Karnataka High Court directs State government not to take coercive steps against aggregators under new gig workers welfare law
The Karnataka High Court has issued an interim order preventing the state government from taking coercive action against major gig economy aggregators regarding the new 2025 welfare law. The court has ordered the companies to deposit welfare fees while the legal challenge regarding the law's validity proceeds.
Why it matters
This case highlights the ongoing legal tension between state-level labor welfare mandates and federal labor codes in the gig economy.
In a relief to leading technology platform-based aggregators, the High Court of Karnataka on Friday directed the State government not to take any coercive steps against them for not implementing the provisions of the newly-enacted Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025.
The article presents arguments from both the aggregators and the state government fairly.
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