Drivers’ union lauds Karnataka High Court verdict upholding employer-employee relation of aggregators and drivers

The union says the judgement would go a long way to ensure platforms’ responsibilities to workers and passengers

The Indian Federation of App-Based Transport Workers (IFAT) lauded the recent Karnataka High Court verdict which imposed a fine of ₹5.5 lakhs on ANI Technologies Pvt. Ltd. (which operates taxi aggregator OLA) while ruling that the cab driver who misbehaved with the woman passenger was the company’s employee and hence, the company was accountable for the driver’s behaviour.

Shaik Salauddin, General Secretary, Indian Federation of App-based Transport Workers (IFAT) and Founder President of the Telangana Gig and Platform Workers Union (TGPWU), said, “This landmark judgment has recognised drivers as employees of OLA for the purposes of law — something that we have been saying for years. We welcome the High Court’s finding that the aggregators are not just ‘intermediaries’, but employers of app-based cab drivers. Therefore, they certainly have an employer’s responsibilities towards their drivers and riders,” he further added.

On October 1, Karnataka High Court ruled that ANI Technologies has to act under the law enacted to protect women from sexual harassment at workplaces when complaints of sexual harassment are received against its drivers. The court did so by pointing out that the company had an employer-employee relationship with its drivers and hence was bound to do so by law.

A release from IFAT lauded the judgment emphasising that it should go a long way to affirm the platform’s responsibility to ensure a safe and harassment-free workplace both for the passengers and drivers.

The complaint was lodged by the petitioner on 30.09.2018. However, the Internal Complaints Committee (ICC) of the company declined to act under the provisions of the Sexual Harassment of Woman at Workplace (Prevention, Prohibition and Redressal) Act, 2013, claiming that drivers are not “employees” of Ola.

But the Court, after analysing Ola’s subscription agreement with the drivers, ruled that the drivers come well within the purview of the definition of ‘employees-employer’ under the POSH Act. It directed the company to pay a compensation of ₹5 lakh to the petitioner along with ₹50,000 towards litigation costs.

Earlier this year, the Karnataka government had introduced a draft policy to ensure the welfare of gig workers who work with aggregator platforms and ensure more accountability from the platforms.

Published - October 02, 2024 10:46 pm IST