Jharkhand Clears Landmark Law for Gig Workers Welfare

Jharkhand has taken a pioneering step in labour reforms with the approval of the Jharkhand Platform Based Gig Workers (Registration and Welfare) Act, 2025. With Governor Santosh Gangwar giving assent to the Bill the state has laid the foundation for a formal welfare and social security framework for gig and platform-based workers. Once notified in the official gazette, the legislation will become an Act, making Jharkhand one of the early movers in regulating the rapidly expanding gig economy.

Objective of the Law

• The primary objective of the Act is to ensure social security, welfare, and economic protection for gig and platform-based workers.
• The government aims to bring all such workers onto a common institutional framework, allowing better monitoring of working conditions and ensuring access to benefits.
• The law applies to workers engaged through digital platforms and aggregators across sectors such as transport, delivery, logistics, and other on-demand services operating within the state.

Gig Workers’ Welfare Board

• A central feature of the legislation is the establishment of a Gig Workers Welfare Board.
• The Labour Department Minister will act as the ex-officio chairperson, while the departmental secretary and other nominated members will serve on the board for a three-year term.
• The board will be responsible for registering gig workers and aggregators, issuing identity cards, and implementing welfare schemes.
• All aggregators operating in Jharkhand will be mandatorily required to register with the board, ensuring regulatory oversight.

Wages and Social Security Provisions

• The Act mandates the payment of minimum wages to gig workers, linked to the nature and duration of work.
• This provision addresses income uncertainty a key concern in platform-based employment.
• The law also provides for social security measures, including medical insurance and other welfare benefits.
• These provisions aim to reduce vulnerability and provide basic protection against health and livelihood risks.

Penalties and Accountability

• To ensure compliance, the Act introduces strict penalties for violations.
• Aggregators found breaching provisions of the law may face fines of up to INR 10 lakh.
• This provision seeks to promote accountability among service providers and prevent exploitative practices.

Key Takeaways

• Jharkhand approved the Platform Based Gig Workers (Registration and Welfare) Act, 2025.
• The Bill has received assent from Governor Santosh Gangwar.
• It applies to platform-based gig workers across delivery, transport, and on-demand services.
• A Gig Workers’ Welfare Board will oversee registration and welfare schemes.
• The Act mandates minimum wages and social security benefits.
• Violating aggregators can be fined up to ₹10 lakh.

Question

Q. Which state approved the Platform Based Gig Workers (Registration and Welfare) Act, 2025?

(A) Rajasthan
(B) Jharkhand
(C) Karnataka
(D) Maharashtra