What’s the news?

• The Rajasthan Assembly on Monday passed the Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, without a debate amid uproar by the opposition members in the House.

Central Idea

• The Rajasthan government has taken a significant stride towards safeguarding the interests of gig workers with the passage of the Rajasthan Gig Workers Bill, 2023. This groundbreaking legislation, the first of its kind, seeks to establish a Welfare Board and a dedicated welfare fund, ensuring social security measures for platform-based gig workers in the state.

Definition of gig Workers?

• The bill defines gig workers as individuals who perform work or participate in work arrangements outside the traditional employer-employee relationship. These workers earn from such activities and typically work on a contract that outlines specific terms and conditions, including piece-rate work.
• Gig workers are often associated with the gig economy, which is characterized by a flexible and on-demand labor market. They may work in various sectors, including ride-hailing, food delivery, online freelancing, home services, and other platform-based services.

Key features of the bill

• Applicability: The bill applies to both aggregators, which are digital intermediaries connecting buyers and sellers, and primary employers, encompassing individuals or organizations that engage platform-based workers.
• Formation of Welfare Board: A crucial aspect of the legislation is the establishment of a Welfare Board, chaired by the minister in charge of the Labour Department. The Board will consist of nominated members, with at least one-third representing women. It will be responsible for overseeing and implementing welfare measures for platform-based gig workers in the state.
• Registration and Unique ID: The Welfare Board will ensure the registration of both platform-based gig workers and aggregators operating within the state. Each gig worker will receive a Unique ID applicable across all platforms, streamlining access to various welfare schemes and benefits.
• Social Security and Welfare Fund: To support registered gig workers, the state government will create The Rajasthan Platform Based Gig Workers Social Security and Welfare Fund. This dedicated fund will be utilized to provide social security benefits to gig workers, enhancing their financial protection.
• Welfare Fee Deduction Mechanism: Aggregators will be responsible for contributing to the welfare fund by deducting a welfare fee from each transaction related to platform-based gig workers. The fee will be based on a percentage of the transaction value, ensuring a sustainable funding mechanism for gig workers welfare.
• Access to Social Security Benefits: The Bill guarantees gig workers access to various social security benefits formulated by the state government. These benefits are intended to offer financial protection and support to gig workers during times of need, such as accidental insurance and health insurance.
• Grievance Redressal Mechanism: Gig workers will have the right to present grievances related to entitlements, payments, and benefits offered under the Act. A robust grievance redressal mechanism will be put in place to address these concerns and ensure timely resolutions.
• Representation in Decision-Making: Gig workers will have a voice in decisions impacting their welfare through representation on the Welfare Board. This provision ensures that the interests of gig workers are taken into account when formulating policies and programs.
• Compliance and Fines: Aggregators are mandated to comply with the provisions of the Act and the rules set forth by the Welfare Board. Failure to adhere to these regulations may lead to fines imposed by the state government. For the first contravention, a fine of up to Rs 5 lakh may be imposed, and for subsequent contraventions, the fine may extend up to Rs 50 lakh.

Concerns raised over the bill

• Vague Terminologies: Labor unions have objected to the use of vague terminologies in the bill, fearing that they may create loopholes for companies and aggregators. The lack of clarity in definitions and language could potentially weaken the protection provided to gig workers.
• Funding Mechanism: Labor unions have expressed concerns about gig workers being required to contribute to the welfare fund. They argue that the funding burden should primarily fall on aggregator companies and State funds due to the fluctuating and inadequate nature of gig workers’ pay.
• Scope of Social Security Benefits: The bill’s limited mention of social security benefits, primarily focusing on accidental insurance and health insurance, has been criticized. Labor unions recommend a comprehensive list of benefits to ensure adequate coverage for gig workers.
• Grievance Redressal Mechanism: Concerns have been raised about the effectiveness and responsiveness of the grievance redressal mechanism outlined in the bill. Reports of ineffective redressal mechanisms for gig workers have raised doubts about their efficacy.
• Definition of Gig Workers: Some stakeholders have questioned the scope of the bill’s definition of gig workers, as there may be other forms of gig workers not covered under the defined criteria.
• Rights Recognition: While the bill improves on the eligibility criteria compared to existing labor laws, critics argue that gig workers may not be fully recognized as employees entitled to certain labor rights.
• Implementation Challenges: The successful implementation of the bill relies on the effectiveness of the Welfare Board and State government in ensuring seamless registration, representation, and benefit distribution to gig workers.

Way forward

• Addressing Concerns: Hold consultations with labor unions and stakeholders to clarify ambiguous terms and ensure a more equitable funding mechanism for the welfare fund.
• Comprehensive Social Security Benefits: Expand benefits to include disability coverage, maternity benefits, and retirement benefits, in addition to accidental and health insurance.
• Strengthening Grievance Redressal: Establish a responsive mechanism for prompt resolution of disputes between gig workers and aggregators.
• Empowering the Welfare Board: Provide adequate resources and authority to the Welfare Board for effective implementation and decision-making.
• Periodic Review and Feedback: Conduct regular evaluations to assess the bill’s impact and seek feedback from gig workers, labor unions, and aggregators.
• Awareness and Outreach: Organize awareness campaigns to educate gig workers about their rights and entitlements.
• Transparent Implementation: Ensure transparency in registration, benefit distribution, and fund utilization.
• Collaborative Approach: Foster collaboration among government departments, labor unions, aggregators, and gig worker representatives for an inclusive framework.

Conclusion

• The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, sets a notable precedent for acknowledging the significance of gig workers and their rights in the Indian workforce. While the legislation addresses various aspects related to the welfare and social security of gig workers, there remains room for refinement and further expansion of benefits to ensure their overall well-being and empowerment.

Also read:

Rajasthan minimum income Bill: provisions, what makes it unique

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