IAMA demands further consultation on Karnataka’s proposed law for gig workers

Posted 13 Jul 2024

2 min read

As per Internet and Mobile Association of India (IAMA), provisions like mandatory registration, updation of database, monetary contribution by firms would likely impact the Ease of doing business.

These are required under Draft Karnataka Gig Workers (Conditions of Service and Welfare) Bill, 2024
Currently, Rajasthan is the only state to have legislation for welfare of gig workers.

Gig workers:

Means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship. (Code on Social Security, 2020)

Broadly classified into two categories:
- Platform based: Whose work is based on online software apps or digital platforms.
- Non-platform based: Casual wage workers in conventional sectors, working part-time or full-time.

Concerns associated with Gig workers:

Absence of safeguards like minimum wage, poor upward mobility within organization, Absence of traditional employment perks like medical insurance, pension plans, etc.

Balancing gig workers' social security and business

Specialized savings and insurance products for gig workers.
Collaboration between policymakers, corporations, and workers for an equitable gig economy.
Efforts should be made to create a more stable income environment for gig workers by discouraging the race-to-the-bottom mentality.

Initiatives for Gig Workers

Code on Social Security, 2020: Provides for extension of social security benefits to gig workers as well.
- Provides for setting up a Social Security Fund with contributions between 1-2% (subject to a limit of 5%) of annual turnover from aggregators.
Occupational Safety, Health and Working Conditions Code, 2020: To promote safe and healthy work environment and it also regulates contract labour.