Swiggy, Zepto Move Karnataka HC Against Gig Workers Welfare Law
Food delivery and quick commerce platforms like Swiggy, Zepto, and Urban Company, along with the Internet and Mobile Association of India (IAMAI), have filed a challenge in the Karnataka High Court against the state’s Platform-Based Gig Workers (Social Security and Welfare) Act, 2025.
Multiple platform aggregators and the Internet and Mobile Association of India (IAMAI) have filed a petition with the Karnataka High Court contesting the constitutional legitimacy of the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025, along with its associated regulations.
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The writ petition submitted by IAMAI together with Eternal Ltd, Zepto, Swiggy, Urban Company, and Valmo Transportation also requests the annulment of several notices issued by the Chief Executive Officer under the Act instructing platform companies to fulfill numerous statutory obligations, such as establishing Internal Dispute Resolution Committees (IDRCs), paying welfare fees, and providing information.
The issue has not been scheduled before the High Court yet. As per the petitioners, the Indian Parliament implemented the Code on Social Security, 2020 (COSS) to unify labor welfare laws and create a standardized national system for social security encompassing all types of workers, including gig and platform workers.
The companies have particularly contested clauses that mandate aggregators to pay welfare fees, form Internal Dispute Resolution Committees (IDRCs), and adhere to multiple reporting and operational requirements. These responsibilities were recently emphasized through announcements made by the state government, which included requests for welfare fee payments and compliance submissions by July 2026.
The central issue of the challenge is the claim that the Karnataka law contradicts the Code on Social Security, 2020, established by Parliament to create a consistent national framework for the welfare of gig and platform workers.
The petitioners contend that the central legislation encompasses identification, welfare programs, and contributions for gig workers, rendering the state law unnecessary and incompatible.
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The submission argues that the state has established a duplicate regulatory framework, incorporating a distinct welfare board and extra compliance demands, which places additional financial burdens on businesses. The petition claims that this leads to operational inconsistencies and breaches the constitutional principle of “repugnancy” as stated in Article 254, which addresses conflicts between central and state laws.
The firms have also contested the Karnataka Platform-Based Gig Workers Welfare Board, the regulations issued under the Act, and a government directive dated February 12, 2026, claiming that these actions exceed the state's legislative power.
Furthermore, the petition challenges several notifications released by authorities, encompassing those concerning the establishment of IDRCs, claims of non-compliance, and instructions for implementing systems to oversee welfare contributions.
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The petitioners contend that the Act and its enforcement are capricious and infringe upon fundamental rights, particularly Article 14 of the Constitution, which ensures equality under the law. They have requested a declaration that nullifies the law and related regulations, as well as relief from all enforcement measures implemented under the framework.