As the global gig economy thrives with increased access to smartphones and Internet connectivity, more people are now working as freelancers. Gig platforms, such as Uber, Lyft, Jumia and Glovo, have become household names worldwide, and millions of people now rely on these platforms to earn a livelihood.

Far from cab-hailing apps and e-commerce delivery services, many other gig platforms, such as Upwork, Freelancer.com and Fiverr, match workers and consumers in the digital marketplace. This trend has significantly influenced worker rights reforms worldwide to address concerns about gig worker protection and Labour Rights.

Unlike conventional employees who enjoy protection under labour laws, gig workers face numerous challenges, most stemming from their misclassification as independent contractors. This has triggered labour rights groups to mount pressure on lawmakers to enact laws or revise existing statutes to provide for gig worker protections. The resulting worker rights reforms have led to the emergence of new gig economy laws.

Global Gig Economy Labour Laws

For this analysis of global gig worker protections, we have relied on the 2024 Labour Rights Index, an international benchmark by the WageIndicator Foundation and Centre for Labour Research. One of the indicators in the Labour Rights Index is “Fair Treatment”, which includes access to essential social protection for gig and self-employed workers.

Gig Labour Laws in Australia

Since the enactment of the Fair Workers Legislation Amendment Act 2024, the situation of gig workers in Australia has significantly improved. This law provides for minimum rights and protections for gig workers in Australia by classifying them as “employee-like” workers. This enables gig workers to file complaints before the Fair Work Commission and access support from the Australian Fair Work Ombudsman.

Under the new law, gig platform operators in Australia must comply with a Minimum Standard Order that provides provisions for fair compensation, deductions, insurance, deletion, consultation, cost recovery, record-keeping and representation.

Trade unions representing gig workers in the country are also empowered to negotiate collective bargaining agreements. Such agreements may, among other things, regulate terms and conditions under which gig workers will be protected from unfair deactivations by gig platforms.

Gig Worker Rights Reform in Canada

Due to their classification as independent contractors, gig workers in Canada face significant challenges. This limited status denies them key benefits, such as paid leave, minimum wage and employment insurance. Under these circumstances, gig workers are left with unsafe working conditions, unstable income and little to no recourse for dispute resolution.

Canadian lawmakers have attempted to solve these challenges and improve their rights through the Ontario Employment Standards Act, which introduced such measures as overtime pay and mandatory rest periods. However, many gig workers are excluded due to their classification as independent workers.

Although the Workers’ Compensation Act offers safety and fair compensation benefits for some, coverage remains limited for most gig workers. In Ontario, the Digital Platform Workers’ Rights Act 2022 addresses issues like unpaid work, pay transparency and unlawful deactivation by platforms. That notwithstanding, its impact is hampered by the classification of platform workers as independent contractors.

A 2023 report called for a clear definition of the employment status of gig workers in Canada and better protection under the Canada Labour Code. Gig worker protection advocates are pushing for the adoption of the ABC test laid out by the UK Supreme Court in the case of Uber BV v Aslam [2021], which presumes gig workers as employees unless their work meets the criteria for independent contractors.

The Social Security Rights Challenge for Gig Workers in India

As in many other jurisdictions, gig workers in India face limited protection and job insecurity due to their classification as “partners” or independent contractors. This status excludes them from basic employee benefits, including social security, paid leave and minimum wages under traditional labour laws.

Although the 2020 Social Security Code recognises platform gig workers as a distinct category of workers and offers them access to pensions, health insurance and maternity leave, its delayed implementation has left many platform workers without immediate relief.

Court petitions, such as those filed against Uber and Ola, have highlighted demands for the classification of gig workers as employees for fair treatment. Still, no landmark ruling has been issued yet.

Workers in the UK Wait for Comprehensive Gig Economy Laws

Gig workers in the UK are still classified as independent workers, limiting their access to conventional employee benefits like minimum wage, sick leave and holiday pay. Misclassification of gig workers in the UK creates a disparity between protection awarded to conventional employers and those afforded to gig workers, with the latter being exploited.

However, recent developments like the landmark Uber BV v Aslam, which classified Uber drivers as employees rather than independent contractors, are gradually changing the landscape for gig economy protection. That notwithstanding, many gig platforms are reluctant to classify their workers as employees due to the unwelcome financial implications.

The proposed UK Employment Rights Bill forms part of the country’s worker rights reform that will address the gig worker protection concerns by ensuring that this category of workers has access to basic labour rights as a reflection of their growing contribution to the labour market.

Unpacking Gig Economy Protections in the US

Labour laws in the US have evolved to reflect progress in terms of gig worker protections, but remain uneven in some aspects. Gig workers, particularly those in the delivery and ride-hailing sectors, are conditionally covered by basic social protections.

The minimum wage floor was set for ride-hailing drivers in 2020, followed by app-based delivery platforms in 2022. In New York, app-based delivery gig workers benefit from guaranteed minimum wage and additional employee benefits.

In 2024, the US Department of Labour issued a policy requiring gig platforms to classify gig workers as employees as opposed to independent contractors if they are economically dependent on the companies.

Gig Workers Continue to Face Challenges

Challenges remain for the global gig workforce, especially regarding collective bargaining and access to employee rights under traditional labour laws. The classification of this workforce as independent contractors rather than employees continues to hinder access to conventional employee rights. As a result, gig worker groups – such as Gig Workers United, Gigs Workers Rising and California Gig Workers Union – are pushing for improved worker rights reforms and seeking comprehensive solutions to ensure workplace protections for gig workers.

The FTC Turns to Consumer Protection Laws for Gig Workers Protection

As gig platforms continue to fight efforts to have their workers classified as employees rather than independent contractors, the solution seems to lie in consumer protection laws instead of labour laws. The latter can only offer protection if the worker is classified as an employee for conventional labour laws to take effect. In contrast, the former offers broad protection by prohibiting unfair and deceptive practices by gig platform companies. The US Fair Trade Commission (FTC) has successfully put consumer protection laws to the test as a tool for the protection of gig workers in the US.

Source: Labour Rights Index

References:

Harvard Law Review

Gigpedia

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