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The Hindu Editorial Analysis- 15th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

The Hindu Editorial Analysis- 15th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC

The Problem with the Karnataka Gig Workers Bill 

Why in News?

Last month, Karnataka introduced a new Bill, called the draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, seeking to provide social security and welfare measures for platform-based gig workers in the State. The government shared the draft on July 9. In the recent past, a similar law was also enacted by Rajasthan called the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023.

Gig Economy Overview

Definition:

  • A gig economy is a labor market where people work as independent contractors and freelancers instead of full-time employees.

Types of Workers:

  1. Freelancers: Paid per task.
  2. Independent Contractors: Paid on a contract basis.
  3. Project-Based Workers: Paid per project.
  4. Temporary Hires: Employed for a fixed period.
  5. Part-Time Workers: Work fewer hours than full-time employees.

Classification of Gig Economy:

  1. Platform-Based: Use online apps or digital platforms (e.g., ride-hailing, food delivery, online freelancing).
  2. Non-Platform-Based: Work outside traditional employer-employee relationships (e.g., casual wage workers, own-account workers in construction, domestic work, agriculture).

Challenges:

  1. Blocking Access: Platforms can arbitrarily terminate workers' access, effectively ending their jobs. This is often framed as blocking access to a service rather than job termination.
  2. Opaqueness: Gig workers have unclear relationships with platforms, which monitor their actions without transparency. This can lead to issues like wage discrimination and workplace harassment.
  3. Nature of Relation: There's debate about whether platform-based gig work constitutes employment. Some countries recognize these workers as having an employer-employee relationship (e.g., Netherlands), while others consider them "workers" without explicitly stating the platform is the employer (e.g., UK, Spain).

Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024

Clear Definition:

  • The bill provides a clear definition of gig workers, distinguishing them from traditional employees and creating a formal contract mechanism between platform companies and gig workers.
  • Despite referring to platform companies as "intermediaries," the bill aims to include gig work within the regulatory scope of labor laws, potentially providing legal protections and benefits to gig workers.

Comparison with Rajasthan Law:

  • The Rajasthan law does not classify platform workers as employees nor does it define gig work. Instead, it designates a separate category called "gig work" without a clear definition, leaving ambiguity about the rights and protections for gig workers.

Termination:

  • The Karnataka bill mandates that platform companies must give a 14-day notice with a valid reason before terminating a gig worker's contract. This provision ensures that termination is not arbitrary and provides some job security for gig workers.
  • This contrasts with the current practice where platform companies can terminate access to their services without prior notice, treating it as blocking access to a service rather than job termination.

Access to Information:


  • The bill empowers gig workers to request and obtain information related to their work, including performance ratings and personal data held by the platform companies. This transparency helps workers understand how their performance is assessed and can protect against unfair treatment.
  • In comparison, the Rajasthan legislation allows only the state and the welfare board to request algorithmic transparency, limiting individual workers' access to this information.

Grievance Redressal Mechanism:

  • The bill establishes a grievance redressal mechanism specifically for gig workers, allowing them to raise concerns and complaints about their working conditions and treatment by platform companies.
  • This mechanism provides a formal avenue for addressing grievances, which is crucial for protecting workers' rights and ensuring fair treatment.

Compensation:

  • The Karnataka bill stipulates that gig workers must be compensated at least on a weekly basis, ensuring regular and timely payment for their work. This is significant for workers who often face irregular and delayed payments.

Use of Labor Laws:

  • The bill states that gig workers have the right to raise disputes through the Industrial Disputes Act, 1947, which allows them to use existing Indian labor laws. This inclusion helps bridge the gap between gig work and traditional employment, providing a legal framework for resolving disputes and protecting workers' rights.

Role of Welfare Board:

  • The welfare board is tasked with consulting gig worker associations and creating social security schemes, especially for women and people with disabilities. This inclusive approach recognizes the diverse needs of gig workers and aims to provide targeted support.
  • The bill acknowledges the collective nature of gig work, moving beyond the notion of isolated transactions between service providers and platforms. This recognition can lead to more comprehensive and inclusive policies in the future.

Challenges that Need to be Tackled:

  1. Lack of Detailed Provisions: The bill does not provide extensive details on what the formal contracts between platform companies and gig workers will entail. It is also unclear which aspects of state and central labor laws will apply to gig work.
  2. Termination Conditions: Since the specifics of the contracts will be defined in subsequent rules, it is uncertain how effectively the bill will prevent unfair terminations and ensure job security for gig workers.
  3. Grievance Redressal Limitations: The grievance redressal mechanism is limited to issues explicitly covered by the bill. This means gig workers may not be able to file complaints about compensation amounts or other forms of exploitation not directly addressed in the bill.

Conclusion:

  • The draft bill is a significant step towards recognizing and supporting gig workers, bringing collective bargaining back into focus and reflecting the growing influence of gig worker unions in India.
  • It represents a promising development for platform-based gig workers, although the complete recognition of gig work as formal employment is still pending. The bill's provisions lay the groundwork for further advancements in protecting gig workers' rights and improving their working conditions.
The document The Hindu Editorial Analysis- 15th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC is a part of the UPSC Course Current Affairs & Hindu Analysis: Daily, Weekly & Monthly.
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