Social Security for Gig
Workers- POLITY
News: Recently, Karnataka became the second state after Rajasthan to
come up with legislation for Gig Workers.
What’s in the News?
Through a draft version of the law (Karnataka
Platform-based Gig Workers (Social Security and Welfare) Bill), the Karnataka government
aims to regulate the social security and welfare of
platform-based gig workers in the state by creating a board, welfare
fund, and grievance cell among the mechanisms.
Gig Workers:
As per the Code on
Social Security 2020, a gig worker is a person
who performs work or participates in a gig work arrangement and earns from such
activities outside of traditional employer-employee relationship.
Highlights of the Karnataka Bill
§ Creation
of Welfare Board: Board comprising Karnataka
labour minister, two aggregator officials, two gig workers, and one civil
society member to be formed.
o
A two-level grievance redressal mechanism
for workers, and more transparency with regards to the automated monitoring and
decision-making systems deployed by platforms has been envisaged by the draft
bill.
§ Timely
Payment: The draft mandates aggregators to make payments at least
every week and to inform the worker about the reasons for any payment
deductions.
§ Unique
ID: Gig workers can apply to receive a Unique ID applicable
across all platforms upon registration with the board.
§ Social
Security and Grievance Redressal: Access to general and
specific social security schemes based on contributions along
with a grievance redressal mechanism for gig workers.
§ Autonomy
and Contractual Rights: The Bill aims to provide
greater autonomy to the gig workers to terminate contracts and resist being
over worked by employers.
o
The aggregator shall not terminate a
worker without giving valid reasons in writing and prior notice of 14
days.
§ Work Environment
and Safety: There is a mandate for aggregators to maintain a safe
working environment for gig workers.
§ Welfare
Fund: Proposed fund financed by a welfare fee from aggregators
along with state and worker contributions.
§ Penalties: Basic
penalty of Rs 5,000 extendable up to Rs 1 lakh for
aggregators violating conditions under the Bill.
Government’s Initiatives Related to Gig Workers
§ The Code
on Social Security 2020, contains a separate section on ‘gig economy’ and
imposes an obligation on gig employers to contribute to a Social
Security Fund to be handled by a government-led board.
§ The Code
on Wages 2019, provides for universal minimum wage and floor wage across
organised and unorganised sectors, including gig workers.
§ The Rajasthan Assembly recently
passed a bill aimed at extending social security benefits to
gig workers.