Telangana Steps In for Gig Workers

The Government of Telangana has released the Draft Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Bill, 2025, aimed at ensuring the welfare and protection of nearly 4 lakh gig and platform workers in the state. Public comments on the draft have been invited until April 28, 2025.

Matters related to social security and labour welfare fall under the Concurrent List, allowing both the Centre and the states to legislate on them. At the national level, the Code on Social Security, 2020, was enacted in September 2020, which seeks to extend social security benefits to gig and platform workers. However, the Code has yet to be brought into force. At the state level, Rajasthan stands out as the only state in India to have enacted a dedicated law for gig workers.[1] While several other states have taken preliminary steps toward similar legislation, they are yet to enact any formal statutes.

Key features of the Draft Bill are as follows:

• Applicability: The Bill applies to aggregators, platforms, and primary employers rendering services listed in Schedule I, such as ride-sharing, food and grocery delivery, logistics services, etc. It also covers all gig and platform workers registered under the Act.
• Separate definitions for gig workers and platform workers: While Rajasthan’s law and draft legislations proposed in Karnataka and Jharkhand focus on platform-based gig workers, Telangana’s Draft Bill defines gig workers and platform workers separately. This separation is maintained in the short title, with the term platform-based gig workers appearing only in select places.
• Welfare board: The Telangana Gig and Platform Workers Welfare Board will be tasked with ensuring the registration of gig and platform workers and aggregators in accordance with the Act, and the implementation of general and specific social security schemes.
• Registration of gig and platform workers: All gig and platform workers will be entitled to register with the state government upon being onboarded on any platform, and will also be assigned a Unique ID. The procedure and manner for self-registration will be outlined by the government.
• Registration of aggregators: Aggregators and platforms must register with the Board within 45 days of the Act’s commencement.
• Transparency in automated monitoring and decision-making systems: Aggregators and platforms must inform gig and platform workers of the procedure to seek information regarding automated systems that impact their working conditions, such as fares, earnings, customer feedback, etc.
• Seven-day notice for termination: An aggregator or platform may terminate a gig or a platform worker by following the principles of natural justice after due enquiry by giving valid reasons in writing and prior notice of seven days. Immediate termination is permitted only if a physical or mental threat is foreseen to the end consumer.
• Welfare fund fee: Aggregators must contribute a welfare fund fee of no less than 1% and no more than 2% of the payout to the worker in each transaction or as may be notified by the state government. This will be deposited into the Telangana Gig and Platform Workers’ Social Security and Welfare Fund.
• Grievance redressal: Workers may lodge grievances arising out of entitlements, social security payments, and other benefits with the designated Grievance Redressal Officer. Aggrieved persons may file an appeal before the Appellate Authority.
• Punishment: Failure to pay the welfare fund fee will result in punishment, which can extend to one-year imprisonment or a fine of up to Rs.2 lakh or both.

[1] Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023; available here.