The Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025

KARNATAKA ACT NO. 72 OF 2025 THE KARNATAKA PLATFORM BASED GIG WORKERS (SOCIAL SECURITY AND WELFARE) ACT, 2025

(1) This Act may be called the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025. (2) The provisions of this Act shall be deemed to have come into force with effect from the 30th day of May, 2025; (3) It applies to,- (i) every aggregator or platform operating or providing any one or more services specified in the Schedule within the State of Karnataka and as amended by the Government from time to time. (ii) every platform as defined under clause (g) of section 2; and (iii) every Gig worker registered with the Board under section 10.

In this Act, unless the context otherwise requires,- (a) “Automated monitoring and decision making systems” means systems which make decisions by automated means with or without human intervention; (b) “Aggregator” means a digital intermediary for a buyer of goods or user of a service to connect with the seller or the service provider, and includes any entity that coordinates with one or more aggregators for providing the services; (c) “Board” means the Karnataka platform based Gig Workers Welfare Board established under section 3; (d) “Fund” means the Karnataka platform based Gig Workers Social Security and Welfare Fund established under sub-section (1) of section 19; (e) “Gig worker” means a person who performs work or participates in a work arrangement that results in a given rate of payment, based on terms and conditions laid down in such contract and includes all piece-rate work, and whose work is sourced through a platform, in the services specified in the Schedule; (f) “Payout” means any final payments made by the aggregator or platform to the gig worker for any work performed or service rendered through a platform. (g) “Platform” means any arrangement providing a service through electronic means, at the request of a recipient of the service, involving the organization of work performed by individuals at a certain location in return for payment, and involving the use of automated monitoring and decision making systems or human decision making that relies on data. (h) “Prescribed” means prescribed by rules made under this Act; (i) “Regulations” means the regulations made by the Board under this Act; (j) “Schedule” means a schedule appended to this Act; (k) "Social security" means the measures of protection afforded to gig workers and platform workers to ensure access to health care and to provide income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner by means of rights conferred on them and schemes framed, under this Act; (l) “Unique ID” means the unique Identification number issued to platform based Gig worker registered under sub-section (4) of section 10. (m) “Welfare Fee” means the fee levied under sub-section (1) of section 20 of this Act; (n) “Notification” means a notification published in the Official Gazette of the State, as the case may be, and the expression "notify" with its grammatical variations and cognate expressions shall be construed accordingly; and (o) "Terminate" or "Termination" means materially restricting a platform based Gig worker’s access to the digital platform, including blocking such worker’s access to the digital platform, suspending a platform based Gig worker, or making the platform based Gig worker ineligible to provide services on the digital platform irrespective of the duration of the same.

(1) The State Government shall, with effect from such date as it may appoint, establish a Board to be known as the Karnataka Platform Based Gig Workers Welfare Board to exercise the powers conferred on, and perform the duties and functions assigned to it, under this Act. (2) The Board shall, as and when necessary, notify general or sector specific social security and other benefits that shall be implemented by the Board within the time frame specified by the State Government. (3) The headquarters of the Board shall be at Bengaluru. (4) The Board shall be a body corporate with the name aforesaid, having perpetual succession and common seal, with power to acquire, hold and dispose of property, and to contract, and may by that name, sue or be sued.

(1) The Board shall consist of,- (a) the Minister in-charge of the Department of Labour, Government of Karnataka - Ex-officio Chairperson; (b) the Additional Chief Secretary or Principal Secretary or secretary to Government, Department of Labour or his nominee not below the rank of Joint Secretary, Government of Karnataka - Ex-officio Member; (c) the Additional Chief Secretary or Principal Secretary or secretary to Government, Department of Information and Technology or his nominee not below the rank of Joint Secretary, Government of Karnataka - Ex-officio Member; (d) the Commissioner, Department of Commercial Taxes or his nominee not below the rank of Joint Commissioner - Ex-officio Member; (e) A Chief Executive Officer appointed by the State Government shall be Executive in-charge of day to day functioning of the Board and carry out duties on behalf of the Board - Ex-officio Member Secretary; (f) Four representative body of gig workers to be nominated by the State Government Member; (g) Four representative body of aggregator or platform to be nominated by the State Government Member; (h) Two representative from the civil society who has experience working in the field or a subject matter expert in the field of gig economy to be nominated by the State Government Member; and (i) A technical expert in the field of data collection and IT systems may be invited as and when necessary to provide inputs. - Special invitee (2) The nominated members of the Board shall have a term of three years: Provided that, the State Government may extend their tenure for another one year if it deems appropriate. (3) Among the nominated members under clause (f), (g) and (h) of sub-section (1), there shall be at least one women representative. (4) In the event of any vacancy occurring on account of death, resignation, disqualification or removal under sub-section (5), such vacancy shall be filled by the State Government by fresh nomination for the remaining term. (5) Any nominated member of the Board may at any time resign from his office by writing under his hand addressed to the Chairperson, and his office shall, on acceptance of resignation, become vacant. (6) No person shall be chosen as, or continue to be, a nominated member of the Board who,- (i) is a salaried officer or an employee of the Board; or (ii) is or at any time has been adjudged insolvent; or (iii) is found to be a lunatic or becomes of unsound mind and stands so declared by a competent Court; or (iv) is or has been convicted of any offence involving moral turpitude; or (v) is absent without leave of the Board for more than three consecutive meetings of the Board. (7) The nominated members of the Board shall be entitled for allowances for attending the meetings of the Board, at such rates as may be prescribed.

(1) The Board shall meet at such time and place and observe such rules of procedure for transaction of business at its meetings as may be prescribed: Provided that, the Board shall meet at least once quarterly: Provided further that, the Chairperson may convene a meeting of the Board once in a quarterly upon a written request from at one fourthmembers of the Board. (2) The Chairperson, or, if for any reason he is unable to attend any meeting of the Board, any other member as decided by members present, shall preside over the meeting. (3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the members present and voting, and in the event of equality of votes, the Chairperson, or in his absence, the person presiding, shall have a second or a casting vote. (4) The quorum for the meeting of the Board shall be fifty percent of the total members.

The powers and functions of the Board shall be as follows, namely:- (i) ensure registration of gig workers in accordance with the provisions of this Act; (ii) ensure registration of aggregator or platform operating in the State in accordance with the provisions of this Act; (iii) set up a monitoring mechanism to certify that welfare fee is being duly collected; (iv) ensure implementation of general and specific social security schemes based on contributions made, as may be notified by the State Government and disburse the social security benefits through the individual social security accounts linked to the Unique IDs allocated to platform based Gig workers. (v) monitor the schemes for social security of registered platform based Gig workers and provide recommendations to the State Government for administering such schemes; (vi) ensure that Gig workers have access to the benefits as per the schemes formulated by the State Government and to provide proactive facilitation to them in their engagement with concerned aggregator or platform; and also to weigh the social security schemes extended by the aggregator or platform and take appropriate measures. (vii) engage with workers associations working with Gig workers and hold regular open consultations with them; (viii) constitute a committee for providing the recommendations to the State Government for formulation, review and implementation of the schemes; (ix) make social security schemes for specific groups of Gig workers such as women, persons with disabilities etc.; and (x) seek aggregated data from the aggregator and platform on the work done via their platform.

A platform based Gig worker shall have the right to,- (a) be registered with the Board on being onboarded on any platform, irrespective of the duration of the work, and be provided a Unique ID applicable across all platforms; (b) have access to general and specific social security schemes based on contributions made by them and also the minimum number of transactions or Gig work undertaken by the Gig worker with any aggregator or platform in a quarter as may be notified by the Board; and (c) access a grievance redressal mechanism as specified in section 22: Provided that, nothing in this Act shall affect any benefit or protection accorded to platform based Gig workers under any other law for the time being in force.

The officers and employees working with Karnataka State Unorganized Workers Social Security Board shall be considered to be officers and employees of the platform based Gig Workers Welfare Board for the efficient discharge of its functions under this Act.

(1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Accountant General of the State. (2) The accounts of the Board shall be audited annually by the office of the Accountant General of the State. (3) The accounts of the Board certified by the auditor, together with the audited report thereon shall be submitted annually to the State Government before such date as may be prescribed. (4) The Board shall comply with such directions as the State Government may, after perusal of the report of the auditor, think fit to issue. (5) The cost of the audit, as determined by the State Government, shall be paid out of the administrative cost of the Fund. (6) All monies forming part of the Fund shall be kept in current or deposit account with any Nationalized Bank or as may be prescribed.

(1) The aggregator or platform shall provide to the Board its database of all Gig workers onboarded or registered with them within forty five days from the date of commencement of this Act in such manner as may be prescribed. (2) All platform based Gig workers onboarded or registered with any platform after the commencement of this Act shall be electronically registered by the Board, within thirty days of their being so onboarded or registered. The aggregator or platform shall update the Board about any changes, i.e., increase or decrease in numbers of Gig workers in the data provided under sub-section (1), in such manner as may be specified in the regulations. (3) The Board shall maintain a database of Gig workers in the State along with the details of their contractual engagement with one or more aggregator or platform, and notwithstanding the duration or time of engagement with any platform. (4) The Board shall register and generate a unique ID to every Gig worker who is onboarded by one or more aggregator or platform operating in the State: Provided that, the data so collected by the Board either from the aggregator or platform or Gig workers shall be used to achieve the object of this Act.

(1) Every aggregator or platform shall register with the Board within forty five days from date of commencement of this Act in such manner as may be prescribed. (2) The Board shall maintain a register of aggregator or platform operating in the State along with the name and designation of an officer notified by the State Government responsible for carrying out obligations under this Act. (3) The Board shall publish the register of aggregator or platform on its web portal as may be prescribed.

(1) All contracts entered into between aggregator and platform based Gig workers shall comply with the provisions of this Act. (2) All terms of the contracts shall be transparent and comprehensive to the concerned workers and shall comply with fair terms of piece and /or time rate norms including payments, deductions, incentives and calculations of all work done and will explicitly contain the workers right to refuse tasks offered. (3) Once the contract has been entered into, the aggregator or platform shall notify the platform based Gig Worker of any change in the terms of the contract not less than fourteen days before the proposed change.

(1) The aggregator or platform must inform the platform based gig worker, in simple language and in Kannada, English or any other language listed in the Eighth Schedule of the Constitution of India known to the Gig worker, regarding the procedure to seek information in respect of the automated monitoring and decision making parameters employed by the aggregator or platform, which have an impact on their working conditions, including but not limited to fares, earnings, customer feedback and allied information, as may be prescribed. (2) The aggregator or platform shall take measures to prevent discrimination on the basis of religion, race, caste, gender, or place of birth or on the grounds of disability by the automated monitoring and decision making systems deployed by them.

(1) The contractual agreement entered into between the aggregator and the platform based Gig worker shall contain an exhaustive list of grounds for termination of contract by the aggregator or deactivation of the Gig worker from the platform. (2) An aggregator or the platform shall not terminate or deactivate a Gig worker without giving valid reasons in writing and with prior notice of fourteen days and following the principles of natural justice: Provided that, in any instance where the ground for suspension includes cases of bodily harm, the termination of work can be initiated by the aggregatoror platform immediately without prior notice of fourteen days. However, the worker will have the right to appeal the decision as may be prescribed.

(1) In the cases of payment deductions, the aggregator or platform must inform the platform based Gig worker about the reasons for such deductions within the invoice raised for the work performed by the platform based Gig worker. Every aggregator or platform shall mandatorily make payout as per the contract and such payment shall be made either daily or weekly or biweekly or monthly payout cycle. (2) The aggregator or platform must compensate the platform based Gig workers at least on a weekly basis with no delay in disbursal of pay.

(1) The aggregator or platform must provide and maintain, as far as is reasonably practicable, a working environment that is safe and without risk to the health of the platform based Gig worker. Explanation: For the purpose of this sub-section “Reasonable working conditions” means a work environment that is safe and without risk to the health of the platform based Gig worker includes ensuring that the platform based Gig worker shall have adequate periods of rest during the work day and during the work week, access to sanitary and rest facilities, including reasonable travel time to and from such facilities. (2) The aggregator or platform shall comply with such applicable, sector-specific, occupational safety and health standards as may be prescribed.

(1) The aggregator or platform shall ensure that information on the grievance redressal mechanism in section 22 is easily accessible on their platform. (2) The aggregator or platform shall ensure that information on the dispute resolution mechanism in section 22 is easily accessible on their respective platform. (3) The manner of publishing of disclosure obligations by the aggregator or platform shall be such as may be prescribed.

(1) Each platform shall provide with a human point of contact for all clarifications under the provisions of this Act to their Gig workers: Provided that, the aggregator or platform may maintain physical spaces where platform based Gig workers may seek clarifications under the provisions of this Act. (2) The Gig worker shall have the option of communicating with the point of contact in Kannada, English or any other language listed in the Eighth Schedule of the Constitution of India known to the platform based Gig worker. (3) The contact information of the point of contact shall be provided on the respective platform based Gig workers’ accounts on the platform application.

(1) The State Government shall establish a fund to be called the Karnataka Gig Worker’s Social Security and Welfare Fund for the benefit of registered platform based Gig workers and the following money shall form part of, and be paid into, namely:- (i) all sums received from welfare fee levied under this Act; (ii) all contributions made by individual platform based Gig workers; (iii) all sums received as grant-in-aid from the State Government and Central Government; (iv) all sums received by way of grants, gifts, donations, benefactions, bequests or transfers; and (v) all sums received from any other sources as may be prescribed. (2) The Fund shall be utilized and managed in such manner as may be prescribed. (3) The Board shall not spend more than five percent of the fund to defray any administrative costs of the Board or employees of the Board.

(1) There shall be charged, from an aggregator or platform, a welfare fee known as the Platform Based Gig Workers Welfare Fee, which shall be not less than one percent but not more than five percent of the payout to the platform based Gig worker in each transaction as may be notified by the State Government within six months of the Act coming into force. (2) The State Government shall specify through a notification different percentage on the payout, with or without a cap on the Gig worker welfare fee on each transaction, for different categories of aggregator or platform as Specified in Schedule. (3) Such fee shall be collected by the State Government in such manner and within such time as may be prescribed. (4) The aggregator or platform shall deposit the welfare fee levied under this Act, at the end of each quarter in such manner as may be prescribed. (5) The Welfare Fee so collected will count as the total contribution payable under sub section 4 of section 114 under the Code on Social Security, 2020 (No 36 of 2020). Provided that, if there is any difference between the Welfare Fee collected and contribution payable in terms of the total amount, it may be reconciled on a yearly basis as may be prescribed. (6) If any aggregator or platform fails to pay any amount as specified under sub-section (1) shall be liable to pay simple interest on the fee due from the date on which such payment is due till such amount is actually paid at such rate (percent) as may be notified by the State Government from time to time.

(1) All payments made to workers generated on platform shall be mapped on to a Payment and Welfare Fee Verification System (PWFVS) administered by the State Government and monitored by the Board. (2) Every payment made to Gig workers and the welfare fee deducted by platforms shall be sent to Payment and Welfare Fee Verification System (PWFVS) for each transaction related to platform based Gig worker in such manner as may be prescribed. (3) The details of welfare fee collected and spent at the Gig workers level shall be disclosed and made available on the Payment and Welfare Fee Verification System (PWFVS) portal. (4) The Payment and Welfare Fee Verification System (PWFVS) shall be in compliance with the applicable Central and State legislations on data protection for the time being in force. Provided that, until the operationalization of the Payment and Welfare Fee Verification System (PWFVS) by the Board, the Government may exempt such aggregator or platform who duly self report and submit details of the payouts made to their Gig workers in each of the transaction every quarterly.

(1) The registered Gig Workers are entitled for redressal of two-tier grievances: (a) Against the aggregatoror platform; and (b) Against the Board. (2) A platform based Gig worker in relation to any violation regarding his payouts, deductions, termination etc may file a grievance in person before an Internal Dispute Resolution Committee to be constituted by all registered aggregator or platform as may be prescribed or make a petition through web portal: Provided that, the link to such web portal shall be provided on the platform application of every aggregator or platform registered under this Act. (3) The procedure for the disposal of the petition filed under sub-section (2), shall be such manner as may be prescribed. (4) The Internal Dispute Resolution Committee shall complete its proceedings within fourteen days on receipt of a petition by or on behalf of the aggrieved party and submit a written Action Taken Report to the complainant. (5) If the worker does not receive a written Action Taken Report from the Internal Dispute Resolution Committee within fourteen days of the grievance being filed and/or if the worker is unsatisfied with the redress provided by the Internal Dispute Resolution Committee, the grievance will be forwarded to the board whose decision shall be final. (6) The Internal Dispute Resolution Committee so authorized under sub-section (2), shall upon inquiries, dispose of the said petition by passing an order of redressal within forty five days. (7) A platform based Gig worker registered under this Act, in relation to any grievance arising out of entitlements, Social Security payments and other benefits provided by the Board may file a petition in person before a grievance redressal officer as notified by the State Government, or make a petition through web portal. (8) The procedure for the disposal of the petition filed under sub-section (7) shall be such as may be prescribed. Provided that, the Board may appoint an Ombudsman through a notification. (9) The officer so authorized under sub-section (7), shall upon inquiries, dispose of the said petition by passing an order of redressal. (10) An appeal against the order under sub-section (9) shall lie within ninety days from the date of order before the Appellate Authority, as notified by the State Government: (11) The Appellate Authority shall dispose of the appeal in accordance with such procedure as may be prescribed.

(1) If any aggregator or platform fails to pay any amount of fee payable under section 20 within the time as may be prescribed, such aggregator or platform shall be liable to pay simple interest, on the fee due to be paid at the rate of twelve percent per annum from the date on which such payment is due till such amount is actually paid. (2) Any aggregator or platform who contravenes the provisions of this Act or rules made there under or who fails to comply with the provisions of this Act or any rules made there under, the State Government may, impose a fine upon an aggregator or platform, which may extend up to Rs. 5,000 for the first contravention and up to Rs. 1,00,000 for subsequent contravention. (3) Any other non-compliance by the aggregator or platform under Act and rules made thereunder shall be dealt with as may be prescribed. (4) In case of non-payment, fine shall be recoverable as may be prescribed. (5) The procedure for imposition of fine under sub-section (2) shall be as may be prescribed.

The aggregator or platform shall submit to the Board electronically quarterly returns in such form as may be prescribed: Provided that, the Government shall based on the Ease of doing business requirement may make the provision for submission of returns half yearly or annually by a notification.

(1) The Board shall prepare a report every year of its activities under this Act during the year and submit the report to the State Government. (2) The State Government shall, as soon as may be after the receipt of report under sub-section (1), cause the same to be laid before the each Houses of the State Legislature.

The provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being in force.

No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made there under.

(1) The State Government may by notification in the official Gazette make rules after previous publication for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: (i) The rates of allowances for nominated members of the Board under sub-section (7) of section 4; (ii) The time, place and procedure for meetings of the Board as required under sub-section (1) of section 5; (iii) The manner in which proper accounts, annual statements of accounts including balance sheet and other relevant records must be maintained under sub-section (1) of section 9; (iv) The date of submission of the audited report by the Board under sub-section (3) of section 9; (v) The manner in which the monies of the Fund shall be kept under sub-section (6) of section 9; (vi) The manner of providing the database of Gig workers onboarded or registered under sub-section (1) of section 10; (vii) The manner of updating any changes in the number of gig workers under sub-section (2) of section 10; (viii) The manner of registering the aggregator or platform by the Board as per sub-section (1) of section 11; (ix) The manner of publishing the register of aggregator or platform on web portal under sub-section (3) of section 11; (x) The procedure to seek information regarding automated monitoring and decision making systems under sub-section (1) of section 13; (xi) The manner of right to appeal the decision by the gig worker under sub-section (2) of section 14; (xii) Sector specific occupational safety and health standards under sub-section (2) of section 16; (xiii) The manner of publishing of disclosure obligations under sub-section (3) of section 17; (xiv) Sums received from any other sources under sub-section (1) (v) of section 19; (xv) The manner of utilization and management of fund under sub-section (2) of section 19; (xvi) The manner of collection of welfare fee Gig workers under sub-section (3) of section 20; (xvii) The manner of deposit of the welfare fee by the aggregator or platform at end of each quarter under sub-section (4) of section 20. (xviii) The manner of reconciliation of welfare fee under sub-section (5) of section 20. (xix) The form in which payment made to platform based Gig workers and the welfare fee deducted shall be recorded on the Payment and Welfare Fee Verification System (PWFVS) for each transaction under sub-section (2) of section 21; (xx) The manner of the composition and procedure of the Internal Dispute Resolution Committee under sub-section (2) of section 22; (xxi) The manner of disposal of the petition under sub-section (3) of section 22; (xxii) The manner of disposal of the petition under sub-section (8) of section 22; (xxiii) The manner of disposal of appeal under sub-section (11) of section 22; (xxiv) Time frame under subsection (1) of section 23; (xxv) Manner of dealing with non-compliance under sub-section (3) of section 23; (xxvi) The manner of recovery of fine in case of non-payment under subsection (4) of section 23; (xxvii) The manner for imposition of fines under sub-section (5) of section 23; and (xxviii) The manner of submission of quarterly return by aggregator or platform under section 24. (3) Every rule made under this Act shall be laid, as soon as may be after they are so made, before the House of the State Legislature, while it is in session, for a period of not less than fourteen days which may be comprised in one session or in two successive sessions and if before the expiry of the session in which it is so laid or of the sessions immediately following, the House of the State Legislature makes any modification in the rule or resolves that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done there under.

The Board may make regulations to provide for the following matters under this Act,- (i) the manner of registration of aggregator or platform as per sub-section (1) of section 11; (ii) themanner in which the aggregator or platform shall provide the database of all Gig workers onboarded or registered with them to the board under sub-section (2) of section 10; and (iii) the manner in which the latest data of all platform basedGig workers engaged by aggregator or platform must be shared as per sub-section (3) of section 10.

(1) If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by order, published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may be necessary or expedient for removing the difficulty: Provided that, no order under this section shall be made after expiry of three years from the date of commencement of this Act. (2) Every order made under this section shall, as soon as may be after it is so made, be laid before the House of State Legislature.

The State Government may by notification in the official Gazette, add, alter or omit any of the entries specified in the Schedule.

(1) The Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025 (Karnataka Ordinance No. 04 of 2025) is hereby repealed. (2) Notwithstanding such repeal, anything done or deemed to have been done or any action taken or deemed to have been taken under the Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025 (Karnataka Ordinance No. 04 of 2025) shall be deemed to have been done under this Act.

Services provided by aggregator or platform 1. Ride sharing services. 2. Food and grocery delivery services. 3. Logistics services. 4. e-Market place (both marketplace and inventory model) for wholesale/retail sale of goods and/or services Business to Business /Business to Consumer (B2B/B2C). 5. Professional activity provider. 6. Healthcare. 7. Travel and hospitality. 8. Content and media services. The above translation of ಕರ್ನಾಟಕ ವೇದಿಕೆ ಆಧಾರಿತ ಗಿಗ್ ಕಾರ್ಮಾಕರ (ಸಾಮಾಜಿಕ ಭದ್ರ ತೆ ಮತ್ತು ಕೆಷ ೇಮಾಭಿವೃದಿಿ) ಅಧಿನಿಯಮ, 2025 (2025ರ ಕರ್ನಾಟಕ ಅಧಿನಿಯಮ ಸಂಖ್ಯೆ: 72) into English language be published in the official Gazette under clause (3) of Article 348 of the Constitution of India. THAAWARCHAND GEHLOT GOVERNOR OF KARANATAKA By Order and in the name of the Governor of Karnataka, G. SRIDHAR Secretary to Government Department of Parliamentary Affairs and Legislation