Category:
Labour Laws | Gig Economy | Social Welfare
Overview:
The Telangana Government has taken a major step toward safeguarding the interests of gig and platform workers with the introduction of the Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Act, 2025. This landmark legislation aims to provide a robust legal framework for ensuring social security, fair treatment, and protection for individuals working in app-based and digital platforms, such as food delivery workers, ride-sharing drivers, freelancers, and others who make up the gig economy.
Overview of the Act:
The Act is designed to protect and empower gig and platform workers across Telangana. It mandates the registration of workers and platforms, the creation of a Welfare Board, the development of social security schemes, and a structured grievance redressal system. It applies not only to companies headquartered in Telangana but also to any platform operating within the state, regardless of their origin.
Effective Date:
The Act will come into effect on a date to be notified in the Telangana Gazette. Once active, it will apply to:
- All aggregators and digital platforms offering services in Telangana.
- All gig and platform workers registered under the Act.
Key Definitions Under the Act:
- Gig Worker: A self-employed individual earning through short-term or task-based work without a formal employer-employee relationship.
- Platform Worker: Someone who earns income by providing services via digital platforms (e.g., food delivery, taxi apps).
- Aggregator/Platform: Companies or apps that connect consumers with service providers (e.g., Swiggy, Uber, Amazon).
- Welfare Board: The Telangana Gig and Platform Workers Welfare Board formed to manage registration, benefits, and worker welfare schemes.
Welfare Board Setup:
A dedicated Welfare Board headquartered in Hyderabad will oversee:
- Registration of gig and platform workers and aggregators.
- Management of the Welfare Fundand benefit disbursal.
- Design and implementation of targeted welfare schemes (including those for women and persons with disabilities).
- Monitoring platform compliance and maintaining a central worker database.
- The Board will consist of government officials, representatives from gig worker communities, platform companies, civil society members, and technical experts.
Key Worker Rights Under the Act:
- Registration & Unique ID: Every registered worker will receive a Unique Identification Number valid across all platforms.
- Access to Social Security: Workers will qualify for benefits based on work participation and aggregator contributions.
- Grievance Redressal Mechanism: A formal process will be in place to address and resolve worker complaints.
- Algorithm Transparency: Workers must be informed about how algorithmic systems influence their work, rating, and pay.
- Safe Work Conditions: Platforms are required to ensure safe and reasonable working environments.
- Fair Termination Policy: No worker can be removed arbitrarily. Written notice and valid reasons are mandatory unless in emergencies.
Income and Payment Regulations:
- Platforms must ensure transparency in payments and deductions.
- Workers must receive timely payments as per contractual terms.
- All deductions must be properly explained in invoices.
Welfare Fund & Contributions:
A dedicated Welfare Fundwill be established to provide benefits such as insurance, training, and social security. It will be financed through:
- A transaction feeof 1–2% paid by aggregators for each service.
- Contributions from workers.
- State and Central Government grants.
- CSR fundsand public donations.
- A digital monitoring system, the Welfare Fund Fee Verification System (WFFVS), will track fund contributions and usage.
Dispute Resolution Mechanism:
- Platforms employing more than 100 workers must set up an Internal Dispute Resolution Committee.
- Workers can escalate unresolved issues to a Grievance Redressal Officer and further to an Appellate Authority.
- All grievances must be addressed within 30 to 90 days with a fair hearing process.
Transparency and Accountability Measures:
- Platforms must publish clear information on grievance handling and dispute processes.
- Annual compliance reports must be submitted to the Welfare Board.
- Non-compliance could lead to penalties up to ₹2 lakhsand imprisonment for severe violations.
Additional Provisions:
- Platforms must appoint a Point of Contact (PoC)to assist workers in Telugu, English, or any official Indian language.
- The Act grants the government powers to frame rules, amend provisions, and ensure effective implementation.
- Legal protection is granted for actions taken in good faith under the Act.
Sectors Covered (Schedule-I Examples):
The Act covers a wide range of service sectors that rely on gig and platform-based work:
- Ride-sharing and app-based transportation
- Food and grocery delivery
- Logistics and courier services
- e-Commerce and retail support
- Healthcare and home medical services
- Travel and hospitality assistance
- Media, entertainment, and digital content services