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NON-STANDARD

EMPLOYMENT

AROUND THE WORLD

Understanding challenges, shaping prospects

NON-ST

ANDARD EMPLOYMENT

AROUND THE WORLD

Understanding challenges, shaping prospects

International Labour Ofce

Geneva "... Non-standard employment around the world: Understanding challenges, shaping prospects " "-"

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...

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ILO Cataloguing in Publication Data

This publication was produced by the Document and Publications Productio n, Printing and Distribution Branch (PRODOC) of the ILO. Graphic and typographic design, layout and composition, proofreading, printing, electronic publishing and distribution. PRODOC endeavours to use paper sourced from forests managed in an environmentally sustainable and socially responsible manner.

Code: DTP-CORR-JMB-STA

INTRODUCTION

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PREFACE

NON-STANDARD EMPLOYMENT AROUND THE WORLD

Philippe Marcadent,

INTRODUCTION

Window washers, Muntinlupa City, Philippines © ILO/Bobot Go

INTRODUCTION

Preface................................................................... v List of abbreviations ........................................................ xix Executive summary......................................................... xxi Introduction............................................................... 1

1. What is non-standard employment?......................................... 7

1.1. The regulation of employment and the concept of the standard employment

relationship" ......................................................... 10

1.2. Non-standard employment in developing countries and overlap with informality ..... 15

1.3. The distinction between non-standard employment and precarious employment

and the need to address insecurities at work ................................ 18

1.4. Dening non-standard employment in law and practice........................ 20

1.5. Summary........................................................... 41

2. Understanding trends in non-standard employment ............................ 47

2.1. Temporary employment ................................................ 52

2.2. Part-time employment and on-call work.................................... 75

2.3. Temporary agency work and other contractual relationships involving multiple parties.. 87

2.4. Disguised employment and dependent self-employment ....................... 98

2.5. Summary........................................................... 102

Appendix: Statistical denitions and data issues.................................. 110

3. Women, young people and migrants in non-standard employment ................ 117

3.1. Women ............................................................ 119

3.2. Young people . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

NON-STANDARD EMPLOYMENT AROUND THE WORLD

3.3. Migrants............................................................ 144

3.4. Summary........................................................... 151

4. Why rms use non-standard employment and how it affects them ................ 157

4.1. Why do rms use non-standard employment? ............................... 157

4.2. How widespread is the use of non-standard employment among rms?............ 164

4.3. Effects on rms ...................................................... 170

4.4. Summary........................................................... 180

5. Effects on workers, labour markets and society................................ 185

5.1. Effects on workers.................................................... 186

5.2. Effects on labour markets and economies at large . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217

5.3. Wider social consequences ............................................. 221

5.4. Summary........................................................... 223

Appendix: Review of literature ............................................... 233

6. Addressing decent work decits in non-standard employment ................... 247

6.1. Legislative responses: plugging regulatory gaps.............................. 250

6.2. Collective responses: collective bargaining and worker voice . . . . . . . . . . . . . . . . . . . . 281

6.3. Adapting social protection systems to improve protection for workers in

non-standard employment .............................................. 298

6.4. Instituting employment and social policies to manage social risks and accommodate

transitions .......................................................... 307

6.5. Policy conclusions .................................................... 315

Appendix: Most relevant ILO instruments concerning non-standard employment ......... 323 References................................................................ 337 Acknowledgements......................................................... 373

LIST OF FIGURES

Figure 1.1 The different types of non-standard employment....................... 8 Figure 1.2 The multiple functions of the employment relationship .................. 12 Figure 1.3 Overlap of non-standard employment with informality and precariousness ... 16 Figure 1.4 Seven areas of potential work insecurity ............................. 19 Figure 1.5 The legal forms of non-standard employment ......................... 21 Figure 1.6 Multi-party employment relationships ............................... 33 Figure 2.1 Share of employment in the services sector, by sex and region, 1991-2020 .. 48 Figure 2.2 Percentage of employed workers who are wage employees, around 2013.... 52 Figure 2.3 Temporary workers as a percentage of wage employees, selected countries.. 53 Figure 2.4 Workers with xed-term contracts as a percentage of all employees, selected European countries, 1993-2014 ............................ 54 Figure 2.5 Trends in involuntary temporary employment as a percentage of temporary employment, 2007 and 2014 ..................................... 57 Figure 2.6 Temporary workers as a percentage of wage employees, selected CIS countries, 2000-14 ............................................. 59 Figure 2.7 Temporary workers as a percentage of wage employees, selected Latin American countries, 2003-14 ..................................... 61 Figure 2.8 Temporary employment among formal and informal wage earners, selected Latin American countries, early 2010s............................... 63 Figure 2.9 Temporary employment as a percentage of wage employment in Canada, 1997-2014 ................................................... 64
Figure 2.10 Casual employees in Australia as a percentage of all employees, 1992-2013 . 65 Figure 2.11 Trends in composition of paid employment in the Republic of Korea, 2001-13 . 67 Figure 2.12 Temporary workers as a percentage of wage employees, selected Asian countries..................................................... 69 Figure 2.13 Casual workers as a percentage of wage employees, selected Asian countries, 1983-2012 ................................................... 69
Figure 2.14 Incidence and trends of casual employment as a percentage of overall wage employment in Pakistan and Indonesia, by industry, 2002-12 ............. 70 Figure 2.15 Incidence and trends of various forms of temporary employment as a percentage of all wage employment, selected African countries, 1999-2014 ................................................... 72
Figure 2.16 Temporary employment in selected African countries by rural and urban area, selected years ................................................ 73

NON-STANDARD EMPLOYMENT AROUND THE WORLD

Figure 2.17 Adjustment of contractual forms of employment in response to economic shocks, Uganda, 2009-12 ....................................... 74 Figure 2.18 Adjustment of working hours in response to economic shocks, Uganda ..... 75 Figure 2.19 Workers with less than 35 hours per week as a percentage of all employees.. 77 Figure 2.20 Trends in involuntary part-time work as a percentage of total part-time work, selected European countries, 2005 and 2014.......................... 80 Figure 2.21 Trends in involuntary part-time work as a percentage of total part-time work, selected Latin American countries, 2003-13 .......................... 80 Figure 2.22 Incidence of time-related underemployment as a percentage of all persons in employment, 2010 ........................................... 81 Figure 2.23 Growth of marginal part-time employment - percentage of employees working fewer than 15 hours per week in ten European countries, 2000-12......... 82 Figure 2.24 On-call workers as a percentage of all employees, Europe, 2004........... 85 Figure 2.25 Percentage of workers on a zero-hours contract in the United Kingdom, 2005-15 ..................................................... 86
Figure 2.26 Evolution of on-call employment in the Republic of Korea, 2001-13......... 86 Figure 2.27 Occupations with highest concentration of temporary agency workers, United States, 2012............................................. 88 Figure 2.28 Temporary agency workers as a percentage of all workers, France, 1982-2013 ................................................... 89
Figure 2.29 Temporary agency workers as a percentage of employees, selected countries, 2005 and 2010 ........................................ 90 Figure 2.30 Percentage of workers employed in temporary agency work, by age, 2012 ... 91 Figure 2.31 Percentage of workers employed in temporary agency work, by occupation, 2012 ........................................................ 91
Figure 2.32 Temporary agency workers as a percentage of employees, Japan, 1999-2015 ................................................... 92
Figure 2.33 Workers in organized manufacturing, engaged directly and through contractors, India, 1995-96 to 2011-12 ............................. 94 Figure 2.34 Percentage of contract workers by industry group, 3-digit NIC, India, 1998-99 compared to 2011-12 ................................... 95
Figure 2.35 Percentage of direct hires, subcontracted workers and temporary agency workers, by economic sector, Chile, 2011 ............................ 97 Figure 2.36 Evolution of temporary agency work in Argentina, 1996-2014............. 98 Figure 2.37 Dependent self-employed as a percentage of dependent workers, Europe, 2010 ........................................................ 99
Figure 3.1 Distribution of part-time work (<35 hours per week) among wage employees, 2014 ........................................................ 122

Figure 3.2 Distribution of marginal part-time work (<15 hours per week) among wage employees, 2014............................................... 123 Figure 3.3 Percentage of part-time workers in the elementary sales and cleaning services sector, by sex, selected European countries, 2009-10 ............ 124 Figure 3.4 Percentage of teaching professionals on xed-term and part-time contracts, by sex, selected European countries, 2009-10 ........................ 127 Figure 3.5 Employees with FTCs as a percentage of the working population aged 15-64, total and by sex, average for selected European countries, 1995-2014 ...... 128 Figure 3.6 Evolution of temporary employment, by sex, selected Latin American countries . 129 Figure 3.7 Evolution of temporary employment, by sex, selected Asian countries ....... 130 Figure 3.8 Evolution of temporary employment, by sex, selected African countries ...... 131 Figure 3.9 Trends in casual work, by sex, Zimbabwe, 2004-14..................... 132 Figure 3.10 Temporary employment in the services sector, by sex, selected countries, circa 2013 ................................................... 133 Figure 3.11 Share of age groups in NSE relative to their share in total employment in Europe, 2014 ............................................... 135 Figure 3.12 Employees with FTCs as a percentage of working population aged 15to64, by age group, average of selected European countries, 2000-15........... 136 Figure 3.13 Percentage of workers employed in temporary agency work, by age, average of selected European countries, 2012 ................................ 136 Figure 3.14 Workers aged 15-24, main reason for being in temporary employment (as a percentage of total temporary employment), Europe, 2014 ........... 137 Figure 3.15 Temporary workers as a percentage of wage employees in selected Asian countries, by age group, 2007-10 .................................. 139 Figure 3.16 The proportion of young men and women in wage employment and in stable wage employment.............................................. 140 Figure 3.17 Incidence of part-time work among young and prime-age workers, 2014 .... 141 Figure 3.18 Incidence of involuntary part-time work among young men and women, 2014 ........................................................ 142
Figure 4.1 Firms" strategies with respect to part-time employment and implications for its quality .................................................. 160 Figure 4.2 Temporary employment as a percentage of total wage employment in private sector rms, developing and transition countries, circa 2010 ............. 165 Figure 4.3 Firms" use of temporary workers, developing and transition countries, circa 2010.................................................... 166 Figure 4.4 Firms" use of temporary workers, 22 European countries, 2010............ 167 Figure 4.5 Firms" use of temporary workers, Spain and Norway, 2010 ............... 168

NON-STANDARD EMPLOYMENT AROUND THE WORLD

Figure 4.6 Firms" use of part-time workers, 2002, 2006 and 2010 .................. 169 Figure 4.7 Use of temporary labour by economic sector, developing and transition countries..................................................... 170 Figure 4.8 Risks of a blended workforce to the rm ............................. 176 Figure 4.9 Issues related to NSE as a percentage of reported incidents, 2005-13 ...... 177 Figure 5.1 Non-standard employment: Stepping stone or trap?..................... 188 Figure 5.2 Wage penalties for temporary work, selected empirical ndings (percentages) . 191 Figure 5.3 Wage gaps associated with temporary employment along the wage distribution, latest available year ................................... 193 Figure 5.4 Wage gaps associated with part-time employment along the wage distribution, latest available year............................................. 194 Figure 5.5 Wage gaps associated with temporary employment at the mean and along the wage distribution ........................................... 195 Figure 5.6 Incidence and trends in multiple job holding in European countries among total employed, 2005 and 2015.................................... 199 Figure 5.7 OSH risk factors in non-standard employment arrangements ............. 203 Figure 5.8 Differences in access to social security benets between temporary and permanent workers, selected developing countries ..................... 205 Figure 5.9 Employer-sponsored training received by standard workers and various non-standard workers, selected countries ............................ 208 Figure 5.10 Shifts from no contract" to contract", Peru (2004-10) and Morocco (2004-13) .................................................... 220 Figure 5.11 Summary of evidence on various insecurities associated with non-standard employment................................................... 224

Figure 6.1 Making jobs better and supporting workers . . . . . . . . . . . . . . . . . . . . . . . . . . . 248

Figure 6.2 Plugging regulatory gaps......................................... 250 Figure 6.3 Legal prohibition of the use of xed-term contracts for permanent tas ks ..... 268 Figure 6.4 Maximum legal duration of xed-term contracts, including renewals........ 270 Figure 6.5 Levels of collective bargaining and bargaining coverage, 2012-13 ......... 286 Figure 6.6 Collective bargaining levels and non-standard employment............... 288 Figure 6.7 Employment and social protection: how is social protection coverage linked to employment?................................................ 300

LIST OF TABLES

Table 1.1 Examples of types of casual work denition........................... 24 Table 1.2 Examples of legal criteria for the denition of part-time work.............. 28 Table 2.1 Reasons for working on a xed-term basis, European Union countries, 2014.. 58 Table 2.2 Distribution of some non-standard employment by private informal and private formal sector, Cameroon, Democratic Republic of the Congo and Chad ...... 73 Table 2.3 Reasons for working part time in EU-28, 2014......................... 79 Table A2.1 Number of countries classied by region according to the treatment of special groups in non-standard employment ........................ 112 Table 3.1 Examples of bilateral labour migration agreements/MOUs ................ 146 Table 3.2 Percentage of permanent vs temporary and full-time vs part-time workforce (aged 15-59) in EU-27, by origin, 2009 .............................. 148 Table 3.3 Occupational concentration of women by nationality group in Europe, 2009... 150 Table 5.1 Workers holding multiple jobs, and working part time in the main job ....... 198 Table 5.2 Percentage of non-standard workers not covered by social security protection in the Republic of Korea, by type of NSE, 2011......................... 206 Table A5.1 Overview of empirical evidence on labour market transitions of workers in non-standard forms of employment............................... 234 Table A5.2 Overview of empirical evidence on wage penalties between standard and non-standard workers ........................................... 238 Table A5.3 Overview of empirical evidence on differences in social security afliations between standard and non-standard workers ......................... 243 Table A5.4 Overview of empirical evidence on differences in training between standard and non-standard workers........................................ 244 Table 6.1 Principles of equal treatment for part-time workers..................... 253 Table 6.2 Principles of equal treatment for temporary agency work................. 254 Table 6.3 Objective or temporary reason for recourse to temporary agency work ...... 269 Table 6.4 Number of successive xed-term contracts authorized by law............. 270 Table 6.5 Examples of maximum duration of casual work........................ 271 Table 6.6 Limitations on the number of temporary agency assignments and the maximum duration of assignments ........................... 272 Table 6.7 Securing regular employment: examples of recent collective agreements .... 291

NON-STANDARD EMPLOYMENT AROUND THE WORLD

Table 6.8 Regulating work organization...................................... 292 Table 6.9 Negotiating equal pay ........................................... 294 Table 6.10 Extending social insurance coverage: policy options .................... 302 Table 6.11 Workers" right to request a transfer to part-time work ................... 313 Table 6.12 Policy measures for addressing decits in non-standard employment ....... 316

LIST OF BOXES

Box 1.1 The UK doctrine of Mutuality of Obligation" and zero-hours contracts....... 30 Box 1.2 Disguising the true nature of an employment contract................... 37 Box 2.1 The ip side of the Italian honeymoon" reforms ....................... 55 Box 2.2 The rise and fall of temporary employment in Spain..................... 56 Box 2.3 Casual employment in Australia.................................... 64 Box 2.4 Use of non-standard employment in response to economic uctuations: Uganda ...................................................... 74 Box 2.5 Temporary reduction of working hours as an anti-crisis measure........... 84 Box 2.6 Zero-hours contracts in the United Kingdom .......................... 85 Box 2.7 A closer look at contract labour in India: the garment and construction sectors ...................................................... 96 Box 2.8 Non-standard employment in the media and culture industries ............ 101 Box A2.1 Tracking non-standard employment by means of the ICSE-93 ............. 113 Box 3.1 Non-standard employment in the hospitality and tourism sector ........... 118 Box 3.2 Part-time employment in the Netherlands ............................ 125 Box 3.3. The rise of non-standard employment in the education sector in Europe ..... 126 Box 4.1 Mercadona: Employee stability, commitment and success ................ 172 Box 4.2 Issues of non-standard employment at the heart of industrial incidents and strike actions .............................................. 177 Box 5.1 Wage gaps along the wage distribution, selected Latin American countries ... 193 Box 5.2 Wage gaps along the wage distribution, selected Asian countries........... 195 Box 5.3 Working hours of dependent self-employed and subcontracted workers in the road transport sector and their consequences for occupational safety and health.................................................... 197 Box 5.4 Self-employed workers and EU competition law........................ 211 Box 5.5 Working conditions in the gig economy .............................. 222

Box 6.1 Public procurement as an enforcement tool for labour rights .............. 277 Box 6.2 How do the level and structure of bargaining affect bargaining coverage?.... 287 Box 6.3 Regularizing casual workers in South Africa: a case study ................ 292 Box 6.4 Special contracts for young people?................................. 309

INTRODUCTION

CEACR Committee of Experts on the Application of Conventions and Recommendations (ILO) CEEP European Centre of Employers and Enterprises providing Public Services

CFA Committee on Freedom of Association (ILO)

CIETT International Confederation of Private Employment Services

DWCP Decent Work Country Programme

ELFS European Labour Force Survey

ETUC European Trade Union Confederation

EU European Union

Eurofound European Foundation for the Improvement of Living and Working Conditions EUROSTAT Statistical Ofce of the European Communities EU-SES European Union Structure of Earnings Survey EU-SILC European Union Statistics on Income and Living Conditions

FDI Foreign direct investment

FLSA Fair Labor Standards Act (United States)

FTC Fixed-term contract

GAO Government Accountability Ofce (United States) ICSE International Classication by Status in Employment

ILC International Labour Conference

ILO International Labour Ofce / Organization

IT Information technologies

LFS Labour Force Survey

NDLON National Day Laborer Organizing Network (United States)

NSE Non-standard employment

OECD Organisation for Economic Co-operation and Development

OSH Occupational safety and health

SWTS School-to-Work Transition Surveys (ILO)

TAW Temporary agency work

UNICE Union of Industrial and Employers" Confederations of Europe

LIST OF ABBREVIATIONS

INTRODUCTION

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TRENDS IN NON-STANDARD EMPLOYMENT

EXECUTIVE SUMMARY

NON-STANDARD EMPLOYMENT AROUND THE WORLD

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NON-STANDARD EMPLOYMENT

Fixed-term contracts, including

project- or task-based contracts; seasonal work; casual work, including daily work.

Also known as dispatch", brokerage"

and labour hire". Temporary agency work; subcontracted labour. Not open ended

Normal working hours fewer than

full-time equivalents; marginal part-time employment; on-call work, including zero-hours contracts.

Disguised employment, dependent

self-employment, sham or misclassied self-employment. Not full time

Not part

of employment relationshipNot direct, subordinate relationship with end user

TEMPORARY EMPLOYMENT

PART-TIME AND ON-CALL WORK

MULTI-PARTY EMPLOYMENT RELATIONSHIP

DISGUISED EMPLOYMENT / DEPENDENT SELF-EMPLOYMENT

EXECUTIVE SUMMARY

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NON-STANDARD EMPLOYMENT POSES RISKS FOR WORKERS, FIRMS,

LABOUR MARKETS AND SOCIETY

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Employment security.

Earnings.

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Occupational safety and health (OSH). ...

NON-STANDARD EMPLOYMENT AROUND THE WORLD

Social security.

Training.

Representation and other fundamental rights at work.

Implications for rms.

Labour markets and society.

POLICIES TO ADDRESS DECENT WORK DEFICITS IN NON-STANDARD EMPLOYMENT

Plugging regulatory gaps.

Strengthening collective bargaining.

EXECUTIVE SUMMARY

Strengthening social protection.

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INTRODUCTION

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CHAPTER 1 What is non-standard employment?

NON-STANDARD EMPLOYMENT AROUND THE WORLD

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Figure 1.1. The different types of non-standard employment Source: Authors" illustration based on ILO, 2015a.

NON-STANDARD EMPLOYMENT

Fixed-term contracts, including

project- or task-based contracts; seasonal work; casual work, including daily work.

Also known as dispatch", brokerage"

and labour hire". Temporary agency work; subcontracted labour. Not open ended

Normal working hours fewer than

full-time equivalents; marginal part-time employment; on-call work, including zero-hours contracts.

Disguised employment, dependent

self-employment, sham or misclassied self-employment. Not full time

Not part

of employment relationshipNot direct, subordinate relationship with end user

TEMPORARY EMPLOYMENT

PART-TIME AND ON-CALL WORK

MULTI-PARTY EMPLOYMENT RELATIONSHIP

DISGUISED EMPLOYMENT/ DEPENDENT SELF-EMPLOYMENT

CHAPTER 1. WHAT IS NON-STANDARD EMPLOYMENT?

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