December 23, 2025 12:08 pm

Jharkhand Platform Law for Gig Workers

CURRENT AFFAIRS: Jharkhand Platform Based Gig Workers Act 2025, gig economy, minimum wages, social security, platform-based workers, aggregators, Gig Workers Welfare Board, labour reforms, digital platforms

Jharkhand Platform Law for Gig Workers

Background and significance

Jharkhand Platform Law for Gig Workers: Jharkhand has approved the Platform Based Gig Workers (Registration and Welfare) Act, 2025, marking a major shift in labour regulation. The legislation received assent from Governor Santosh Gangwar, formally clearing the way for structured welfare coverage. Once notified in the official gazette, it will acquire statutory force across the state.

The law responds to the rapid expansion of the gig economy, where employment is mediated through digital platforms. Workers in delivery, transport, logistics, and on-demand services often operate outside traditional labour protections. This Act seeks to bridge that regulatory gap through a dedicated legal framework.

Static GK fact: Labour is a subject in the Concurrent List of the Indian Constitution, allowing both Union and State governments to legislate on worker welfare.

Objectives of the legislation

The primary objective of the Act is to ensure social security, welfare, and economic protection for platform-based gig workers. It aims to integrate gig workers into a common institutional structure for monitoring and regulation. This is intended to address issues such as income instability, lack of insurance, and absence of formal recognition.

The law applies to workers engaged through digital platforms operating within Jharkhand. It covers sectors like transport services, food and goods delivery, logistics, and other on-demand digital services. By clearly defining coverage, the Act reduces ambiguity regarding employer responsibility.

Static GK Tip: Social security in India traditionally includes health insurance, old-age protection, disability benefits, and income support during contingencies.

Gig Workers Welfare Board

A key institutional mechanism under the Act is the Gig Workers Welfare Board. The Labour Department Minister will serve as the ex-officio chairperson. Other members include the departmental secretary and nominated representatives, with a tenure of three years.

The Board will be responsible for registering gig workers and aggregators. It will issue identity cards to registered workers, creating formal recognition. The Board will also design and implement welfare schemes tailored to gig workers’ needs.

All aggregators operating in Jharkhand are required to mandatorily register with the Board. This provision strengthens regulatory oversight and ensures accountability of digital platforms.

Wages and social security provisions

The Act mandates the payment of minimum wages to gig workers. Wages will be linked to the nature and duration of work, addressing the unpredictability of platform-based earnings. This is a significant departure from earlier arrangements where earnings were incentive-driven and variable.

The legislation also provides for social security measures, including medical insurance and other welfare benefits. These provisions aim to reduce workers’ vulnerability to health risks and income shocks. By institutionalising welfare, the law recognises gig work as a legitimate form of employment.

Static GK fact: Minimum wages in India are fixed under the Minimum Wages Act, 1948, based on skill, sector, and region.

Penalties and enforcement

To ensure compliance, the Act introduces strict penalties. Aggregators violating provisions related to registration, wages, or welfare obligations can face fines of up to ₹10 lakh. This deterrent mechanism is designed to prevent exploitative practices.

The inclusion of penalties signals a shift from voluntary compliance to enforceable regulation. It strengthens the bargaining position of gig workers within the platform economy.

Broader implications

Jharkhand’s move places it among early states attempting comprehensive regulation of platform-based employment. The Act reflects evolving labour reforms in response to digitalisation. It may serve as a reference point for other states considering similar frameworks.

Static GK Tip: India’s workforce has a high proportion of informal employment, making state-level welfare initiatives crucial for inclusive growth.

Static Usthadian Current Affairs Table

Jharkhand Platform Law for Gig Workers:

Topic Detail
Law Name Platform Based Gig Workers (Registration and Welfare) Act, 2025
State Jharkhand
Assenting Authority Governor Santosh Gangwar
Coverage Platform-based gig workers and aggregators
Key Institution Gig Workers Welfare Board
Wage Provision Mandatory minimum wages
Social Security Medical insurance and welfare benefits
Penalty Fine up to ₹10 lakh for violations

 

Jharkhand Platform Law for Gig Workers
  1. Jharkhand Platform Based Gig Workers (Registration and Welfare) Act, 2025 marks a major labour reform for the gig economy.
  2. The Act received assent from Governor Santosh Gangwar and will gain force after gazette notification.
  3. It addresses regulatory gaps in the rapidly expanding gig economy.
  4. The law covers workers engaged through digital platforms and aggregators.
  5. Sectors like transport, delivery, logistics, and on-demand services are included.
  6. Labour being in the Concurrent List allows states to legislate on worker welfare.
  7. The Act aims to ensure social security and economic protection for gig workers.
  8. It integrates gig workers into a formal institutional monitoring framework.
  9. A Gig Workers Welfare Board is created under the Act.
  10. The Labour Department Minister will act as ex-officio Chairperson of the Board.
  11. The Board will register workers and aggregators operating in Jharkhand.
  12. Identity cards will be issued to registered gig workers.
  13. Aggregators must mandatorily register with the Welfare Board.
  14. The Act mandates payment of minimum wages to gig workers.
  15. Wages are linked to the nature and duration of work.
  16. Medical insurance and welfare benefits are provided under social security measures.
  17. Minimum wages draw statutory backing from the Minimum Wages Act, 1948.
  18. Violations can attract penalties up to ₹10 lakh for aggregators.
  19. The law shifts gig work regulation from voluntary to enforceable compliance.
  20. Jharkhand’s move may serve as a model for other Indian states.

Q1. The Platform Based Gig Workers (Registration and Welfare) Act, 2025 was enacted by which State?


Q2. Who serves as the ex-officio Chairperson of the Gig Workers Welfare Board under the Act?


Q3. Which of the following sectors is covered under the Jharkhand Gig Workers Act?


Q4. What is the maximum penalty imposed on aggregators for violating provisions of the Act?


Q5. Labour being a subject in which Constitutional list enables Jharkhand to enact this law?


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