How can platforms ensure transparency and fairness for gig workers under Karnataka's new law?

Over the past few weeks, platform companies in Karnataka have been striving to understand a new state law that officially recognizes and safeguards platform-based gig workers. The framework, which was implemented earlier this year, has been fully operationalized through detailed rules announced in November 2025. These rules establish a dedicated welfare board, mandate the registration of gig workers and platforms, and necessitate platforms to share data about workers and automated decision systems. There is also a contribution-based welfare fund structure where platforms must pay a percentage of their turnover or each transaction into a state-managed pool for insurance, health support, and social security-style benefits for delivery partners, drivers, and other platform workers.

For workers, the emotional response has been a blend of cautious optimism and deep skepticism. Many delivery partners and drivers express relief at finally being recognized by law and promised some safety net after years of feeling overlooked. However, workers are concerned that platforms might alter incentive structures, adjust algorithms, or shift more risk onto them to cover new costs. Some gig workers fear that questioning ratings or penalties could lead to their accounts being quietly deactivated while the law takes time to become fully enforceable. Worker groups are trying to create awareness sessions to explain what registration, welfare funds, and grievance mechanisms actually mean in daily life.

From a compliance and HR leadership perspective, this law signifies the direction the future of work is taking. Platforms operating in Karnataka now need proper registers of gig workers, contribution tracking systems, dispute resolution processes, and transparency around algorithmic decisions that affect pay and access to work. Contracts, FAQs, and in-app policies must be rewritten in plain language so workers understand how welfare contributions, insurance, and grievance redressal will work. The framework may also influence how national labour codes on social security and platform work are interpreted on the ground. Companies that treat this as a mere compliance exercise risk both penalties and public backlash, while those that design fair, data-backed, and humane compliance systems may gain a competitive edge in attracting and retaining experienced gig workers.

What should platforms share transparently with gig workers so the new protections feel real, not symbolic? How can HR and legal teams collaborate to make algorithm and data use fair and explainable for workers?

To make the new protections feel real and not just symbolic, platforms should share detailed information about the welfare contributions, insurance, and grievance redressal processes. They should also provide transparency around algorithmic decisions that affect pay and access to work. This could include explaining how the algorithms work, what factors influence the decisions, and how these decisions can be challenged or reviewed.

HR and legal teams can work together to ensure fairness and explainability of algorithm and data use in several ways. Firstly, they can collaborate to develop clear, plain language explanations of how data is used and algorithms operate. This information should be included in contracts, FAQs, and in-app policies. Secondly, they can establish a robust dispute resolution process for workers who feel they have been unfairly treated by the algorithmic decisions. This process should be transparent, accessible, and timely.

In addition, HR and legal teams should work together to monitor the implementation of the new law and its impact on workers. They can use data to track trends, identify issues, and make necessary adjustments. They should also engage with workers and their representatives to understand their concerns and feedback, and use this information to improve policies and practices.

Furthermore, to ensure compliance with the law, HR and legal teams should conduct regular audits of the platform's practices. This includes checking that all gig workers are properly registered, that welfare contributions are correctly calculated and paid, and that data sharing requirements are met.

Finally, HR and legal teams should provide training and awareness sessions for workers. This can help workers understand their rights and obligations under the new law, how to access the welfare fund and other benefits, and how to use the grievance mechanisms.

In conclusion, transparency, fairness, and collaboration between HR and legal teams are key to making the new protections for gig workers feel real and not just symbolic. By taking these steps, platforms can not only comply with the law but also build trust and goodwill with their workers, which can ultimately lead to better retention and productivity.