In a significant move towards ensuring the welfare and rights of gig economy workers, the Karnataka Legislative Assembly has passed the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025. This landmark legislation aims to protect gig workers, ensure social security, establish a Welfare Board, and place concrete obligations on digital platforms and aggregators operating in the state.
🔑 Key Provisions of the Act
- Effective Date:
The law is deemed to have come into force on 30th May 2025. - Applicability:
- All platforms or aggregators operating in Karnataka.
- All platform-based gig workers registered with such entities.
- Covers services listed in the Schedule to the Act, as amended by the state.
🏛️ Establishment of a Dedicated Welfare Board
The Karnataka Platform Based Gig Workers Welfare Board will be created with its headquarters in Bengaluru, functioning as a statutory body to implement the provisions of the Act.
👥 Composition of the Board:
- Labour Minister – Chairperson
- Senior Govt Officials – Members
- Representatives from:
- Gig worker associations (4)
- Aggregator/platform companies (4)
- Civil society/subject matter experts (2)
- Technical expert (as invitee)
The Board will notify and implement social security schemes, register workers and platforms, and facilitate benefits delivery.
🛡️ Rights of Gig Workers
Gig workers will now have the right to:
- Universal registration with a unique ID valid across platforms.
- Access to social security schemes, tied to their work contributions.
- Grievance redressal mechanisms for any disputes with platforms.
- Continued protection under any other existing beneficial laws.
📋 Aggregator & Platform Obligations
- Must register with the Board within 45 days of the Act’s commencement.
- Required to submit gig worker databases and regularly update them.
- Responsible for contributions to the welfare fund.
- Must ensure transparency in algorithmic decision-making affecting workers.
💰 Welfare Fund & Penalties
- A dedicated welfare fund will be established and managed by the Board.
- Interest (12% p.a.) will be charged on delayed payments of the welfare fee.
- Penalties:
- ₹5,000 for first-time non-compliance
- Up to ₹1,00,000 for repeat offences
🔍 Accountability and Transparency
- The Board must maintain audited accounts, submit annual reports, and comply with directives from the Accountant General.
- A public register of platforms will be available via a state portal.
📌 Repeal and Continuity
The new Act replaces the Karnataka Ordinance No. 04 of 2025, but all actions and decisions taken under the ordinance will continue to hold legal validity.
🌐 Why This Law Matters
Karnataka has become one of the first states in India to institutionalize protections for platform-based gig workers through a comprehensive legal framework. With the rise of app-based services in sectors like delivery, transportation, and home services, this law is a major step toward ensuring fair working conditions, safety nets, and formal recognition for a growing workforce.