Uber challenges Karnataka's gig worker law in High Court
Ride-hailing giant Uber has filed a petition in the Karnataka High Court challenging the state's gig worker law, citing conflict with central legislation and increased compliance burdens.
Uber has brought its challenge against the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, before the state's High Court. The company argues the law conflicts with federal legislation, specifically the Code on Social Security, 2020, creating overlapping obligations and increased costs for platforms.
Justice Suraj Govindaraj issued notices to the Union government, Karnataka government, and the Karnataka Platform-Based Gig Workers Welfare Board, seeking responses by August 24. The court also directed Uber's petition be tagged with existing pleas challenging the law.
In interim relief, the court extended to Uber the protection previously granted to other platforms like Swiggy and Zepto. Those companies had sought a stay on the law, but the court declined to halt it, instead restraining the state from taking coercive action against petitioners.
Uber contends that Karnataka's law establishes a separate social security regime for gig workers, duplicating the central framework. The company claims this state law imposes additional financial and compliance obligations, leading to uncertainty and potential conflicts.
The Karnataka law, notified in September 2025, created a welfare board and fund for gig workers, including a 1% per-transaction fee for platforms to fund benefits like insurance and medical aid. Companies express concern over the cumulative cost and potential regulatory fragmentation if other states enact similar legislation.