Recent labour market trends have prompted countries to reflect on whether existing
systems of labour legislation, lifelong learning, social protection, taxation and
collective bargaining are still fit for purpose. While in some cases they are, in
others policies may need to be adapted to ensure protection for vulnerable workers
and to prevent abuse, and to ensure that firms that comply with the regulations are
not unduly disadvantaged.
This report provides a snapshot of the policy actions being taken by countries in
response to growing diversity in forms of employment, with the aim of encouraging
peer learning where countries are facing similar issues. The findings are based on
a survey by the OECD and the European Commission of 44 Ministries of Labour (or the
ministry with responsibility for labour market policy) in OECD, EU and G20 countries,
carried out primarily between June and August in 2018.
The survey shows that many countries are reflecting on whether existing policies and
institutions are capable of addressing effectively the current (and future) challenges
of a rapidly changing world of work. In some cases, they are. In cases where they
are not, a number of countries are already taking action to ensure protection for
vulnerable workers and to prevent abuse.
While each country’s situation is different, the report highlights a number of areas
of common concern. One key issue mentioned by many countries is that of self‑employment
and, in particular, the issue of misclassification and the challenge of classifying
workers that fall in between the traditional definitions of dependent employment and
self‑employment. Many countries acknowledged that ensuring the correct classification
is key to ensuring access to labour and social protection, as well as to collective
bargaining and lifelong learning – but even beyond the issue of classification, countries
have made efforts to extend rights, benefits and protections to previously unprotected
workers. For some countries, reducing differences in tax treatment between contract
types could help reduce the risk of misclassification.
Several countries also report significant media and public debate on the topic of
platform work: how to classify these workers and how to ensure adequate working conditions.
A number of countries have already taken policy action in relation to platforms in
the passenger transport sector, regulating the way they operate and imposing reporting
obligations in relation to taxation.
Concerns are also raised about working conditions in fixed‑term contracts and in variable
hours contracts, the potential excessive and/or improper use of these working arrangements,
as well as the potential disproportionate impact on younger people and on new entrants
to the labour market. Regulation has attempted to strike an appropriate balance, allowing
flexibility while preventing firms from using these arrangements to circumvent regulations
associated with standard employment.
Gaps in social protection for those in new forms of work are also high up the list
of concerns, and several countries mentioned ways to improve coverage for vulnerable
self‑employed workers, to enhance portability for individuals moving between different
employment statuses, and to provide multiple layers (contributory, means‑tested and
universal) of social protection.
Some countries are also considering ways to extend the right to collective bargaining
rights to previously excluded groups of workers.
The list below presents a set of policy directions to guide policy makers in consolidating,
reviewing and adapting policies and institutions in response to the emergence and
growth in new forms of work.
Policy directions
These policy directions will feed into a broader set of future of work policy directions,
which will be set out in the OECD Employment Outlook 2019.
Ensuring the correct classification of workers (and tackling misclassification) is
essential to ensure that workers have access to labour and social protection, as well
as to collective bargaining and lifelong learning.
Countries should aim to minimise incentives for firms and workers to misclassify employment
relationships as self‑employment just in order to avoid tax and social contribution
liabilities.
Countries may want to consider extending rights and protections to workers in the
“grey zone” between dependent employment and self‑employment.
Greater efforts are needed in some countries to ensure adequate working conditions
in fixed‑term, casual and platform work, and tackle the excessive and/or improper
use of these forms of work.
Social protection systems should be examined and, where necessary, reformed to improve
access to benefits for workers in new forms of work.
Governments may need to adapt existing strategies for Public Employment Services and
public skills programmes to improve access and participation amongst those in new
forms of work.
Policymaking should be based on evidence rather than anecdotes and where countries
are facing similar issues, peer learning can contribute to better policies.
