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Social Security For Gig Workers

Social Security For Gig Workers:

Karnataka became the second state after Rajasthan to come up with legislation for Gig Workers.

  • Through a draft version of the law (Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill), the Karnataka government aims to regulate the social security and welfare of platform-based gig workers in the state by creating a board, welfare fund, and grievance cell among the mechanisms.

Highlights of the Karnataka Bill:

  • Creation of Welfare Board: Board comprising Karnataka labour minister, two aggregator officials, two gig workers, and one civil society member to be formed.
  • A two-level grievance redressal mechanism for workers, and more transparency with regards to the automated monitoring and decision-making systems deployed by platforms has been envisaged by the draft bill.
  • The draft mandates aggregators to make payments at least every week and to inform the worker about the reasons for any payment deductions.
  • Gig workers can apply to receive a Unique ID applicable across all platforms upon registration with the board.
  • Social Security and Grievance Redressal: Access to general and specific social security schemes based on contributions along with a grievance redressal mechanism for gig workers.
  • The Bill aims to provide greater autonomy to the gig workers to terminate contracts and resist being over worked by employers.
  • The aggregator shall not terminate a worker without giving valid reasons in writing and prior notice of 14 days.
  • There is a mandate for aggregators to maintain a safe working environment for gig workers.
  • Proposed fund financed by a welfare fee from aggregators along with state and worker contributions.
  • Basic penalty of Rs 5,000 extendable up to Rs 1 lakh for aggregators violating conditions under the Bill.

Gig Workers:

  • As per the Code on Social Security 2020, a gig worker is a person who performs work or participates in a gig work arrangement and earns from such activities outside of traditional employer-employee relationship.