Telangana Cabinet Approves Welfare Law For Gig and Platform Workers

Hyderabad: The Cabinet on Monday approved a law to provide a structured social protection framework to gig and platform-based workers, providing them welfare and social security.

The Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Bill, 2025, will be introduced in the upcoming Winter Session of the Assembly. It will provide legal recognition, welfare support and algorithmic transparency to gig workers, while placing accountability on aggregators.

Though the Bill proposes penalties on aggregators for violations, it does not mandate imprisonment. Penalties for non-payment of welfare fees begin at ₹50,000 for the first offence, ₹1 lakh for the second, ₹1.5 lakh for the third, and five times the pending amount for subsequent violations.

Designed as one of India’s most comprehensive frameworks for the rapidly expanding gig economy, the legislation covers workers in transport, delivery, household services and logistics. A Niti Aayog report estimates that Telangana has nearly three lakh gig and platform workers, many of whom work 10–12 hours a day, seven days a week, without job security, insurance or bargaining power. The lack of regulatory oversight and opaque app-based algorithms determining payments and ratings have further deepened their vulnerabilities.

The legislation also mandates algorithmic transparency, requiring platforms to disclose how assignment systems, incentives and automated decisions affect worker income. All essential communication must be provided in languages easily understood by workers.

A grievance redressal mechanism has been established, featuring a government-appointed grievance officer, platform-level internal dispute resolution committees for companies employing more than 100 workers, and an appellate system headed by the deputy commissioner of labour.

Compared with similar initiatives across India, the Telangana Bill stands out for its depth and clarity. Rajasthan passed a similar law in 2023, but it remains unimplemented due to the absence of rules. Karnataka notified an ordinance in May 2025 and formed a working group but excluded CSR contributions from its welfare fund. Tamil Nadu covers gig workers under a general unorganised workers’ board with no exclusive legislation, while Jharkhand’s draft Bill is still awaiting introduction.

The state government noted that while the Social Security Code, 2020, allows states to design schemes for gig workers, implementation nationwide has been inconsistent. With no existing statutory mechanism to ensure social security, grievance redressal, earnings transparency and registration, Telangana decided to move ahead with a comprehensive law.

The Bill follows the Chief Minister’s assurance during an interaction with gig workers on December 23, 2024, where he promised a dedicated legal framework. After extensive consultations with stakeholders and the state law department, the labour, employment, training and factories department finalised the draft legislation.

The proposed Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Bill, contains several provisions for workers

14-day notice period for contractual change

Seven-day notice period for removal, except in cases involving misconduct.

Legal recognition to gig workers through unique ID, enabling access to state schemes and protections.

Government will constitute a 20-member social security and welfare board chaired by the labour minister

Board to include representatives from the government, platform companies, workers, civil society and technology experts.

Several rights to be guaranteed including mandatory registration, access to welfare schemes, safe working conditions.

Transparency in payments, deductions, ratings and algorithm-driven decisions.

Workers can register independently.

Platforms will be required to share worker data within 60 days.

Aggregators must complete their own registration within 45 days of the Act coming into effect.

A Gig Workers Welfare Fund to pay for health coverage, accidental death relief, marriage assistance and other welfare measures

Fund to be created with contributions from welfare fee on aggregators, government grants, CSR donations and individual contributions.

Digital welfare fee verification system to be set up.