The Social Protection of Workers in the Platform Economy PDF

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The Social Protection of Workers in the Platform Economy

DIRECTORATE GENERAL

FOR INTERNAL POLICIES

POLICY DEPARTMENT A: ECONOMIC AND SCIENTIFIC POLICY

The Social Protection of Workers in

the Platform Economy STUDY

Abstract

This study investigates the social protection of workers in the platform economy at the request of the European Parliament's Employment and Social Affairs Committee. The report reviews literature and previous research on the platform economy with the aims of defining it and developing a typology for understanding its nature. It discusses the growth and drivers of the platform economy, as well as benefits and challenges for workers, reporting findings from 50 interviews conducted with expert stakeholders in eight

European countries and from an

original survey of 1,200 platform workers. It dissects the different normative layers that need to be considered when looking at the challenges of social protection of platform workers from a legal perspective. Finally, the report draws conclusions and makes recommendations concerning arrangements for the provision of social protection for workers in this growing sector of the economy.

IP/A/EMPL/2016-11 November 2017

PE 614.184

EN This document was requested by the European Parliament's Committee on Employment and

Social Affairs.

AUTHOR(S)

Chris FORDE, Mark STUART, Simon JOYCE, Liz OLIVER, Danat VALIZADE, Gabriella ALBERTI, Kate HARDY, Vera TRAPPMANN, Charles UMNEY, Calum CARSON, Centre for Employment Relations Innovation and Change (CERIC), University of Leeds, LS2 9JT, United Kingdom. With contributions from JUSTYNA KATJA (Poland) and GABRIELA YORDANOVA (Bulgaria).

RESPONSIBLE ADMINISTRATOR

Marion SCHMID-DRÜNER

EDITORIAL ASSISTANT

Janetta Cujkova

LINGUISTIC VERSIONS

Original: EN

ABOUT THE EDITOR

Policy departments provide in-house and external expertise to support EP committees and other parliamentary bodies in shaping legislation and exercising democratic scrutiny over EU internal policies. To contact Policy Department A or to subscribe to its newsletter please write to: Policy Department A: Economic and Scientific Policy

European Parliament

B-1047 Brussels

E-mail: Poldep-Economy-Science@ep.europa.eu

Manuscript completed in November 2017

© European Union, 2017

This document is available on the Internet at:

DISCLAIMER

The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice and sent a copy. The Social Protection of Workers in the Platform Economy

PE 614.184 3

LIST OF ABBREVIATIONS 5

LIST OF TABLES 8

LIST OF BOXES 8

LIST OF FIGURES 8

EXECUTIVE SUMMARY 10

INTRODUCTION 15

THE PLATFORM ECONOMY: DEFINITIONS AND TYPOLOGY 19

2.1. Definitions of the platform and collaborative economy 20

2.1.1. Normative aspects of definitions 21

2.1.2. Defining the "gig economy" 23

2.1.3. Differentiating the platform economy from traditional arrangements 24

2.2. The role of platforms 24

2.2.1. The platform as intermediary, or providing the underlying service? 25

2.2.2. Collaboration and sharing on platforms versus "global corporations" 26

2.2.3. Categories of actors in platform work 28

2.3. Towards a typology of platform work 28

2.3.1. Types of platform and platform work 28

2.3.2. A typology of platforms 30

PLATFORM WORK AND PLATFORM WORKERS 34

3.1. Size and drivers of the platform economy 35

3.1.1. Size of the platform economy 35

3.1.2. Growth and drivers 38

3.2. Benefits and challenges of working in the platform economy 42

3.2.1. Demographic characteristics of platform workers 43

3.2.2. Reasons for working in the platform economy 44

3.2.3. Working time and pay 45

3.2.4. Job quality and wellbeing 50

3.2.5. Social protection for platform workers 54

3.2.6. The experiences of different clusters of workers in the platform

economy 59

LEGAL ISSUES IN THE SOCIAL PROTECTION OF PLATFORM

WORKERS 67

4.1. Platform workers' access to social protection 68

4.2. The significance of an "employment relationship" or "contract of employment" 71

4.3. Regulations and norms agreed between workers and employers 73

4.3.1. Platform work relationships as contracts 73

Policy Department A: Economic and Scientific Policy

4 PE 614.184

4.3.2. Webs of actors and agreements 74

4.3.3. Negotiation and enforcement of contract terms 75

4.3.4. Contract form: a central issue 77

4.4. Norms derived from collective bargaining 78

4.4.1. Collective bargaining, social dialogue and defining contract form 79

4.4.2. Access to collective bargaining for non-standard workers 79

4.5. Norms derived from national legal systems: constitutional, legislative,

administrative 81

4.5.1. Establishing contract form: another source of variation 81

4.5.2. Expanding the boundaries of the "employment relationship" 84

4.5.3. Creating other forms of work relationship that trigger social protection 85

4.5.4. Social protection for the self-employed 86

4.5.5. Litigation concerning classification and misclassification 89

4.6. Norms derived from common or judge-made law, or jurisprudence 91

4.7. Norms derived from supranational legal systems such as the EU and ILO 92

4.7.1. The definition of worker within EU Law 92

4.7.2. Definition of the worker within free movement provisions 93

4.7.3. The protection of "atypical workers" within EU law 95

4.7.4. The ILO 97

POLICY RECOMMENDATIONS 99

5.1. Data provision 99

5.2. Employment Law Reforms 100

5.3. Social security reforms 104

5.4. Tax reforms 105

5.5. Wage reforms 105

5.6. Setting standards for platforms 106

5.7. Collective representation for platform workers: trade unions, cooperatives,

and other intermediaries 107

REFERENCES 109

ANNEX:

U(2017)614184(ANN01)_EN.pdf

The Social Protection of Workers in the Platform Economy

PE 614.184 5

LIST OF ABBREVIATIONS

ACTA L'associazione dei Freelance

AMT Amazon Mechanical Turk

BITKOM Bundesverband Informationswirtschaft, Telekommunikation und neue Medien (Federal Association for Information Technology,

Telcommunications and New Media)

BMAS German Federal Ministry of Labour and Social Affairs

CAC Central Arbitration Committee

CAE Cooperatives D'Activites et D'Emplois

CCOO Comisiones Obreras

CGIL CJEU

Confederazione Generale Italiana Lavoratori

Court of Justice of the European Union

CMNC Comisión nacional de los mercados y la competencía

CSIL Confederazione Italiana Sindacati Lavoratori

CIPD Chartered Institute of Personnel and Development

DIY Do It Yourself

EU European Union

EC European Commission

ECJ European Court of Justice

ELLN European Labour Law Network

EP European Parliament

ESSEC École Supérieure des Sciences Économiques et Commerciales

ETUC European Trades Union Congress

ETUI European Trades Union Institute