Telangana to Introduce Bill to Protect Gig Worker Rights
The Telangana government is set to introduce legislation to protect the state's 4.2 lakh gig workers, making it the third Congress-governed state to do so after Rajasthan and Karnataka. The proposed bill mandates the registration of gig workers and aggregators, and establishes a tripartite welfare board with representatives from the government, companies, and workers. This board will administer a dedicated welfare fund, aiming to provide social and economic justice to a rapidly growing segment of the workforce.
Unpacked:
The welfare board aims to oversee a dedicated welfare fund for gig workers, ensuring access to social and economic justice. However, the draft bill has been criticized for lacking mandatory minimum earnings, guaranteed insurance, real-time pay transparency, and a seed fund from the state government, relying instead on aggregator contributions.
Unlike Rajasthan, which allocated an initial Rs 200 crore welfare fund, Telangana’s draft bill does not commit state funding, relying solely on aggregator contributions. There are also concerns that Telangana’s bill lacks enforceable minimum earnings and mandatory insurance provisions, areas where Rajasthan and Karnataka have set stronger benchmarks.
Aggregators who fail to contribute to the welfare fund may face imprisonment of up to one year, a fine of Rs 2 lakh, or both. Offenses under the Act are triable by a court not lower than a Judicial Magistrate of the First Class.
Critics argue the bill lacks income benchmarks, mandatory insurance, real-time pay transparency, and a state seed fund. Worker representatives also expressed concerns over the absence of enforceable minimum wages, inadequate protection against arbitrary deactivation, and limited mechanisms for algorithm accountability or human appeals.