“International Labor” adopts the first treaty to protect digital platform workers | economy

The International Labor Organization, affiliated with the United Nations, adopted the first international agreement to regulate work via digital platforms, in a step described as a historic transformation aimed at expanding the umbrella of legal and social protection for hundreds of millions of workers in the gig economy around the world.

The adoption of the “Decent Work in the Platform Economy Agreement” came during the 114th session of the International Labor Conference, which ended yesterday, Friday, in Geneva, to include all digital work platforms and workers working through them, whether in the formal or informal economy, in light of the rapid expansion of this type of work.

The agreement stipulates the need to ensure that workers on digital platforms receive fair wages and social protection on conditions no less favorable than those granted to workers in similar categories. It also obliges countries to ensure the provision of clear, up-to-date and easy-to-understand information regarding working and contracting conditions.

Filling a regulatory gap

The international agreement seeks to address the regulatory gap that has accompanied the growth of the digital platform economy, as delivery companies, transportation services, and online freelance work rely on algorithms that control the distribution of tasks, setting wages, and evaluating performance, while workers are often classified as independent contractors instead of employees, which often deprives them of the benefits of traditional labor protection.

In 2023, the World Bank estimated the number of workers in the freelance economy via the Internet to reach 435 million people around the world, most of whom are outside the scope of the protection provided by employment contracts.

The Director-General of the International Labor Organization, Gilbert Hongbo, said that the organization issued “the first agreement focusing on the impact of digitization in the world of work,” considering that the step represents a direct response to the transformations that technology has imposed on labor markets.

During the agreement’s adoption ceremony, Brazil’s representative to the UN, Tovar da Silva, said that the new text “seeks to bring about tangible improvements in the lives of millions of workers around the world,” noting that about two million workers in her country “will benefit from the enhanced opportunities, dignity, and independence that the agreement provides.”

Fair wages and protection

On the other hand, countries including India, Bangladesh, and the United States of America called for the implementation of the agreement to regulate work through digital platforms “with flexibility that suits the circumstances of each country.”

The representative of the United States of America, Lorenzo Riboni, said that his country continues to call for “extreme caution regarding mandatory regulations in rapidly developing economic sectors,” considering that independent contractors derive their strength from the spirit of initiative and the ability to manage their businesses independently.

The International Trade Union Confederation welcomed the UN agreement, considering it to represent an “important step forward” towards ensuring the rights, protection and dignity of millions of workers on digital platforms.

The union’s political director, Jeroen Bernhardt, said that the agreement constitutes important progress, but he warned that the text allows “limited exceptions” that may lead to the exclusion of some categories of workers, despite the obligation of countries to justify any exceptions they adopt.

Lina Simit, senior economic justice advisor at Human Rights Watch, considered that the agreement represents a “turning point” for workers on digital platforms, because it sets for the first time a global standard for protecting their rights and holding companies operating these platforms accountable.

According to the approved text, the agreement will enter into force 12 months after its ratification by two member states, at a time when calls are increasing globally to regulate the digital platform economy and ensure a balance between digital innovation and workers’ rights.