The Rajasthan Platform Based Gig Workers Bill, 2023

27 Jul The Rajasthan Platform Based Gig Workers Bill, 2023

This article covers “Daily Current Affairs” and the topic details “The Rajasthan Platform Based Gig Workers Act, 2023”. The topic “The Rajasthan Platform Based Gig Workers Act, 2023” has relevance in the “Governance” section of the UPSC CSE exam.

For Prelims:

What is The Rajasthan Platform Based Gig Workers Bill, 2023?

Who are platform workers? Who are gig workers? 

For Mains:

GS2: Governance

Why in the news?

The Rajasthan Assembly recently passed a bill to provide social security to gig workers.

Key Points of the Bill

The Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill is designed to provide essential rights and protections to gig workers. It ensures that gig workers are registered with the state and granted access to various social security schemes. Moreover, they will have a platform to address their grievances and concerns.

• Registration: The bill aims to register all gig workers and aggregators in the state, maintaining a comprehensive database and issuing unique IDs to each worker. 
• Welfare Board: A key aspect of this legislation is the establishment of the Platform Based Gig Workers Welfare Board. 
  • The Welfare Board will consist of State officials, five representatives each from gig workers and aggregators, and two additional members from Civil Society and other fields.
  • At least one-third of the nominated members must be women.
• Workers Fund and Welfare Fee: One of the crucial highlights of the Rajasthan Bill is the creation of the “Platform Based Gig Workers Fund and Welfare Fee.” 
  • This will establish a social security and welfare fund dedicated to supporting gig workers. 
  • Funding for this initiative will come from various sources, including a fee levied on aggregators. 
  • The specific rate of this fee, based on a percentage of each transaction involving a platform-based gig worker, will be notified by the state government.
• Penalties for violations: To ensure compliance, the bill introduces penalties for aggregators who fail to pay the welfare fee on time. 
  • They will be subject to an interest charge of 12 per cent per annum from the due date. 
  • Additionally, in case of violations of other provisions within the Act, the state government has the authority to impose fines ranging from Rs 5 lakh for the first contravention to Rs 50 lakh for subsequent contraventions. 

Significance of Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill:

• Gig workers engaged on a contract basis currently lack social security benefits and labour law coverage, thus the bill seeks to address these vulnerabilities and protect their rights. 
• It introduces a formal registration process to ensure recognition and accountability for gig workers and grants them access to social security schemes, thereby enhancing their welfare. 
• The establishment of the Platform Based Gig Workers Welfare Board will provide a platform to address their grievances. 
• Additionally, the bill introduces the “Platform Based Gig Workers Fund and Welfare Fee” to secure social security for gig workers from the value of their transactions, rather than relying on charity from aggregators or government allocations.
• By setting a precedent for fair treatment, this bill can inspire other states and the country to prioritise worker welfare and create an inclusive gig economy.

Gig Economy

• A gig economy is a labour market characterised by short-term contracts or freelance work as opposed to permanent jobs.

• • The Government Think Tank- Niti Aayog released a report titled ‘India’s Booming Gig and Platform Economy’ in 2022. 

• In its report, NITI Aayog defines ‘gig workers’ as individuals engaged in income-earning activities outside of the traditional employer-employee relationship and also in the informal sector. 

• • Gig workers can be classified into two main categories: platform workers and non-platform workers. 

• Platform workers rely on online software apps or digital platforms for their work.

• Non-platform gig workers are typically casual wage workers, working either part-time or full-time.

Significance of the Gig Economy:

• • The gig economy revolves around temporary or freelance jobs facilitated through online platforms, offering adaptability to workers’ needs and the demand for flexible lifestyles.

• Time Flexibility: Gig workers have the freedom to choose their work hours according to their preferences.

• Income Flexibility: The gig economy provides an appealing market for individuals seeking extra income due to its high level of flexibility.

Observations of the Report:

• According to the report, 47% of gig work falls under medium-skilled jobs, 22% in high-skilled, and around 31% in low-skilled jobs.
• Drivers and salespersons constituted more than 52% of gig workers in the year 2019-2020.
• Regarding industries, approximately 26.6 lakh gig workers were involved in retail trade and sales, while around 13 lakh were in the transportation sector.
• Manufacturing and finance/insurance activities employed roughly 6.2 lakh and 6.3 lakh gig workers, respectively.

Niti Aayog’s Recommendations for the Gig Economy

Niti Aayog’s recommendations for the gig economy aim to create a more inclusive and secure environment for workers. 

• They include providing fiscal incentives to platforms with substantial representation of women workers and those accessible to Persons with Disabilities. The report suggests promoting gender-inclusive communication by having more women managers and supervisors.
• Firms are advised to offer retirement plans, insurance coverage, and social security benefits from a corpus fund to assist gig workers during contingencies. 
• The extension of social security benefits in partnership mode and offering paid sick leave are also recommended to ensure worker welfare and minimum earnings.

Sources: 

Drawn from gig workers’ struggles, hewn in Rajasthan – The Hindu
Infographics- World Economic Forum

plutus ias current affairs eng med 27th July 2023

Q1. With reference The Rajasthan Platform Based Gig Workers Bill, 2023, consider the following statements: 

1. The Bill aims to provide gig workers with access to various social security schemes and establish a Welfare Board comprising State officials and representatives from gig workers and aggregators.
2. The Platform Based Gig Workers Fund and Welfare Fee will be funded solely by a fee levied on aggregators.
3. The bill aims to discourage gig workers from engaging in contractual work and promote traditional full-time employment with steady pay and benefits.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 3 only 

(d) None 

Answer: (a) 

Q2. Consider the following statements:

1. The gig economy is characterized by permanent jobs and long-term contracts, providing stability to workers.
2. NITI Aayog defines gig workers as individuals engaged in income-earning activities outside of the traditional employer-employee relationship.
3. The gig economy offers time flexibility to workers, allowing them to choose their work hours as per their preferences. 
4. Non-platform gig workers typically work on short-term contracts and freelance assignments.

How many of the abovementioned statements are correct ?

(a) Only one 

(b) Only two 

(c) Only three 

(d) All Four 

Answer: (b)

Q3. Discuss the significance of the Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill in the context of the gig economy. How does it address the vulnerabilities of gig workers and enhance their welfare?

Gaurav N