Hyderabad: The Telangana Cabinet has approved the draft Telangana Platform-Based Gig Workers (Registration, Social Security and Welfare) Bill, 2025, during a meeting held on Monday, March 23.

According to a NITI Aayog report, Telangana has around 3 lakh gig and platform workers engaged in sectors such as transport, delivery, home services and logistics.

The key features of the Bill include providing legal recognition for gig workers by issuing them identity cards, which will make them eligible for state welfare schemes and protections.

The Bill intends to provide social security and welfare for the gig and platform workers by establishing a 20-member multi-stakeholder board chaired by Labour Minister G Vivek Venkatswamy. The members of the board will include representatives from the government, platform companies, workers, civil society and technical experts. They will remain in the position for a term of three years.

Right to registration, access to welfare schemes, right to safe working conditions and transparency in payments, deductions, ratings and algorithms are being extended to the gig and platform workers through the Bill.

Mandatory registration

There is a mandatory registration requirement for the workers, who can self-register. Platforms would have to share the worker data with the government within 60 days. Aggregators would have to register with the government within 45 days.

There will be a dedicated welfare fund and financing mechanism, which comprises a welfare fee on aggregator payments (as notified by the government), government grants, corporate social responsibility (CSR) contributions, donations and individual contributions enshrined in the legislation.

As per the Bill, the platforms must disclose how algorithms influence task allocation, incentives and ratings, along with any automated decision-making affecting the earnings. Mandatory communication should be made in a language understood by the worker.

Work security

Work security is a key component of the bill, which requires 14 days’ notice for contract changes and seven days’ notice before the termination (except in cases of misconduct).

Grievance redressal mechanism includes a government-appointed grievance redressal officer, internal grievance committees at platform level (for platforms with over 100 workers) and an appellate mechanism at the Deputy Commissioner level.

A Digital Welfare Fee Verification System (WFFVS) will be setup for technology-driven tracking of welfare fee contributions and their disclosure to public to ensure transparency.

There will be a penalty for the non-payment of welfare fee, which will be Rs 50,000 for first offence, Rs 1 lakh for the second offence, Rs 1.5 lakh for the third offence and five times of the due amount for subsequent offences.