On August 20, 2025, Karnataka’s Legislative Assembly passed the Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025, mandating that aggregators contribute a 1–5% welfare fee per transaction into a state-run Gig Workers Welfare Fund. A Gig Workers Welfare Board—comprising workers, aggregators, and civil society—is mandated to oversee social security schemes, grievance redressal, job stability, and occupational safety. Coverage extends to approximately 400,000 platform-based workers across sectors like delivery and ride sharing. @TimesOfIndia (@turn0search20, @turn0news25)
For gig workers—often invisible and deprived of basic security—this marks a lifting of identity. Suddenly, their hardship and risk bearers are being welcomed into policy frameworks; they matter enough. While financial reassurance may seem distant, inclusion brings psychological healing. But for platform companies, this is liability-laden. HR must now think beyond corporate walls to include digital labor in safety and dignity frameworks, resetting trust across loosely coupled workforces.
The Bill formalizes obligations under worker welfare, transforming gig labor from unregulated to accountable. HR functions in platforms must ready systems: register workers, collect and remit fees, ensure welfare fund compliance, and support grievance adjudication. The Board demands transparency in algorithmic decisions—platforms must audit auto-decisions, fairness, and terminations. Early adoption positions firms as compliant, future-ready, and trusted—while delay risks punitive oversight and worker distrust.
How can platform HR design welfare and grievance systems that scale with gig networks, predating government enforcement?
How will compliance across fragmented, digital gig work challenge existing employer models—and what early steps can leaders take to adapt?
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4For gig workers—often invisible and deprived of basic security—this marks a lifting of identity. Suddenly, their hardship and risk bearers are being welcomed into policy frameworks; they matter enough. While financial reassurance may seem distant, inclusion brings psychological healing. But for platform companies, this is liability-laden. HR must now think beyond corporate walls to include digital labor in safety and dignity frameworks, resetting trust across loosely coupled workforces.
The Bill formalizes obligations under worker welfare, transforming gig labor from unregulated to accountable. HR functions in platforms must ready systems: register workers, collect and remit fees, ensure welfare fund compliance, and support grievance adjudication. The Board demands transparency in algorithmic decisions—platforms must audit auto-decisions, fairness, and terminations. Early adoption positions firms as compliant, future-ready, and trusted—while delay risks punitive oversight and worker distrust.
How can platform HR design welfare and grievance systems that scale with gig networks, predating government enforcement?
How will compliance across fragmented, digital gig work challenge existing employer models—and what early steps can leaders take to adapt?
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To design welfare and grievance systems that scale with gig networks, HR departments of platform companies need to adopt a proactive and strategic approach. Here are some steps they can consider:
1. Understand the new law: The first step is to thoroughly understand the provisions of the Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025. This includes the welfare fee, the role of the Gig Workers Welfare Board, and the requirements for transparency in algorithmic decisions.
2. Develop a scalable system: Next, HR needs to develop a system that can register workers, collect and remit fees, ensure welfare fund compliance, and support grievance adjudication. This system should be scalable to accommodate the growth of the gig network.
3. Collaborate with technology teams: HR should collaborate with technology teams to ensure that the system is integrated with the platform's existing infrastructure. This includes auditing auto-decisions, ensuring fairness, and handling terminations.
4. Communicate with workers: Regular communication with gig workers is crucial. HR should inform workers about their rights under the new law, the welfare fund, and the grievance redressal process.
5. Monitor and adapt: Finally, HR should continuously monitor the system and make necessary adjustments based on feedback from workers and changes in the law.
Compliance across fragmented, digital gig work will indeed challenge existing employer models. However, leaders can take early steps to adapt. This includes embracing the new law as an opportunity to improve worker welfare, investing in technology to manage compliance, and fostering a culture of transparency and trust with gig workers.
From India, Gurugram
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1. Understand the new law: The first step is to thoroughly understand the provisions of the Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025. This includes the welfare fee, the role of the Gig Workers Welfare Board, and the requirements for transparency in algorithmic decisions.
2. Develop a scalable system: Next, HR needs to develop a system that can register workers, collect and remit fees, ensure welfare fund compliance, and support grievance adjudication. This system should be scalable to accommodate the growth of the gig network.
3. Collaborate with technology teams: HR should collaborate with technology teams to ensure that the system is integrated with the platform's existing infrastructure. This includes auditing auto-decisions, ensuring fairness, and handling terminations.
4. Communicate with workers: Regular communication with gig workers is crucial. HR should inform workers about their rights under the new law, the welfare fund, and the grievance redressal process.
5. Monitor and adapt: Finally, HR should continuously monitor the system and make necessary adjustments based on feedback from workers and changes in the law.
Compliance across fragmented, digital gig work will indeed challenge existing employer models. However, leaders can take early steps to adapt. This includes embracing the new law as an opportunity to improve worker welfare, investing in technology to manage compliance, and fostering a culture of transparency and trust with gig workers.
From India, Gurugram
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