Telangana's gig workers law: The legislation, and how other states have fared, Pg19

Key Highlights:

• The Telangana Assembly passed the Telangana Platform-Based Gig Workers (Registration, Social Security and Welfare) Bill, 2026 on Monday.
• The bill aims to regulate gig and platform work and protect gig workers' rights.
• Platform companies will have to submit details regularly and file electronic returns of transactions made by customers every three months, with a 1-2% levy on these transactions.
• A special welfare board will be constituted for gig workers using the corpus created by the government levy, which will provide for insurance, pension and maternity benefits.
• The Bill is expected to benefit over 4 lakh delivery riders, cab drivers, and other platform workers across the state.

Detailed Insights:

• The Telangana bill is similar to those passed by Karnataka, Rajasthan, Jharkhand, and Bihar, focusing on registration, social security, health insurance, and welfare benefits for gig workers.
• The bill stipulates strict penalties for non-compliance, ranging from Rs 50,000 for the first violation to up to five times the arrears thereafter.
• The Welfare Board will have 20 members, including representatives of gig worker aggregators, and will meet quarterly to resolve complaints quickly.
• The bill mandates transparent policies, requiring platforms to clearly disclose salary and deduction details and prohibits arbitrary use of algorithms affecting workers.
• Rajasthan was the first state to pass such a law in July 2023, mandating registration of gig workers and setting up a welfare board with one-third women members.
• Jharkhand is the only state that has been able to implement its gig workers law, while others are facing challenges in negotiations and discussions, particularly regarding the fee to be levied on aggregators.
• Karnataka has proposed a 1-1.5% fee and is grappling with framing rules for social security and welfare benefits, while Rajasthan and Bihar have faced protests and stalled implementation due to political changes and negotiation issues.

Key Concepts Involved:

• Gig Workers: Individuals who perform work via online platforms or apps, often characterized by short-term contracts or freelance work.
• Aggregators: Companies or platforms that connect gig workers with customers or clients, facilitating the provision of services.
• Social Security: Government programs designed to protect individuals and families from economic hardship, including insurance, pensions, and welfare benefits.