Publication: The Regulation of Platform-Based Work: Recent Regulatory Initiatives and Insights for Developing Countries
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2024-11-04
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2024-11-04
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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.
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“Hatayama, Maho; Maj-Swistak, Dagmara. 2024. The Regulation of Platform-Based Work: Recent Regulatory Initiatives and Insights for Developing Countries. © World Bank. http://hdl.handle.net/10986/42358 License: CC BY-NC 3.0 IGO.”
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