Karnataka passes gig workers welfare bill; rules for welfare fee soon, says Labour Minister Santosh Lad

Labour Minister Santosh Lad, piloting the Bill, said that it would apply to eight services provided by aggregators—ride sharing, food and grocery delivery, logistics services, e-marketplace, professional activity provider, healthcare, travel and hospitality, and content and media services.

The Bill allows the government to levy a welfare fee ranging from 1 to 5 per cent on aggregators meant for a welfare fund of gig workers. “The fee cannot be implemented uniformly (from all aggregators). When rules are framed, the government will also determine the welfare fee,” he said.

Deputy Leader of Opposition Arvind Bellad argued that variation in the fee for various aggregators could lead to corruption. “Fixing one rate is appropriate,” he suggested.

Lad, in response, said that it would not be possible to do so as there were differences among various aggregators. “For instance, Namma Yatri (ride-hailing app) transfers the amount charged directly (to drivers). Should we then take it from the user fee? Companies such as Urban Clap will pay service and transportation charges. How should it be collected from them?” he asked, adding that the government has held discussions with experts to finalise the fee.

Explaining the necessity of the Bill, he said that some gig workers were putting in 16-hour shifts to earn around Rs 1,600 to Rs 1,800. Due to the kind of work, these workers will face health problems in the future, Lad said.

BJP legislator Dheeraj Muniraju asked whether the government could fix minimum wages and stipulate maximum working hours for a gig worker. The minister said that all gig workers were employed on a ‘flexi-hour basis’ and were free to work as much as they wanted. “They have the right to reject work too,” he added.

Before the Bill was tabled in the Legislature, it was promulgated as an ordinance earlier this year.

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