Digital Work Platforms and the Gig Economy: A Call for Client Accountability
Digital Work Platforms: Reshaping Labour Market Dynamics
Digital work platforms have solidified the ‘gig economy’ as a distinct segment of the labour market by facilitating connections between workers and clients. These platforms reshape work organisation and transaction patterns, influencing global labour market dynamics. While scholarly and media attention has focused on platform accountability, client accountability must also be addressed to mitigate structural imbalances within the gig economy.
Regulatory Developments in Germany and the EU
The 2024 EU Platform Directive (2024/2831) represents a key legislative milestone in gig economy regulation. The Directive mandates that platform work align with the Treaty on European Union 2009’s Article 3: promoting societal wellbeing and sustainable development based on ‘balanced economic growth, competitive social market economies, full employment and social progress’.
Extending Accountability through Due Diligence
Due diligence frameworks, originally developed to safeguard human rights and environmental standards, offer a promising model for extending responsibility to client firms. The German Supply Chain Due Diligence Act (‘Lieferkettensorgfaltspflichtengesetz’ – LkSG) and the EU Corporate Sustainability Due Diligence Directive (2024/1760) require companies to identify, prevent and remedy adverse impacts in their supply chains.
Implementing Shared Responsibility
Building on these frameworks, a model of shared responsibility that distributes obligations between platforms and client firms could address these gaps. For instance, client firms could be required to contribute to workers’ social security accounts based on project value. Germany’s social insurance system offers instructive examples through sector-specific schemes such as the construction sector’s Sozialkassen and the artists’ Künstlersozialkasse.
Conclusion
The path toward mitigating platform-worker power imbalances may lie in the Platform Directive’s ‘groundwork’. The two-year implementation window, combined with growing awareness of worker risks in digital service procurement, presents a crucial opportunity for German trade unions, employers and labour advocates to shape uniform, predictable regulation – avoiding fragmented, burdensome frameworks.
Frequently Asked Questions
Q: What is the gig economy?
A: The gig economy refers to the growing trend of temporary, flexible, and often freelance work arrangements facilitated by digital platforms.
Q: What is the EU Platform Directive?
A: The 2024 EU Platform Directive is a legislative milestone in gig economy regulation, mandating that platform work align with the Treaty on European Union 2009’s Article 3.
Q: What is due diligence?
A: Due diligence refers to the process of identifying, preventing and remedying adverse impacts in business operations, often related to human rights and environmental standards.
Q: How does the German Supply Chain Due Diligence Act affect gig workers?
A: The LkSG establishes due diligence obligations for companies to identify, prevent and remedy adverse impacts in their supply chains, including those related to gig workers.
Q: What is the role of client firms in the gig economy?
A: Client firms play a crucial role in the gig economy, commissioning and paying for work done by freelancers and platform workers. They can also be held responsible for fair compensation and working conditions.
