What happened?
The Government of Rajasthan, on July 24, 2023, passed the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023 (“Act”). With this initiative, Rajasthan has become the first state in India to pass a legislation, which regulates the engagement of gig workers and aims to provide social security and other benefits to platform-based gig workers.

Background
As on date there is no legislation governing the rights of the people engaged in the gig economy. While at the Central level, the Code on Social Security, 2022, recognizes gig and platform workers as a separate class of workers and seeks to extend a variety of benefits to them, the same is yet to be brought in force.

Key Aspects and Implications
The Act defines ‘gig workers’ and regulates the conduct of the ‘aggregators’ (digital intermediaries connecting buyers and sellers) and ‘primary employers’ (individuals or organisations engaging platform-based gig workers).

Key aspects of the Act are:

• Registration: All gig workers and aggregators in the state will be registered to provide gig workers with social security benefits and address their concerns.
• Welfare Board: The state will establish “The Rajasthan Platform Based Gig Workers Welfare Board,” comprising two members each from gig workers and aggregators, along with two civil servants. This board will oversee the registration process and create a social security fund for gig workers.
• Unique ID: The state government will assign a unique ID to every gig worker for efficient record-keeping.
• Welfare Fee: Aggregators will pay a fee based on the value of each transaction related to gig workers, which will contribute to the “Platform Based Gig Workers Fund and Welfare Fee.”
• Social Security Schemes: Gig workers will gain access to general and specific social security schemes.
• Grievance Redressal: The Act ensures gig workers can voice their grievances and participate in decisions related to their welfare through representation on the board.
• Penalties for Non-Compliance: Aggregators who fail to pay the welfare fee on time may face fines ranging from ₹5 lakhs for the first offence to ₹50 lakhs for subsequent violations.
• Welfare and Development Fund: A ₹200 crore fund will be created to support gig workers’ welfare and development.