Karnataka Issues Landmark Ordinance to Protect Platform-Based Gig Workers

Published on: 27-May-25

Karnataka Issues Landmark Ordinance to Protect Platform-Based Gig Workers

On May 27, 2025, the Government of Karnataka promulgated the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, (“Ordinance”) marking a significant regulatory milestone in the formal recognition and protection of platform-based gig workers in the state.

The Ordinance applies to a broad spectrum of digital platform services, including but not limited to ride-sharing, food and grocery delivery, logistics, e-marketplaces (both marketplace and inventory models), professional service platforms, travel and hospitality, healthcare, and content and media services. It follows the earlier introduction of the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, which was developed through extensive consultations with stakeholders such as gig worker associations, digital platforms, and industry aggregators.

The Ordinance seeks to establish a legal and social security framework for a rapidly expanding, yet vulnerable, segment of the workforce. Key entitlements for gig workers under the Ordinance include:

  • Fair and transparent contractual arrangements
  • Timely and regular payouts
  • Protection against arbitrary termination
  • Access to a designated human point of contact for grievance redressal

Furthermore, digital platforms and aggregators are now mandated to:

  • Register with a state-appointed Board
  • Maintain accurate and updated records of associated gig workers
  • Contribute between 1% and 5% of each payout to a dedicated welfare fund
  • File quarterly compliance reports
  • Integrate with the upcoming Payment and Welfare Fee Verification System (PWFVS)

While the Ordinance lays a strong foundational framework, several critical elements remain subject to further clarification through detailed subordinate rules. These include the final determination of welfare contribution rates by platform category, procedural safeguards for gig workers in cases of termination, and the operationalization of the PWFVS, among others.

We will continue to closely examine and unpack the implications of this pioneering Ordinance in the weeks ahead. Whether you are a digital platform operator or a gig worker, our upcoming analyses aim to provide greater clarity on navigating the emerging legal landscape.

Authors: Neeraj Vyas, Cyril Chacko