In Telangana’s draft Bill for gig workers, aggregators who default on welfare measures could face jail
Telangana’s Draft Gig Workers Bill Proposes Jail for Aggregator Defaulters
Hyderabad, April 15 – The Telangana government is taking a major step to protect gig and platform-based workers. A draft bill proposes strict action against aggregator companies that ignore mandatory welfare measures. If passed, company officials who fail to comply could face jail time.
New Welfare System for Gig Workers
The “Telangana Platform Based Gig Workers (Welfare and Regulation) Bill, 2024” introduces a welfare system for gig workers. It covers those working in food delivery, ride-hailing, logistics, and e-commerce. The bill mandates that platform companies such as Swiggy, Zomato, Uber, Ola, Blinkit, and Amazon contribute a share of their revenue to a dedicated welfare fund.
Penalties for Breaking the Rules
One of the bill’s most striking features is the penalty clause. Companies that fail to pay into the welfare fund could face jail terms of up to three years. They could also be fined as much as ₹10 lakh. This aims to discourage companies from violating the law.
A Telangana Labour Department official said, “We’re not targeting businesses. But companies must take care of the workers they rely on. Jail is a last-resort penalty for serious violations.”
A Welfare Board to Monitor Progress
The bill proposes a Welfare Board to oversee the process. It will manage registrations, track contributions, and ensure timely delivery of benefits. Companies must register with the board and share regular reports on their workforce.
Gig workers will also be able to self-register online. A new digital portal will allow them to track benefits and access services.
Benefits for Workers
If the bill becomes law, gig workers will gain access to key welfare services:
- Health and accident insurance
- Savings and pension schemes
- Maternity and disability benefits
- Skill-building programs
These changes aim to bring much-needed security to workers who often lack job stability.
Worker Reactions Are Positive
The bill has sparked hope among gig workers in Hyderabad and beyond.
Rahul, a delivery partner with Zomato, said, “We work hard and often get no benefits. If this bill gives us insurance and savings, that’s a big win.”
Mixed Views from Companies
While many support the idea of worker welfare, companies are cautious. A food delivery company spokesperson said, “We want to support our partners. But strict jail penalties and detailed reporting may raise our costs and limit flexibility.”
Telangana Leading the Way
Other states like Rajasthan and Karnataka have shown interest in regulating gig work. But Telangana’s draft bill stands out. Its strong enforcement rules and focus on transparency make it a possible model for others.
Labour activist Meena Sharma said, “This is a milestone. Gig workers have waited too long for support. Telangana is finally putting their rights first.”
A Call for Balance
Businesses fear the bill may impact ease of doing business. Especially for startups working across multiple states, compliance could become more complex.
To address these concerns, the state has invited suggestions. Public consultations and meetings with industry leaders are already being planned.
What Happens Next?
The bill is still in the draft phase. The Telangana Assembly is expected to take it up in the next session. If passed, companies will get time to adjust before the rules come into effect.
Legal experts believe the jail clause may face opposition. However, the welfare goals are likely to receive wide support.
Conclusion
Telangana is taking a bold step to support gig workers. The draft bill enforces fair practices and strengthens worker rights. As gig work continues to grow, this legislation may shape the future of India’s platform economy.
