In a relief to leading technology platform-based aggregators, the High Court of Karnataka on Friday directed the State government not to take any coercive steps against them for not implementing the provisions of the newly-enacted Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025.
Deposit money
However, the court directed the petitioner-aggregators, Swiggy, Zomato, Zepto, and Urban Company, to deposit the amount towards welfare fee demanded by the government in the court’s registry within three weeks.
Justice M. Nagaprasanna passed the interim order on the petitions filed by the aggregators led by the Internet and Mobile Association of India (IAMAI) while adjourning further hearing to August 14 and directing the government to file its statements within four weeks.
The petitioners had contended that the State’s 2025 law is repugnant to the Centre’s Code on Social Security (CoSS), 2020, which has already taken care of the welfare of the gig workers of the entire country.
Arguments
Senior advocates Dhyan Chinnappa and C.K. Nandakumar, appearing for the petitioners, contended that the State’s law encroaches the field already occupied by the Centre’s CoSS. They told the court that the petitioners are not against the welfare measures in favour as the aggregators cannot exist without the gig workers, but the State’s legislation duplicates compliances as these welfare measures, introduced through 2025 Act, already exists in the CoSS.
State Advocate-General K. Shahi Kiran Shetty contended that both the laws can co-exist as the State’s law is intended towards the gig workers working in Karnataka.
States like Rajasthan, Bihar, and Telangana too have enacted the legislation similar to the 2025 law of Karnataka, the A-G said, while contending the petitioner-aggregators, who had actively taken part in the pre-legislation and welfare fee determination deliberations, are now challenging the legislation.
‘Parallel legislation’
Meanwhile, Additional Solicitor-General of India Arvind Kamath supported claim of the aggregators that State law is a “parallel legislation” as the field of welfare of gig workers is already occupied by the CoSS and there is nothing extra in State’s 2025 law.
When informed that the welfare fee was intended for social security measures and not direct transfer to the gig workers, the court questioned what the State government planned to do after collection, drawing parallels with labour cess funds, which the court had found being misused.
To this, the A-G said said that welfare fee collected from the aggregators would not be utilised until the disposal of the petition. On the other hand, the petitioners proposed to deposit the prescribed welfare fee amount in a separate account to be maintained by themselves. Though the court initially agreed with petitioner’s proposal, it later said that the welfare fee amount be deposited with the court’s registry.
‘Meagre’ amount
Under the State law, aggregators were required to pay 50 paise per ride/delivery for two-wheelers, 75 paise for three-wheelers, and ₹1 for four-wheelers as welfare fees. The court noted that these were “very meagre” amounts, especially considering the charges levied by platforms.
