By launching the Rajasthan Platform-based Gig Workers (Registration and Welfare) Bill, 2023, Rajasthan has become the first state to propose a law to protect the rights of gig workers and make them beneficiaries of various state welfare schemes.

While app-based taxi drivers, food delivery agents, courier boys, and more are not formally employed by any company, their legal status as labour is not clear.

As per a NITI Aayog report in July 2022, around 7.7 million people were employed as gig workers as of June 2022. Their number is only likely to multiply three times by 2029-30. There are over eight million registered personnel in the entire country in the category of gig workers on the e-Shram portal of the Government of India.

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While experts believe the platform economy enables flexible work, they say not everyone benefits equally.

The Rajasthan government has also estimated that there are 2.25-2.70 lakh gig workers in the state itself, with about 50,000 working for Ola and 35,000 for Uber. Some drivers are connected with both as there is no restriction, thus promoting healthy rivalry.

The Ashok Gehlot-led Congress government has proposed to levy a “welfare cess” on consumers to ensure better rights and facilities for gig workers in the draft of the new law.

The cess to be levied on customers is likely to be 1 per cent of the total value of the service or delivery that includes a taxi ride or a food order, according to officials.

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According to the draft bill, the Gehlot government proposes to form a welfare board for the platform-based gig workers to register them and their aggregators.

The board, which will also hear grievances of platform-based gig workers, monitor all payments generated on platforms, and penalise errant aggregators, will be chaired by the state Labour minister, and will have representatives from gig workers’ unions, aggregators, and members of civil society.

The bill also mentions that if the aggregators fail to comply with any of the provisions made by the Board, they will have to pay a fine of Rs 10 lakh or can be suspended or prevented from functioning within Rajasthan.

Explaining the functions of the board, the draft bill says it will formulate schemes for the benefit of the gig workers, provide them immediate financial assistance in case of accidents and medical emergencies, and offer them health insurance cover under state government schemes, besides ensuring gratuity, scholarships, and pensions.

“All platform-based gig workers registered with any platform shall be automatically registered with the board irrespective of the duration of their engagement with the platform. The board shall generate a unique ID for every platform-based gig worker registered with one or more aggregators in the State,” the Bill states. This unique ID will be valid for three years.

The draft also states that the information of all registered gig workers will be maintained in a database, which can be accessed in the public domain.

The Board will also formulate specific schemes including gratuity, Employees’ State Insurance (ESI), scholarship, pension, and other benefits.

To fund the welfare of gig workers, the Gehlot government has proposed the Rajasthan Platform-Based Gig Workers Social Security and Welfare Fund, which will start with seed money of ₹200 crore.

State Labour Secretary Vikas Sitaramji Bhale said that there is a provision of levying 1 per cent gig worker welfare cess on consumer, which will be collected and used for their welfare by the board.

Explaining the rationale behind the proposed bill, the Labour Secretary said while providing welfare and social security to gig workers, the state also strives to alter the ongoing equation where aggregators are calling gig workers their partners, which means no employee-employers relation, absolving themselves from any responsibility or providing any benefit.

“They clearly have an employer-employer relationship,” Bhale said.

The announcement has come just a few months before the Rajasthan Assembly elections. With a few months left before the model code of conduct kicks in for the Rajasthan Assembly elections slated later this year and expected resistance from the aggregators, the State administration is running against time.

The three lakh gig workers on average are aged between 20-35 and the Ashok Gehlot government is hoping to enlist them as Congress voters.

Meanwhie, labour experts opine that the proposed law in the desert state is seen as a good template across the country, and should be taken up by the central government to draft a single national law, as labour laws are under the Concurrent List.

Welcoming the move, Sheikh Sallauddin of the Indian Federation of App-Based Transport Workers, Hyderabad stated that he was part of the high-level meeting of secretaries of labour, transport, finance, IT and other departments.

“The suggestions given by Indian Federation of App-Based Transport Workers were accepted by the Rajasthan government in a positive manner. Now the Karnataka government is also considering a similar law. The Rajasthan law will become a model for the entire world.”