Karnataka government to deliberate on introducing a per transaction “Gig Workers Welfare Fee” to be taken from food delivery platforms, ride hailing apps, e-commerce platforms

115°
Deal Newbie
tinseltown
After mentioning it in the state budget presented on February 16, 2024,
on June 29, 2024.. the Government of Karnataka had published the draft bill ..called.. The Karnataka Platform based Gig Workers (Social Security and Welfare) Bill, 2024.

The Karnataka state government had also set-up a 'Welfare Board for Unorganised Motor Transport and Gig Workers'
https://ksuwssb.karnataka.gov.in/english
hoping to improve the working conditions for those employed as rider partners
https://ksuwssb.karnataka.gov.in/info-2/Karnataka+State+Gig+Workers+Insurance+Scheme/en
as also providing such workers with more safety nets, some sort of a social security.


Now https://www.freepressjournal.in/business/karnataka-govt-may-introduce-1-2-transaction-fee-on-zomato-swiggy-and-others-to-fund-gig-worker-welfare-report the (Karnataka) state government is mulling over a mechanism to add a small 'per transaction' fee (“Platform-based Gig Workers Welfare Fee”) for all transactions done via aggregator platforms (example: swiggy zomato rapido ola uber), as also transportation partners of e-commerce sites (example: amakart, flipzon) falling within its jurisdiction.

The stated objective of such moves is to improve the working conditions of the gig economy workers.. by providing them with social security benefits, healthcare and insurance programs, implementing better road safety and so on.

According to sources, various top tech startups and unicorns have used trade bodies such as the Confederation of Indian Industry (CII), the National Association of Software and Service Companies (NASSCOM), the Internet and Mobile Association of India (IAMAI) to convey to the state government that, in its current form.. The Karnataka Platform based Gig Workers (Social Security and Welfare) Bill, 2024 would hurt the ease of doing business, hamper operations and increase regulatory and compliance burden on the nascent gig economy and startup economy.

related story from earlier: https://thehindu.com/news/cities/bangalore/karnataka-welfare-board-for-gig-and-transport-workers-is-first-of-its-kind-in-india-says-siddaramaiah/article68676917.ece

https://thehindu.com/news/national/india-needs-national-legal-social-security-architecture-for-gig-workers-congress/article68393561.ece

Top Comments
Deal Newbie Deal Newbie
Link Copied

only Natak, no real work

Deal Captain Deal Captain
Link Copied
That's unfortunately TRUE for everywhere in India
15 Comments  |  
9 Dimers
  • Sort By
Deal Newbie Deal Newbie
Link Copied
The key aspects/highlights of the The Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2024 are:

Establishment of gig workers welfare board (‘Board’) which would have the minister in-charge of the Department of Labour, Government of Karnataka, government officials and representatives from aggregators, gig workers civil society who would be nominated. The tenure of the nominated members would be of 3 years and the Board would be based out of Bengaluru.
⦿ Registration of gig workers has separate processes for those already working with the aggregator and those joining after commencement of the Act. For existing gig-workers, the aggregators would need to provide to the Board its database of all gig workers onboarded or registered with them within sixty days from the date of commencement of this Act, as prescribed. For those joining after the commencement of the Act, they would be electronically registered by the Board, within sixty days of their being so onboarded or registered.
Registration of the aggregator with the Board within sixty days from date of commencement of the Act.
⦿ Welfare fee from the aggregator which shall be at such rate (percent) of the pay of the platform-based gig worker in each transaction or on the annual state specific turnover as may be notified by the state government. The aggregator shall deposit the welfare fee levied at the end of each quarter.
Constitution of a welfare fund with sources of contribution would be from amount received from welfare fee levied, contributions made by individual platform-based gig workers, sums received as grant-in-aid from the state government and central government, amount received by way of grants, gifts, donations, benefactions, bequests or transfer and amount received from any other sources as may be prescribed.
⦿ Redressal of grievances where the registered workers may file a petition in person before a grievance redressal officer as notified by the state government, or make a petition through web portal, in relation to any grievance arising out of entitlements, payments and other benefits provided.


Obligations of aggregators such as:
  ─ Entering into fair contracts with gig workers which comply with the provisions of the Act once it is enforced.
These are to be written in an easy to comprehend, simple language and shall be available in Kannada, English or any other language listed in the Eighth Schedule of the Constitution known to the platform-based gig worker.
There is a provision making it mandatory for the government to publish sector specific guidelines for contracts from time to time.
Upon request, the state government may also review contract templates sent by aggregators, in order to ensure fairness in the contracts.
  ─ Termination of contract where an exhaustive list of grounds for termination is provided for in the contract. Termination would require the aggregator to provide valid reasons in writing and with prior notice of fourteen days.
  ─ Timeline on changes where notification of any change in the terms of the contract will require at least 14 days’ notice before the proposed change is implemented.
  ─ Provision of reasonable working conditions as far as is reasonably practicable, a working environment that is safe and without risk to the health of the platform-based gig worker.
  ─ Ensuring income security by paying gig workers at least on a weekly basis with no delay in disbursal of pay. In the cases of payment deductions, the aggregator would need to provide the reasons for such deductions within the invoice raised for the work performed.
  ─ Constitution of Internal Dispute Resolution Committee by every aggregator, with more than 50 platform workers registered on their platform.
  ─ Provision of link to web portal for grievance redressal on the platform application of every registered aggregator.
  ─ Disclosure/s by the aggregator on the grievance redressal mechanism and information on the dispute resolution mechanism to the registered workers.
  ─ Creation of point of contact (PoC) for enquiries for all clarifications under the provisions by the aggregator.
  ─ Submission of Quarterly Returns by the aggregator.
  ─ Penalty within the range of INR 5,000 to INR 100,000 for contravention of any of the provisions or rules or regulations. If the contravention continues after the conviction, then, a further penalty of a maximum amount of INR 5000 for each day will be imposed, till such contravention continues.
Deal Newbie Deal Newbie
Link Copied
So while the platforms simply wash their hands off of ANY liability, even in dire situations
https://news.ycombinator.com/item?id=41716198
https://livemint.com/news/india/lucknow-man-orders-iphone-with-cod-option-kills-flipkart-delivery-boy-throws-body-in-river-11727761948352.html
they cite reasons like 🢆not enough 'ease of doing business'🢇 .. to avoid such safety oriented, fairness oriented regulations.
Deal Subedar Deal Subedar
Link Copied

Soon they will charge fees on using mobile phone also.

Deal Newbie Deal Newbie
Link Copied
In so far as I understood, it is not finalised yet and here.. the government is going to take that fee from the companies.

Not sure if the companies will pass on the burden to the consumer.

In context, this is similar to the DDT (Dividend Distribution Tax) which government charges the company. (* used to charge).
Helpful Helpful
Link Copied

soon they will charge fees for breathing also, that's how they are they are going to fund the Ladli behan chapri bhai yojana. ticket prices are free for women and doubled for men, infrastructure crumbling and rent is reaching above the sky.  instead of focusing on these issues, they are busy with dirty politics

Deal Subedar Deal Subedar
Link Copied

Where and when bus travel for men doubled?

View 3 more replies
Deal Newbie Deal Newbie
Link Copied

only Natak, no real work

Deal Captain Deal Captain
Link Copied
That's unfortunately TRUE for everywhere in India
Deal Newbie Deal Newbie
Link Copied
Right now, if a passenger takes an Uber, Ola and meets with an accident or (as has happened) gets molested or sexually violated

then companies say that we have ZERO liability.
I already posted the links also.
Uber, Ola go to court and even appeal AGAINST court orders.

Similarly, right now if I am a rider/driver, service provider (urbancompsny), delivery person and if i even die at work or get murdered..

again.. Ekart, ATS, Swiggy, Rapido will just 🤷🏻‍♂ shrug and say; he had used our platform to get appointments or passengers or delivery work.. we are not the employer.
No compensation from company.. even if I got murdered by Amazon, Flipkart customer.




here, they (the governments) are claiming that a proper 'welfare' fund is being set-up. It will have N point agenda.

They (government) are saying that regular road safety and passenger safety programmes too will be conducted and efforts made that these drivers also not do rash driving, entering one-way from the wrong side, entering no-entry and so on.

And of-course the government is saying that the drivers/riders can register themselves on the site to get insurance cover and other benefits.



I am not a member or support of any political party or even ideology. (Heck i register a 'reject all' vote by pressing NOTA.. even when i do vote.)

But i say this, that
unlike PM-CARES fund.. these things will be under the ambit of ‰thousand percent‰ public scrutiny.
(Not that it would be totally transparent even then, but at-least there is some pressure on foreign funded companies.)

Overall, even if 5-8 states start doing something like this.. then on the national level.. there are hopes of these big companies being checked and better regulated.

Right now, can we (the customer) do ANYthing when they start adding platform fee, handling fee, convenience fee, aubergine🍆 fee, 🧄garlic fee?

Imagine tomorrow if there are laws where these portal needs to set up internal grievance redressal committees for both.. rider-drivers and us customers, buyers.
And the big companies pay some token fees to the state fund or the national funds, which hypothetically are an alternative to EPF, gratuity, employee insurance.
Deal Newbie Deal Newbie
Link Copied
@cardboard @rockylucifer @slickdeal @simhapur @soumya01 @dimeanotherday @decideaim if you may.. check ⟰the above⟰ post/clarification.

And again, a disclaimer: even if my own parent or parents were to run for office (fight elections) i would still press NOTA.. and if not publicly.. then at-least privately disown them.

I am not taking ANY sides. Certainly not if all sides are 🐖pigliticians🐗.
View 2 more replies
replyuser
Click here to reply
Reply