Uber, Eternal, and Porter have pulled out of the Karnataka Platform-Based Gig Workers Welfare Board, citing pending legal disputes over the state’s new gig workers welfare legislation. These companies are challenging the law’s validity in the Karnataka High Court while stepping back from the board set up under this statute.
- Uber, Eternal, and Porter quit Karnataka gig welfare board amid court challenges
- Law requires platforms to pay welfare fees funding social security benefits for gig workers
- State plans to fill vacancies with new platform members as enforcement intensifies
What happened
Uber, Eternal, and Porter have reportedly withdrawn from the Karnataka Platform-Based Gig Workers Welfare Board, a statutory body formed under the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025. These companies are currently contesting the constitutional validity of this state law in the Karnataka High Court, citing concerns about overlapping regulations and additional compliance burdens.
The Karnataka High Court upheld the law but granted interim protection from coercive action for companies challenging its provisions, including Uber and others. Meanwhile, Amazon India remains on the welfare board as it has not joined the litigation. The Karnataka government is now moving to fill the vacancies created by these exits, with companies like Delhivery, Namma Yatri, and Yulu agreeing to join the board.
Why it matters
This development highlights growing friction between platform companies and state-level regulations addressing gig workers' social security. Karnataka’s legislation mandates welfare contributions from platforms through a fee levied per transaction, designed to fund benefits such as insurance, medical assistance, maternity care, and pension for gig workers. However, platforms argue this duplicates the central government’s 2020 Code on Social Security and creates an onerous compliance burden.
The dispute underscores broader concerns about fragmented regulatory frameworks across India’s states, which can complicate compliance for firms operating nationally. With only 15 platform firms currently registered on the board covering about 700,000 gig workers, the exit of major players reveals significant resistance that could influence the law’s future enforcement and expansion.
What to watch next
The Karnataka government’s next moves to fill vacant board positions and continue enforcement efforts will be critical. Labour Minister Santosh Lad recently emphasized issuing notices to platforms that have not deposited the mandated welfare fees, signaling stricter implementation ahead. The state aims to balance expanding gig worker protections while managing platform resistance.
Meanwhile, ongoing court hearings on the law’s constitutional validity will shape its ultimate fate. Platform companies and advocacy groups nationwide are closely watching Karnataka’s case, as similar laws or amendments could be introduced in other states. The outcome may set precedent for India's evolving approach to gig economy regulation and workers’ welfare.