Welfare fund default may cost gig platforms licence

Hyderabad: In a significant move, the state govt has initiated stakeholder consultations to frame rules under the Gig Workers Bill for its implementation.As per the first draft rules, accessed by TOI, aggregators that repeatedly fail to contribute to the gig workers' welfare fund may face deregistration. Sources said consultations with key stakeholders are already underway.The draft mandates aggregators to calculate and deposit a monthly welfare fee — up to 2% of payouts made to gig workers. This cost must be borne entirely by the platform and cannot be deducted from workers' earnings. Delays in payment will attract interest and penalties under a graded structure.A first violation may invite a fine of Rs 50,000, followed by Rs 1 lakh for a second offence and Rs 1.5 lakh for a third. For subsequent violations, penalties could rise to five times the unpaid fee, with such offences becoming non-compoundable.Another key compliance requirement is mandatory registration with the Telangana Platform-Based Gig Workers Welfare Board. Aggregators must register within 45 days of the Act coming into force, furnishing details such as PAN, GSTIN, service categories and estimated number of gig workers engaged.Failure to register could trigger notices, demands for worker records, recovery of unpaid welfare fees and recommendations for penalties.The draft rules also stress transparency and worker safety. Platforms will be required to provide emergency helplines, accident insurance, panic buttons and safety training.To ensure enforcement, the state govt may appoint officers with powers to inspect records and act against violators. The final rules are expected within a month after stakeholder feedback.