Karnataka’s New Gig Worker Grievance System

UPSC Syllabus- GS Paper II: Welfare schemes for vulnerable sections of the population; Issues relating to development and management of Social Sector/Services.

Introduction

India’s gig economy has expanded rapidly with the rise of platforms such as Uber, Ola, Zomato, Swiggy and Amazon, creating employment opportunities for millions. However, this growth has also exposed workers to job insecurity, arbitrary account deactivation, low wages, and lack of social security. Karnataka’s New Gig Worker Grievance System.

On May 1, 2026 (International Workers’ Day), Karnataka operationalised India’s first government-backed grievance redressal mechanism for platform-based gig workers under the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025. The move marks an important step toward formalising protections for workers in the platform economy.

About Karnataka’s New Grievance System

1. Complaint filing through IPGRS- Gig workers can now register complaints through the Integrated Public Grievance Redressal System (IPGRS) regarding payment issues, unfair penalties, unsafe working conditions, and arbitrary suspensions.

2. Internal Dispute Resolution Committee (IDRC)- Every aggregator platform must establish an Internal Dispute Resolution Committee to handle worker complaints.

3. Time-bound resolution- The committee must attempt resolution within 15 working days and issue a final order within 45 days.

4. Appeal mechanism-Workers dissatisfied with the decision can appeal before the Karnataka Gig Workers Welfare Board within 30 days.

5. Welfare measures- The State has introduced a 1% welfare fee on platform transactions to fund benefits such as insurance, maternity benefits, disability support, and old-age protection.

6. Worker database creation- Around 12 lakh gig workers have already been registered by various platforms, though duplication issues remain due to workers operating on multiple platforms.

Significance of the Move

1. Recognition of gig workers- For a long time, delivery partners, cab drivers, and other platform workers remained largely invisible in policy discussions despite being an essential part of urban life. Karnataka’s move formally acknowledges them as an important segment of India’s workforce that deserves legal protection and dignity.

2. Brings accountability to platforms- Gig workers often faced sudden account suspensions or deactivations with little explanation, leaving them without income overnight. The new grievance mechanism introduces accountability by ensuring that platforms cannot act arbitrarily.

3. Strengthens social security framework- The proposed welfare fund can provide a much-needed safety net for workers who often lack health insurance, accident coverage, maternity benefits, or old-age support. This is especially important as gig work is often uncertain and income can fluctuate.

4. Model for other states- Karnataka has taken an early lead in regulating platform work, and its model could encourage other states—and eventually the Union government—to adopt similar reforms for gig workers across India.

Challenges in its implementation

1. Worker classification ambiguity- Most platforms continue to classify gig workers as “partners” or independent contractors rather than employees. This allows companies to avoid extending traditional labour rights such as minimum wages, paid leave, and job security.

2. Enforcement challenges- Creating laws is easier than implementing them. Ensuring that large digital platforms comply with grievance timelines and welfare obligations may remain difficult due to limited regulatory capacity.

3. Data duplication issues- Many workers earn through multiple apps at the same time. This creates overlap in registration data and makes benefit delivery more complicated.

4. Limited awareness among workers- A large number of gig workers may not be fully aware of their rights, complaint mechanisms, or welfare benefits, reducing the effectiveness of these reforms.

5. Concerns of platforms over rising costs- The 1% welfare fee may face resistance from companies that argue additional costs could affect business operations and platform growth.

6. Absence of a national legal framework- While the Code on Social Security, 2020 mentions gig workers, India still lacks a comprehensive nationwide framework to regulate this rapidly growing workforce.

Way Forward

1. Create a national framework for gig workers- India needs a uniform legal framework that clearly defines the rights and responsibilities of platforms and gig workers across states.

2. Ensure portability of benefits- Since many workers operate on multiple platforms, social security benefits should remain portable and linked to the worker rather than a single company.

3. Improve awareness and digital literacy- Governments and platforms should conduct awareness campaigns so workers understand how to use grievance portals and claim benefits.

4. Introduce unique worker IDs- A unique identification system can reduce duplication and ensure smoother delivery of welfare benefits.

5. Balance innovation with worker protection- Regulation should protect workers’ rights without discouraging innovation and job creation in the digital economy.

6. Expand social protection coverage- Over time, benefits such as health insurance, pensions, accidental insurance, maternity support, and paid leave should be gradually extended to gig workers to make employment more secure.

Conclusion

Karnataka’s new grievance system reflects the changing nature of work in the digital age. While gig platforms have transformed employment opportunities, they cannot operate without accountability. Protecting gig workers is not just a labour issue-it is a matter of dignity, social justice, and inclusive economic growth. Karnataka has taken an important first step; the challenge now is scaling this model across India.

Question for Practice- “The rise of the gig economy has created new employment opportunities but also new forms of labour vulnerability.” Discuss in the context of recent policy measures for gig workers in India. (15 Marks)

Source- TH