The Real Impact Of Regulating The Gig Economy: An Expert Interview With Piotr Smolen
Symmetrical has recently published an expert interview on the real impact of regulating the gig economy (a.k.a. digital platform work).
The gig economy is rapidly changing the contemporary business landscape. The pandemic and a disrupted economy have accelerated this transformation.
Over 28 million people in the EU are currently working via digital platforms. Now the big debate is over the working conditions of platform workers. The EU wants to regulate platforms like Uber, which may affect up to 4.1 million employees.
In this interview Piotr Smolen, CEO at Symmetrical and an expert in gig economy payroll technology, discusses:
- The implications of regulating digital platforms for employees and employers (controversies, challenges and potential solutions)
- The role of technology and how it can empower the gig economy
- The future of the platform economy and how you can prepare your business for what’s ahead
Check out the full gig economy interview here.
Regulating the gig economy: challenges for businesses and society
As of today the gig economy remains largely regulated. The complex and fluid nature of platform work poses challenges for policy-makers, businesses, and employees. Nothing is black and white.
As a result, the attempts to regulate the gig economy pose numerous challenges. Unfortunately, there’s no “one-size-fits-all” approach, and the legislation can bring more legal clarity, but also disappointment.
Still, the failure to regulate digital platform work will have a negative impact on employees, employers, and society as whole.
According to Piotr Smolen:
Authorities seem to be unsure about how to regulate the gig economy. However, we need to figure out how we can make the regulated model sustainable long-term. Otherwise, we run the risk of creating a system that resembles a modern servant economy with underprivileged social groups.
In the following interview, Piotr Smolen discusses the most pressing topics in regulating digital platform work and what it means for businesses.
Digital platform work requires improved legal clarity
The sustainable growth of digital platform work requires improved legal clarity for platforms and better working conditions for gig workers.
There are a number of factors that policy makers have to consider, for example:
- The employment status of gig workers
- Their working conditions, including health and safety
- Access to adequate social protection, training, and professional opportunities
- Collective representation and bargaining
- The cross-border dimension of platform work
- Algorithmic management
- Using Artificial Intelligence
Check out our expert interview to learn more!
The role of technology in managing gig work
How to regulate and improve the working conditions of platform workers and maintain the flexibility of this booming sector?
As of today there’s no straightforward answer to this question as the gig economy is still a relatively new phenomenon. With platform workers using new apps and digital processes, this new digital engagement opens up unexplored territory in gig work. In a way, we’re learning as we go.
But even today companies can definitely improve the working conditions and well-being of gig workers and improve transparency. Technology can be extremely helpful here.
Consider Uber. The company has been so successful because it delivers a data-driven unified experience. For instance, the Uber app shows drivers what goals they need to accomplish (and how).
This model shows the importance of simplicity in managing gig work.
Thus, despite all the uncertainty, one thing is certain. Companies employing gig workers will need software and digital apps that simplify complex processes. There’s no doubt about it.
With the right technology, businesses can make the gig economy work for them and their employees. The gig economy needs only apps and solutions that simplify processes.
Regulating the gig economy in Spain
In August 2021, Spain became the first European country to significantly regulate the gig economy. The Supreme Court declared that riders were not self-employed workers but rather employees.
According to the riders’ law, gig companies like UberEats were supposed to provide employee status for their riders. Instead, most delivery companies in Spain worked hard to avoid the law. Some of them outsourced and tweaked their apps to avoid making changes to their business models.
The bottom line: the above-mentioned law backfired as companies were reluctant to implement it. Many employees, in turn, got paid less and had to work more hours. This made riders confront their employers.
For this reason:
Before other European states contemplate similar laws to regulate the gig economy, policy makers should learn from the mistakes made in Spain.
The future of the gig economy
From a legal perspective, we can expect a long legislative process, especially at the EU level.
However, we’re talking about one of the most important transformations in the world of work. That’s why we need legal clarity, transparency, and sufficient consistency.
The reality is that the gig economy is growing fast. This process is unstoppable. If digital platform work continues to expand so rapidly, it can overtake the traditional job market.
For this reason, get ready to hire more platform workers. Furthermore, consider the upcoming changes in legislation. New regulations will give gig workers more rights and will allow them to become payroll employees.
Finally, remember that it may be challenging to keep up with a dynamic job market. For this reason:
You shouldn’t wait to prepare your business for the future. You need to be smarter than your competitors!
Read the full article and get ready for the future of work!
Sources
Improving the working conditions in platform work
The EU’s plans for improving gig working conditions
New EU rules could turn 4.1 million gig workers into regular employees
5 things to know about the EU’s gig worker plans
EU launches bid to regulate gig economy
EU Proposes New Protections for Gig Workers
Inside Spain’s failed plan to fix the gig economy
Spain had a plan to fix the gig economy
