Telangana To Mandate Transparency In Gig Work
The Bill proposes a grievance redressal mechanism for delayed payments, suspensions or fraudulent practices. Platforms with over 100 workers must form internal dispute committees.
Hyderabad: Telangana is set to become one of the first Indian states to legally mandate algorithmic transparency in gig and platform work. The State Cabinet, meeting on November 7, is expected to approve the draft Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Act, 2025, official sources said. The law aims to ensure welfare, job security, and social protection for nearly four lakh gig and platform workers in transport, delivery and logistics sectors. The Cabinet is likely to approve an ordinance to be replaced by the Act during the winter Assembly session.
Algorithmic transparency requires gig platforms to make the systems used for task allocation, pay calculation and account suspension open and explainable. These algorithms affect pay, hours, and performance ratings. Transparency will help workers understand how such decisions are made, detect bias and ensure fair treatment.
Under the new law, gig workers will be recognised as a separate labour category with state-backed protections for the first time. The government will set up a Welfare Board headquartered in Hyderabad to handle registration, fund management and welfare schemes.
Platforms such as Swiggy, Zomato, Zepto, Uber and Ola will contribute 1–2 per cent of their total payouts to a welfare fund, supplemented by government and CSR contributions. A Welfare Fund Fee Verification System (WFFVS) will track these payments in real time.
The Bill proposes a grievance redressal mechanism for delayed payments, suspensions or fraudulent practices. Platforms with over 100 workers must form internal dispute committees. Unresolved issues can be appealed before an independent Appellate Authority.
The law also bars arbitrary termination, requiring a seven-day notice before deactivation, except in safety-related cases. Sudden account removals had earlier left many gig workers in financial distress.
By mandating algorithmic disclosure in task allocation, bonuses and ratings, Telangana’s law is expected to become India’s most comprehensive gig worker protection framework—surpassing similar efforts in Karnataka, Jharkhand and Rajasthan. With gig work spreading into healthcare, education and creative sectors, the proposed legislation promises greater stability and dignity for lakhs of workers, officials said.
