Telangana cabinet approves gig workers bill ensuring welfare, job protection
Hyderabad: In a major step toward protecting the rights of gig and platform workers, the Telangana cabinet approved the Telangana Platform-Based Gig Workers (Welfare and Regulation) Bill, 2025. The law introduces legal recognition, social security, and structured grievance redressal for gig workers across the state.
Telangana to set up dedicated welfare board
The bill establishes a 20-member welfare board, headed by the labour minister. It will include representatives from government bodies, platform companies, worker unions, civil society, and technical experts. The board will operate from Hyderabad and oversee registration, assign unique IDs, and implement welfare schemes.
Every gig worker must register either independently or through platforms, which must share worker data within 60 days. Aggregators are required to complete their registration within 45 days.
Clear safeguards for pay, job security, and complaints
The government will create a welfare fund supported by aggregator levies, state grants, and CSR donations. This fund will cover insurance, safety measures, and dispute resolution mechanisms. In addition, platforms must disclose algorithm-based decisions that influence earnings, work allotment, or ratings.
Workers must receive all communication in their preferred language. If terminated, they must get a 14-day notice, or 7 days in misconduct cases. The bill introduces a three-tier grievance system platform-level resolution committees, a government-appointed grievance officer, and a deputy commissioner-level appeals authority.
Strict penalties and digital monitoring framework
To ensure compliance, the bill imposes fines on violators: ₹50,000 for the first offence, ₹1 lakh for the second, and ₹1.5 lakh for repeated breaches. Authorities will also recover unpaid dues. A digital verification system will track welfare contributions and ensure fund transparency.
Telangana sets national benchmark in gig economy governance
Unlike Rajasthan, where implementation stalled after legislation in 2023, or Karnataka, which awaits legislative action on its ordinance, Telangana’s law includes detailed provisions and immediate enforcement plans. Tamil Nadu does not have a dedicated gig law, and Jharkhand has yet to place its bill before the assembly.
Labour policy gains strategic edge under Telangana model
This legislation gives Telangana a leadership position in platform labour governance. It enhances social security, formalises gig work, and reduces worker-platform disputes through accountability and transparency. CM Revanth Reddy had pledged such a board during his December 2024 meeting with gig workers, and the cabinet has now acted on that promise.