29 - 06 - 2026

Gig economy giants challenge Karnataka’s gig workers law in court

India’s biggest gig economy platforms, including Swiggy, Zepto and Urban Company, have mounted a legal challenge to Karnataka’s landmark law aimed at providing social security benefits to gig workers, arguing that it conflicts with an existing national framework and imposes an unnecessary regulatory burden on businesses.

The petition, filed before the Karnataka High Court by the Internet and Mobile Association of India (IAMAI) along with Eternal Ltd, Swiggy, Zepto, Urban Company and Valmo Transportation, questions the constitutional validity of the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025. The matter is yet to be listed for hearing.

The companies argue that the Centre’s Code on Social Security, 2020 already provides a comprehensive framework for the welfare of gig and platform workers across India. They contend that Karnataka’s legislation creates a parallel system, requiring companies to comply with an additional set of rules, pay welfare contributions and establish new grievance mechanisms.

The challenge also covers the rules framed under the Act, the constitution of the Karnataka Gig Workers Welfare Board and a government order issued earlier this year to implement the legislation. At the centre of the dispute are government notices directing platform companies to constitute Internal Dispute Resolution Committees, furnish operational information and begin paying welfare fees under the new law.

The petition also challenges notices requiring welfare fee payments and related compliance by July 5. The companies argue that forcing businesses to comply with both the Central and State frameworks would lead to duplication, increased costs and regulatory uncertainty.

They maintain that labour welfare for gig workers has already been addressed through national legislation and that States cannot create overlapping obligations that are inconsistent with the Central law.

The petition further contends that several provisions of the Karnataka law are arbitrary and infringe constitutional guarantees, including the right to equality.

The legal challenge marks the first major industry pushback against Karnataka’s pioneering gig worker welfare legislation, which was introduced to extend social security protections to the rapidly growing workforce employed by app-based platforms. The outcome of the case is likely to be closely watched by both industry and policymakers, as several other States are considering similar measures to regulate the gig economy.