Cabinet Clears Landmark Telangana Gig Workers Bill; Social Security, Transparency in Focus
Hyderabad – In a major step towards protecting gig economy workers, the State Cabinet has approved the draft “Telangana Platform-Based Gig Workers (Registration, Social Security and Welfare) Bill, 2025.”
According to a NITI Aayog report, Telangana is home to nearly 3 lakh gig and platform workers engaged in transport, delivery, home services, and logistics. Despite working 10–12 hours daily, often throughout the week, these workers lack job security, insurance, and bargaining power. Their earnings are frequently impacted by fluctuating platform commissions and opaque app-based algorithms.
At present, there is no statutory mechanism to ensure social security, grievance redressal, transparency in earnings, or proper registration of workers and platforms. While the Code on Social Security, 2020 enables states to frame schemes, its implementation remains incomplete across the country.
To address these gaps, the state government has brought forward this comprehensive legislation following consultations with stakeholders and the Law Department, in line with the Chief Minister’s earlier announcement in December 2024.
🔹 Key Features of the Bill
Legal Recognition
- First-ever statutory recognition for gig workers
- Unique ID cards
- Eligibility for state welfare schemes
Welfare Board
- 20-member multi-stakeholder board
- Chaired by Labour Minister
- Includes government, platforms, workers, civil society, experts
- Headquarters in Hyderabad; tenure of 3 years
Worker Rights
- Right to registration
- Access to welfare schemes
- Safe working conditions
- Transparency in payments, deductions, ratings, and algorithms
Mandatory Registration
- Workers can self-register
- Platforms must share worker data within 60 days
- Aggregators must register within 45 days
Welfare Fund
- Welfare fee on aggregator payments
- Government grants
- CSR contributions (a key Telangana-specific feature)
- Donations and individual contributions
➡️ Benefits include accidental death relief, health coverage, and marriage assistance
Algorithmic Transparency
- Disclosure of how algorithms affect work allocation, incentives, and ratings
- Explanation of automated decisions impacting earnings
- Communication in worker’s preferred language
Work Security
- 14 days’ notice for contract changes
- 7 days’ notice before termination (except misconduct)
Grievance Redressal
- Government-appointed officer
- Internal committees for platforms with 100+ workers
- Appellate authority at Deputy Commissioner level
Digital Tracking (WFFVS)
- Technology-based system to track welfare contributions
- Public disclosure for transparency
Penalties
- ₹50,000 (first offence)
- ₹1,00,000 (second offence)
- ₹1,50,000 (third offence)
- Subsequent offences: 5× of due amount
🔹 How Telangana Stands Out
- Rajasthan: Law passed but not implemented
- Karnataka: Law in force, but no CSR funding provision
- Tamil Nadu: No dedicated gig worker law
- Jharkhand: Law passed; rules pending
🔹 Conclusion
The Telangana Gig Workers Bill is emerging as one of the most progressive laws in India, combining legal recognition, welfare benefits, and algorithmic accountability.
It not only strengthens protections for gig workers but also positions Telangana as a national leader in regulating the fast-growing gig economy while promoting fairness, transparency, and social security.
