Rajasthan's Gig Workers Bill: Messiah for Gig workers?
In the fourth post of CASLW's Shram, we chew over the importance of structurally organising the unorganised sector.
Rajasthan has become the first state in India to bring a protection bill for “Gig Workers” in its legislative assembly. In the Statement of Objects and Reasons for the Bill, the government says that “In spite of major contribution in economy and employment, gig workers form a part of unorganised workers and are still not covered under the labour laws. They do not receive the same level of protection as traditional employees get.”
Why this Bill is important?
According to a 2020 study undertaken by the Michael and Susan Foundation and Boston Consulting Group (BCG), there are 8 million gig workers in India. There are around 3-4 lakh gig workers in Rajasthan alone. As it turns out, these workers face both social and economic challenges.
There are certain initiatives by these companies also to prevent the social insecurities of these workers. For example, Swiggy played a campaign named “What is in the name”, The company said, “Our delivery partners felt disrespected when people called them Swiggy and we wanted to change that.” However, these initiatives alone will not solve the difficulties related to gig workers. Several regulations, such as one proposed by Rajasthan, are required.
Who are gig workers?
The Rajasthan Platform-Based Gig Workers (Registration And Welfare) Bill, defines gig workers in its section 2(f). A simple interpretation of a gig worker is “A person who earns from outside employer-employee relationships through work arrangements, on contracts with fixed payment rates, including piece-rate work.”
Gig workers differ from regular employees as they have a flexible work schedule, and have a low to intermediate level of education. They typically have regular employment in addition to their gig labour revenue. They are temporary workers and have no benefits like regular employees such as paid leaves, insurance etc.
“The more they work, the more they get!”
This bill is about the platform-based gig workers, these workers are those whose jobs rely on online software apps or digital platforms. Platforms based on location enable work in person at certain sites, such as while using web-based systems for delivery or driving allowing employees to complete online chores for clients.
What does this Bill Bring for Gig workers?
(A) Registration of the workers: Section 13 of This bill requires all gig workers to register with the state government in order to be subject to labour regulations. Without labour regulations, gig workers could receive pay that is below the minimum wage and might not be qualified for benefits like workers' compensation.
(B) Database for gig workers: The state government will keep an extensive record of all gig workers in Rajasthan. Each gig worker will be given a unique ID to help them track their working history and entitlements.
(C) Establishment of a welfare board: This bill proposes a welfare board through its section 3 which is comprised of state officials, five representatives each from gig workers and aggregators (companies like Zomato and Uber), two representatives from Civil Society and other fields are nominated by the State Government for Board representation.
(D) Penalties for the aggregators: The Bill empowers the State government to impose a fine of up to 5 lakhs for the first violation and up to 50 lakhs for subsequent violation of any clause of the bill. Which would increase the efficiency of the measures undertaken for the welfare of the workers
A Messiah for the Rights of Gig Workers?
If you have ever ordered food from online applications such as Swiggy and Zomato, that food is brought to you by a “temporary worker”, this temporary worker does not get the same benefits as a traditional employee such as medical insurance, social services or paid leaves.
While bringing food to your door. No health benefits are provided to "Zomato Wala" in the event of an accident.
Now, in this Bill, The State brings “Platform Based Gig workers fund and welfare fee”. Aggregators such as Ola, Uber, Zomato, and others would be charged a fee, and the funds raised would be used to benefit Gig Workers. The bill aims to close the gap between the traditional employer-employee relationship and that of Gig workers and employers
The Aggregators would be charged a fee for each transaction. The Rajasthan government would determine the percentage of the fee.
Certain penalties are also introduced by The Rajasthan Government on Aggregators, If any aggregator fails to pay the welfare fee, they will be penalised with an interest of 2% per annum from the date from which such payment is due.
The Bill empowers the State government to impose a fine of up to 5 lakhs for the first violation and up to 50 lakhs for subsequent violations of any clause of the bill.
Conclusion
The Rajasthan Gig Workers Bill, 2023 aims to recognise and safeguard the rights of gig workers in the state by ensuring their social security, welfare, and benefits. The bill mandates platforms to provide insurance, healthcare, and skill development opportunities, promoting a more inclusive and equitable gig economy. However, successful implementation requires regulatory collaboration, regular evaluations, and a balanced approach that respects worker rights and business innovation. The bill could serve as a model for other states and countries facing similar labour challenges, reshaping the gig economy landscape.
