Congress Government In Telangana Is Set To Introduce Rules For The Protection Of 4.2L Gig Workers
The Congress-led government in Telangana is poised to enact a landmark piece of legislation designed to provide social security and regulate the employment conditions for the state’s estimated 4.2 lakh gig and platform workers. The proposed law, titled “The Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Act, 2025,” marks a significant step towards recognising and protecting a burgeoning segment of the workforce that has, until now, operated largely outside the purview of traditional labour laws.
This move follows similar pioneering legislation in Rajasthan and Karnataka, signalling a growing momentum across India to address the vulnerabilities inherent in the gig economy.
“The Bill promotes both economic and social justice in a meaningful manner. Telangana is the third state to legislate on this matter, following Rajasthan and Karnataka. In each case, it is only Congress Governments that have secured justice and fair working conditions for lakhs of gig workers. Shramik Nyay continues to be one of the most central visions of the Congress Party and Rahul Gandhi,” Congress’ general secretary in charge of communication Jairam Ramesh said.
The comprehensive bill, dated April 12, 2025, aims to establish a robust framework ensuring the welfare of individuals engaged by digital intermediaries and marketplaces, from ride-hailing drivers and delivery partners to those performing piece-rate tasks. At the heart of the legislation is the creation of the Telangana Gig and Platform Workers Welfare Board, a dedicated body corporate tasked with the registration of all gig workers and aggregator platforms operating within the state. This Board will be chaired by the state’s Labour Minister and will feature a diverse composition, including representatives from various government departments, four representatives of the gig workers themselves, four from the aggregator companies, and two members from civil society with expertise in the platform economy. This inclusive structure is intended to ensure that the voices of all stakeholders are heard in the governance of the sector.
A cornerstone of the proposed act is the establishment of the Telangana Gig and Platform Workers Social Security and Welfare Fund. This fund will be financed primarily through a mandatory “Welfare Fund Fee” levied on the aggregators. The fee will be charged on each transaction, set at a rate of not less than one per cent but not exceeding two per cent of the payout made to the worker. These contributions, which cannot be passed on to the consumer, will be supplemented by grants from the state and central governments, as well as contributions from Corporate Social Responsibility funds. The monies collected will be used to finance a range of social security schemes, providing benefits such as accident insurance, health coverage, and other welfare measures tailored to the specific needs of gig workers, including provisions for women and persons with disabilities.
Under the new rules, every gig and platform worker will have the right to be registered with the Board and receive a Unique Identification Number (UID), which will be portable across all platforms. This formal recognition is a crucial first step in moving away from the ambiguous independent contractor status that has defined their work. Aggregators will be mandated to share their database of workers with the Board to facilitate this registration process.
Beyond social security, the bill addresses critical aspects of working conditions and algorithmic management. It introduces a vital clause on transparency, compelling platforms to inform workers in a language they understand – such as Telugu or English – about the automated systems used for monitoring, fare calculation, and performance evaluation. Crucially, the legislation seeks to prevent discrimination by these algorithms based on religion, caste, gender, or disability. It also brings a measure of security to their engagement, stipulating that a worker cannot be terminated without adherence to the principles of natural justice, including a valid written reason and a seven-day notice period, except in cases where a consumer’s safety is threatened. The bill further guarantees timely payment for all work performed and requires that any deductions from a worker’s pay must be clearly explained.
To ensure compliance and resolve disputes, the act establishes a multi-tiered grievance redressal mechanism. Aggregators will have to appoint a point of contact for worker queries. For unresolved issues, workers can approach a government-appointed Grievance Redressal Officer, with a further right of appeal. Platforms with over one hundred workers will also be required to form an Internal Dispute Resolution Committee. Failure by aggregators to comply with the act, particularly in paying the welfare fund fee, will attract significant penalties, including fines of up to Rs 2 lakhs and potential imprisonment for up to one year, underscoring the government’s serious intent to enforce these protections.
