Karnataka Platform Based Gig Workers (Social Security & Welfare) Ordinance, 2025

The Governor of Karnataka, on 27^th May 2025, promulgated the Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025. The ordinance route was taken since the Karnataka Legislative Assembly and the Karnataka Legislative Council are not in session. Under sub clause (1) of Article 213 of the Constitution of India, the Governor is vested with the power to promulgate the ordinance when the State Legislative Assembly and the Legislative Council are not in session. An Ordinance promulgated under this article shall have the same force and effect as an Act of Legislature of the State assented by the Governor. However, it should be laid before both the houses once both the houses are re-convened and should be passed within six weeks from the date of reassembly of the houses. Ordinance shall cease to operate if the houses do not pass it within six weeks of its reassembly or if, before the expiration of that period, a resolution disapproving the ordinance is passed by the houses.

The Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025, has been passed to protect the rights of platform-based gig workers; to place obligations on aggregators or platforms in relation to social security, occupational health and safety, transparency in automated monitoring and decision-making systems, to provide dispute resolution mechanisms, to establish a Welfare Board and create a welfare fund for platform-based gig workers, to register platform-based gig workers and aggregators or platforms in the state.

Some of the key features of the ordinance are as follows:

• The Act defines “Aggregator” as a digital intermediary for a buyer of goods or user of service to connect with the seller or the service provider, and includes any entity that coordinates with one or more aggregators for providing the services.

• The Act defines “Gig worker” as a person who performs work or participates in a work arrangement that results in a given rate of payment, based on terms and conditions laid down in such contract and includes all piece rate work, and whose work is sourced through a platform, in the services specified in the schedule. (please refer to the schedule in the enclosed copy of the ordinance)

• The Act defines “Platform” as any arrangement providing a service through electronic means at the request of a recipient of the service, involving the organisation of work performed by individuals at a certain location in return for payment, and involving the use of automated monitoring and decision-making systems or human decision making that relies on data.

• The State Government shall establish the Karnataka Platform Based Gig Workers Welfare Board to implement social security and other benefits to the platform-based gig workers.

• Platform-based gig workers shall be registered with the State Government and shall be provided with a unique ID.

• The aggregator has to provide to the board its database of all gig workers onboarded or registered with them within 45 days from the date of commencement of this ordinance.

• The Aggregator shall update the board about any changes, i.e. increase or decrease in the number of gig workers in the data provided to the board.

• Every aggregator shall register with the board within 45 days from the date of commencement of this ordinance.

• The details of registered aggregators will be published on the web portal of the Board.

• A written employment contract shall be entered between the aggregator and the gig workers.

• If there is any subsequent change in the contract entered, the aggregator shall notify the gig workers not less than fourteen days before the proposed change.

• An aggregator shall not terminate a gig worker without giving a valid reason in writing and with prior notice of fourteen days.

• In case of deductions in payment payable to the gig worker, the aggregator has to inform the gig worker about the reason for such deduction prior to the payment.

• The aggregator or platform must compensate the platform-based gig workers at least on a weekly basis with no delay in disbursal of pay.

• Facility shall be made by the aggregator to provide each gig worker with a human point of contact for all clarifications under the provisions of the enactment. Contact information of such point of contact shall be provided on the respective platform application.

• There shall be a quarterly gig worker welfare fee payable by the aggregator to the board.

• The aggregator must submit quarterly returns as may be prescribed.

Apart from the above, the ordinance also outlines the mechanism for the redressal of grievances against the aggregator, the platform, and the Welfare Board by the Gig workers.