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Employment and Social Protection For Platform Recent Developments and Trends PDF
Employment and Social Protection For Platform Recent Developments and Trends PDF
Philippe Deraeve
Marc Rogiers
Michiel Segaert
National Employment Office
Brussels
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Philippe Deraeve
Marc Rogiers
Michiel Segaert
National Employment Office
Brussels
Technical Commission on Employment Polices and
Unemployment Insurance
International Social Security Association
Geneva
1. Argentina, Belgium, China, France, Ireland, Malaysia and Sweden are represented by a Vice-President in the TC-
Employment
2. Eurofound (2020, p. 14–21).
• people having worked at least once via platforms, during/without a reference period;
• people working through platforms at least once every week/month/year (sometimes
“currently active”);
• people performing platform work for at least/no more than a certain percentage of their
income or for a certain percentage of their working time;
• number of acknowledged/active platforms;
• people aware of the existence of platform work.
Many studies on the subject of platform work use these types of research overviews as a basis for
mapping the statistical landscape3. When trying to distil state-of-the-art data from these examples,
Kilhoffer (2021) distinguishes different possible source types to achieve quality data:
• survey data (from official or unofficial economic statistics);
• administrative and big data (from government sources, platform sources or other
sources such as financial institutions).
In the search for state-of-the-art data that can be used for a broad range of research, there are some
initiatives attempting to systematically capture statistics on platform workers in different countries.
At a European level, for instance, a lot of research was based on the results of the Eurobarometer
and/or the COLLEEM surveys,4 which have an overlapping time frame and scope. However, a 3
comparison of these two resources quickly shows how even relatively minor differences in concepts
and definitions can lead to a large variety in estimation results.5
When looking for a systematic international approach, the Online Labour Index (OLI) – a collaboration
between the ILO and the Oxford Internet Institute - deserves special consideration. This index
combines a range of data sources in order to create a timely and consistent series covering the largest
English-language online labour platforms, representing at least 70 per cent of the market, as well
as several others in Spanish and in Russian.6 An important nuance, however, is that the types of
platform work measured only concern online work, while more than half 7 of digital labour platforms
exclusively concern on-location work.
3. Cf. among others Codagnone, Biagi and Abadie (2016, pp. 77–115): a list of 140 analytical accounts on different types
of platforms and aspects of the “sharing economy” and pp .65–71: a list of 70 analytical accounts on crowd work research;
as well as OECD 2019: overview of surveys by non-official agencies (pp. 9–11) and by official agencies (pp. 15–16)
4. For the Eurobarometer, see Flash Eurobarometer 438 (EC, 2016) and Flash Eurobarometer 467 (EC, 2018). For
COLLEEM, see Pesole et al. (2018); Urzì Brancati, Pesole and Fernández-Macías (2020); as well as the first results from
the survey published in EC (2021b), section 5.1.1. Methodological note: The Eurobarometer definition of collaborative
platforms is slightly larger than the ILO definition of platform work, cf. Flash Eurobarometer 438 (EC, 2016, p. 2):
“Collaborative platforms are internet-based tools that enable transactions between people providing and using a service.
They can be used for a wide range of services, from renting accommodation and car sharing to small household jobs.”
The COLLEEM definition seems closer to the one used by ILO (cf. Pesole et al., 2018, p. 14).
5. As was concluded for instance by OECD (2019, p. 14).
6. Stephany et al. (2021).
7. Number based on European measurements in EC (2021a, p. 45). Methodological note: This publication uses a dataset
on Digital Labour Platforms active in Europe between 2016 and the start of 2021 created from primary and secondary
sources but aimed at covering recent data on the platforms themselves rather than their workers. Limited data were
collected on platform workers, but variables and conclusions integrated models created by the ILO, COLLEEM and
Eurofound.
8. Department of Statistics of Malaysia (DOSM) and author’s calculations. Department of Statistics Malaysia Official
Portal (dosm.gov.my).
9. ILO (2021, p. 49).
10. Kässi, Lehdonvirta and Stephany (2021).
11. World population estimates and UN projection.
12. See for instance ILO (2021, pp. 56–57).
13. For instance EC (2018): While on average for all member states 6.0 per cent of respondents ever offered a service
via a collaborative platform, these percentages ranged from 2.2 per cent (Cyprus) to 17.2 per cent (Latvia). Regular
service providers (1.3 per cent on average) ranged from 0.2 per cent (Germany) to 2.1 per cent (Spain).
This reveals a large influx of platform workers during the pandemic: 57.7 per cent of European
platform workers in 2021 started this work in 2019-2021. Other sources, such as the new Digital
Labour Platform dataset (DLP), confirm this rising trend of platform work. The DLP shows an
increase of 12 per cent of active platforms in the European Union between 2016 and 2020 (EC,
2021a, p. 26).
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According to the estimation of the International Labour Organization, the value generated by China’s
platform economy accounts for 22 per cent of the world’s platform economy. In line with the growing
market size, the total number of platform workers in China also seems to be rising. According to
estimates made by the Chinese Ministry of Human Resources and Social Security (MoHRSS) the
total number of flexible workers in China may amount to 200 million, including platform workers.
The annual Sharing Economy Report by the State Information Center estimates that the number of
service providing platform workers increased from 50 million in 2015 to 84 million in 2020. Platform
enterprises also provide data themselves, such as Meituan (the largest food delivery platform in
China) which counted 5.27 million riders earning income on its platform in 2021.
4.2.2. France
French legislation doesn’t impose any particular legal status for the exercise of platform work on
French territory.
Thus, in practice, the vast majority carry out this activity as self-employed workers, under the various
legal statuses provided for in French legislation.
While the employee status is a minority, some platforms have chosen to conclude an employment
contract with (at least some of) their workers. According to French case law, the existence of an
employment relationship depends neither on the will expressed by the parties nor on the name they
have given to their agreement, but on the factual conditions in which the activity is carried out.
Several court decisions reclassified the commercial relationship between the “delivery person or
driver” as an employment contract.15
In order to secure the economic model of platforms by reducing the risks of requalification as
employees, new legislation reinforces the effective autonomy of platform workers in the exercise of
their activity, while at the same time promoting better working conditions.
15. Cour de cassation, 28 novembre 2018, plateforme Take Eat Easy; Cour de cassation, 4 mars 2020, plateforme Uber;
Tribunal correctionnel de Paris, 19 avril 2022.
4.2.3. Ireland
In Ireland there is no specific legislative definition of platform workers. Whether a person associated
with a platform is employed or self-employed, is to be decided on a case-by-case basis. Notably, there
is the criterion of mutual obligation, that of control, that of company integration, that of replacement,
etc. The list of factors is far from exhaustive and does not constitute a checklist for deciding.
The position for platform workers’ welfare entitlements reflects the status of their employment.
Platform workers deemed as employees have access to the full range of social insurance benefits
as other employees. The self-employed have entitlement to a large proportion of social insurance
benefits, however barring those not currently available to the self-employed, such as Illness Benefit,
Carer’s Benefit, Health and Safety Benefit and Occupational Injuries Benefits.
4.2.4. Sweden
Sweden has no specific rules on unemployment benefits for platform workers. The Swedish
Unemployment Insurance Act (1997:238) covers employees and self-employed persons. The legislation
contains both general rules for these two groups and special rules for the self-employed. If a platform
worker is to be eligible for unemployment benefits, they must fulfil the conditions stipulated for
employees or self-employed workers.
The most important criteria in assessing whether a person should be defined as self-employed or as an
employee is his or her independence to the client and the client’s activities. Each of the 7
unemployment insurance funds conducts this assessment case by case.
A condition for unemployment benefit eligibility for self-employed is that their business activity
needs to be either terminated or put on hold. Unlike employees, self-employed cannot be partially
unemployed and receive benefits.
The claimant has to show his or her unemployment insurance fund that he or she has terminated
all business operation according to the Income Tax Act (1999:1229), the funds thereafter make an
assessment of the information from the claimant.
4.2.5. Argentina
The vast majority of digital platform workers are considered self-employed and are registered under
the simplified tax regime for small taxpayers, Law No. 26.565 (monotributo). This regime simplifies
and unifies the collection of tax and social security obligations, through a fixed monthly payment,
based on the worker’s income category. With a single paiement, they gain access to several tax funded
social security schemes (hence monotributo = singletax).
Workers registered under this regime have access to three of the five components of social security:
i) benefits under the pension system (retirement, disability retirement, survivor’s pension, advanced
old-age pension), ii) a number of benefits under the family allowance system, based on their category
(in no case are they entitled to maternity, childbirth or marriage allowances) and iii) a basic medical
insurance plan (Mandatory Medical Program) through the social security healthcare system.
Household members might also be added to the plan by means of an additional fixed contribution
for each member. However, the workers are not covered by: i) an occupational accident insurance
and ii) the unemployment insurance.
4.2.6. Malaysia
Malaysian Platform workers are not yet defined as “worker” under the country’s Employment Act
1955 (Act 265), Labour Ordinance (Sabah Chapter 67) and the Labour Ordinance (Sarawak Chapter
76). Given the legal restriction, platform workers are not subject to the National Wages Consultative
Council Act 2011 (732) as well as the Minimum Wages Order (PGM 2020).
Based on existing tribunal and court decisions, platform workers are regarded as self-employed and
therefore protected under the Self-employed Social Security Act (Act 789). They do not qualify for
unemployment or loss of employment benefits under the Employment Insurance System Act 2017
(Act 800).
16. Proposal for a Directive of the European Parliament and of the Council on improving the working conditions in
platform work, 9 December 2021.
Furthermore new material rights for people performing platform work are introduced. These include
the right to transparency regarding the use and functioning of automated monitoring and decision-
making systems, which specifies and complements existing rights in relation to the protection of
personal data. The proposed Directive also aims at ensuring human monitoring of the impact of
such automated systems on working conditions with a view to safeguarding basic workers’ rights
and health and safety at work. To ensure fairness and accountability of significant decisions taken
or supported by automated systems, the proposed Directive also includes establishing appropriate
channels for discussing and requesting review of such decisions.
With certain exceptions, these provisions apply to all people working through platforms, including
the genuine self-employed.
Finally, concrete measure propositions aim at enhancing transparency and traceability of platform
work with a view to supporting competent authorities in enforcing existing rights and obligations in
relation to working conditions and social protection. This includes clarifying the obligation for digital
labour platforms which are employers to declare platform work to the competent authorities of the
Member State where it is performed. The proposed Directive will also improve labour and social
protection authorities’ knowledge of which digital labour platforms are active in their Member State
by giving those authorities access to relevant basic information on the number of people working
through these platforms, their employment status and their standard terms and conditions. These
measures will help authorities in ensuring compliance with labour rights and in collecting social
security contributions, thus improving working conditions of people performing platform work. 9
As a result of actions to address the risk of misclassification, between 1.72 million and 4.1 million
people are expected to be reclassified as workers. This would grant them access to the rights and
protections of the national and EU labour acquis.
These actions could result in up to EUR 4.5 billion increase in costs per year for digital labour
platforms. Businesses relying on them and consumers may be faced with part of these costs, depending
on how digital labour platforms decide to pass them onto third parties.
Although many welcome the Commission’s proposal, there are several issues that still need to be
tackled before the proposal can be ratified.
The Committee on Employment and Social Affairs (EP) proposed, in May 2022, a series of
amendments in its draft report on the proposal of the European Commission. In July 2022 the
Economic and Social Committee also handed in her opinion.17 The European Social Insurance
Platform (ESIP), which represents statutory social security institutions from 17 European Member
States and Switzerland, underlined several issues in the proposal such as providing sufficient leeway
to national administrations in implementing the Directive, as many countries already have their own
national criteria to determine the status of workers.18,19
5.2.2. France
Platform workers benefit from the same type of compulsory cover as employees for sickness,
maternity, family, basic and supplementary pension and disability benefits. However, this is not the
case for benefits aimed at compensating for loss of income, and supplementary health insurance is
not covered by the platform for half of the contribution, as it is by an employer.
With regard to the risk of unemployment, self-employed workers can claim, under certain conditions,
a specific allowance created in September 2018 (allowance for self-employed workers - ATI, of a
maximum of €800 for a maximum of 6 months).
A set of protective legislation for platform workers has been gradually put in place since 2016
(introduction of a «social responsibility of platforms» towards the workers with whom they
collaborate, in particular with the assumption of responsibility for occupational accident insurance
contributions and the contribution to professional training, recognition of the right to unionize and
an “equivalent” to the right to strike). It was expanded in December 2019 (e.g. obligation to provide
full information on the proposed service, right of refusal, choice of periods of activity and inactivity,
right to disconnection, access to vocational training).20
5.2.3. Ireland
While this issue is continuously being carefully monitored in Ireland, there are at the present no
specific national legal initiatives currently being implemented.
5.2.4. Sweden
A new legal framework proposal for the Swedish unemployment insurance was presented in 2020.
Currently, time employed is the main determinant of the right to unemployment insurance, but the
proposal instead suggests that the insurance should be constructed around the monthly income
data that employers register for all employees at the Swedish Tax Agency (Skatteverket). One of
the intentions with the proposal is to create a legal framework that reduces the administrative work
for, for example, the unemployment insurance funds. The proposal does not target platform
workers specifically, but aims to be more predictable for the individual than the current insurance
scheme. And in that regard it can be more predictable for those who work within the “new
economy”. The proposal is not yet decided.
5.2.5. Argentina
Although the monotax (monotributo = “singletax” as “one” down payment opens several rights)
system provides for basic benefits, the main issue is the lack of coverage for occupational accidents.
The Ministry of Labor, Employment and Social Security has prepared a draft law Estatuto del 11
Trabajador de Plataformas Digitales Bajo Demanda (statute of the on-demand digital platform
worker), which seeks to ensure platform workers’ access to all social security subsystems, including
occupational accident insurance and unemployment insurance.
In particular, it establishes a special regime for the collection and withholding of social security
contributions through the payment of a replacement fee for personal and employer contributions,
in accordance with the rates established for workers in a dependent relationship. Concurrently, it
determines that the companies managing digital platforms are responsible for withholding and paying
the abovementioned fee to the Federal Administration of Public Revenue (AFIP).
Two other parliamentary initiatives should also be mentioned: a) the draft law Régimen Especial
de Contrato de Trabajo para la Persona Humana Trabajadora de Plataformas Digitales (special
employment contract regime for human digital platform workers), which proposes the creation of
categories according to the number of hours worked per week, based on which the social security
coverage and contribution is determined, enabling workers to make voluntary contributions so as
to exceed the minimum amount required to gain access to benefits they otherwise can’t access; and
b) the draft law Regulación de la Actividad de los Trabajadores Contratados mediante Plataformas
Digitales (Regulation of the activity of workers hired through digital platforms), which
defines the inclusion of platform workers within the framework of the Ley de Contrato de Trabajo
(employment contract law), and which facilitates access to coverage of the different social
security subsystems through a particular mechanism of collective bargaining of social security
(Law No. 26.377).
5.2.6. Malaysia
The Ministry of Human Resources is currently amending the Employment Act 1955 (Act 265) to
include a new section 101 (c) to define better terms for employees and employers, hoping the new
definition would shed light on employer-employee relations, especially for platform workers. The
amendment will include a more transparent classification of workers on contract of service, defined
under the first schedule of Act 265. Since the amendments will take effect in September 2022, results
from the amendment have yet to surface in labour tribunal such as new precedent cases regarding
the definition of employment of platform workers.
However, social protection for platform workers has existed since 2017, with the onset of a legislative
act under the Self Employment Social Security Scheme (SESS) 2017 (Act 789) under Social Security
Organization Malaysia (SOCSO). After piloting the scheme for the transportation section for
two years, the scheme was extended to all self-employment sectors in 2020.The extension had
accommodated sectors that platform workers are highly drawn to. Currently, the scheme is mandatory
for self-employed in the Transportation Businesses while self-employed in the remaining sectors can
voluntarily contribute to the scheme.
SOCSO’s self-employed platform worker scheme encompasses a broad protection against work related
risks such as employment injurie and occupational diseases, which includes monthly allowances
as well as physical and vocational rehabilitation for self-employed suffering from a temporary or
12 permanent impairment. For death cases during work injury, the dependents will be eligible for a
monthly dependents benefit and pension.
In the long run, SOCSO will gradually extend its coverage to risks of invalidity as well as
unemployment benefits, as currently benefitted by formal workers. For the years 2021 and 2022,
unemployment benefits are provided to non-registered jobseekers including platform workers through
a temporary program called EIS Jobseeking Allowance Plus. Under the program, non-registered and
unemployed jobseekers are qualified for three months of unemployment benefits with the condition
that they can demonstrate sufficient job seeking activities such as participating in SOCSO career
fairs or attending employment interviews.
6.1. China
The legal status of platform workers in China is not uniformly determined. They can be defined as:
i) workers; ii) or as a self-employed person, to provide labour. However, in practice, the majority
are self-employed. Since the Document 56 issued in 2021, the third working relationship can be
developed with the platform, mainly based on whether these people have great autonomy on work
or not. They are subject to the management and control of the platform to some extent and their
basic rights and social protection should be taken into consideration. However, clear and specific
identification standards for the third category are not yet available.
Existing laws apply for platform workers identified as workers or self-employed, but in the third
category they can be entitled to the most basic labour rights and interests specified in Document 56,
including the rights to fair employment, minimum wages, rest, work safety. The rights to participating
in social security systems and in algorithms-decision and working rules when the platform enterprises
formulate these management rules are also stipulated in this document. Last but not least, the revised
Trade Union Law provides a channel for platform workers to participate in trade unions.
6.2. Brazil
Brazilian platform workers are categorized as self-employed. A contributory social security program
is mainly implemented through the General Social Security System (RGPS) organized by the National
Institute of Social Security (INSS). The mandatorily insured include among others also self-employed
workers. RGPS pays benefits for temporary or permanent incapacity for work, accident assistance,
maternity allowance, family allowance, pension for death and retirement pension. However, accident
allowance does not cover individual contractors to whom many professionals who work on digital
platforms belong. Although individual taxpayers (including platform workers) are mandatorily
insured, they may fail to contribute to the INSS due to various reasons such as low income and lack
of awareness. Recently, Brazil made enhanced efforts in strengthening social protection for digital
platform workers. Between 2015 and June 2021, for example, a total of 126 bills on digital platforms
work were presented at the National Congress.
13
In order to cover “the missing middle” workers (who are excluded by both contributory social
insurance and non-contributory social assistance schemes), over the past few years, countries such
as Argentina and Brazil have implemented a “monotax” or similar mechanisms, simplifying tax and
social security contribution collection for small contributors (see 4.2.5).
22. www.economy.gov.ru/material/file/57f967e2931b6fb9b1785d69d1bee7b3/samozanyatye_pamyatka.pdf
6.4. India
The Indian Government enacted Code on Social Security (CoSS) in 2020. This code defines ‘Gig
and Platform Workers’, replacing nine legislations which provided social security to the employees.
It envisages establishing a National Social Security Board which will recommend to the Central
Government welfare schemes for gig workers and platform workers and monitor these schemes. It
also mandates the Central Government to establish a social security fund for gig workers and platform
workers, which is to be used for their social security and welfare (Majumdar, 2021).
CoSS takes the first step towards universalising access and making social protection inclusive, i.e.,
extending the coverage of social security schemes to include all kinds of workers regardless of the
nature of their relationship with the job creator. It mandates compulsory registration of both gig
workers and platform workers on an online portal (E-shram portal) to avail benefits under the Code
which shall be specified by the Central Government.
However, operational measures implementing social security protection for platform workers are yet
to be formulated by the Central Government.
7. Conclusion
Reliable recording and statistics for activities seem to remain a problem, but as shown above progress
has been made. At the European level as well as in general, an influx of platform workers evolved
throughout the COVID-19 pandemic.
We also witnessed quite a lot of initiatives to identify platform workers and clarify and improve
their conditions of coverage, which is without doubt a positive response to the ILO Centenary
Declaration and Global Call to action upon a human-centred approach to the future of work, ensuring
adequate protection of all workers and enhancing the universal access to comprehensive, adequate
and sustainable social protection.
In November 2021, the Governing Body of the ILO decided to convey a Meeting of Experts on
decent work in the platform economy, in line with the resolution concerning the second recurrent
discussion on social dialogue and tripartism, adopted by the International Labour Conference on
7 June 2018. The Meeting of Experts will take place in October 2022 and, subject to the approval of
its conclusions by the ILO Governing Body, will offer the opportunity to develop the first tripartite
guidance to the ILO specific to the topic.
8. References
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Defossez, A.; ISSA Technical Commission on Employment Polices and Unemployment Insurance.
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16 Pesole, A. et al. 2018. Platform workers in Europe: Evidence from the COLLEEM Survey,
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Acknowledgements
Special acknowledgement to:
The vice-presidents and staff representing Argentina, China, France, Ireland, Malaysia and Sweden
in the ISSA Technical Commission on Employment Policies and Unemployment Insurance (TC-
Employment)
Eduardo Salvador Maria LEPORE, Director Nacional de Coordinación de los Regímenes de la
Seguridad Social Secretaría de Seguridad Social Ministerio de Trabajo, Empleo y Seguridad Social
(Argentina)
Rong MO, Director-General of the Chinese Academy of Labor and Social Security (CALSS) and
Dr. Wei TU, Associate Professor of CALSS (PRC)
Christophe VALENTIE, Director-General, Union nationale interprofessionnelle pour l’emploi dans
l’industrie et le commerce (Unédic) and Céline JAEGGY, Directrice des affaires juridiques et
institutionnelles Unédic (France)
Niall EGAN, Assistant Secretary, Department of Social Protection (Ireland)
Gayathri VADIVEL, Head of Employment Services Department, Employment Insurance Office,
Social Security Organization Malaysia (Malaysia)
17
Patricia SÖDERSTRÖM, Examiner, Swedish Unemployment Insurance Inspectorate (Sweden)
Yukun Zhu, coordinator of TC-Employment, Technical Specialist and Project Manager at International
Social Security Association (ISSA)