• The Karnataka government has introduced the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, aimed at providing social security and welfare measures for platform-based gig workers in the state. This legislation follows a similar framework to the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023, both focusing on a welfare board model.

Rise of Gig Economy

• The gig economy, characterized by app-cab and retail delivery sectors, has seen significant growth, providing livelihoods to millions amidst an overall employment crunch. Projections by NITI Aayog suggest an expansion to 23.5 million workers by 2030, highlighting its growing significance in India''s employment landscape.

Employment Issues in the Gig Economy

• Gig workers face challenges such as revenue sharing, working hours, and ambiguous employment conditions due to the platform-aggregator model. This model blurs traditional employer-employee relationships, presenting workers as independent contractors rather than employees.

Legal Framework and International Precedents

UK Supreme Court Ruling on Uber

• In the UK, the Supreme Court ruled that Uber drivers are employees, applying existing labor laws. This contrasts with India, where gig workers are categorized under the informal self-employed in the Code on Social Security 2020, without specific inclusion in other labor codes.

Analysis of Karnataka''s Draft Bill

1. Welfare Board Model

Similar to Rajasthan''s legislation, Karnataka''s draft bill adopts a welfare board model. However, this model does not address fundamental employment relations, crucial for ensuring minimum wages, occupational safety, health standards, and collective bargaining rights.

2. Employment Relations and Legal Protections

The bill identifies aggregators as ''aggregators'' rather than employers, sidestepping crucial legal obligations associated with traditional employment relationships. This approach undermines the application of protective labor laws, leaving issues such as minimum wage and working hours unaddressed.

3. Core Issues and Omissions

Despite provisions for welfare schemes, the draft bill fails to integrate institutional social security benefits like provident fund and maternity benefits, standard for regular employees. Historical failures in implementing similar welfare board models, like the Construction Workers Welfare Act of 1996, raise concerns about the effectiveness of the proposed legislation.

4. Conclusion and Recommendations

The Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, represents a step towards acknowledging gig workers'' rights. However, without addressing employment relations and ensuring comprehensive legal protections, it risks perpetuating the vulnerability of gig workers. Recommendations include redefining employment relations within the gig economy framework and integrating core labor rights into future legislative efforts.

5. Implications for Policy and Future Directions

The discussion surrounding Karnataka''s draft bill underscores the need for nuanced policy frameworks that balance innovation and worker protections in the evolving gig economy. Future legislative efforts must prioritize clarity on employment relationships and robust enforcement mechanisms to safeguard the rights and well-being of gig workers effectively.