Food delivery and quick commerce companies Swiggy, Zepto and several other digital platforms have approached the Karnataka High Court challenging the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025. The companies argue that some provisions of the newly enacted law are unconstitutional and place an unfair financial and regulatory burden on platform businesses.
The petitions, filed through industry bodies and individual companies, question the validity of the welfare fee that platforms must contribute for every transaction. They also challenge provisions related to the registration of gig workers, dispute resolution mechanisms and the powers given to the state government under the Act. According to the petitioners, the law was passed without adequate consultation and could affect the ease of doing business in the state.
The Karnataka government introduced the legislation to provide social security benefits to lakhs of gig workers engaged by app-based platforms. The law seeks to create a welfare fund financed through contributions from aggregators, with benefits expected to include accident insurance, health coverage and other forms of financial support for delivery partners and platform workers.
The companies have argued that gig workers operate independently and are not traditional employees, making the welfare contribution model legally questionable. They have also expressed concerns that the additional costs may eventually affect consumers and reduce investment in the rapidly growing digital economy.
The High Court has agreed to hear the petitions, with the legal challenge expected to shape the future of gig economy regulation in Karnataka. The case is being closely watched by technology companies, labour organisations and policymakers across the country, as its outcome could influence similar welfare laws proposed by other states.
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