In a significant move towards labor welfare in the digital economy, the Telangana State Government has introduced draft bill titled Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Act, 2025. This progressive legislation aims to formalize and safeguard the interests of gig and platform workers—such as delivery agents, drivers, and freelance digital workers—across the state.
🔍 Key Highlights of the Bill
✅ Applicability
- Covers all aggregators and platforms operating in Telangana, even if they are headquartered elsewhere.
- Applies to all gig and platform workers rendering services in the state.
🏛️ Welfare Board Formation
- Establishes the Telangana Gig and Platform Workers Welfare Board.
- Headquarters: Hyderabad
- The Board is a statutory body with powers to implement social security schemes, manage data, and monitor compliance.
- Headed by the Labour Minister, the Board will include representatives from various departments, gig workers, platforms, civil society, and experts.
- At least one woman must be nominated among gig worker and platform representatives.
👥 Rights for Gig and Platform Workers
- Right to mandatory registration upon onboarding with any platform.
- Entitled to a Unique ID usable across all platforms.
- Access to social security schemes, depending on the volume of work done in a quarter.
- Protection of existing rights under other laws.
- Grievance redressal mechanism available under the Act.
📝 Registration and Data Management
- Self-registration system for workers.
- Platforms must submit worker data to the Board within 60 days of the Act’s commencement and update it quarterly.
- Workers’ database maintained by the Board for transparent governance.
💰 Social Security and Welfare Fund
- The Telangana Gig and Platform Workers’ Social Security and Welfare Fund will be created.
- Sources of the fund:
- Welfare fund fees from platforms.
- Contributions by workers.
- Grants from State/Central Governments.
- CSR contributions under the Companies Act.
- Donations and other prescribed sources.
- Up to 5% of funds may be used for administrative expenses.
🧾 Accounts, Audit, and Annual Report
- The Board must maintain and audit accounts annually through the State Accountant General.
- A yearly activity report is to be submitted and laid before the State Legislature.
⚖️ Penalties for Non-Compliance
- Aggregators/platforms failing to pay welfare fees may face:
- Up to 1-year imprisonment, or
- A fine up to ₹2 lakhs, or both.
- Failure to submit mandatory data/information can result in fines up to ₹50,000.
📌 Impact and Significance
This legislation marks one of the first comprehensive state-level welfare frameworks for gig and platform workers in India. By recognizing the growing gig economy and its unique challenges, Telangana becomes a trailblazer in ensuring that the digital workforce gets legal recognition, social protection, and structured benefits.
With the formalization of rights and responsibilities, this Act is expected to influence similar legislative actions in other Indian states and even contribute to shaping national-level policy for gig and platform work.