We missed this earlier: On April 14, 2025, the Telangana government released its draft Telangana Gig and Platform Workers (Registration, Social Security, and Welfare) Bill, 2025, for public consultation. Among its other provisions for the safety and health of gig workers, the legislation proposes the creation of a welfare fund and a board to oversee the compliance of different aggregators with the law.

Who does the gig worker welfare bill apply to?

The legislation applies to aggregators, platforms, or primary employers operating in Telangana, other states, and overseas (but rendering services in Telangana). These comprise services like ride-sharing, food & grocery delivery, logistics, e-marketplace (inventory and marketplace models), professional activity provider, healthcare, travel & hospitality, content & media, and other goods & service platform providers. It also extends to every worker registered with the Telangana Gig and Platform Workers Welfare Board.

How will the welfare board function?

Headquartered in Hyderabad, the Board will be constituted through a notification of the state government. The state minister for Labour would head the Board alongside members from Telangana’s Information Technology (IT), Finance, Commercial Taxes, and Transport departments. The government would also appoint four representatives each from gig worker bodies, nominated and aggregators/platforms, alongside two civil society experts from the field of gig and platform economy, for a period of three years. The bill also stipulates various conditions for the disqualification and removal of Board members, and the procedure for its meetings.

Concerning its duties, the Board would facilitate worker and employer registration following the bill’s provisions. Its other obligations include:

Setting up a monitoring mechanism to warrant proper collection of the welfare fund fee.
Ensure the implementation of general and specific social security schemes depending on the contributions.
Monitor social security schemes and provide recommendations to the state government for their administration. The Board should also develop a committee to formulate, review, and implement schemes.
Certify that workers can access the benefits of government schemes and provide them with proactive facilitation while engaging with their respective platforms/aggregators.
Develop social security schemes for specific groups of workers like women, persons with disabilities, etc, and furnish recommendations to the state.
Seek compiled data of gig and platform workers registered with respective platforms and aggregators.
Maintain a register of the aggregators/platforms operating in the state and publish the same on its web portal.
Maintain proper records of gig and platform workers’ accounts on platforms and prepare annual statements concerning the same.

What about the rights and registration of gig workers?

To begin, every worker will be registered with the State Government upon being onboarded on any platform, regardless of the duration of their work. Gig and platform workers would receive a Unique Identification Number (UID) valid across all platforms. They will gain access to general and specific social security schemes, subject to the contributions made and a minimum number of transactions completed.

What duties does an aggregator/platform have?

As mentioned above, all platforms must provide the Board with a database of all gig and platform workers registered with them within 60 days of the Act’s commencement. The platforms should electronically share the data of workers onboarded on platforms after the legislation’s enactment, within 30 days of their registration, and update any changes every quarter. Additionally, platforms must register themselves with the Welfare Board within 45 days of the Act’s commencement, alongside other responsibilities.

Automated monitoring systems:

The Bill describes these systems as those making decisions through automated means and lacking human intervention. It mandates that platforms inform workers, in “simple language” in Telugu, English, or any other language listed in the Eighth Schedule of the Constitution, regarding how to seek information about such systems. These comprise systems which impact the workers’ service conditions like fares, earnings, customer feedback, and allied information.

Additionally, the platform should institute measures to curb discrimination based on parameters like religion, caste, gender, place of birth, disability, etc, while using automated systems.

Conditions for termination:

The bill notes that platforms may terminate the work of a gig or platform worker only after providing valid reasons in writing and a prior notice of at least seven days. The platform should take such an action after observing the principles of natural justice and after due inquiry. However, this procedure doesn’t apply when the gig worker is seen to physically or mentally threaten the end consumer, in which case he/she can be terminated immediately.

Income security:

Platforms should inform gig and platform workers about the reasons for deductions from payments within the invoice for specific transactions, in case such a situation arises. Platforms should also mandatorily pay workers per the contract and without any delays in the disbursal of the payout.

Proper working conditions:

The aggregator/platform should maintain a safe working environment without any risks to the health of gig workers. In doing so, they must comply with applicable and sector-specific occupational safety and health standards.

Nominate a point of contact:

The Bill mandates that all companies should designate a Point of Contact within their platform to address queries and clarifications for their workers. The contact information for this employee should be posted on the platform workers’ accounts.

Annual returns and report:

Platforms should submit their annual returns to the Board electronically and a report of their activities during the year to the Telangana government. The government would later present the annual report before each house of the state legislature.

Creation of a social security fund

The bill also mandates the state government to set up the Telangana Gig and Platform Workers’ Social Security and Welfare Fund to be funded from:

Sums received from the welfare fund fee.
Contributions by individual workers towards any specific social security scheme.
Sums received as grant-in-aid from the state and central governments.
Funds from the Corporate Social Responsibility fund under the Companies Act, 2013.
All sums received via grants, gifts, donations, benefactions, or any other sources as may be prescribed.
The Welfare Board would also contribute a sum not exceeding 5% of the annual receipts toward this fund with its prior approval.

What is the welfare fund fee?

Platforms/aggregators shall pay a welfare fund fee of not less than 1% (but not more than 2%) of the payout to the gig worker in each transaction as notified by the Telangana government. Platforms must deposit this fee at the end of each quarter, wherein failure to do so shall result in the levying of simple interest on the fee. The bill also prescribes a punishment of either imprisonment of up to one year or a fine of up to Rs 2 lakh or both in case of non-payment of this fee.

Notably, the Telangana government would administer a Welfare Fund Fee Verification System (WFFVS), mapping all payments generated through transactions by the platform. This system would accumulate all the payments made to workers and the welfare fund fee deducted by platforms in a manner as may be prescribed. Further, this system should comply with the applicable central and state legislations on data protection in force at the time.

What does the worker grievance redressal mechanism look like?

According to the bill, the government would appoint a grievance redressal officer, before whom registered gig and platform workers can file applications. Workers can undertake this process either in person or via a web portal or any other mode prescribed by the Telangana government. The officer should conduct an inquiry and pass an order within 30 days of the date of receipt of the application.

dispute resolution

Moving forward, the platforms/aggregators with at least 100 gig and platform workers should establish an Internal Dispute Resolution Committee. This committee should complete all necessary proceedings within 30 days of the receipt of a written complaint by the aggrieved party and can mitigate the following disputes:

If the platform fails to communicate information requested by the gig worker concerning automated monitoring and decision-making systems.
If the platform terminates the work either without notice or on grounds not mentioned in the contract.
If the platform fails to provide reasons for deductions in pay.
If the platform fails to comply with sector-specific working conditions.

Finally, aggregators and platforms should ensure that information concerning the grievance redressal and internal dispute mechanisms is widely published and easily accessible on their platforms.

What offences and punishments do violations incite?

As per the bill, any failure to submit returns, reports, statements, or other required information can cause fines up to Rs 50,000. Further, the offences under the bill are cognisable, bailable, and compoundable and cannot be tried in any court inferior to that of a Judicial Magistrate of the First Class. The court can compound offences under the bill either before or after the institution of prosecution under the relevant section. However, if a competent court has already prosecuted the grievance redressal officer, he may apply for the withdrawal of the case before a competent court.

Why it matters:

The Telangana government’s introduction of this bill made it the third state to create legislation for the welfare of gig and platform workers. Currently, Rajasthan is the only state with an active law for gig workers, with Karnataka having passed a similar bill earlier this month. The bill comes after representations from the Telangana Gig and Platform Workers Union (TGPWU), who have previously rallied for the creation of a “robust legislation” for gig workers in the state.

In a press note shared with MediaNama, TGPWU Founder President Shaik Salauddin helmed the move as a milestone for over 4 lakh gig and platform workers in Telangana. Salauddin added that while the bill improved on similar legislation in other states, the TGPWU would suggest the addition of minimum income security to platform workers. He advocated for a minimum benchmark of earnings, like a minimum per-kilometre rate for cab drivers, a minimum per-delivery rate for food delivery riders, and a skill-based per-gig rate for home-based services like plumbers and electricians.

Further, the Union called for the inclusion of stronger mechanisms for wage/earnings protection, timely payment, and legal recourse for withheld payment. Echoing similar concerns, the TGPWU previously launched a campaign to boycott airport trips facilitated by ride-hailing companies Ola, Uber, and Rapido. During the campaign, they raised issues like the persistent imposition of low fares plaguing the livelihoods of workers.

What does the bill miss?

Apart from the concerns raised by the Gig Workers’ Union, it is unclear whether the bill addresses other concerns like:

Algorithmic Transparency

Besides the lack of income benchmarks, experts have also raised concerns about the absence of real-time pay transparency, gig workers’ discrimination at customer locations, and even algorithmic accountability. Notably, the bill does seek to address algorithmic transparency in automated monitoring and decision-making systems; however, as explained by public policy observer Nayini Anurag Reddy, it lacks external review mechanisms of algorithms or independent AI-based audit panels. As MediaNama reported previously, algorithmic transparency is imperative for workers to shield themselves against arbitrary account suspensions and understand the predictability of their workday, among other safeguards.

Clubbing Different Sectors Together

In a different vein, the bill also mirrors concerns with previous labour laws. Similar to Rajasthan’s law, Telangana’s bill clubs together different sectors like healthcare and travel with work like ride-hailing, while excluding work like annotation and labelling, alongside explicit mentions of home-based services. Additionally, experts have previously called out Rajasthan’s law for failing to create substantive rights for workers due to a lack of mentions of the specific kinds of welfare programmes to be constituted by the Board.

Gender-SaFETY & HarassMENT ISSUES

Moving forward, while the majority of the bill relies on the creation of a Welfare Board to implement schemes, such boards have not had much success in the past. As explained previously, the model lacks understanding of contemporary patterns in labour engagement and also raises many privacy and policy issues. Further, the bill also forgoes any explicit mention of gender safety and anti-harassment norms. Overall, while the legislation seems to be a step in the right direction, it remains to be seen whether it would improve working conditions for workers and find a mechanism to navigate persisting concerns.

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Telangana Gig Worker Welfare Bill: What It Means for Gig Workers and Platforms