Karnataka’s Draft Bill for Gig Workers
Context:
- Karnataka proposes new legislation for gig worker welfare.
- Draft Karnataka Gig Workers (Conditions of Service and Welfare) Bill, 2024 shared with stakeholders.
Key Highlights of the Draft Bill:
- Fair contract terms and income security mechanisms.
- Dispute redressal mechanisms.
- State-level welfare board.
- Central transaction monitoring system.
- Penalties for aggregator violations.
- Focus on occupational safety and health.
Background: Gig Economy in India
- Defined by NITI Aayog: work outside traditional employer-employee relationship.
- Includes platform workers (Ola, Uber, Swiggy, etc.).
- Sharp rise in gig workers post-pandemic (7.7 million in 2020-21, projected 23.5 million by 2029-30).
Significance of the Gig Economy
- Benefits: flexibility for workers, businesses, and consumers.
- Time flexibility: workers choose their work hours.
- Income flexibility: opportunity to earn extra income.
- Sector size:
- 47% of gig work in medium-skilled jobs.
- 22% in high-skilled jobs.
- 31% in low-skilled jobs.
- Drivers and salespersons – 52% of gig workers (2019-20).
- Most workers in retail trade & sales (26.6 lakh) and transportation (13 lakh) (FY20).
Challenges Faced by Gig Workers (Janpahal RIGHTS Survey):
- Long working hours:
- Over 60% of SC/ST drivers work over 14 hours a day.
- 83% of delivery persons work over 10 hours.
- Low pay:
- 43% of gig workers earn less than ₹15,000 per month.
- 34% of delivery persons earn less than ₹10,000 per month.
- Age demographics: 78% of respondents aged 21-40 years.
- Risky business:
- Driver fatigue due to long hours and pressure to meet delivery deadlines.
- 86% of delivery persons find “10-minute delivery” policies unacceptable.
- Expenses exceeding earnings:
- 72% of drivers and 76% of delivery persons struggle to make ends meet.
- 68% of drivers have expenses exceeding earnings.
- High deductions by companies: 35% report commission deductions exceeding official rates.
- Customer misbehavior: negatively affects 72% of drivers and 68% of delivery persons.
- Inability to take leaves: 41% of drivers and 48% of delivery persons cannot take weekly offs.
- ID deactivation: negatively affects a significant portion of workers.
Suggestions/Recommendations:
- Social security measures: paid sick leave, health insurance, pension plans, etc.
- Oversight mechanism: government oversight on algorithms and worker monitoring.
- Skilling: bridge skill gaps through assessments and partnerships with platforms.
- Promote rights of women and persons with disabilities: gender sensitization programs.
Way Ahead
- Growing gig economy necessitates adequate regulations.
- Need for a collaborative approach by government, private sector, and civil society to address challenges and ensure fair treatment of gig workers.
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