Regulating Platform-based Work in Low and Middle-income Countries : Towards a Context-Appropriate Approach

Overview & Synopsis

The note is divided into three parts. Part One provides a conceptual framework for understanding labor market dynamics and market failures typical of platform work. It then summarizes regulatory responses to these failures based on a review of regulations from middle- and high-income countries. We find that authorities have taken two main regulatory approaches. The first focuses on improving and clarifying the classification of platform workers, with the goal of giving at least some platform workers the opportunity to be treated as formal employees and to enjoy the full package of labor and social protection rights enshrined in the existing legislation. The second, adopted by several middle-income countries, creates special regulations or amends existing labor regulations specifically tailored for platform workers. These tailored regulations provide a more limited set of rights than those granted to formal employees. They are also often crafted after engagement with stakeholders in social dialogue.