“Telangana gig workers face significant changes as the state government introduces a new draft Bill aimed at improving welfare measures. The Bill mandates that aggregators ensure workers’ rights are protected, with strict penalties for non-compliance. This progressive move is set to revolutionize the gig economy in Telangana.”
An aggregator may be punished “with imprisonment for a term which may extend to one year or with a fine of Rs 2 lakh or with both” if they do to pay the welfare fund to a board for the welfare of gig workers, according to the draft Bill.
“Social security for Telangana gig workers, rules that govern termination, and provisions to punish aggregators that don’t comply — a Bill expected to be brought in by the Telangana government on May 1 envisions several guardrails for the welfare of the roughly 4 lakh gig and platform workers in the state.”
An aggregator may be punished “with imprisonment for a term which may extend to one year or with a fine of Rs 2 lakh or with both” if they do to pay the welfare fund to a board for the welfare of gig workers, according to the draft Bill.
“The offences under the Act will be triable by a court ‘which is not inferior than a Judicial Magistrate of the First Class,’ it states, ensuring stricter legal provisions for the protection of Telangana gig workers.”
The Gig and Platform Workers’ Welfare Board in Hyderabad must be established by the state government in order to “exercise the powers conferred on, and perform the duties and functions assigned to it, under the Act,” according to the Bill.
The state minister of labor will serve as the board’s head, and members will include representatives from the finance, transportation, and labor departments. Additionally, it will include two representatives from civic society, four representatives from each of the gig workers’ unions, and representatives from aggregators. Within 45 days of the bill becoming law, it will ensure that all gig and platform workers in the state are registered and have seats reserved for female members.
“Telangana Gig Workers to Benefit from New Welfare Fund Under Draft Bill”
“The state government will also have to establish the Telangana gig workers’ social security and welfare fund. The board will be able to spend an amount not exceeding 5% of the annual receipts towards the fund. ‘The state government shall charge a welfare fund from aggregators and platforms, which shall not be less than 1 percent but shall not exceed 2 percent of the payout to the gig and platform worker in each transaction or as may be notified by the state government,’ the draft reads. If an aggregator fails to pay the amount, they will be liable to pay a simple interest fee.”
“As per the draft, Telangana gig workers can be terminated only after due enquiry and only by giving valid reasons. Further, they will have to be notified at least seven days before termination. ‘The aggregator must provide and maintain, as far as it reasonably practicable, a working environment that is safe and without risk to the health of the platform-based Telangana gig workers,’ the draft reads. The aggregators are also expected to set up an internal enquiry committee for the welfare of the workers.”
“The Chief Minister’s Office said that CM A Revanth Reddy has ordered officials to ‘seek people’s opinion on the draft Bill, which aims to provide social security to Telangana gig workers and platform workers.’ The draft Bill should be finalised ‘only after taking into consideration the suggestions, recommendations, and objections from the public,’ the CM told officials.”
In the draft Bill for a new Act, Reddy “suggested several changes and additions which give priority to the welfare of the workers and ensures coordination and friendly interaction between the companies and aggregators,” according to the CMO. To get public feedback, the CM told the bureaucrats to post the draft bill online.
