Karnataka HC orders Ola to pay Rs 5 lakhs to woman harassed by driver; Unions hope order will set precedent
The court ruled that the driver involved was considered an employee of the company, and hence, the aggregator was responsible for the driver’s actions
By Newsmeter Network Published on 5 Oct 2024 4:08 PM IST
High Court of Karnataka (file photo)
Bengaluru: The Karnataka High Court ruled that Ola Cabs is accountable for the actions of its drivers, marking a significant step in recognising platform workers’ rights.
The court’s decision came in the case of Ms X vs ICC, ANI Technologies Pvt Ltd, where a fine of Rs 5.5 lakhs was imposed on Ola after a driver misbehaved with a female passenger during a trip in 2019.
Judgment impact on aggregators
The court ruled that the driver involved was considered an employee of the company, and hence, the aggregator was responsible for the driver’s actions. This ruling challenged the existing notion of cab aggregators being mere intermediaries between drivers and passengers, holding them to a higher standard of accountability.
IFAT welcomes the judgment
The Indian Federation of App-based Transport Workers (IFAT) welcomed the judgment.
Shaik Salauddin, general secretary of IFAT, stated, “We believe there should be zero tolerance for sexual harassment and provisions of the PoSH Act should be seriously enforced whether it is a case of passenger harassment or driver harassment.”
He further added, “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 HC’s finding that the aggregators are not just ‘intermediaries,’ and actually employers of app-based cab drivers. Therefore, they certainly have an employer’s responsibilities towards their drivers and riders.”
Setting precedents for platform responsibility
This ruling sets a new precedent for the treatment of drivers working under app-based aggregators, affirming that platforms must ensure the safety of both passengers and workers. IFAT emphasised that this judgment could pave the way for further reforms in the gig economy.
The decision comes amid increasing calls for regulating the growing gig and platform economy, ensuring better protections for workers and safer services for passengers.
