Imagine hailing a ride or finding a freelancer online with a few taps on your smartphone. These conveniences, powered by digital platforms, have reshaped how work is found and completed. But beneath the surface of this on-demand economy lies a critical question: are our current employment laws equipped to protect the rights and well-being of workers in this rapidly evolving landscape? Researchers at Universiti Teknologi Malaysia (UTM) are diving deep into this issue, examining the legal and social implications of platform-mediated work.

This research highlights that these digital platforms, acting as intermediaries, often exert significant control over workers through constant monitoring and arbitrary disciplinary measures, resembling what the study terms a “Cerberus firm.” This model minimizes organizational costs and rapidly engages a pool of workers, but it also raises concerns about fair labor practices. The research critically examines claims of technological displacement and the alleged decline of traditional employment, suggesting that the employment relationship remains adaptable. Instead, the rise of platform work creates new forms of precarious employment where workers may lack traditional protections and benefits.

The study meticulously maps the various types of app-based work arrangements, from ride-sharing to professional crowdsourcing, evaluating the worker-platform relationship at each stage, from registration to payment. It also assesses existing regulations and initiatives, such as those proposed by the European Commission, to determine their effectiveness in ensuring fair and decent work in the digital economy. The core argument is that rather than assuming that these new realities of work are beyond existing legal concepts, there should be an exploration of how current legal frameworks can adapt to this fast-evolving phenomenon.

This research doesn’t just diagnose the problem; it seeks to bridge the gap between technological advancement and legal protection. By analyzing pending litigations and available legal tools, the UTM researchers aim to develop a regulative framework that safeguards social rights while allowing for societal improvements. The goal is to strike a balance, ensuring that innovation doesn’t come at the expense of worker well-being. The next step involves refining this framework, advocating for policies that promote fairness, transparency, and security in the digital workplace. This work paves the way for a more equitable and sustainable future of work in the platform economy.

DOI: https://doi.org/10.2139/SSRN.3179595