The Karnataka High Court on Friday issued an interim order directing aggregator platforms to deposit welfare fees for gig workers. Justice M Nagaprasanna, presiding over the matter, instructed the state government not to take any coercive action against the petitioners until the next hearing.
Interim Relief for Aggregators
The order came in response to petitions filed by several aggregator companies challenging the state's demand for welfare contributions. The petitioners argued that the levy was arbitrary and violated existing labor laws. The court, however, maintained that the welfare of gig workers is a priority and directed the deposit of fees pending final adjudication.
According to court documents, the interim arrangement requires aggregators to deposit the fees into a separate account, which will be held until the final verdict. The state government assured the court that it would not initiate recovery proceedings or impose penalties during this period.
Background of the Dispute
The Karnataka government had earlier mandated that aggregator platforms contribute a percentage of their revenue to a welfare fund for gig workers. This move was part of a broader effort to provide social security benefits to the growing number of platform-based workers in the state.
Aggregators, including major ride-hailing and delivery platforms, challenged the notification, claiming it was unconstitutional and would increase operational costs. They also argued that gig workers are independent contractors and not employees, thus not entitled to such benefits under existing laws.
Impact on Gig Workers
Gig worker unions have welcomed the court's order, stating that it ensures some financial protection for workers who often lack job security and benefits. A representative from a leading union said, "This interim order is a step in the right direction. It acknowledges the need for welfare measures for gig workers."
However, some legal experts caution that the final outcome will depend on the court's interpretation of the gig worker-employer relationship. The case is expected to set a precedent for similar laws in other states.
Next Hearing
The court has scheduled the next hearing for July 18, 2026, where it will consider the merits of the petitions. Until then, the interim arrangement remains in effect.
