Background and Purpose
The Rajasthan Platform Based Gig Workers Act (Registration and Welfare) Act, 2023 was enacted to provide social security and welfare protection to workers earning through digital platforms.
Rajasthan became the first state in India to enact a dedicated law for platform-based gig workers.
The Act covers workers providing services through applications or online platforms, such as:
- food-delivery workers;
- app-based taxi and bike drivers;
- e-commerce delivery workers;
- home-service providers;
- other workers engaged through digital aggregators.
It recognises that such workers may not have traditional employer–employee relationships but still require social security and institutional protection.
Registration and Welfare Board
The Act provides for compulsory registration of platform-based gig workers and aggregators operating in Rajasthan.
Each registered worker is to receive a unique identification number. Aggregators must provide information about the workers registered or engaged through their platforms.
It establishes the Rajasthan Platform Based Gig Workers Welfare Board, consisting of representatives from:
- the state government;
- platform-based gig workers;
- aggregators;
- civil society;
- other nominated members.
The Board is responsible for registering workers and aggregators, recommending welfare schemes, monitoring social-security programmes and consulting workers’ organisations.
Welfare Fund and Fee
The Act creates the Rajasthan Platform Based Gig Workers Social Security and Welfare Fund.
The Fund may receive money from:
- a welfare fee imposed on platform-based transactions;
- grants from the state government;
- contributions from other permitted sources.
The welfare fee is to be charged as a prescribed percentage of the value of each transaction conducted through an aggregator.
Aggregators are required to deposit the fee and submit transaction-related information through the designated system. This creates a transaction-linked financing model rather than relying entirely on general government revenue.
The Fund may support schemes relating to accident insurance, health protection, income security and other welfare needs.
Rights and Grievance Redressal
Registered platform-based gig workers are entitled to:
- registration with the state;
- access to notified social-security schemes;
- information regarding their welfare contributions;
- participation through representatives on the Welfare Board;
- access to a grievance-redressal mechanism.
A worker may submit a grievance relating to payments, benefits or entitlements before a designated officer or through the online portal.
The Act also provides for an appeal against the grievance officer’s decision.
Aggregators that fail to register, provide required data or deposit the welfare fee may face monetary penalties.
Importance and Limitations
The Act is important because platform workers often face:
- irregular and uncertain earnings;
- absence of paid leave;
- lack of accident and health insurance;
- arbitrary account suspension;
- algorithm-based work allocation;
- limited bargaining power;
- uncertainty regarding their employment status.
The law creates a welfare-based framework without automatically classifying gig workers as conventional employees.
However, its effectiveness depends on:
- timely framing of detailed rules;
- accurate registration of workers;
- transparent calculation of platform transactions;
- efficient collection of the welfare fee;
- portability of benefits across platforms;
- representation of workers in decision-making;
- protection against arbitrary deactivation;
- coordination with central social-security laws.
The Act provides welfare protection but does not fully resolve questions relating to minimum wages, working hours, collective bargaining and employment classification.
Conclusion
The Rajasthan law is a pioneering attempt to extend social security to platform-based gig workers. Its long-term value will depend on effective implementation, transparent welfare financing and protection of workers against risks created by insecure and algorithmically managed employment.
