BENGALURU: The Karnataka High Court on Friday directed the state government not to take coercive steps against petitioners -- Internet and Mobile Association of India, Eternal, Zepto, Swiggy, Urban Company and Valmo Transportation, who have challenged the constitutional validity of the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025 and the Rules 2025 enacted in the state.
But the court directed the petitioners to deposit the welfare fee of the last quarter demanded by the state for gig workers before it within three weeks. The court orally expressed surprise as to why the petitioners are opposing paying 50 paise as welfare fee for each delivery by the rider of a two-wheeler; 75 paise for three-wheeler delivery and Re 1 for four-wheeler delivery, while they charge 40% more for products.
Justice M Nagaprasanna passed the interim order after hearing the arguments of the petitioners’ counsel and also the state and the centre and adjourned the hearing to August 14.
The petitioners stated that Parliament has enacted the Code on Social Security, 2020 (COSS) to consolidate labour welfare legislation and establish a uniform national framework governing social security for all categories of workers, including gig and platform workers. COSS provides for identification of gig workers, formulation of welfare schemes, aggregator contributions and the regulatory framework for implementation, they stated.
Despite this, the state government enacted the Act, creating substantially similar welfare structures, imposing additional financial liabilities on aggregators and establishing parallel regulatory mechanisms.
The state enactment conflicts with the COSS, resulting in operational inconsistencies and attracting the doctrine of repugnancy under Article 254 of the Constitution, the petitioners alleged.
Senior counsel Dhyan Chinnappa and Nandakumar argued on behalf of the petitioners that state’s legislation is trenching upon the occupied field of Centre. They submitted that the provisions of the state’s Act are already in effect in COSS.
Advocate General Shashikiran Shetty contended that there is no conflict between the Government of India’s COSS and the state’s law. The Act came into force on September 11, 2025 and the petitioners participated in the deliberations on fixing the welfare fee. After participating in it, opposing it is unfair on their part, he added.