Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023

Background:

A ‘gig worker’ is currently defined as someone who “earns from such activities outside of the traditional employer-employee relationship and who works on a contract” for various platforms or aggregators, such as Swiggy, Zomato, Ola, Uber, Urban Company, etc.
Gig workers are different from regular employees, as they have flexible work hours and multiple sources of income.
They are paid on the basis of the tasks or services they complete, rather than on a monthly or hourly basis.
Gig workers provide various services, such as food delivery, ride-hailing, home services, e-commerce, content creation, graphic design, web development, etc.
They use their own devices, vehicles, and tools to perform their work.
Gig workers are estimated to be around 15 million in India, according to a report by Boston Consulting Group and Michael & Susan Dell Foundation. They are expected to grow to 90 million by 2028.

Linkage:

Earlier, the Code on Social Security, 2020 mandated social security funds for gig workers, including life, disability, health benefits, and more.
The Code on Social Security, 2020 aims to amend and consolidate laws related to social security to extend it to all employees and workers in organized or unorganized sectors.
The Code can be applied to establishments subject to size threshold through notification by the central government.
Separate Social Security Funds will be set up by the Central and State Governments for unorganized workers, gig workers, and platform workers.

Current News:

The Rajasthan Assembly recently passed a significant Bill aimed at extending social security benefits to gig workers.
This bill aims to address the lack of protection and benefits for gig workers, who were previously classified as “partners” rather than employees in companies like Ola, Uber, Swiggy, Zomato, and Amazon.
The state government will maintain a comprehensive database of all gig workers operating in Rajasthan.
Each gig worker will be assigned a unique ID, which will facilitate tracking their employment history and entitlements.

Impact:

Gig workers will be granted access to a range of social security schemes.
These schemes may include health insurance, accident coverage, and other welfare measures to provide financial support during emergencies.
Welfare Board — comprising State officials, five representatives each from gig workers and aggregators, and two others (“one from Civil Society and another who evince interest in any other field”).
The bill introduces a “Platform-Based Gig Workers Fund and Welfare Fee” to finance the social security measures for gig workers.
Aggregators will be required to pay a fee for each transaction involving a platform-based gig worker.
Aggregators failing to pay the welfare fee on time will be charged an interest rate of 12% per annum from the due date.