The Problem with the Karnataka Gig Workers Bill (GS Paper 2, Governance)
Context
- The Karnataka government recently introduced the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, with the aim of providing social security for gig workers.
- However, much like Rajasthan’s 2023 Act, this Bill follows a welfare board model that does not address employment relations, leaving significant issues such as minimum wages and working conditions unresolved.
Introduction
- In July 2024, Karnataka unveiled the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, aimed at enhancing social security and welfare for gig workers.
- This initiative mirrors Rajasthan's earlier legislation, the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023.
- Both pieces of legislation utilize a welfare board model suited for self-employed informal workers but fail to address the critical aspect of employment relations.
Who Are Gig Workers?
- Gig workers engage in short-term, flexible jobs often facilitated through digital platforms.
- They are typically classified as independent contractors rather than employees, which means they lack formal employment protections like minimum wage, benefits, and job security.
- Gig work encompasses roles such as rideshare driving, food delivery, freelance work, and other on-demand services.
- While offering flexibility and supplemental income opportunities, gig work often lacks the social security and legal protections provided to regular employees, raising concerns about worker rights and fair treatment.
The Rise of Gig Work and Associated Issues
- The number of gig and platform workers has surged, particularly in the last decade, driven by developments in app-based cab services and retail delivery sectors.
- NITI Aayog projects that India's gig workforce will grow to 23.5 million workers by 2030.
- Gig work currently provides livelihoods for an increasing number of job-seekers, a trend observed globally.
- In India, there have been protests by gig workers over issues such as revenue sharing, working hours, and other employment conditions.
- The existing legal framework, based on traditional employer-employee relationships, struggles to address these issues due to the complex nature of employment relations in the gig economy.
Employment Relations in the Gig Economy
- Aggregators, the platforms' operators, consider gig workers as independent contractors and view themselves as technology providers connecting workers with consumers.
- Gig workers, however, see aggregators as their employers since the aggregators set the service conditions and employment terms.
- For instance, in app-based cab services, the ride prices and working conditions are dictated by the app company.
- Gig workers demand fair treatment, better working conditions, and access to social security as legal entitlements.
Legal Precedents and India's Framework
- In the United Kingdom, the Supreme Court ruled that Uber is an employer, meaning existing labor laws apply to Uber drivers.
- In India, gig and platform workers are included in the Code on Social Security 2020 as informal self-employed workers but are not mentioned in the other three new labor codes: the Code on Wages, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code.
- The recent legislations in Rajasthan and Karnataka add to this legal landscape but do not fully resolve the issues.
Avoiding Employment Relations
- Both the Rajasthan Act and the Karnataka Bill avoid defining employment relations in gig work, referring to app companies as 'aggregators' instead of employers.
- This omission makes it challenging to apply labor laws that ensure minimum wage, occupational safety and health, working hours, leave entitlements, and the right to collective bargaining.
- Critical issues in gig work, such as minimum earnings, regulation of working hours, and overworked drivers, remain unresolved.
Issues with the Welfare Board Model
- The welfare board model adopted by Rajasthan and Karnataka offers some welfare schemes for gig workers but does not provide institutional social security benefits like provident fund, gratuity, or maternity benefits.
- Historically, welfare board models have been poorly implemented, as seen with the Construction Workers Welfare Act of 1996 and the Unorganized Workers Social Security Act, where available funds were inadequately utilized.
- The Karnataka Bill does not address key issues like minimum wages or working hours for gig workers.
- Section 16 discusses income security regarding payment deductions but does not guarantee a minimum income, wage entitlements, or fair revenue sharing between aggregators and gig workers. Section 16(2) only mandates weekly payments without specifying a minimum amount.
Conclusion
The Karnataka Bill, like the Code on Social Security 2020 and the Rajasthan Act 2023, fails to address the employment relationship within the gig economy. This oversight leads to confusion regarding employment relations and absolves employers of their legal obligations, making it challenging to fully protect workers' rights. A more comprehensive approach is necessary to ensure fair treatment and social security for gig workers, addressing their fundamental concerns about wages, working conditions, and employment stability.
