“This transforms the gig economy from an informal space into a structured one where every worker’s voice is institutionally heard.” — Santosh Lad, Karnataka Labour Minister
On 1 May 2026 — Labour Day — the Karnataka government activated India’s first dedicated digital grievance redressal mechanism for platform-based gig workers, integrating it with the state’s Integrated Public Grievance Redressal System (iPGRS). The move formalises dispute resolution for a rapidly expanding workforce that had historically operated without structured legal recourse.
The system draws its legal authority from the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025, notified on 12 September 2025 (effective from 30 May 2025). By channelling gig worker grievances through a government-administered portal, Karnataka positions itself as a pioneer in labour reforms tailored to the digital economy — covering ride-hailing, food delivery, urban domestic services, and other aggregator-driven platforms.
📜 The Karnataka Platform-Based Gig Workers Act, 2025
The digital grievance system is a direct operational extension of the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025. Its Rules were notified on 19 November 2025. The Act established the Karnataka Platform Based Gig Workers Welfare Board, which includes representation from aggregator platforms, gig workers, civil society, and a mandated quota for women.
The Board is empowered to register workers and aggregators, design and administer social security schemes, and adjudicate grievances escalated beyond the platform level. Aggregators must contribute a welfare fee of 1–2% of their annual turnover (capped at 5% of payments made to gig workers), financing the welfare fund. Platforms must display grievance redressal information on their interfaces in both Kannada and English, and provide a human point of contact with multilingual support.
Think of this like a consumer complaint forum — but for gig workers. Just as you can file a complaint against a company through a government portal, a Swiggy delivery partner or an Ola driver in Karnataka can now file a complaint against their platform through the state’s iPGRS system, with a legally mandated timeline for resolution.
⚙️ How the Grievance System Works
Gig workers registered under the Karnataka Act can file complaints through the iPGRS portal (ipgrs.karnataka.gov.in) or the Janaspandana mobile app. The system uses OTP-based login with a registered mobile number and enables workers to raise issues related to wages, payment deductions, working conditions, algorithmic penalties, and disputes with aggregators. A unique Grievance ID is auto-generated and an SMS confirmation is sent to the worker.
| Tier | Body | Composition | Deadline |
|---|---|---|---|
| Tier 1 | Internal Dispute Resolution Committee (IDRC) | Senior mgmt Chairperson + 2 mgmt reps + ≥3 senior gig workers; ≥2 women | 14 working days to respond; 45 days for final order |
| Tier 2 | Karnataka Platform Based Gig Workers Welfare Board | Government-constituted Board with multi-stakeholder representation | Escalation within 30 days if IDRC fails; Board decision is final |
The “14-30-45” Rule: IDRC must respond in 14 working days → escalation to Board within 30 days → final IDRC order within 45 days. This sequence is highly exam-testable.
📌 Key Provisions of the Underlying Act
Payment protections: Gig workers must be paid at least on a weekly basis, without delay. Any deductions must be itemised clearly on invoices or payment statements.
Fair contracts: Aggregators must provide transparent, comprehensive contracts. Any change to contract terms requires at least 14 days’ prior notice. Termination of a gig worker’s engagement also requires 14 days’ notice with written reasons.
Algorithmic transparency: Platforms are required to be transparent about how algorithms assign tasks, determine pay, and manage worker ratings — a first in Indian labour law.
Penalty provisions: Aggregators or platforms that violate the Act face a fine of up to ₹5,000 for a first offence, with escalating penalties for repeat violations.
Quarterly reporting: Aggregators must electronically submit quarterly returns to the Board within 30 working days from the end of each quarter, enabling regulatory oversight.
Don’t confuse Rajasthan and Karnataka: Rajasthan (24 July 2023) was the first state to legislate for gig workers. Karnataka’s 2025 Act is more comprehensive — it adds algorithmic transparency, a structured two-tier grievance system, and a digital filing mechanism. Karnataka is the first state to operationalise a digital grievance portal, not the first to legislate.
🌍 Why Gig Workers Needed This Protection
The policy intervention responds to systemic vulnerabilities. According to India’s Economic Survey 2025–26, approximately 40% of gig workers earn less than ₹15,000 per month before deducting fuel and maintenance costs. The Code on Social Security, 2020 (one of four national labour codes) recognises gig workers for the first time at the central level — but the remaining three codes covering wages, occupational safety, and industrial relations exclude them entirely.
As of mid-2025, India’s central worker registration system (the e-Shram portal) had enrolled fewer than 340,000 of the country’s estimated 12 million gig workers — highlighting the scale of the formalisation gap. The absence of formal grievance channels meant that disputes over arbitrary deactivations, payment discrepancies, or algorithm-driven penalties had no institutional resolution pathway. Karnataka’s new system directly addresses this.
India’s labour codes formally recognise gig workers only under one of four codes. Does partial legal recognition offer meaningful protection — or does it create a fragmented safety net that excludes workers from most protections they need? What would a truly comprehensive national gig worker policy look like?
⚖️ National and Global Comparisons
Within India: Four states — Rajasthan, Karnataka, Bihar, and Jharkhand — have enacted gig worker laws, but each operates an independent welfare board with no portability mechanism. Migrant gig workers who cross state lines risk losing accumulated entitlements. The VVGNLI (V.V. Giri National Labour Institute) has recommended a statutory national registry managed jointly by central and state governments.
Globally: The European Union’s Platform Work Directive (2024) requires all EU member states to implement it by 2 December 2026. It establishes a presumption of employment for platform workers, places the burden of proof on platforms, and mandates algorithmic transparency. This is a more expansive approach than India’s framework, which preserves the independent contractor classification. The UK, Canada, Spain, Netherlands, France, and Denmark have also enacted varying levels of protection.
| Jurisdiction | Key Feature | Year |
|---|---|---|
| Rajasthan (India) | First state law; welfare fund via 1–2% cess per transaction | 2023 |
| Karnataka (India) | Two-tier grievance system + algorithmic transparency + digital portal | 2025–26 |
| EU (27 member states) | Presumption of employment; burden of proof on platforms; to be implemented by Dec 2026 | 2024 |
| UK / Spain | Court rulings reclassifying gig workers as employees or workers | 2021+ |
✨ Expected Impact and Challenges
The system is expected to benefit lakhs of gig workers across Karnataka. Welfare schemes will be calibrated based on the nature, workload, and duration of gig engagement. Platforms such as Namma Yatri and Yulu have already integrated their IDRC contact details with the government portal, signalling early aggregator compliance.
However, challenges remain:
- Low awareness: The iPGRS app currently has fewer than 10,000 downloads on Google Play, suggesting awareness among the gig workforce is still low.
- Portability gap: Migrant gig workers may lose accumulated entitlements when crossing state lines, since no unified national system exists.
- Weak penalties: The ₹5,000 first-offence fine is widely regarded as insufficient to deter large aggregator platforms.
- Registration gap: Benefits requiring 90 days of continuous engagement with a single aggregator exclude workers who switch platforms frequently.
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The Karnataka digital grievance system was launched on 1 May 2026 — Labour Day — integrating with the iPGRS portal.
The IDRC must respond within 14 working days. Escalation to the Board must happen within 30 days, and the final order must be issued within 45 days.
Rajasthan enacted India’s first gig worker law on 24 July 2023. Karnataka followed with a more comprehensive Act in 2025.
Aggregators must contribute 1–2% of their annual turnover, capped at 5% of payments made to gig workers, to the welfare fund.
The EU Platform Work Directive (2024) must be implemented by all member states by 2 December 2026. It establishes a presumption of employment for platform workers.
