Telangana Cabinet Approves Gig Workers Bill

The Telangana Cabinet yesterday reportedly approved the draft Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Act, 2025, which aims to protect the interests of gig workers in the state. 

As per The Hindu, state labour minister G Vivek Venkataswamy said that the bill will be introduced in the upcoming Assembly session. 

As per the report, the bill has proposed the establishment of a 20 member-board to discuss and make decisions related to gig workers. Additionally, it also seeks to set up a welfare fund and a grievance redressal framework.

The draft bill envisages the registration of all gig workers in the state with the proposed board, which will comprise representatives of all relevant stakeholders. “The companies will have to depute an officer each. They can also flag the issues faced by them,” he reportedly said. 

Circulated by the Telangana government in April this year, the bill proposes penalties on aggregators for violations. Under the draft Act, platforms flouting the norms will be liable for fines starting at INR 50,000 for the first offence for non-payment of welfare fees. This figure goes all the way to INR 2 Lakhs. 

The draft norms also mandate algorithmic transparency, and require online aggregators to disclose how assignment systems, incentives and automated decisions affect worker income. Additionally, the new rules also mandate the platforms to ensure all essential communication is provided in languages easily understood by workers. 

Grievance redressal mechanisms have also been established under the proposed law. Companies, with more than 100 gig workers, will be required to set up internal dispute resolution committees. This will be overseen by a government grievance redressal officer and an appellate system headed by the deputy labour commissioner. 

The draft norms also propose a seven-day notice period for removal of gig workers, except in cases involving misconduct. It also puts the onus on online aggregators to ensure mandatory registration with the board, access to welfare schemes, safe working conditions and transparency in payments.

In addition, the welfare fund has been proposed to pay for health coverage, accidental death relief, marriage assistance and other welfare measures for gig workers. The fund will be set up with contributions from welfare fees levied on aggregators, government grants, and other donations. 

This comes two months after the Karnataka legislative assembly passed a Bill to protect the interests of gig workers and pave the way for setting up of a welfare fund. However, it is not the first state to do so. In 2023, the Rajasthan government passed a similar law, while Jharkhand’s draft bill is yet to be introduced in the state assembly.