Policy Responses to New Forms of Work

Chapter 4. Platform work

Apart from the question of how to classify platform workers, countries also mentioned challenges concerning how to ensure job and income security, access to benefits, overall career certainty and collective bargaining in platform work. The French response noted some of the broader issues associated with large international players in the platform economy, such as taxation and data protection. It also mentioned the potential for platform work to lead to social conflicts, particularly in the private hire car and taxi sector.

At the same time, many countries acknowledged opportunities associated with platform work, namely: its advantages in terms of flexibility and autonomy for workers, its ability to provide an additional source of income and greater opportunities for self-employment, and the contribution that platforms can make to economic growth. The Canadian response made the point that some of these advantages may be particularly attractive for groups currently underrepresented in the labour market (e.g. newcomers, indigenous populations, persons with disabilities), in which case the disadvantages could also disproportionately impact these groups.

This section outlines some policy responses to the emergence and growth in platform work, including:

• Specific measures to improve working conditions in platform work;

• Regulating the operations of platforms, particularly in the passenger transport sector;

• Implementing new rules on taxation and transparency; and

• Promoting the use of platforms.

4.1. Specific measures to improve working conditions

In France, the legislator has granted certain rights to platform workers through the August 2016 El Khomri law (or loi Travail) on labour, modernisation of social dialogue and securing of professional careers. Specifically, where the platform determines the characteristics of the service provided, it must also take responsibility for occupational liability and professional training. For example, if workers voluntarily insure themselves against the risk of occupational accident or illness, the platform must provide reimbursement. The law was also said to remind platform workers of their right to organise and strike (although this was not a new entitlement).

There is also a proposal in the draft Mobility Law to give platforms the option to draw up a charter outlining their methods for exercising social responsibility, including offering additional rights to workers who use their platforms. The idea is that platforms could make commitments to improve working conditions, with the understanding that this would not introduce the presumption of an employment relationship. It is important to point out that this is merely a proposal and that, at the time of writing, the process of adaptation of the text was said to be not yet completed.

4.2. Regulating the operation of platforms

When asked about regulations on the operation of platforms, almost all of the examples cited by countries pertained to platforms in the passenger transport sector and generally, they did not directly relate to labour market issues. Instead, many of the measures described were intended to address concerns about unfair competition with traditional (and potentially more highly regulated) services. Canada, Romania, Switzerland and Argentina noted that the operation of passenger transport platforms had been regulated in certain regions or municipalities.

Lithuania reported that it was one of the first countries to create a legal framework for “ride-sharing type” services. The new amendments to the Road Transport Code came into force in January 2017. Individuals that wish to provide passenger transport services must register a declaration that they meet insurance, roadworthiness and tax payment requirements.

In 2018, the Latvian government approved regulations for providing passenger transport services, including via platforms. The rules require providers of these services to register for a special permit. At the time of writing, they planned to continue discussion to identify areas for future improvement. For example, while currently only professional service providers (legal persons or firms) can provide passenger transport services, including via platforms, the Ministry of Economics was considering the idea of also allowing non-professional service providers (peers) to register for the special permit and provide passenger transport services via platforms. They were also considering the idea of blocking platforms in the case of non-compliance and obligating platforms to provide transaction data to the tax authorities (as discussed in the next section).

4.3. Taxation and transparency

France and Estonia mentioned recent reporting obligations placed on platforms and/or platform workers, in order to tackle underreporting of income and to ensure equal tax treatment of platform workers and comparable workers selling services through traditional means.

• In Estonia, there is collaboration between platforms and tax authorities. For example, passenger transport platforms share information on the financial transactions between customers and drivers so that the tax authorities can prefill drivers’ tax forms.

• In France, a 2016 amendment to the Finance Act stipulates that from 2019 all online platforms (whether based in France or abroad and regardless of area of business) would be obliged to send directly the earnings of their workers to the tax authorities.

4.4. Promoting the use of platforms

Belgium and Saudi Arabia mentioned measures to promote the use of platforms.

• Since 2016, in Belgium, there have been favourable tax measures (i.e. 10% income tax instead of 33%) for workers who earn under EUR 5000 annually through officially recognised platforms. Such measures incentivise side work in the platform economy.

• The Saudi Arabian response said that they encourage platform creation in general and gave examples of platforms launched by government agencies: (i) Maroof, which allows individuals to set up online stores, and (ii) Bahr, an online market for professional services.

Section 9.2 describes some efforts within public employment services to enable jobseekers to take up opportunities in the platform economy, developing initiatives to refer jobseekers to these opportunities or developing skills programmes to help individuals to acquire the necessary digital skills.