Karnataka Set to Release Draft Rules for Gig Workers’ Welfare in Two Weeks After Ordinance Approval

In a significant move for gig workers in Karnataka, the state government has announced that draft rules for the recently approved Gig Workers’ Welfare Ordinance will be released within the next two weeks. This development follows the Governor's assent to the ordinance on May 27, 2025, marking a historic step toward ensuring social security and fair treatment for platform-based workers.

The ordinance, officially titled the Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, mandates online platforms such as ride-hailing, food delivery, and e-commerce services to contribute to a welfare fund through a service fee or cess. This fund aims to provide financial security and benefits to approximately five lakh gig workers across the state.

Labour Minister Santosh Lad credited Congress leader Rahul Gandhi for inspiring this initiative, highlighting his engagement with gig workers during the Bharat Jodo Nyay Yatra. The forthcoming draft rules will outline specifics, including the rates of fees payable by platforms and mechanisms for transparent contracts and worker rights.

Key provisions of the ordinance include the establishment of a Welfare Board to oversee the registration of gig workers and aggregators, as well as the creation of social security schemes. Additionally, platforms will be prohibited from arbitrary termination of workers and must clearly define payment schedules and working conditions.

The initiative has been hailed as a pioneering effort in India to address the challenges faced by gig workers, who often lack job security and benefits. Once finalized, the rules are expected to be operational by August 2025, setting a potential benchmark for other states to follow.

As Karnataka moves forward with this progressive legislation, stakeholders await the draft rules to understand the full scope of implementation. This ordinance could reshape the gig economy landscape, ensuring better protection and dignity for workers in the state.