Leading platform aggregators, including Swiggy, Zepto, Eternal Ltd. (formerly Zomato), Urban Company, Valmo Transportation and the Internet and Mobile Association of India (IAMAI), have moved the Karnataka High Court challenging the constitutional validity of the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, along with the Rules framed under it and related government notifications. IAMAI represents members who fall within the definition of an "aggregator" under the Code on Social Security, 2020.
The writ petition was filed before the High Court on June 27 and is yet to be listed for hearing. The petition also seeks to quash a series of notices issued under the Act directing platform companies to comply with statutory obligations, including constituting Internal Dispute Resolution Committees (IDRCs), paying welfare fees and furnishing prescribed information.
The petitioners have also challenged the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Rules, 2025, the notification constituting the Karnataka Platform-Based Gig Workers Welfare Board, and the Government Order dated February 12, 2026.
The companies have argued that the State legislation is repugnant to the Code on Social Security (COSS), 2020, enacted by Parliament, which already provides a comprehensive national framework governing social security for gig and platform workers.
The petition states that Parliament enacted the Code on Social Security, 2020, "to consolidate labour welfare legislation and establish a uniform national framework governing social security for all categories of workers, including gig and platform workers."
The petitioners contend that the State Act imposes parallel obligations on aggregators, creating dual compliance burdens and additional financial liabilities that could potentially require companies to contribute twice towards gig worker welfare.
The petition further contends that the State enactment directly conflicts with the Central Code, and that as Parliament has occupied the legislative field relating to social security for gig workers, the State cannot establish an inconsistent parallel statutory regime.
The petition also challenges subsequent show-cause notices alleging non-cooperation in implementing the Act, including failure to constitute IDRCs, respond to communications regarding onboarding and software for payment of welfare fees, and furnish information sought by the authorities.
The petitioners have argued that the Act and the Rules are arbitrary, violate Article 14 of the Constitution and infringe other fundamental rights guaranteed under Part III of the Constitution.
The petition seeks a declaration that the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, the Rules framed under it, the notification constituting the Welfare Board and the Government Order dated February 12, 2026, are unconstitutional. It also seeks the quashing of all consequential notices issued under the statutory framework, including directions relating to constitution of IDRCs, show-cause notices and welfare fee demands.
