The platform economy and the employment relationship
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The platform economy &
the employment relationship
DEPARTMENT CRIMINOLOGY, CRIMINAL LAW AND SOCIAL LAW
RESEARCH GROUP SOCIAL LAW
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Crowdworking & Crowdfunding
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Sharing
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Online Business Tools
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Coworking
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Webshopping’s ‘last mile’
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Crowdsourcing (B2B)
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Sharing economy in Europe 2015
▪ 28 billion euro transactions (=0,018%)
▪ Peer2peer transport & accommodation lead
▪ 275 companies
▪ By 2025: x20
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Why?
Economic
Social
Ecological
What’s mine is mine
Quality
Security / Insurance
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Who?
▪ Young (18-24j, 25-34j)
▪ Educated
▪ Urban
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By whom? ‘On demand workers’
▪ Survey in 5 European countries: ND, SWE, GER, UK, AT – end of 2016
▪ 12% respondents has worked on demand
▪ Frequency: 5% weekly/ 6% monthly
▪ For half: <10% of their income
▪ For 2,5%: >50% of their income
▪ Mostly young, relatively educated, gender tilted
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‘Uber partners’? (USA)
▪ 50% are college educated
▪ 50% have a full time job besides Uber
▪ Only 30% have no other job
▪ 50% work less than 15hrs/week
▪ Turnover: 2/3 are gone in less than 2 years
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Motivation
▪ 80% value flexibility above all
▪ Independence
▪ Higher income
▪ Work/life balance
▪ In between jobs
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Issues…
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What’s at stake?
▪ Working time
▪ Working conditions
▪ Insurances and liability
▪ Wages
▪ Termination and dismissal
▪ Taxes, annuation
▪ ….
▪ Hyper-flexible
▪ On demand
▪ Online
▪ Fee
▪ Partner
▪ Interface
▪ ….
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The contractual model (as far as available)
▪ Electronic contractual access to an online platform & app
▪ Standard terms of use, including dispute resolution and
(often) choice of law
▪ ‘Partner’, ‘user’, ‘provider’, ‘tasker’, ‘member’, ‘driver’, etc.
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The business model
= dating service
= pooling
= PayPal 2.0
▪ A platform for leads and
matching
▪ Voluntary asset sharing
▪ Instant and variable
payments + invoices
EMPLOYMENT
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Unpacking Employment v. Platform
Employment Platform
▪ Micro assignments
▪ Commitment to facilitate
leads
▪ Commitment to perform if
accepted
▪ Commitment to channel
fee paid by client
▪ Free at work
▪ Contract
▪ Employer commitment to
provide work
▪ Employee commitment to
perform work
▪ Employer commitment to
pay work
▪ Subordination
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Legally ‘independent’ or ‘subordinate’?
Independent Subordinate
▪ Quality guidelines and
review
▪ Brand visibility
▪ Skills
▪ Business control reality
▪ Price setting
▪ Personal performance
required
▪ ….
▪ Time control
▪ Free (not) to work
▪ Owner/renter of the asset
▪ No cost reimbursement
▪ No exclusivity
▪ Pay for performance
▪ ….
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▪ Are platforms just platforms providing digital services, or
instead virtual transport/hotel/media/banking/…
businesses?
CJEU C-434/15 (2017)
Licensing, insurances, liability, VAT, etc.
Case-law: the long hard road to clarity - Uber
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Case-law: the long hard road to clarity - Uber
▪ Are platforms just platforms providing leads, or instead
employers of the service providers?
Aslam and Farrar v. Uber (London Employment Tribunal 2016 &
Employment Appeal Tribunal 2017): ‘workers’ under UK law
Uber v NUPSAW and SATAWU obo Morekure and Others (CCMA
SA, 2017): employee
McGillis v. Uber (Florida Third District Court of Appeal, 2017): no
‘employee’ – control is on the result, and not on the means to be
employed
Menard v Uber (Conseil de Prud’hommes, Paris, 2018): no
‘employee’
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30.07.2010Footer text - slideshow title
Case-law: the long hard road to clarity - Uber
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The future
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Shifting sands
▪ Economic activity, relationships, and responsibilities are
being digitized
▪ Fractionalisation of work and working time: multitude of
ad hoc contractual arrangements
▪ Triangular relationships: the platform
▪ Distinction economic/non-economic and
independent/subordinate is blurred
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The tension ahead
▪ Sharing economy = networks & trust
▪ To grow up = brand, uniformity, quality, reliability, control,
training, bargaining, …
To do = to die?
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Some food for thought
▪ ‘Uberification’ of work is not around the corner
▪ Technology blurs old distinctions, and is not going away
▪ Participation and polarization at the same time
▪ Networks = price fixing + winner takes all = anti-trust threat
▪ Systemic issues of jurisdiction and access to justice
▪ Time to blend for ‘economic worker’ status?
▪ A updated framework for casual/mini work?
▪ A special group category?