In A First, Rajasthan Passes Bill Granting Social Security To Gig Workers

Rajasthan became the first state in the country to pass a law granting social security to platform-based gig workers on Monday. The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill was passed in the state Assembly without debate.

The Bill was moved by Labour Minister Sukhram Vishnoi during a logjam in the assembly after sacked minister Rajendra Singh Gudha's "red diary" claims against Chief Minister Ashok Gehlot. Social activist Nikhil Dey termed the "progressive" law as "one giant leap for the rights of gig workers of the world." Dey suggested the law to Congress leader Rahul Gandhi during the latter’s Bharat Jodo Yatra in Rajasthan in December 2022. Subsequently, Rahul Gandhi urged Gehlot to come up with social security and a support system for gig workers.

What is the law for gig workers?

The Bill extends certain “rights” to gig workers, such as being registered with the state, having access to general and specific social security schemes, and having an opportunity to be heard for any grievances, among others, according to a report by The Indian Express. 

The law also proposes to set up a Platform Based Gig Workers Welfare Board which will have two representatives each from among gig workers and from aggregators, apart from bureaucrats, to be nominated by the state government. This board will be led by the state labour minister and will meet once in every six months.

It also proposes setting up a social security and welfare fund for the workers. The money for the fund will come from “welfare cess” which will be included in the bill that aggregators charge to the customers.

“Like elsewhere in the world, the scope of ‘gig economy’ is continuously growing in the state,” Gehlot had said in February while introducing the Bill. “Today, the number of gig workers in the state has increased to 3-4 lakh. These big companies do not make any arrangements for social security for these gig workers,” he said.

The law also seeks to register all gig workers and aggregators in the state. The state government will maintain a database of the gig workers and generate a unique ID for every one of them. 

If any aggregator fails to comply with the provisions of the act or rules, the state government may impose a fine which may extend up to Rs 5 lakh for the first contravention and up to Rs 50 lakh for subsequent contraventions.

Which other states have proposed a similar law?

Congress leader Rahul Gandhi is learnt to have pressed leaders of Congress-ruled Karnataka as well to introduce such a law for gig workers in the state. Ahead of the elections in Karnataka, the state government announced that gig workers would be provided with an accident and life insurance cover of Rs 4 lakh for which it will entirely bear the cost of the annual premium. Karnataka CM Siddaramaiah said the cover was “social security to the gig workers in the unorganised sector”.

The Congress in Karnataka also announced a similar welfare board to that of Rajasthan, with an allotment of Rs 3,000 crore as seed money for a revolving fund.