Rajasthan’s Gig and Platform Workers Welfare Act: empowering the young worker

Source: The post is based on the article “Rajasthan’s Gig and Platform Workers Welfare Act: empowering the young worker” published in “Indian Express” on 24th August 2023.

Syllabus: GS3- Indian Economy; growth, development and employment.

News: The author talks about Rajasthan Gig and Platform Workers Act, which benefits gig workers in India. It tackles problems like low pay and transparency. While praising its features, the author points out shortcomings and stresses effective implementation’s importance.

What are the main features of Rajasthan Gig and Platform Workers Act?

Unique ID for Workers:

Purpose: To recognize each gig worker and ensure their rights and benefits aren’t diluted or overlooked.

Impact: This identification can serve as a foundation for all future benefits, making sure no worker is left out.

Transaction Fee:

Why it’s levied: The fee is introduced as a consistent source of revenue for a welfare fund dedicated to the gig workers.

Transparency: With many companies, especially like Uber, using the “upfront pricing” model, workers often aren’t aware of the exact commission deducted. This fee calculation makes such details transparent.

Tripartite Welfare Board:

Composition: A combination of government officials, company representatives, and the workers themselves.

Inspiration: This model is inspired by the International Labour Organization’s (ILO) framework. A similar structure was used by Maharashtra’s Hamaal Panchayat to represent workers in the unorganized sector.

Benefits: Such a board prevents any one party (like a single company) from having undue influence. It ensures that all stakeholders have a voice, reducing the chances of corrupt practices or biases.

Data Transparency:

Requirement: Companies must share detailed transaction data, including the breakdown of charges and commissions.

Storage: This data will reside in a database controlled by the government.

Accessibility: Workers can access this data, ensuring they are aware of transaction details and promoting overall transparency in operations.

What are the issue with Rajasthan Gig and Platform Workers Act?

Employee Misclassification:

The Act avoids addressing the categorization of gig workers as “partners” or “aggregators”.

This classification has been a choice for companies, offering them protection against providing full employee benefits.

Globally, there’s a consensus that many gig workers fit employee definitions and should get associated protections.

Ambiguities in the Act:

Certain areas in the Act are not clearly defined, leading to potential confusion in its execution.

Areas like grievance resolution and data sharing need clearer guidelines for effective implementation.

Implementation Challenges:

Companies like Uber have a history of resisting legal requirements.

Ensuring these companies adhere to the Act’s provisions will be crucial.

Effective rules and systems need to be put in place to ensure the Act’s objectives are met.

What should be done?

Address Misclassification: Clearly define gig workers’ status, leaning towards employee recognition.

Clarify Ambiguities: Create clearer guidelines for areas like grievance resolution and data sharing.

Establish Effective Rules: Focus on rules and systems for executing the Act’s provisions without loopholes.

Involve Workers in Implementation: The worker mobilization that led to the legislation must continue during the Act’s implementation phase.

Expand and Improve: Use the Rajasthan Act as a model, refining it for adoption in other Indian states.