Karnataka Gig Workers Bill

Editorial of the Day (15 July): Problem with the Karnataka gig workers Bill

This editorial covers the Karnataka government introduced the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024.

Table of Contents

Context: The Karnataka government introduced the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024.

About Gig Workers

Gig workers are individuals who engage in short-term, temporary, or freelance work arrangements, often through digital platforms or apps, rather than holding traditional long-term employment with a single employer.
These workers typically perform specific tasks or projects on a flexible, as-needed basis, and are usually paid per job or “gig” rather than receiving a regular salary.
In its working policy paper on the gig economy, NITI Aayog has made projections of the gig workforce expanding to 23.5 million workers by 2030.

Technological Advancements: The development of digital platforms and mobile apps has made it easier for workers to find and complete short-term jobs.
- Increased internet and smartphone penetration have enabled more people to access gig work opportunities.
Economic Factors: Traditional job creation has been slow, and gig work has become a crucial livelihood source for many job-seekers.
- Gig work provides an additional income stream for individuals needing to supplement their earnings from other jobs or those between jobs.
Flexibility and Autonomy: Gig work offers flexibility in work hours and locations, appealing to those seeking a better work-life balance.
- This led to increased labour participation by students/women by offering part-time work as per convenience.
Demand for On-Demand Services: There is a growing demand for on-demand services such as ride-sharing, food delivery, and freelance work, driving the need for gig workers.

Revenue Sharing: Gig workers often protest against the unfair revenue sharing models set by the platforms.
Financial Instability: Earnings can be inconsistent and unpredictable, leading to financial instability.
Long Working Hours: Many gig workers face long and irregular working hours without additional compensation.
Lack of Legal Protections: The existing legal framework is not well-suited to address the complexities of gig work, as it is based on traditional employer-employee relationships.
- Platforms classify gig workers as independent contractors, which excludes them from benefits and protections available to traditional employees.
No Access to Benefits: Gig workers lack access to essential social security benefits such as health insurance, paid leave, and retirement plans.
- Overwork and lack of safety regulations can lead to accidents and health issues.

UK Supreme Court Ruling on Uber

In 2021, the UK Supreme Court ruled that Uber drivers are workers, not independent contractors.
This decision mandated that Uber must treat its drivers as workers, providing them with benefits such as minimum wage, holiday pay, and access to a pension scheme.

Legal Recognition: Properly classify gig workers to ensure they receive employment benefits such as minimum wage and holiday pay, similar to the UK Supreme Court ruling on Uber.
Social Security: Expand existing social security schemes covered under PM Jeevan Jyoti Bima Yojana and PM Suraksha Yojana to include gig workers.
Establishment of Welfare Boards: Implement welfare boards, as seen in Rajasthan and Karnataka, to provide health insurance, financial assistance, and education benefits for gig workers.
Fair Revenue Sharing: Develop policies to ensure fair revenue sharing and regulate working hours for gig workers, addressing issues of income instability and overwork.
Skill Development: Initiate skill development programs and legal awareness campaigns to enhance gig workers’ employability and inform them of their rights and available benefits.