Industry group raises red flags on Karnataka’s gig worker draft bill

New Delhi: The Internet and Mobile Association of India (IAMAI) has raised concerns about the draft bill on platform-based gig workers proposed by the Karnataka government. IAMAI has urged the government to pause the legislative process for thorough consultations, citing potential negative impacts on the ease of doing business in the state.

IAMAI highlighted issues such as dual levy on social security, lack of clarity on welfare fee contribution utilization, harsh clauses for offences, unrealistic expectations from aggregators, and legal complexities under the Industrial Disputes Act. The industry body also pointed out ambiguities in welfare fee calculation and onerous data sharing requirements.

Considering the evolving nature of the gig economy, IAMAI emphasized the need for all stakeholders to provide inputs before enacting such a law. The association called for a more balanced and collaborative approach aligning with existing central government laws.

IAMAI requested the state government to hold the legislative process for 30 to 60 days for thorough consultations and reconsider the proposed regulation of contractual agreements. The draft bill aims to regulate social security and welfare for gig workers through the establishment of a board, grievance cell, and welfare fund.