The Rajasthan government has unveiled a groundbreaking bill called ‘The Rajasthan Platform Based Gig Workers (Registration And Welfare) Bill, 2023’, which aims to safeguard the rights of gig workers and bring them under the purview of welfare programs. This move makes Rajasthan the first state in India to propose legislation to protect the rights of gig workers.
Gig workers, such as transport drivers and food delivery agents, who are not formally employed by any aggregator platforms, often face uncertain legal status as laborers. Critics argue that while the platform economy offers flexibility, not all workers benefit equally.
Under the proposed bill, aggregators will be held liable for fines of up to INR 50 lakh for violating the prescribed norms. For the first violation, aggregators may face a fine of up to INR 5 lakh, which can escalate to INR 50 lakh for subsequent offenses. Similarly, companies employing gig workers, other than aggregators, may be fined INR 10,000 for the first violation and up to INR 2 lakh for subsequent offenses.
Additionally, the government has suggested the implementation of a ‘welfare cess’ on aggregators or primary employers. This cess, ranging from 1-2% of the transaction value, will contribute to the creation of a fund called The Rajasthan Platform Based Gig Workers Social Security and Welfare Fund. The fund will be utilized for the benefit of gig workers, providing them with financial assistance, insurance coverage, and other welfare schemes.
The bill also proposes the establishment of a welfare commission that will register platform-based contract employees and their aggregators. This commission, acting as an appellate tribunal, will address complaints from gig workers, oversee platform payments, and penalize aggregators when necessary. The state government has pledged an initial seed funding of INR 200 crore to initiate operations of the welfare fund.
To ensure transparency and accountability, all aggregators will be required to submit information about gig workers they onboard. This data will be used to automatically register workers with the welfare commission, creating a comprehensive database of gig workers in the state.
The introduction of this bill comes after Rajasthan Chief Minister Ashok Gehlot hinted at the need to regulate the gig economy during his Budget speech. As the state gears up for upcoming elections, this move is seen as an effort to address the concerns of gig workers, who constitute a significant portion of the state’s workforce.
The gig economy is witnessing rapid growth in India, with estimates suggesting there are approximately 77 lakh gig workers nationwide, a number projected to reach 2.3 crore by 2029-2030. The proposed regulations are a response to protests by gig workers demanding better wages and improved working conditions.
While the bill signifies a significant step towards protecting the rights of gig workers, its enforcement may face resistance from aggregators. Nevertheless, the gig worker economy is expected to experience significant growth, projected to reach a market size of $455 billion by 2024.
