Rapido Zomato and Urban Company challenge Karnataka social security levy
Business
Rapido, Zomato, and Urban Company are taking Karnataka to court over a new law that makes them pay 1% to 5% of every gig worker's earnings into social security schemes.
The companies say this move isn't fair: it violates their rights to do business freely and clashes with the Indian Constitution.
Companies cite code on social security
They argue that only the central government should handle gig worker welfare (as per the Code on Social Security, 2020), so Karnataka's law just repeats what already exists.
Plus, they point out there aren't any actual welfare schemes in place yet, so why collect fees?
The High Court hasn't set a hearing date for this case yet.