The Telangana Assembly has successfully passed the Telangana Platform-Based Gig Workers Registration, Social Security and Welfare Bill 2026, marking a significant advancement for the rights and security of gig workers in the state. This legislative move was facilitated during a recent assembly session on March 30.

Minister Proposes Framework for Recognition and Protection

Labour, Employment, and Mines Minister G Vivek Venkataswamy introduced the bill, emphasizing the government’s commitment to legally recognize gig workers within the rapidly evolving digital economy. The primary goal of this legislation is to safeguard the rights, dignity, and livelihoods of individuals engaged in gig work.

Compliance and Penalties Established for Platform Companies

As per the provisions of the bill, platform companies will be mandated to submit detailed reports regularly and file electronic returns on a quarterly basis. To enforce compliance, the legislation stipulates strict penalties: a fine of Rs 50,000 for the first violation, escalating to Rs 1 lakh for the second infraction, Rs 1.5 lakh for the third, and up to five times the arrears for subsequent breaches.

Creation of a Dedicated Welfare Board for Gig Workers

The establishment of a specialized Welfare Board is a key element of this legislation. Every registered gig worker will receive a unique identification number. A welfare fund, generated through a 1-2% levy on transactions conducted through the platforms, will be utilized to provide benefits such as insurance, pensions, and maternity support. Up to 5% of this fund may be allocated for the board’s administrative costs.

Transparency Mandated in Employment Terms

In an effort to enhance transparency, the bill mandates that platform companies disclose complete details regarding salaries and deductions. It also prohibits the arbitrary use of algorithms that could adversely impact workers, thereby establishing clearer operational standards for digital platforms.

Consultative Process Prior to Bill Introduction

Minister Venkataswamy shared with the Assembly that the formulation of this bill followed extensive discussions with union representatives regarding the challenges faced by gig workers. A draft of the bill was made available for public commentary for 30 days, receiving 65 suggestions, many of which were integrated into the final version. Since assuming his role, the Minister has convened five meetings aimed at addressing the concerns of labor unions.

Membership and Responsibilities of the Welfare Board

The newly constituted Welfare Board will consist of 20 members, inclusive of representatives from gig worker aggregators, and will convene annually to discuss issues affecting workers. Additionally, platform-level committees with designated officers will be established to expedite the resolution of complaints made by workers.

Bill Anticipated to Benefit Numerous Workers in the State

This legislative measure is expected to provide significant benefits to the vast number of delivery riders, cab drivers, and other platform workers throughout Telangana, reinforcing their role as integral contributors to the state’s economy.

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