Can government organize around collective ethics and prevent need for informal labor?

The growth of the gig economy demonstrates we presently exist in a reactive rather than a preventative stage of government existence.

How do I reason this, and why is it significant?

I reason this because government had to implement ethical measures of regulation (such as writing off wear and tear for ride-share drivers) in reaction to the witnessed rise of unethical labor trends within its jurisdiction. Conversely, in a preventative government structure marked by equal respect for employer and worker, or capital and labor, such a suggestion would be immediately dismissed on grounds of ethicality. In this structure, the government would prevent violation of equality ethics, not be coerced into a corner of reacting to because their authority took the backseat to what a competing party (private sector) claims is progress.

A reactive versus preventative government structure as it relates to employment relations is significant because workers are people, and people have a right to equal treatment and fair labor.

In this preventative structure, workers and employers receive equal respect. Workers also have a voice that determines conditions. There is equal value placed on the co-dependent entities. There is trust.