industry. These suggestions include increasing the number of representatives on the welfare board, reducing the number of days an aggregator has to provide its database of gig workers that are under their employ to the board, providing equal opportunity to the gig workers to defend themselves in case of dismissal, and more.

Speaking to TNM, Vinay Sarathi, the president of UFDPU, said they face a lot of difficulties, such as being fined for minor issues or getting their IDs blocked from the platform. “If the companies block an ID or fine us Rs 500, then we will lose our earnings for the day, and if we work part-time, the earnings are hardly Rs 200 to Rs 300 per day, and then we will have to pay extra to compensate the fine,” he said.

He said that companies usually see workers as dispensable, and the idea of flexibility from being independent contractors is more convenient for the company than the workers. 

The union president mentioned that because of these issues, they have been demanding the companies provide insurance or a guarantee that will support the workers, like an employee provident fund (PF). He said that some insurance schemes have been rolled out by companies because of their demands, but to date, he has not witnessed anyone receive insurance after claiming it. 

He pointed out that the proposed bill is an improvement of a similar law passed in Rajasthan in 2023. In the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023, they have kept the traditional employer-employee relationship out of conventional law, but the Karnataka bill does not explicitly state that gig workers are outside of this relationship. 

Suggestions by UFDPU

Some of the chief suggestions are appointing labour officers as grievance redressal officers in each district for gig workers to raise their issues, and the right to use the common toilet and restroom facilities as eateries do not allow them to use restrooms when delivery executives come to pick up orders. 

Speaking on income security, Vinay Sarathi said that the term needs to be explicitly defined in the draft bill, adding that the government should ensure that the wages received by gig workers satisfy the statutory minimum wages per the Minimum Wages Act 1948. The long hours spent by gig workers on the job should be accounted for by ensuring that wages are calculated for eight hours of work per day and for overtime wages to be considered at double the usual wage rate. 

It also states that aggregators must give fourteen days’ notice before termination, but the union suggested that they should also provide an equal opportunity to gig workers to defend themselves in such cases. They also demanded that any change in the contract by aggregators should be placed before the Welfare Board and receive its approval before implementation.

Concerning registration of gig workers, the union suggested that aggregators provide a database of all gig workers registered with them within 30 days of commencement of the act and for the welfare board to electronically register all gig workers onboarded by platforms within 15 days of being hired.

The Karnataka Gig Worker’s Welfare Board, as stipulated in the draft bill, consists of the Labour Minister, two representatives from workers and aggregators, one civil society member and four government officials, including a chief executive officer appointed by the state to manage the day-to-day activities of the board. UFDPU has suggested increasing the number of representatives from gig workers and aggregators to five each. 

Sarathi said the board should act like a tripartite where each party has an equal say in matters. “There are only two representatives from the workers and aggregators, but four from the officials. Now, if they all reach a consensus but the worker representation has a different point of view, I fear they may not be heard,” he said.

The union expressed that the inclusion of a health insurance policy similar to the employee state insurance (ESI) scheme would provide a safety net for gig workers and their families. The Karnataka government had announced an insurance scheme for gig workers in the state that would provide Rs 4 lakh in case of accidental death and a coverage of Rs 2 lakh in cases of non-fatal accidents, including life insurance of Rs 2 lakh in September, last year. The union recommended that this scheme be brought under the Welfare Board once the bill is passed. 

The draft Bill provides gig workers with greater control over their contracts, permitting them to terminate their contracts without any adverse consequences for their existing entitlements under the previous contract. 

The growing gig economy in India 

The provisions in the bill could provide a sense of security to gig workers in the state where more than two lakh gig workers operate, according to a report by the Indian Express. The gig economy is one of the fastest-growing sectors in the Indian economy, accounting for 1.5% of the total livelihood in the country, as per the NITI Aayog 2022 report. It estimates that there are around 77 lakh gig workers in India, with future projections showing that gig workers in the country are set to increase by 2.35 crore and constitute 4.1% of the total workforce by 2030.

A majority of gig workers are concentrated in the informal sector; more than 82.5% of workers are employed in this sector, and there are significant challenges to providing legal protection and regulations.