The Karnataka government has decided to have a wider discussion before passing the Bill on welfare schemes and social security benefits for platform-based gig workers as industry stakeholders aired concerns at the a meeting billed as a curtain raiser for the annual Bengaluru Tech Summit in November.
Both Karnataka CM Siddaramaiah and Deputy CM DK Shivakumar were at the meeting. Stakeholders said they are adding thousands of jobs to the city and this Bill may interrupt this growth. Taking into account the views expressed by industry bodies, both leaders agreed to discuss with labour minister Santosh Lad before passing the bill during the 11-day Monsoon Session on July 15.
Tech industry body Nasscom has proposed a list of alterations to the bill, noting some ‘serious concerns’. “The bill assumes gig work to be part of the employer-employee relationship, even though it is entirely different. A key feature of a gig worker is being an ‘independent contractor’ and not an employee because of the absence of elements like degree of control, commitment, and accountability. However, the Bill does not examine these elements and instead proposes a presumption that gig workers are like employees. This assumption risks unsettling the conceptual and legal basis of gig work,” states their report.
Concerns raised
Alongside, IAMAI, another industry body representing the digital services sector also flagged certain provisions stating they could hinder business operations and negatively impact the ease of doing business in the State. “We recommend a more balanced and collaborative approach that aligns with existing Central Government laws and involves all stakeholders transparently and equitably,” said the body in a report. They also requested a consultation period of at least 30 to 60 days.
The United food delivery partners’ Union (UFDPU) expressed its opinion on this development, calling it an unprecedented measure to accommodate the platform-based companies. “This move will unnecessarily delay the presentation of the bill in the assembly and further delay its enactment. The platform companies could have filed their objections within the first 10 days period announced. UFDPU urges the government not to yield to the delay tactics of the companies and should ensure that there will be no compromise as far as the rights of the gig workers are concerned due to the delay in the consultative and the legislative processes,” the union told businessline.
“In terms of connectivity and welfare schemes, there’s a difference between permanent and gig workers, so the proposed bill is a good move. The government will monitor and control these welfare schemes. States exist for the welfare of the people. These companies will have to contribute because they cannot think of only making money; schemes are an excellent way of redistribution. Customers are anyway forking out money that is going to the middleman who usually is the corporate entity. The money should also be passed to the guy who works,” said Harish Bijoor, Business and Brand-strategy expert.
The government may open a 10-day window for the companies to offer suggestions. This means the bill is unlikely to be presented at the Legislature session beginning Monday.
