Social security for gig workers, rules that govern termination, and provisions to punish aggregators that don’t comply — a Bill expected to be brought in by the Telangana government on May 1 envisions several guardrails for the welfare of the roughly 4 lakh gig and platform workers in the state.
The draft Bill states that if an aggregator fails to pay the welfare fund to a board for gig workers’ welfare, it can be punished “with imprisonment for a term which may extend to one year or with fine of Rs 2 lakh or with both”.
The offences under the Act will be triable by a court “which is not inferior than a Judicial Magistrate of the First Class”, it states.
The Bill mandates that the state government establish the Gig and Platform Workers’ Welfare Board in Hyderabad to “exercise the powers conferred on, and perform the duties and functions assigned to it, under the Act”.
The board will have the state minister for labour as its head and officials of the labour, finance and transport departments as members. It will also have four representatives each from the gig workers’ unions, representatives of aggregators, and two representatives from civil society. It will have reserved seats for women members and see to the registration of all gig and platform workers in the state within 45 days of the Bill becoming an Act.
The state government will also have to establish the Telangana gig and platform workers’ social security and welfare fund. The board will be able to spend an amount not exceeding 5% of the annual receipts towards the fund. “The state government shall charge a welfare fund from aggregators and platforms, which shall not be less than 1 percent but shall not exceed 2 percent of the payout the gig and platform worker in each transaction or as may be notified by the state government,” the draft reads. If an aggregator fails to pay the amount, they will be liable to pay a simple interest fee.
As per the draft, gig workers can be terminated only after due enquiry and only by giving valid reasons. Further, they will have to be notified at least seven days before termination. “The aggregator must provide and maintain, as far as it reasonably practicable, a working environment that is safe and without risk to the health of the platform-based gig worker,” the draft reads. The aggregators are also expected to set up an internal enquiry committee for the welfare of the workers.
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The Chief Minister’s Office said that CM A Revanth Reddy has ordered officials to “seek people’s opinion on the draft Bill, which aims to provide social security to the gig and platform workers”. The draft Bill should be finalised “only after taking into consideration the suggestions, recommendations and objections from the public”, the CM told officials.
The CMO informed that Reddy “suggested several changes and additions in the draft Bill for a new Act which gives priority to the welfare of the workers and ensures coordination and friendly interaction between the companies and aggregators”. The CM instructed the officials to upload the draft Bill online to seek public opinion.
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