What You Need to Know About the Gig Economy and Platform Workers
- The gig economy includes short-term work or tasks, often organized through digital platforms. This work can be performed online or in person, across sectors such as delivery, domestic work, transport, data work and freelance services.
- Platform workers face both opportunities and risks. Digital platforms may offer flexibility and income opportunities, but many workers experience insecure earnings, limited protections, algorithmic control and barriers to resolving workplace issues.
- Gig workers and platform workers have fundamental labour rights. These include freedom of association, the right to collective bargaining, freedom from discrimination and forced labour, and the right to a safe and healthy working environment.
- Regulation of platform work is evolving. Governments, worker organizations and international institutions are working to improve protections for platform workers, including through new laws, collective bargaining agreements and international labour standards.
- Platform work shares important challenges with informal employment. Many platform workers are classified as self-employed or own-account workers, which can exclude them from social protection, minimum wages and other labour protections.
Definitions
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The gig economy is the part of the labour market characterized by short-term work activities and tasks often referred to as “gigs”. Over time, people have started to use the term to describe anyone doing short-term or freelance work, often mediated through online platforms. The gig economy today spans many industries, skill levels and work arrangements. Work in the gig economy is often contrasted with “traditional” long-term jobs where there is a clear employer-employee relationship.
Source: ILO (2025). Exploring the gig economy: Challenges and opportunities A self-guided resource.
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A digital platform is a type of online infrastructure that allows two or more groups or individuals to interact. It can involve the exchange of labour, goods, digital products, or information.
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Digital labour platforms use digital technology, online marketplaces or algorithms to facilitate or organize the exchange of work, services or goods for pay. The work can be performed online (i.e. through cloud-based platforms) or in a specific geographical location (i.e. through location-based platforms). What is unique is that technology is used to mediate the request for services and provision of work.
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Platform employment is a broad definition which encompasses any type of job where a worker’s labour is organized, paid or contracted through a digital labour platform.
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A digital platform worker is any person who is either employed or engaged to provide paid work or services which are organized through a digital labour platform like an app or other internet-based platform. They are considered a digital platform worker regardless of their status in employment (i.e. whether they are classified as self-employment, a dependent contractor or employee) and whether they work in formal or informal employment.
Types and Examples of Platform Work
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There are two broad categories of digital platform work:
- Location-based platforms use digital technologies to organize the work but the tasks are performed at a specified physical location. Examples include taxi drivers, delivery workers, domestic workers and other professional services including plumbing, beauty and wellness services.
- Online / web-based platforms mediate tasks that are performed online and remotely. Examples include graphic design, data entry, writing and editing, software development, content moderation and more.
Source: Rani, Dhir and Gobel (2025). Digital labour platforms and their contribution to development outcomes
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Not exactly. Gig work is a form of employment which combines short-term jobs or tasks, often referred to as “gigs”. Gig work is often contrasted with “traditional” long-term jobs where there is an employer-employee relationship. Digital platform work is a specific type of gig work. It is paid work or services which are organized through or mediated by a digital labour platform like an app.
Source: Statistics Canada (2024). Defining and measuring the gig economy using survey data
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Gig work is a form of employment which combines short-term jobs or tasks, often referred to as “gigs”. Gig work is often contrasted with “traditional” long-term jobs where there is an employer-employee relationship.
Examples could include people who do short-term freelance work like graphic design, data entry, software development or on-demand work that is mediated through digital labour platforms like taxi drivers, delivery workers, domestic workers or other professional services
Data, Scope and Participation
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There is no accurate global estimate for the number of individuals who work on digital labour platforms. The most accurate and reliable statistics on employment are captured through labour force surveys but these do not currently adequately capture platform workers.
Also, most digital labour platforms do not publicly disclose the number of active workers using their platforms. Work is underway – through the International Conference of Labour Statisticians – to adopt an international statistical standard for measuring digital platform employment.
Source: ILO (2026). Digital labour platforms: Number of platforms and workers
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Women are an increasing share of workers in the platform economy, and often engage in domestic work, beauty and wellness work, data work. They face unique challenges, such as vulnerability to sexual harassment, lower pay, discrimination from customers (especially in masculinized sectors, such as ride-hailing and delivery). Increasingly, women workers’ groups and unions are mobilizing women platform workers to advocate for better working conditions and the recognition of gender-based inequalities.
Source: Feminist Digital Justice (2019). Gender Equality in the Digital Economy: Emerging Issues
Working Conditions, Risks and Worker Rights
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Digital platform workers often work in conditions of precarity. Many have variable incomes and wages, and lack leave policies and other worker protections. This is mainly because workers are not considered employees of platforms. While some workers, particularly women, seek the flexibility that platforms offer, this often comes at a cost. Because platforms are often managed through algorithms, workers are left vulnerable to encoded biases, lack of human-mediated resolution to issues, as well as challenges of data protections and privacy.
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Gig workers and digital platform workers have fundamental rights to:
- Freedom of association and the right to collective bargaining;
- Freedom from all forms of forced or compulsory labour;
- Freedom from discrimination at work;
- A safe and healthy working environment.
These are recognized as universal human rights for workers.
The UN Convention on Human Rights also recognizes the right to a standard of living adequate for health and well-being, including food, housing, and medical care.
Source: ILO (2026). Fundamental Principles and Rights at Work
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Algorithmic management refers to systems that use tracked data and other information to organize, assign, monitor, supervise and evaluate work.
While some have argued that algorithmic management reduces the risk of discrimination associated with human managers, studies have shown these systems can create new forms of bias and discrimination.
Workers have expressed concern around privacy, surveillance, and inability to negotiate and resolve workplace disputes, as they are interfacing with a system rather than a person.
Source: Wood, A.J. (2021) Algorithmic management consequences for work organisation and working conditions
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Tech companies use ratings systems and algorithmic management to monitor and distribute work to digital platform workers. Their ratings systems influence how much work someone may be assigned, meaning that workers could spend hours waiting for work even though they are “on the clock”. Companies can also change their terms and conditions and price and fee structures, incentivizing people to work at specific peak times.
This means although there is the illusion of autonomy, workers have little control over their working hours, income or access to work.
Source: Wood, A.J. (2021) Algorithmic management consequences for work organisation and working conditions
Business Models and Fairer Alternatives
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Platform cooperatives are examples of worker-owned, democratic business models in the platform economy. Think of any big platform app, but owned and governed entirely by workers. Across the world, there is a growing movement of platform cooperatives, across sectors of work. These offer workers the benefits of platform work, but in a fair and inclusive way. The Platform Cooperativism Consortium documented over 630 platform cooperative projects in over 50 countries as of 2026.
Source: Hiriyur, S. (2022). Informal workers harnessing the power of digital platforms in India
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There are five business models for digital labour platforms:
- Location-based: Workers perform this in-person, with physical proximity to the customer. For example, domestic work or cab drivers.
- Subscription-based: Workers pay a subscription fee and have ongoing, regular access to the service offered through the platform.
- On-demand: These platforms act as an intermediary between two parties for short-term gigs/one-off services.
- Digital placement agencies: These match workers with customers for longer term employment, often charging a one-time fee.
- Marketplace platforms: These enable the exchange of information, generally not involved in setting the terms of work.
Source: Tandon & Rati, (2021). Care in the Platform Economy: Interrogating the Digital Organisation of Domestic Work in India
Regulation, Classification and Labour Protection
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Yes, it is an area where regulations are evolving and increasingly, countries are adopting legislation to regulate platform employment, in order to provide better worker protections. The ILO Digital Labour Platform Tracker outlines over 70 examples of legislation and collective bargaining agreements that have protections around working time, social security, freedom of association and more. The tracker is a resource for governments, policymakers and worker organizations to understand policy developments in this area.
In 2026, efforts are underway to negotiate a global labour standard to promote decent work in the platform economy.
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Tech companies argue that digital platform workers are self-employed, while advocates argue that platform work blurs the line between employee and self-employed.
The International Labour Organization outlines categories of working relationships by assessing the authority the worker has over their work, alongside the economic risk they are exposed to.
Given digital platform workers have a high degree of economic risk and a low to medium level of control over their work, many argue they should be classified as employees or dependent contractors.
All workers, regardless of their status in employment, or whether they work in the formal or informal economy have labour rights.
Source: Fredman et al (2025). Fair Work for Platform Workers: Lessons from the EU Directive and Beyond
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At the 2026 International Labour Conference, employers, workers and governments will negotiate a new international labour standard to promote decent work in the platform economy. Once adopted, member states are invited to ratify the Convention and implement national laws in line with the labour standard.
At the regional and national level, many countries are beginning to regulate the platform economy. The EU Platform Work Directive, state-level regulations in India (in Karnataka, Rajasthan, Telangana) are examples of this.
Source: ILO (2026). 114th Session of the International Labour Conference
Platform Work, Informality and Formalization
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Yes, in some ways. Workers in the platform economy and informal economy both often experience similar vulnerability and decent work deficits. For example, digital platform workers are often classified as self-employed, own account workers by tech companies. This enables companies to maximize profits by avoiding employer responsibilities like social security contributions or minimum wages. Because labour laws in many countries exclude own-account workers – whether they work in the formal or informal economy – platform workers experience similar vulnerabilities and decent work deficits to workers in informal employment. These include insecure incomes and lack of access to health care.
Source: Castel-Branco et al (2021). The Future of Work in the Digital Age
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Platform workers work in many different ways and on a variety of tasks – they work across several sectors, with some in a specific location and others remotely.
One challenge is the disguised employment relationship between platform workers and platform owners. Companies often argue that the platform is simply linking self-employed entrepreneurs with customers and maintain there are no grounds to impose labour laws. But such arguments mask the level of control platforms have over workers through the use of algorithms that can control workers’ access to customers and their pay rates.
The absence of appropriate regulations hinders the recognition and protection of platform workers’ labour rights.
Source: ITUC. (undated). Everyone Counts: Extending ILO Protection to Every Platform Worker
Our Work on Formalization
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