Karnataka notifies landmark Ordinance for gig workers’ welfare, setting national benchmark

By A Representative 

In a major legislative breakthrough for gig and platform-based workers, the Government of Karnataka has officially notified the Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025, following the Governor’s assent on May 7, 2025. This progressive move makes Karnataka the second Indian state, after Rajasthan, to enact a dedicated law for the social security and welfare of gig workers, with provisions that go significantly further in protecting workers' rights.

The ordinance is the result of sustained advocacy and collective efforts by a wide range of workers’ unions, civil society groups, academic institutions, and legal experts. Prominent among those acknowledged are the Indian Federation of App Based Transport Workers (IFAT), Telangana Gig and Platform Workers Union (TGPWU), Joint Committee for Trade Union (JCTU), National Campaign Committee for Central Legislation on Construction Labour (NCC-CL), and several others including Jan Pahal, GIPSWU, and the Domestic Workers Rights Union. Research and legal support from institutions like IIIT-Bangalore, NLSIU's Centre for Labour Studies, Vidhi Karnataka, and others also played a pivotal role.

Key Provisions of the Ordinance:

1. Tripartite Welfare Board: A governing body with equal representation from gig workers, the state government, and aggregators. This board will serve as a deliberative and decision-making platform on gig workers' rights and welfare.

2. Mandatory Worker Registration: Aggregators are now obligated to ensure that all gig workers on their platforms are registered with the board.

3. Welfare Cess: A dedicated welfare cess of 1–5% will be levied on every app-based transaction. These funds will be pooled into a social security fund exclusively for gig workers.

4. Algorithmic Transparency: Workers will have the right to access information on algorithms that impact their work or earnings, along with detailed records of transactions and payments.

5. Fair Contracts and Labour Protections: Aggregators must enter into legally compliant contracts with workers, ensuring fair wages (based on piece or time rates), occupational safety, and social security measures on every transaction — a groundbreaking step in gig work regulation.

6. Protection from Arbitrary Deactivation: The law includes safeguards against unjust blocking of worker accounts or IDs.

7. Safe Working Environment: Platforms are required to ensure that working conditions are free from health risks and hazards.

8. Grievance Redressal Mechanism: A two-tier, time-bound mechanism will be established for worker registration issues and complaint resolution.

The ordinance has been hailed as a “critical measure” to rebalance the relationship between capital and labour in the digital economy. By embedding social protections within app-based transactions, the law uses digital platforms themselves as instruments of worker welfare, in contrast to their current use mainly for profit generation and customer convenience.

Activists also credited the Indian National Congress for championing gig workers' legislation in Rajasthan and Karnataka, and setting a national example. Rajasthan passed the first such law in 2023, and Telangana has also proposed a draft bill, now awaiting legislative passage.

Speaking on the occasion, representatives from Mazdoor Kisan Shakti Sangathan (MKSS), Soochna Evum Rozgar Adhikar Abhiyan (SR Abhiyan), and Social Accountability Forum for Action and Research (SAFAR) expressed hope that other states—and the central government—will treat these provisions as a minimum standard for future legislation.

They urged Rajasthan to swiftly notify implementation rules for its Act and called on all political parties to prioritize the rights of gig and platform workers as part of India’s evolving labour framework.