In a dynamic turn of events within Karnataka’s legislative corridors, the Internet and Mobile Association of India (IAMAI) has raised substantial concerns regarding the state’s proposed bill aimed at regulating platform-based gig workers. The bill, currently in draft form, has sparked a wave of apprehension within the industry, primarily over issues surrounding dual social security levies, ambiguous welfare fee utilization, and stringent regulatory clauses.
IAMAI, representing a broad spectrum of digital platforms, has strongly advocated for the temporary suspension of the bill's legislative progress. The association underscores the necessity for comprehensive consultations among stakeholders, emphasizing that the current draft could severely impede business operations and undermine the state’s ease of doing business initiatives.
Central to IAMAI’s reservations is the potential imposition of dual social security contributions, a measure that could inflate operational costs for digital platforms. The lack of clarity on how aggregators will allocate welfare fees intended for gig worker social security further complicates matters, raising concerns about bureaucratic inefficiencies and financial burdens on stakeholders.
Moreover, IAMAI has critiqued the bill for its perceived severity in penalizing non-compliance, arguing that overly harsh penalties and complex legal frameworks could deter investment and innovation in Karnataka’s burgeoning gig economy. The inclusion of gig worker disputes under the Industrial Disputes Act has been singled out as particularly problematic, adding legal complexities that may stifle industry growth and disrupt operational fluidity.
IAMAI has articulated the evolving nature of the gig economy, stressing that any regulatory framework must be adaptive and conducive to innovation. The association advocates for a collaborative approach that aligns with existing federal laws, ensuring equitable representation and safeguarding the interests of all stakeholders involved.
The Karnataka government’s initiative, aimed at establishing a dedicated board, grievance cell, and welfare fund, reflects a proactive stance towards addressing gig worker welfare. However, IAMAI contends that the current draft’s ambiguities in fee calculations and stringent data sharing requirements could inadvertently hamper rather than enhance operational efficiencies.
As the legislative debate unfolds, IAMAI’s call for a moratorium on the bill’s advancement echoes industry-wide concerns about regulatory overreach and its potential adverse impact on Karnataka’s business climate. The association urges policymakers to extend the consultation period by 30 to 60 days, allowing for thorough deliberation and the incorporation of diverse perspectives from affected parties.
