Karnataka Gig Workers Bill under scanner as Swiggy, Zepto reach HC: What is the law? Explained

Several platform aggregators along with the Internet and Mobile Association of India (IAMAI) filed a case in the Karnataka High Court challenging the constitutional validity of the Karnataka Platform Gig Employees (Social Security and Welfare) Act, 2025 as well as the rules made under the legislation.

In their writ petition, IAMAI, Eternal Ltd, Zepto, Swiggy, Urban Company and Valmo Transportation also sought to set aside a number of notices issued by the CEO under the Act, according to a Bar and Bench report.

The notices require platform companies to comply with various legal obligations, including establishing Internal Dispute Resolution Committees (IDRCs), paying social charges and submitting prescribed information.

What is the Karnataka Platform Based Gig Workers Bill, 2025?

Earlier in 2025, the Karnataka Legislative Assembly passed the Karnataka Platform Gig Workers (Social Security and Welfare) Act, 2025 to protect the rights and improve the living conditions of workers engaged through digital platforms.

The legislation seeks to create a formal framework for providing social security benefits and regulating the relationship between gig workers and platform aggregators.

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A key element of the legislation is the establishment of a Social Welfare Council, which will be responsible for registering gig workers and aggregators, formulating social security schemes, overseeing their implementation and ensuring effective monitoring of social measures.

The bill also provides for the creation of a Social Security and Social Security Fund to finance these initiatives. The fund will receive contributions from social charges collected from transactions between gig workers and aggregators or from the total turnover of platform companies along with financial support from the central and state governments. In addition, aggregators will have to register gig workers, disclose working conditions, and explain how automated systems and algorithms affect worker assignments and employment conditions. Karnataka joins Rajasthan and Bihar in passing similar laws in 2023 and 2025, respectively.

How is a gig worker defined?

The Social Security Code of 2020 defines a gig worker as a person who performs work outside the traditional employer-employee relationship. Gig workers can generally be divided into platform workers and non-platform workers.

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Platform workers get assignments through digital platforms and mobile apps like Ola, Uber, Zomato, Swiggy and Urban Company. On the other hand, off-platform workers generally include casual wage workers and the self-employed in conventional industries who work either part-time or full-time without relying on digital platforms.

Rights of workers at platform-based gigs

A gig worker based on the platform has the right to:

be registered with the board when joining any platform, regardless of job duration, and must be provided with a unique ID usable across all platforms;
have access to general and specific social security schemes based on their contributions, as well as the minimum number of transactions or gig work performed by a Gig worker with any aggregator or platform per quarter, as may be notified by the Board of Directors; and
Access to Grievance Redressal Mechanism as provided in Section 22: Provided that nothing in this Act shall affect any benefit or protection granted to Platform Gig Workers under any other applicable law.

Security of income

If any payment is deducted, the aggregator or platform must clearly state the reasons for the deduction in the invoice issued for the work completed by the gig worker on the platform. “Each aggregator or platform shall compulsorily make payment as per the contract and this payment shall be made either daily, weekly or bi-weekly or monthly payment cycle,” states the Karnataka government.

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It also stated that the aggregator or platform must compensate gig workers based on the platform at least once a week without delaying the payment of wages.

Interest and penalties

If any aggregator or platform fails to pay the fee required under Section 20 within the specified period, it will have to pay simple interest at the rate of 12% per annum on the amount owed, calculated from the due date until payment is made.

“Any aggregator or platform who contravenes the provisions of this Act or the rules made thereunder or who fails to comply with the provisions of this Act or any rules made thereunder, the State Government may impose on the aggregator or platform a fine which may extend to five thousand rupees for the first contravention and up to one lakh rupees for subsequent contraventions,” according to the state government.

The rise of the gig economy and the challenges for gig workers

The gig economy has proven to be an important contributor to job creation and economic growth. It has helped India capitalize on its demographic dividend by creating a significant share of new jobs.

NITI Aayog projects that the gig economy could generate nearly $250 billion worth of transactions by 2030, contributing around 1.25% to India’s GDP. The industry has also encouraged greater labor force participation among women, youth and people with disabilities by offering flexible work arrangements.

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Despite the benefits, gig workers still face several challenges. The majority remain outside the formal welfare system, with the NITI Aayog estimating that more than 82.5% of gig workers are employed informally. Their work often involves health and safety risks, especially for delivery staff and transport workers who work to tight deadlines.

Another big issue is long working hours, with studies suggesting that many platform workers work seven days a week and almost half work more than 12 hours a day. Income instability also remains widespread, with reports suggesting that many gig workers earn below the statutory minimum wage.