Hyderabad: The Telangana Cabinet cleared the Telangana gig workers bill, paving the way for legal recognition and structured welfare measures for lakhs of platform-based workers.
The draft law, formally titled the Telangana Platform-Based Gig Workers (Registration, Social Security and Welfare) Bill, 2025, was prepared by the Labour, Employment Training & Factories Department. The proposal followed the Chief Minister’s earlier commitment made during a meeting with gig workers on 23-12-2024.
Telangana is home to nearly 3 lakh gig workers, as per NITI Aayog estimates. These workers are active in transport, delivery, logistics, and home services. However, most of them work long hours without social security, insurance cover, or stable earnings. In addition, platform-driven commissions and opaque rating systems often impact their income.
At present, no dedicated legal framework ensures registration, welfare access, or grievance redressal for this workforce. Although the Code on Social Security, 2020 allows state-level schemes, its implementation remains incomplete.
The Telangana gig workers bill aims to address these gaps through mandatory registration and regulatory oversight. Workers will be allowed to self-register, while aggregators must submit worker data within 60 days and complete registration within 45 days.
Telangana gig workers bill strengthens worker protections
A key feature of the Telangana gig workers bill is the creation of a Social Security and Welfare Board. The 20-member body, chaired by the Labour Minister, will include stakeholders from government, companies, and worker groups. It will function from Hyderabad with a three-year tenure.
The bill also introduces a welfare fund financed through aggregator fees, government support, CSR contributions, and donations. These funds will be used for benefits such as health support, accidental relief, and financial assistance.
Further, the legislation mandates algorithmic transparency. Platforms must clearly explain how tasks, incentives, and ratings are determined. They must also communicate all decisions in a language that workers understand.
Workplace safeguards have been included as well. Platforms must give 14 days’ notice before altering contracts and seven days’ notice before termination, except in cases of misconduct.
For grievance handling, the bill provides a multi-layered system. A government-appointed officer will oversee complaints, while platforms with over 100 workers must form internal committees. Appeals can be filed with the Deputy Commissioner.
A digital Welfare Fee Fund Verification System will track contributions and enable public disclosure. Meanwhile, penalties for non-compliance begin at ₹50,000 and rise with repeated violations.
Compared to other states, Telangana’s framework is broader in scope. While some states have passed laws, many are yet to frame rules or ensure implementation. Telangana’s inclusion of CSR funding also sets it apart.
With this move, the Telangana gig workers bill is expected to improve labour protections, reduce disputes, and bring greater accountability to platform-based employment.
