Workers in the So-Called ‘Gig Economy’ Such as Uber Drivers and Foodora Riders Should Be Treated as Employees for all Purposes

Workers in the So-Called ‘Gig Economy’ Such as Uber Drivers and Foodora Riders
Should Be Treated as Employees for all Purposes
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Table of Contents
Introduction......................................................................................................................................3
An overview of the Gig Economy...................................................................................................4
Australian work place laws..............................................................................................................6
Case study of Uber and Foodora.....................................................................................................9
Implications for Terms and Conditions of Employment and Other Items e.g. OHS Compliance,
Social Inclusion / Workforce Participation....................................................................................11
Conclusion.....................................................................................................................................15
Bibliography..................................................................................................................................18
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Introduction
Digital platform executes its operation in the ‘gig economy’ which is related to the contracts that
are individual doesn’t get executed collectively and irregularly both using durations and hours.
The arrangement of work is being executed commercially, and those workers working in the gig
economy gets engaged in work as independent contractors, and they are not entitled to the
standards of minimum labor. The digital platform business generally does not operate in a larger
section of the economy but the work facilitated gives its concentration in the sections of the
lower skilled labor market in which formal qualification is not stated as a requirement. It is found
that there is very limited power of bargaining in the hands of workers in the contract terms and
pays rates in this labor market segments. Digital platforms mainly exacerbate such issues and
have full control on every worker who makes access to the platforms and also determines
payments and rates unilaterally1. Before the advent performed regarding modern digital
platforms, the debates had been in process regarding the independent contractor’s
appropriateness in the working relationship which is the same as employment. It was observed in
the traditional binary classification of workers that those workers are either employees or
independent employees and were unaware of the issues and complexities which is tackled by the
dependent workers being operating in work in the gig economy. It is observed that many of the
platforms in digital business make its operations in the legal grey area when the topic comes for
the practices of employment. Those workers make the appropriate choosing of the work hours
and make a sign up of specific tasks. Thus, it is argued that such workers don’t meet the
definitions of the employees. However, such workers possess limited bargaining power and don’t
1 Kaine S and Josserand E. Workers are taking on more risk in the gig economy. The Conversation, 6 July. Available
at: https://theconversation.com/workers-are-taking-onmore-risk-in-the-gig-economy-61797 (Accessed 12 December
2018)
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have traditional attributes on various independent contractors2. Dependence is seen on the digital
platform by workers for the performance and allocation of work. There is the maintenance of
control of the digital business on the ways the work is compensated and performed. Workers
actions are being monitored and supervised, and the pressure is given to work exclusively on the
platforms.
Unions associated with gig economy and labor’s laws are concerned that when the workers are
not able to meet the definition of independent contractors will not be reviewed by the
employment legislation. Moreover, when the classification is made sustainable, then there will
be no protection given under the legislative minimum labor standards3. It had been reviewed that
those organization who are involved in the workplace along with gig economy has come across
with a large number of difficulties while defining the status of employment. The advancement in
technology and Smartphone’s proliferation has reshaped the landscape of commerce and has
provided consumers with newer ways to get access to the marketplace of retailers4. On-demand
companies are one part of innovation, and the on-demand commerce is said to be the gig
economy which is the market’s collection which matches the providers of services to consumers
of gig basis.
2 Cherry MA and Aloisi A ‘Dependent contractors’ in the gig economy: a comparative approach. American
University Law Review 66(3) (2017): 635–689.
3 Independent Contractors Act. Australian Government Federal Legislation. Available at:
https://www.legislation.gov.au/Details/C2016C00818 (Accessed 12 December 2018).
4 McCrystal, S. Collective bargaining beyond the boundaries of employment: a comparative analysis. Melbourne
University Law Review 37(3) (2014): 662–698.
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This essay will highlight the workers of Uber drivers and Foodora riders who are in the gig
economy in Australia. It will also explain the necessity and requirement that needs to be given to
the drivers and riders which is achieved by the employees. It will further consider the implication
for the terms and conditions of employment and other various other items.
An Overview of the Gig Economy
The gig economy is the collection of the market which matches the providers to make consumers
on a gig which is based on the support of on-demand commerce. The gig workers are found to
enter in the formal agreements with the on-demand companies to give services to the clients of
the company. The perspective makes a request to the clients for the services through Smartphone
application aligns with internet-based technology platforms which will allow the clients to
recognize and investigate for the providers and to make the specification of the jobs. The gig
workers who get engaged by the on-demand companies make a provision of the requested
services and make compensation for jobs.
The models of business mainly vary across companies which have control over tech-platforms
along with associated brands. The providers are allowed to set the prices and also select the jobs
whereas also preserve control on the decision of assignment and price-setting. Some of them
make its operation in the local market while many of the others help in serving a global client
base5. It had been seen that although driver services such as Uber and food are known in its best
manner wherein the gig economy have made its operation in many of the vast sectors which
includes business services, medical care and also delivery services.
5 Moran, J. A. Independent contractor or employee-misclassification of workers and its effect on the state. Buff.
Pub. Int. LJ, 28, (2009)105.
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With many of the exceptions, the providers are viewed as independent contractors by the on-
demand companies. Such designation is made explicit as per the formal agreement which had
made an establishment of relationship in between providers and company. Also, it has been
observed that many of the on-demand companies have given providers the ability to make the
selection of the jobs, participation levels setting of the hours and also have control over their
works. The gig economy is said to be the expansion of the traditional freelance work. But, the
traditional freelance job is distinct from the gig jobs. The established brand and store-front which
is built through tech-platform Company reduced the entry costs for the providers. On the other
hand, gig workers are not required to invest in any of the established company; the operating
costs might be lower and also make an allowance of the participation of the workers to be
transitory in the market of the gig.
Those companies which rule the gig economy try to bring about flexibility to work. However,
the company’s work makes an argument that they don’t have protections and also fair pays.
Moreover, the roles are not flexible as workers are incentivized as well as pressured to work
when there is a need of the company. It is also analyzed that workers in the gig economy need to
be treated as employees for all of the purposes.
In the context of Australia, the problem has got polarized. The proponents associated with gig
economy have advocated for the flexible and freedom which is linked with independent contract
work as well as freelance. The major support comes by the choice in which people choose when
and how to execute the work. The work structure is appealing where the customers require a task
to be completed where an entrepreneur possess skills to fulfill the task. However, it has been
noticed that the rights group of workers generally highlights the negative aspects of the gig
economy. There are various benefits associated with the permanent work which includes income
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