Uber has secured interim protection from the Karnataka High Court as it challenges the state’s 2025 law aimed at regulating gig worker welfare. The court’s decision allows the ride-hailing company to avoid immediate coercive action from state authorities, provided it complies with specific financial requirements. This development follows similar legal actions taken by other major platforms like Swiggy and Zomato, which have also sought to contest the legislation’s validity in court.
The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, was designed to provide social security and welfare benefits to workers in the digital economy. It mandates that platform aggregators contribute a portion of their earnings to a dedicated welfare fund. However, companies argue that the state-level law creates a parallel social security framework that conflicts with the Union government’s existing Code on Social Security, 2020, leading to potential regulatory overlap and increased financial burdens.
In the recent hearing, Justice Suraj Govindaraj directed the state and central governments to respond to Uber’s petition by late August. The court extended the same interim relief previously granted to other aggregators, which shields them from punitive measures as long as they deposit the required welfare contributions with the court registry. Uber has been granted a three-week window to complete these payments, ensuring it remains in compliance while the legal battle continues.
This ongoing litigation highlights the tension between state-led welfare initiatives and national labor frameworks. As the court prepares to hear the consolidated petitions, the outcome will likely set a significant precedent for how gig workers are protected and how digital platforms are regulated across India. For now, the status quo remains, with both the government and the platforms awaiting further judicial guidance on the constitutionality of the state’s mandate.