New Delhi, Industry body IAMAI has urged the Karanataka government to suspend the legislative process around its Platform Workers Bill to allow enough time for thorough consultations, as it flagged several "concerns" that could potentially "negatively impact ". "ease of doing business in the state.

Among the various weaknesses, IAMAI has highlighted the possibility of a dual tax on social security coming into play and lamented the lack of clarity on how the proposed social tariff contribution by aggregators will be used to support social security of employed workers.

Other concerns in the bill relate to "overly harsh" crime clauses, "unrealistic expectations and obligations of aggregators" and "significant legal complexities" due to the planned inclusion of contract worker dispute redressal in the bill. Industrial Disputes Law.

IAMAI also expressed concern over what it claimed is "ambiguity in the calculation of social assistance contribution" and lamented that onerous data sharing requirements would pose significant challenges to aggregators' business operations.

IAMAI argued that the sharing economy is an evolving sector and that any new regulations will have far-reaching ramifications for workers, platforms and the broader ecosystem.

The industry body stressed that it is "imperative" that all stakeholders are given the opportunity to provide input and express their concerns before such a law is enacted.

IAMAI's submissions come in the backdrop of the Karnataka government's decision to bring into public domain a bill that seeks to regulate social security and welfare of platform workers. The bill proposes the creation of a board, a complaints cell and a social assistance fund, among other provisions.

"While we appreciate the government's efforts to provide social security and welfare measures for the self-employed, we believe that the bill, in its current form, raises several concerns and could hamper business operations and adversely affect the ease of doing business in the state," he said.

The Internet and Mobile Association of India (IAMAI) said it is pushing for a "more balanced and collaborative approach" that aligns with the central government's existing laws and involves all stakeholders in a transparent and equitable manner.

"We therefore urge the state government to suspend the legislative process and grant a sufficient consultation period of at least 30 to 60 days," he said.

In its submission, IAMAI has strongly urged the state government to reconsider the proposed regulation of contractual agreements, saying that any direct government intervention in such agreements is "unnecessary and potentially harmful".