Whether in transportation, food delivery or graphic design, the emergence over the past decade of digital platforms that connect sellers of piecemeal goods and services with purchasers - known as the 'gig economy' - is spurring an important debate about the definition of work. Whether gig workers are defined as employees or contractors determines their rights and the obligations of employers. If classified as employees, workers are entitled to statutory employment protections such as minimum wage and specific termination rights, which independent contractors do not receive. Traditional employe
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Whether in transportation, food delivery or graphic design, the emergence over the past decade of digital platforms that connect sellers of piecemeal goods and services with purchasers - known as the 'gig economy' - is spurring an important debate about the definition of work. Whether gig workers are defined as employees or contractors determines their rights and the obligations of employers. If classified as employees, workers are entitled to statutory employment protections such as minimum wage and specific termination rights, which independent contractors do not receive. Traditional employee status gives workers greater job stability and protection - at a cost to employers. In this respect, classification has an important bearing to the sustainability of certain companies, which may not have a viable business model if those providing the services - the workers - are found to be employees. In its recent filing for an initial public offering, the ride-sharing company Lyft disclosed that the classification of drivers as employees 'may require us to significantly alter our existing business model' and warned of potential 'monetary exposure'.
The gig economy is likely here to stay. For workers, fast and easy access to piecemeal employment can bridge periods of un- or underemployment. For buyers, these platforms provide convenient, on-demand marketplaces of vetted vendors. Together, these factors are forcing a debate about whether the gig economy should reshape the way we think about employment classification today. This paper surveys the current state of the gig economy and considers how some legislatures, courts and tribunals in North America and Europe are handling employment classification of gig workers. In this evolving area of company-worker relationships, it has fallen to courts and tribunals to interpret existing laws, with legislatures slow to take a position.
Edited excerpts from publisher's website.
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