Every morning, Arif straps on his helmet, climbs onto his bike, and joins thousands of other gig workers, weaving through the crowded streets of Hyderabad. Whether he’s delivering a hot meal to someone’s home, rushing to get a package across town, or driving a passenger to their destination in a cab, he’s part of an invisible workforce that powers the modern digital economy. But behind every ride and every delivery, there’s a quiet uncertainty — what happens if he gets hurt, or the app deactivates his account without warning? With no employer, no contract, and no safety net, the risks are his alone.
That may soon change. In a groundbreaking move, the Telangana Congress government is preparing to introduce a comprehensive welfare law for gig and platform workers on May 1, aligning the announcement with May Day (also called International Workers’ Day).
Rooted in dignity: Protection for 4 lakh gig workers
The law is aimed at nearly four lakh gig workers like Arif — those who drive cabs, deliver food, sort parcels, or provide services via digital platforms. It promises to extend long-overdue protections: social security, insurance, defined rights, and proper mechanisms for grievance redressal.
Chief Minister A. Revanth Reddy, the architect behind the move, has made it clear that this legislation is more than a bureaucratic formality. He called for a law that becomes a national reference point, one that reflects Telangana’s progressive vision for governance.
In a series of meetings with officials, he insisted that the Bill be rooted in dignity and justice, and encouraged a cooperative model where platform companies and workers don’t just coexist but collaborate.
Ensuring job security
The Telangana Gig and Platform Workers Bill, drafted by the Labour Department, outlines a legal framework to ensure job security, welfare support, and safe working conditions for gig workers. Crucially, it has been opened up for public consultation, with the Chief Minister instructing officials to finalise the Bill only after thoroughly considering feedback from workers, companies, workers’ unions, and the general public.
The draft Bill is now available on the State’s Labour Department website, and stakeholders have until April 28 to send in their suggestions.
Among its most notable features –
- The Bill mandates that all gig workers be registered within 45 days of the law coming into effect.
- It proposes the creation of a welfare fund, contributed to by aggregator companies, and outlines strict penalties — up to one year in prison or fines of Rs. 2 lakh — for non-compliance.
- The draft also guarantees fair termination processes, requiring a valid reason and a seven-day notice period before any worker can be let go.
- Companies will be obligated to maintain safe work environments and set up internal enquiry committees for worker welfare.
- A State-level Gig Workers’ Welfare Board will be formed to oversee the rollout, including representation from government departments, labour unions, platform companies, and civil society, with seats reserved for women.
Health insurance scheme
This legislation builds on an earlier move by the Congress government, which, in December 2023, announced accidental insurance coverage of Rs. 5 lakh for families of gig workers who suffer fatal accidents on the job. It also aligns with national momentum — during the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced new benefits for gig workers, including identity cards, access to a national worker database, and inclusion under Ayushman Bharat, the government’s health insurance scheme offering Rs. 5 lakh in coverage for serious illnesses.
But while the national policy provides a broad framework, it is the State-level action that turns promises into practice. For gig workers, the absence of an employer-employee relationship has left them without the ability to bargain collectively or demand rights.
Bridging the gaps with concrete rules
Most work long hours for unpredictable wages, without paid leave, health insurance, or protection from arbitrary deactivation. Algorithms, often shrouded in secrecy, dictate how jobs are assigned and rated — disproportionately affecting women workers who may not be able to clock in as many hours or respond as quickly due to caregiving responsibilities.
The law in Telangana aims to address these gaps with concrete, enforceable rules. Labour rights activists and unions have welcomed the move, but they stress that legislation alone is not enough. Implementation and accountability will be key. Without legal mandates for platform companies to register workers and contribute to welfare funds, the risk is that even the most well-meaning schemes will remain only on paper.
Shaik Salauddin, founder of the Telangana Gig and Platform Workers Union, summed up the sentiment: “Gig workers’ struggle for the enforcement of a dedicated law and effective implementation of welfare schemes at the national level continues.” His words underscore a hard truth — laws are only as strong as the systems built to enforce them.
Operational issues, lack of guidance
Dinesh, a Hyderabad resident, took to X and said, “I delivered for @ZeptoNow yesterday in Hyderabad to know how it works and its crazy ops. Talked with riders, customers & store managers and there’s a lot to look back on. (sic)”
According to Dinesh, full-time delivery partners can earn up to Rs. 40,000 per month for nine hours of work per day, while part-time workers can make around Rs. 25,000 monthly for 4-5 hours of work. Even those working exclusively on Sundays for nine hours could earn up to Rs. 12,000. He also highlighted several operational issues, including flaws in the document verification process and a lack of guidance for new workers.
Highlighting financial struggles with ‘No AC’ protest
Recently, cab drivers in Hyderabad have initiated a ‘No AC’ protest, turning off air-conditioning in their vehicles to highlight financial struggles caused by low fares and rising operational costs. The protest, involving drivers affiliated with Ola, Uber, and Rapido, aims to draw attention to diminishing per-kilometre earnings. Drivers have placed placards inside their cabs explaining the campaign to passengers, stating that they cannot afford to run the air-conditioner due to unsustainable fare structures. They have also requested tips from passengers who wish to have the AC turned on. A widely shared image of one such placard has amplified the campaign online.
For Arif and countless others like him, this moment represents more than policy — it’s about recognition. It’s about being seen not as disposable resources in an app-based economy, but as workers with rights, dignity, and protections. If Telangana succeeds, it won’t just be rewriting laws — it will be rewriting the rules of fairness in the future of work.
Key Provisions in Gig Workers Draft Bill
- Mandatory registration of all gig and platform workers within 45 days of enactment.
- Creation of a welfare fund for gig workers; failure to contribute can lead to imprisonment up to one year, a fine of Rs. 2 lakh, or both.
- Offences will be triable by a court not below the rank of a Judicial Magistrate First Class.
- Aggregators must provide a safe working environment and set up an internal welfare enquiry committee.
- Workers can only be terminated after due enquiry and must be notified at least seven days in advance, with valid justification.
- The legislation aims to institutionalise accidental insurance, building on the existing scheme of ₹5 lakh coverage announced by the government in December 2023.
Officials were instructed to ensure the law becomes a national model for gig worker protection, reflecting Telangana’s progressive approach to labour rights in the platform economy.
Key Provisions in the Gig Workers Draft Bill
- Mandatory Registration
- All gig and platform workers must be registered within 45 days of the law’s enactment.
- Welfare Fund
- A dedicated Welfare Fund will be created for gig workers.
- Non-compliance with contribution mandates may attract:
- Imprisonment of up to 1 year
- A fine of Rs. 2 lakh
- Or both
- Judicial Oversight
- All offences under this law will be triable only by courts of the rank of Judicial Magistrate First Class or higher.
- Aggregator Responsibilities
- Aggregators must:
- Ensure a safe working environment.
- Establish an internal welfare enquiry committee for addressing grievances and ensuring accountability.
- Aggregators must:
- Fair Termination Protocol
- Workers can be terminated only after a due enquiry.
- They must receive a notice at least 7 days in advance with a valid reason.
- Insurance & Social Security
- The law aims to institutionalise accidental insurance, building on the government’s ₹5 lakh coverage scheme announced in December 2023.
- Policy Vision
- Authorities have been directed to ensure the legislation becomes a national model for gig worker protection.
The Bill reflects Telangana’s progressive stance on labour rights within the platform economy