Toward Fairness in the Digital Economy: Evolving Protections for Gig Workers Worldwide

The World Bank’s brief examines global regulatory efforts to protect platform workers’ rights, focusing on fair pay, employment classification, and enforcement challenges in the gig economy. It highlights evolving labor laws, data privacy, and collective bargaining rights to balance worker protection with flexibility in digital work.

The World Bank’s policy brief, produced by economists Maho Hatayama and Dagmara Maj-Swistak as part of the Labor Global Solutions Group’s efforts to support better labor regulations for the digital economy, provides a critical look at how platform-based work is being regulated across different countries, particularly in developing contexts. As the digital economy grows, platform-based work has become a significant source of employment for millions globally, yet it brings with it complex challenges regarding worker rights and protections. This brief analyzes recent regulatory initiatives in 20 jurisdictions across regions, from Europe and North America to Latin America and Africa, highlighting efforts to safeguard worker rights and ensure fair treatment in the emerging gig economy. The policy brief covers regulatory developments between 2016 and 2024, identifying 23 reforms targeting platform work. These reforms aim to address gaps in labor protection and adapt legal frameworks for platform-based work, which often straddles traditional employment and independent contracting, creating regulatory ambiguity. In general, three approaches are used to protect platform workers: amending existing labor laws, creating dedicated platform work legislation, or clarifying employment status to extend current labor protections. High-income countries, especially in Europe, have led regulatory initiatives, often limiting these protections to location-based platform work, such as ride-hailing and delivery services.

Employment Status: A Complex Foundation for Rights

The employment status of platform workers is central to accessing labor rights, as only employees in most jurisdictions qualify for protections like minimum wage, paid leave, and occupational safety measures. However, defining employment in platform work is complex due to the flexible nature of the work and varying levels of control exercised by platforms. Some countries establish criteria lists or legal presumptions of employment to clarify this status, which courts still play a key role in adjudicating, while others, like Argentina and Canada, have created a third worker category that acknowledges the quasi-independent nature of platform work.

Addressing Fair Pay and Working Hours

Working conditions, especially fair remuneration, are also major concerns. Many countries reference minimum wage standards, but new approaches are being adopted for platform work, which often involves variable pay structures. Some jurisdictions, like New York City, have introduced specific pay rates for app-based workers, such as delivery drivers, to reflect both active and waiting times. Additional considerations in wage regulations include mandatory overtime pay, tips, and allowances for job-related costs. Provisions concerning working hours often include maximum limits and a right to disconnect, which addresses the on-demand nature of platform work. European countries have taken the lead in creating rights to disconnect, particularly for self-employed platform workers, which are also recognized in transportation regulations for ride-hailing and delivery drivers.

Protections Against Unfair Treatment

Protections against unfair dismissal are essential to prevent arbitrary job loss, and many jurisdictions have implemented requirements for valid reasons and advance notice for termination. For instance, Malta requires platforms to provide written grounds for dismissal, and Canada’s Bill 88 mandates notice periods for prolonged suspension or deactivation. Additionally, laws in countries like Argentina and Mauritius include anti-retaliation clauses for workers who lodge complaints, providing a channel for appeals in case of unfair treatment. Collective bargaining and freedom of association are evolving rights for platform workers, who often face practical and legal barriers to unionize due to their independent contractor status. Some countries in Europe are reforming competition laws to allow platform workers to bargain collectively without violating anti-monopoly laws. Legislative measures, such as France’s reforms for self-employed platform workers, formally recognize collective bargaining rights for the gig economy. Despite these strides, organizing and advocating for platform workers remains challenging, especially in developing countries where informal and fragmented work arrangements dominate.

Ensuring Health, Privacy, and Fair Algorithms

Given the distinct nature of platform work, specific protections have been introduced to address occupational health and safety, data privacy, and algorithm transparency. Occupational safety laws in countries like Argentina, Chile, and Greece require platforms to ensure safe working conditions and provide necessary equipment and training. The brief emphasizes that data privacy, a growing concern in digital work, is receiving increasing regulatory focus, with provisions requiring platforms to protect workers’ data and provide access to their personal information. For instance, the European Union mandates platforms to disclose how algorithms influence work assignments and monitor worker performance, aiming to prevent discriminatory practices embedded in these automated systems.

Overcoming Barriers to Enforcement and Coordination

Enforcement remains a major challenge, especially in developing regions with limited regulatory resources. As platforms frequently operate across borders, jurisdictional conflicts and data access limitations hinder effective monitoring. Some countries, including Ecuador and Portugal, require platforms to register their workers and share relevant employment data with regulatory agencies. Additionally, dedicated labor inspection agencies are emerging in countries like Canada and Italy, and these bodies can investigate potential violations and enhance compliance. Beyond labor legislation, regulatory frameworks increasingly recognize the need for broader policies, such as social protection, tax policy, and transportation laws, to comprehensively support platform workers. Cross-country collaboration is recommended to create unified standards, especially for web-based platforms that operate globally. The policy brief highlights the importance of establishing enforceable labor regulations while maintaining flexibility, as well as the need for data-driven policy formulation to measure the impact of regulations on platform workers. Trade unions, cooperatives, and worker forums play vital roles in supplementing government measures, offering workers platforms to negotiate fair treatment. The report also points to the rise of “platform cooperatives,” where workers collectively own and manage the platform, providing a democratic governance model that could offer a sustainable alternative to traditional profit-driven gig platforms. As the digital economy grows, data collection on platform work and regular assessments of policy impact will be crucial for designing effective, adaptive regulations that balance worker protection with the flexibility that defines platform-based employment.