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This is an archive article published on July 22, 2023

Rajasthan tables Bill to guarantee social security to gig workers

The Bill also seeks to register all gig workers and aggregators, saying that “aggregators shall provide to the state government its database of all platform-based gig workers on-boarded or registered with them, within sixty days of enforcement of this Act.”

workersThe state government will maintain a database of the gig workers and generate a unique ID for every one of them. (File Image)
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Rajasthan tables Bill to guarantee social security to gig workers
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The Rajasthan Assembly on Friday tabled the Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023, which guarantees social security to gig workers in the state. Among other measures, this is to be collected through a ‘welfare fee’ for gig workers which would be levied at each transaction on the online platforms.

Explaining the reasoning behind the law, the state government said that, “In spite of major contribution in economy and employment, gig workers form a part of unorganised workers and are still not covered under the labour laws. They do not receive the same level of protection as traditional employees get.”

The Bill extends “rights” to Platform Based Gig Workers: of being registered with the state, have access to general and specific social security schemes, have an opportunity to be heard for any grievances, etc. Under the Bill, the gig workers and the aggregators/platforms active in the state will be registered and a Welfare Board and Welfare Fund for gig workers will be set up to essentially guarantee social security to the workers.

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The Labour Minister would be the Chairperson of the “Platform Based Gig Workers Welfare Board” which will meet at least once in six months.

Apart from bureaucrats, the Board will have two representatives each from among gig workers and from “aggregators, owners and manufacturers of goods and services being delivered through platforms” in the state; all four of these will be nominated by the government.

Next, two more representatives, including one from civil society, will also be nominated by the state government. Another clause is that one-third of the Board will consist of women.

The Bill also seeks to register all gig workers and aggregators, saying that “aggregators shall provide to the state government its database of all platform based gig workers on-boarded or registered with them, within sixty days of enforcement of this Act.” Additionally, all platform based gig workers “on-boarded or registered with any platform shall be automatically registered with the state government.”

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The state government will maintain a database of the gig workers and generate a unique ID for every one of them. Aggregators too will have to get registered with the state government within sixty days of enforcement of the Act, and the state will maintain a register of aggregators operating in the state along with the name and designation of an officer authorised by the state government responsible for carrying out obligations under the Act, once enforced. This information will also be published on a web portal.

An important component of the Bill is the “Platform Based Gig Workers Fund and Welfare Fee.” Under this, a social security and welfare fund will be established for gig workers. Apart from other sources, it will be made up of a Gig Workers Welfare Fee that will be levied from an aggregator, “which shall be at such rate (per cent) of the value of each transaction related to platform based gig worker as may be notified by the state government.”

The government has also introduced a provision for penalties. If any aggregator fails to pay the welfare fee within time, they will be penalised with an interest of twelve per cent per annum from the date on which such payment is due. If any other clauses of the act are violated by the aggregators, the Bill empowers the state government to impose a fine up to Rs 5 lakh for the first contravention and up to Rs 50 lakh for subsequent contraventions.

The law was announced by Gehlot in his budget speech earlier this year. In his address then, Gehlot had said that “Currently, companies like Ola, Uber, Swiggy, Zomato and Amazon, etc. have engaged young workers on contract on ‘per transaction’ basis. Such workers are called gig workers. Like elsewhere in the world, the scope of ‘Gig Economy’ is continuously growing in the state. Today, the number of gig workers in the state has increased to 3-4 lakh. These big companies do not make any arrangements for social security for these gig workers.”

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The law came about after social activists Nikhil Dey suggested it to Congress leader Rahul Gandhi during the latter’s Bharat Jodo Yatra in Rajasthan in December 2022. Subsequently, Rahul asked Gehlot to come up with social security and a support system for gig workers.
With the government making a provision of Rs 3.2 crore under the Bill, Leader of Opposition Rajendra Rathore questioned how “can guarantee be given to about 4 lakh gig workers in the state with just Rs 3.27 crore.” The Bill is expected to be debated and passed on Monday, July 24.

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