The Karnataka Platform Based mostly Gig Staff (Social Safety and Welfare) Ordinance, 2025, extends to aggregators, together with Swiggy, Zomato, Amazon, Ola and Uber, amongst others.
ARTICLE CONTINUES BELOW VIDEO
The ordinance mandates platforms to pay a gig staff’ welfare payment, set at 1 per cent to five per cent of the payout to gig staff per transaction. The state authorities will notify the precise payment construction for various classes of platforms inside six months.
The welfare payment should be collected by aggregators and deposited quarterly into the Karnataka Gig Staff Social Safety and Welfare Fund. The state authorities will prescribe the gathering methodology.
The ordinance states that failure to deposit the welfare payment on time incurs a 12 per cent every year easy curiosity penalty from the due date till cost. Further non-compliance might lead to fines of as much as Rs 5,000 for the primary violation, and Rs 1 lakh for subsequent violations.
Funds into the fund, together with the welfare payment, will assist social safety advantages reminiscent of revenue safety throughout unemployment, illness, maternity, or work-related accidents. The Board is restricted to utilizing not more than 5 per cent of the fund for administrative prices, making certain most allocation for employee welfare.
All funds to gig staff and corresponding welfare payment deductions will probably be recorded within the soon-to-be-formed, state-administered Fee and Welfare Price Verification System, monitored by the Karnataka Platform Based mostly Gig Staff Welfare Board.
Story continues beneath this advert
As per the ordinance, aggregators should make payouts to gig staff as per the contract, with obligatory cycles of day by day, weekly, bi-weekly, or month-to-month funds.
The ordinance prohibits arbitrary termination of gig staff, requiring aggregators to supply written causes and a 14-day discover, besides in circumstances of bodily hurt, the place instant motion is allowed with a proper to enchantment.
Aggregators and platforms should additionally register with the board inside 45 days of the ordinance’s graduation and supply clear contracts with truthful phrases, together with the best to refuse duties.
The welfare board and the members who will probably be part of it
The ordinance mandates the institution of the Karnataka Platform Based mostly Gig Staff Welfare Board, headquartered in Bengaluru.
Story continues beneath this advert
The board will oversee the registration of gig staff and aggregators, monitor welfare payment assortment, and implement social safety schemes. It’ll additionally have interaction with staff’ associations, guarantee transparency, and supply suggestions to the state authorities for tailor-made schemes, particularly for ladies and individuals with disabilities.
The board will probably be chaired by the minister in control of the labour division, serving because the ex-officio chairperson. Different ex-officio members will embrace the extra chief secretary or principal secretary, or secretary to authorities from the labour division, and the knowledge and know-how division, or their nominees not beneath the rank of joint secretary. The commissioner of the industrial taxes division or a nominee not beneath the rank of joint commissioner can also be an ex-officio member.
Moreover, a chief government officer appointed by the state authorities will act as the chief in control of day-to-day capabilities and function the ex-officio member secretary of the board.
The board may also have 4 representatives of gig staff and 4 representatives of aggregator platforms, all nominated by the state authorities. Moreover, two members from civil society with expertise within the gig financial system or subject material experience will probably be nominated. A technical skilled in information assortment and IT techniques can also be invited as a particular invitee to supply inputs when needed.