Telangana legislative assembly passed, Telangana Platform Based Gig Workers (Registration, Social Security and Welfare) Act, 2026, passed on March 29, 2026.

The Telangana Platform Based Gig Workers (Registration, Social Security and Welfare) Act, 2026, (“Act”) provides a comprehensive legal framework to regulate the digital gig economy and ensure the social protection across the state. The legislation mandates the registration of all aggregators and gig workers under a dedicated social security and welfare board, establishing a contributory welfare fund financed by a transaction-based fee on payouts. Beyond financial security, the Act enforces high standards of algorithmic transparency, fair contractual terms, and safe working conditions while providing robust grievance redressal mechanisms and tiered penalties for corporate non-compliance.

The Telangana Platform-Based Gig Workers Act establishes a comprehensive legal framework for the “gig economy,” defining aggregators, platforms, and gig workers to regulate work arrangements made outside traditional employer-employee relationships. Under Sections 10 and 11, all aggregators must register with the State’s Social Security and Welfare Board within 45 days of the Act’s commencement and share their worker databases for automatic registration. Ongoing compliance requires sharing data for new workers within 30 days and providing quarterly updates to the Board. To support these workers, the Act creates a Social Security and Welfare Fund financed through welfare fees, platform contributions, government grants, and CSR funds.

Regarding working conditions, Section 14 mandates that aggregators follow the principles of natural justice for terminations, requiring valid written reasons and a seven-day notice period, except in cases of immediate physical or mental threats to consumers. Aggregators must ensure transparency in payments by detailing the reasons for any deductions and strictly adhering to contract payout schedules. Furthermore, the Act prohibits deducting statutory welfare fees from existing worker pay and requires platforms to maintain a safe working environment and establish dedicated facilitation centers to address worker queries in multiple local languages.

The Act provides a multi-layered dispute resolution system to protect worker rights. Section 22 introduces a government-appointed Grievance Redressal Officer to handle applications regarding social security and benefits, requiring orders to be passed within 30 days. Decisions can be appealed within 90 (ninety) days to an Appellate Authority of Deputy Commissioner rank. Additionally, Section 24 mandates that large platforms with 100 or more workers must establish an Internal Dispute Resolution Committee to resolve complaints regarding algorithmic transparency, termination, or payment delays within 30 days.

To ensure strict compliance, Section 26 outlines a tiered penalty system for aggregators. Failure to pay required welfare fees results in escalating fines starting at INR 50,000 for the first contravention and reaching INR 1,50,000 by the third; subsequent violations incur fines equal to five times the due amount. Failure to submit required reports or statements also carries a fine of up to INR 50,000. Any unpaid fees or fines under the Act are recoverable according to the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023, emphasizing the legal accountability of digital intermediaries.