Can Flexible Jobs Drive the Future of Work? Lessons from MENA
The evolving nature of work is prompting a global shift towards more adaptable and flexible employment practices.
However, NSEs face obstacles due to their unique nature of fluctuating income, instability, and administrative barriers that complicate their inclusion in labor and social protection systems. Let’s take a look at recent steps taken by countries in the Middle East and North Africa (MENA) region, showcasing a proactive response to these emerging needs and setting an example that may inspire similar actions elsewhere.
This year, Saudi Arabia and Jordan announced regulatory reforms, designed with support from the World Bank, that formalize flexible work arrangements while ensuring worker protection through social insurance coverage.
Digital platforms in the Italian domestic care sector: The emergence of an unprecedented corporate logic and its implications for workers' social protection - PAIS - 2024 - International Labour Review - Wiley Online Library
International Labour Review (Sept 2024) This article explores the heterogeneity of care platforms using the case studies of two platforms in the Italian domestic work sector: one that carries out matching between supply and demand (Helpling), reinforcing informality in the sector, and one that acts as an employer (Batmaid). The analysis shows that digital platforms can introduce a corporate logic into a sector where it was previously absent. This creates a potential for company-level bargaining for both platforms and related models – something that trade unions have, so far, not considered owing to a lack of recognition of the needs of platform domestic workers.
Publication: The Regulation of Platform-Based Work: Recent Regulatory Initiatives and Insights for Developing Countries
worldbank.org (04.11.2024) The rapid expansion of the digital economy has transformed the labor market, particularly through the rise of platform-based work. Despite the opportunities it brought into the lives of many workers, the digital economy has presented many challenges to the working conditions of platform workers. This policy brief examines regulatory approaches to protect platform workers across the world and synthesizes the approach to legislation and its scope in the key areas of labor regulations. It includes 23 regulatory reforms in 20 jurisdictions that took place from 2016 to 2024. Our analysis finds that governments take three approaches to regulating platform work: (a) amending the existing labor legislation to platform workers, (b) introducing stand-alone legislation specific to them, and (c) developing measures only to clarify their employment status and extend existing laws for platform workers. Among the countries examined, most of those that introduced regulatory initiatives are high-income countries. Geographically, they are mainly from Europe, North America, and Latin America. In addition, our review suggests that many of the reforms limit their focus to location-based platforms. When it comes to the scope of the legislation, provisions on data privacy, protection, and portability, freedom of association and collective bargaining, and protection against unfair dismissal are most frequently covered by special legislation for platform workers. Employment status determines if workers can access labor rights and social protection. Clarifying employment relationships is thus crucial to improving the working conditions of platform workers. Countries have chosen different approaches to clarify the employment status of these workers. These include (a) clarifying a list of criteria to define employment status, (b) creating a new third category of workers, (c) including the definition of platform workers in the existing category, and (d) introducing specific provisions for contracts. Given the complexity of determining employment relationship, courts still play a key role in determining the employment status in many countries. To improve pay for platform workers, enforcing the existing national minimum wage is the most common approach in setting wage regulations. Given the nature of platform-based work, some regulations include special provisions, such as rules on tips, payment processes, and compensation for work-related costs like equipment.
Mexico: Government begins work to promote initiative on app workers
AméricaEconomía (14.10.2024) The President of Mexico, Claudia Sheinbaum, established in her 59th commitment to promote a reform to the Federal Labor Law (LFT) to provide social security to workers through a digital platform, so the Ministry of Labor and Social Welfare (STPS) began meetings with workers in this sector in order to advance the content of the proposal.
The agency headed by Marath Bolaños called this week the groups of digital platform workers to a meeting to present the proposal, which should be ready this month.
“Commitments 59. This month we will submit the bill to guarantee the mandatory social security for workers who deliver telephone applications,” the president said on October 1.
Special Issue: Exploring unemployment insurance for the self-employed and platform workers - European Journal of Social Security
Special Issue: Exploring unemployment insurance for the self-employed and platform workers - European Journal of Social Security - Volume 26, Number 2, Jun 01, 2024
Platform workers: Council adopts new rules to improve their working conditions
consilium.europa.eu (14.10.2024) The Council has adopted new rules that aim to improve working conditions for the more than 28 million people working in digital labour platforms across the EU.
The platform work directive will make the use of algorithms in human resources management more transparent, ensuring that automated systems are monitored by qualified staff and that workers have the right to contest automated decisions.
It will also help correctly determine the employment status of persons working for platforms, enabling them to benefit from any labour rights they are entitled to. Member states will establish a legal presumption of employment in their legal systems that will be triggered when certain facts indicating control and direction are found.
Investigating social protection amongst platform workers in Germany: forced individualisation, hybrid income generation and undesired regulation
researchgate.net (September 2024) The social protection of platform workers is considered one of the most precarious features and political challenges of this new form of employment. Still, there have only been a few empirical investigations on this issue to date. This article presents an explorative empirical analysis of the social protection of platform workers in Germany - a conservative welfare regime with a strong link between standard employment and institutionalised social protection. On the basis of an online survey amongst 719 self-employed platform workers, we examine how different employment patterns correspond to institutionalised protection against sickness and old age. We empirically explore different protection types and analyse how they differ regarding working conditions in platform work and individual social policy preferences. Findings reveal that conditions of platform work and social protection as well as demands and regulatory preferences vary notably across different clusters of platform workers. Still, the vast majority votes against obligatory social insurances for platform workers and favours self-employment over dependent employment. Against this background, we discuss challenges for future attempts aiming at improving social protection for platform workers. This study adds to the literature by empirically exploring platform workers' social protection and social policy preferences, which have been overlooked to date.
India is formalising measures to protect the rights of gig and platform workers
ullekhnp.com (20.09.2024) The latest announcement from the Union labour ministry is that it has asked technology-based platforms and aggregators to get all gig workers engaged by them to register on the e-Shram portal, a centralised database of informal workers, where they can avail of health insurance and other facilities, including unemployment benefits, maternity benefits, and accident injury coverage through the Employees’ State Insurance Corporation (ESIC).
As of now, gig workers are eligible only for minimum social-security benefits. A July 2024 statement from the government stated that “for the first time, the definition of ‘gig workers’ and ‘platform workers’ has been provided in the Code on Social Security, 2020.” Code on Social Security is one of the four codes that the Union government has brought in with the aim of consolidating previous labour laws. These four deal with wages, social security, industrial relations, and occupational safety.
Singapore passes landmark Bill recognising ride-hail, delivery gig workers as distinct labour class
The Straits Times (11.09.2024) Cabbies, private-hire drivers and freelance delivery workers who rely on online matching platforms for income will get better labour protection from Jan 1, 2025, after Parliament passed a landmark Bill on Sept 10 designating them as a distinct legal category in between employees and the self-employed.
India: Government To Bring Gig Workers Under Social Security Net Via e-Shram Portal
swarajyamag.com (02.09.2024) The government will soon allow gig and platform workers to register on the e-Shram portal, ensuring they are covered under social security schemes, Union Labour & Employment Minister Mansukh Mandaviya announced on Sunday (1 September). Mandaviya highlighted that aggregators — companies that employ gig and platform workers — will be asked to take the lead in registering their workers on the portal.
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India: Govt mulls reworking migrant, gig worker definitions
hindustantimes.com (29.08.2024) The Union labour ministry is reviewing definitions of migrant and gig workers to enhance inclusivity and clarity, covering intra-state migrations and digital platforms.
Singapore: MOM announces implementation date for the Platform Workers CPF Transition Support
indiatimes.com (27.08.2024) The government will now offset 100% of the increase in CPF contributions for lower-income platform workers in 2025, up from the previously announced 75%. These initiatives mark a significant step towards improving the welfare and representation of platform workers in Singapore.
Philippines: From informal to formal: Angkas riders gain social security benefits
The Freeman (06.08.2024) Angkas, a prominent ride-hailing service in the Philippines, has taken a significant step towards enhancing the welfare of its riders by signing an agreement with the Social Security System (SSS) to provide social security coverage to around 50,000 riders. This initiative, championed by Angkas, marks a monumental shift in how gig economy workers are perceived and treated within the formal economic structure. We extend our heartfelt thanks to Rolando Macasaet, president and CEO of SSS, for his unwavering support and vision in making this partnership a reality.
Oman launches platform to empower gig economy
The HR Observer (24.01.2023) The Omani’s National Employment Programme launched a self-employment platform collaboration with AWJ Innovation and Occidental Oman to encourage the self employed individuals to connect with potential employers.
“Self employment is one of the initiatives launched by the National Employment programme in partnership with the concerned authorities with the aim of providing integrated and interrelated facilities for self employed individuals in the Sultante of Oman,” said Azhar al Kindi, Executive Director of the National Employment Programme.
Oman launches platform to empower gig economy - The HR Observer - HR insights from and for the Middle East
By the HR Observer Staff
The Omani’s National Employment Programme launched a self-employment platform collaboration with AWJ Innovation and Occidental Oman to encourage the self employed individuals to connect with potential employers.
The Republic of Korea: Extending social insurance to digital platform workers
(10.05.2024) Extending social insurance to platform workers in the Republic of Korea offers valuable lessons for other countries facing similar challenges. This brief outlines recent advancements in extending employment injury and employment insurance coverage to platform workers, emphasizing legal frameworks and operational processes leveraging digital technologies.
Light entrepreneurship on the upswing in Finland – improves employment but places many in a vulnerable labour market position
Finnish Centre for Pensions (08.05.2024) The number of light entrepreneurs has grown rapidly in recent years. At the same time, the profile of light entrepreneurs has changed: they are increasingly younger, of foreign origin and have only a basic education. The Finnish Centre for Pensions’ study examines, for the first time, the careers, income and pension accrual of light entrepreneurs in Finland over a period of several years.
India: Regulatory Framework and the Protection of Basic Rights of Gig Workers
barandbench.com (16.05.2024) The gig economy, a burgeoning sector, represents a paradigm shift in traditional employment models, offering flexibility and autonomy to workers across various industries. Despite its benefits, the sector's rapid growth, particularly in urban India, has highlighted significant regulatory gaps, especially concerning the protection of gig workers' basic rights. The informal nature of gig work, mediated through digital platforms, poses unique challenges in ensuring fair labour practices and safeguarding workers' rights. Thus, there is a rising concern for the gig workers’ right to basic amenities as they move from one job to another quickly and don't have any substantive legal protection, and several times it can be extremely tough for them.
Financing Social Protection - Lessons from Gig Workers in India
WIEGO (23.10.2023) The extension of social protection to all workers, including those in the informal economy, is crucial to creating better quality employment. For this to happen, it is essential that financing for social protection is increased. A new scheme for financing social protection for gig workers in Rajasthan, India, could provide lessons for other workers in informal employment. WIEGO spoke to social activist Nikhil Dey to learn more.