Telangana to Roll Out Gig Workers’ Welfare Law from May 1

The Telangana government is set to implement a new law for the welfare of gig workers starting May 1, marking International Workers’ Day.

The Labour Department has already drafted the bill, focusing on providing welfare, job security, insurance, and other rights to gig workers. Chief Minister Revanth Reddy has directed officials to place the draft in the public domain so that stakeholders can propose suggestions or changes before it is finalized.

Revanth Reddy held a meeting with representatives of gig workers' unions, along with Ministers Ponnam Prabhakar (Transport), Ponguleti Srinivasa Reddy (I&PR), State Planning Board Vice Chairman Chinna Reddy, Chief Secretary Santhi Kumari, Special Chief Secretaries Ramakrishna Rao, Jayesh Ranjan, Sanjay Kumar, and other officials at the Secretariat to discuss the bill.

There are nearly four lakh gig workers employed in food delivery, cab driving, and package delivery services across the State.

Instructing officials to gather feedback on the draft bill from all sections of society, the Chief Minister directed that the process be completed and the draft finalized by April 25.

Telangana is the latest state to focus on the welfare of gig workers. The government had earlier issued orders on December 30, 2023, to provide accident insurance of ₹5 lakh in case of the death of a gig or platform worker.

With the increasing penetration of e-commerce platforms in daily life, both the Central and respective State governments are initiating steps to ensure that gig workers receive the benefits they are entitled to.

Recently, the Karnataka government cleared a bill to ensure the welfare of gig workers. The Congress-led government in the State has proposed levying a cess on e-commerce platforms to establish a board dedicated to gig worker welfare. This board will oversee implementation of general and specific social security schemes for registered gig workers.

The bill proposes a cess ranging from 1% to 5% on each transaction.

As per the proposed legislation, the Karnataka Platform-Based Gig Workers’ Welfare Board will be established and partly funded by the cess collected. The State Labour Minister will serve as chairman. Government representatives, gig workers, aggregators, and civil society members will also be on the board.

In Uttar Pradesh, the Yogi Adityanath government has also initiated steps to ensure the welfare of gig workers in Prayagraj (formerly Allahabad).

The Labour Department in the State has launched an initiative to prepare e-labour cards for gig workers to bridge the gap between them and government welfare schemes.