BENGALURU: The State Government on Tuesday promulgated an ordinance to protect the rights of platform-based gig workers.
The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, approved by the Governor and published in the Karnataka Gazette Extraordinary on Tuesday aims to create a welfare fund for gig workers and places obligations on aggregator or platform in relation to social security, occupational health, and safety. A welfare board headed by the labour minister will be established and gig workers and aggregators or platforms in Karnataka will be registered.
The ordinance proposes a “platform-based gig workers welfare fee” from aggregators. The fee will be between 1 to 5% of the payout to the gig worker in each transaction, as may be notified by the State Government within six months of the ordinance coming into force.
“The State Government shall specify through a notification different percentage on the payout, with or without a cap on the gig worker welfare fee on each transaction, for different categories of aggregator or platform,” the ordinance read. The aggregator or platform shall deposit the welfare fee levied under this ordinance, at the end of each quarter.
It proposes a Payment and Welfare Fee Verification System (PWFVS). All payments made to workers generated on the platform shall be mapped onto PWFVS administered by the State Government and monitored by the Board.
“Every payment made to gig workers and the welfare fee deducted by platforms shall be sent to PWFVS for each transaction related to platform-based gig workers in such manner as may be prescribed. The details of welfare fees collected and spent at the gig workers level shall be disclosed and made available on the PWFVS portal,” the ordinance stated. PWFVS shall comply with the applicable Central and State legislations on data protection for the time being in force.
Until the operationalisation of PWFVS by the board, aggregators have to self-report and submit details of the payouts made to their gig workers in each of the transactions, every quarterly, it stated.
The registered gig workers are entitled to redressal of two-tier grievances against the aggregator or platform; and against the board. Any aggregator or platform who contravenes the provisions of the ordinance, the State Government may impose a fine upon an aggregator or platform, which may extend up to Rs 5,000 for the first contravention and up to Rs 1 lakh rupees for subsequent contravention.
The ordinance also makes it mandatory for the aggregator or platforms to submit to the board electronically quarterly returns. However, the government may make the provision for submission of returns half yearly or annually by a notification.
An aggregator shall not terminate or deactivate a gig worker without giving valid reasons in writing and with prior notice of 14 days and following the principles of natural justice. Also, aggregators must provide and maintain, as far as is reasonably practicable, a working environment that is safe and without risk to the health of the platform-based gig worker.
It applies aggregators or platforms operating or providing ride-sharing services; food, and grocery delivery services; logistics services; e-Marketplace (both marketplace and inventory model) for wholesale/retail sale of goods and/or services business to business /business to consumer (B2B/B2C); professional activity provider; healthcare; travel and hospitality and content and media services.