INTRODUCTION OF THE RAJASTHAN PLATFORM BASED GIG WORKERS (REGISTRATION AND WELFARE) BILL, 2023.

EMPLOYMENT LAW UPDATE

8th August 2023.

Issue No. 11/23-24

INTRODUCTION OF THE RAJASTHAN PLATFORM BASED GIG WORKERS (REGISTRATION AND WELFARE) BILL, 2023.

On 24th July 2023, the Rajasthan Assembly vide a press release, has passed a bill for the welfare of gig workers known as The Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023 (“Bill”). The Bill aims to:

  • register all gig workers and aggregators in the state,
  • make it easier for gig workers to be guaranteed social security, and
  • further provide them a chance to voice any grievances.

In the state budget for 2023–2024, Chief Minister Mr. Ashok Gehlot announced the introduction of the Rajasthan Platform Based Gig Workers Act (“Act”) and the creation of the Gig Workers Welfare Board (“Board”) under it to give social security to gig workers and to safeguard them from exploitation. Along with this, he also announced the formation of the Gig Workers Welfare and Development Fund with an amount of Rs 200 crore.

The key points in the Bill are as follows:

  1. The purpose of this measure is to remedy the absence of protections and benefits for gig workers, who were previously categorized as “partners” rather than “employees” by organizations like Ola, Uber, Swiggy, Zomato, and Amazon. The Bill defines a gig worker as a person who performs work or participates in a work arrangement and earns from such activities outside of the traditional employer-employee relationship and who works on contract that results in a given rate of payment, based on terms and conditions laid down in such contract and includes all piece-rate work.
  1. The Bill constitutes the formation of the Board to exercise the powers and functions assigned to it under the Act. This Board will ensure the registration of platform-based gig workers. It will also make recommendations to the state government for the administration of such schemes for registered gig workers in addition to monitoring them.
  1. The Board in Rajasthan will have five representatives each from among the gig workers and from the aggregators, to be nominated by the state government, among other members.
  1. The State Government will be required to maintain a database of the gig workers in the state along with the details of their employment with one or more primary aggregators or primary employers and generate a unique ID for every one of them.
  1. The State Government shall establish the formation of the Rajasthan Platform Based Gig Workers Social Security and Welfare Fund. Under this, a social security and welfare fund will be established for gig workers. Apart from other sources, a fee will be levied on aggregators, which shall be at such rate (per cent) of the value of each transaction related to a platform-based gig worker, as may be notified by the state government.
  1. A cess shall be levied from the aggregator or the employer (not the consumer, or the gig and platform worker), and shall be on each transaction related to the gig worker.   The rate of the cess is yet to be notified but the upper limit has been set at two percent of the value of each transaction. The Bill provides that the details of welfare cess collected and spent shall be disclosed and made available for inspection on the CTIMS (Central Transaction Information and Management System).
  1. The Board will also ensure time-bound redressal of grievances relating to the rights of gig workers and matters relating to the implementation of the provisions of the Act by way of filing a petition.
  1. The Bill has also introduced a provision for penalties. In case of non-payment, a fine shall be recoverable as land arrears as per the Rajasthan Land Revenue Act, 1956. If any other clauses of the Bill are violated by the aggregators, the Bill empowers the state government to impose a fine up to Rs 5 lakh for the first contravention and up to Rs 50 lakh for subsequent contraventions. In case of any clause violated by the primary employer, the fine may extend up to ten thousand rupees for the first contravention and up to two lakh rupees for subsequent contravention.
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