Even of employment The expression “gig economy” has an

Even though uberization is thriving, it faces several challenges. Concerns
over government regulations and taxations are just the beginning: individuals
may or may not declare incomes generated through the sharing economy for
taxation as required. It’s a fiscal uncertainty that has yet to be resolved.
Lack of regulations and uncertainty about the working contracts are other
problems.

A lot of costumers are not entirely trusting the way uberized businesses
work; having no direct intermediary but just a platform, it’s difficult for the
company to control their contractors. Costumers mistrusted the firms until
consumer evaluations were added to the different platforms.

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The sharing economy is still emerging and it is difficult for economists
to make predictions about the future. Legal limitations are just starting to be
established by the different governments. Furthermore, the booming business of
Uber sets an example for a lot of new start-ups but not every start-up has the
same success story than Uber and vanish after a while.

 

a.    How
the Gig economy changes the nature of employment

The expression “gig economy” has an increasing trend. At first, the name
gig was used in the music industry were bands and musicians would play wherever
they could. They didn’t necessarily have a fix employment so they travelled a
lot to play a gig that payed them. Nowadays the gig economy represents a promising
economic model.

The Oxford dictionary defines the gig economy as: “A labour market characterized by the prevalence of short-term contracts
or freelance work as opposed to permanent jobs.” This on-demand economy
comes along with the sharing economy as it provides opportunities and jobs. Individuals
are offering their full potential and applying their knowledge and talents for
jobs they like to do instead of having some kind of employment that doesn’t
bring them any joy in their lives. Employees do not have fixed
contracts but the jobs are temporary and flexible.

The gig economy has both followers and critics, who can point out
several relevant factors enlightening why they support or in the contrary
resent this economic model. Some analysts are pleased with the new
opportunities that are created, especially for low-skilled and unskilled
workers, while others warn about the insecurity of working conditions.

On one hand, the sharing economy pioneers like Uber or Deliveroo offer
independent and targeted remunerated jobs. Individuals don’t sign a stable
employment contract, but they sell their work on a task to task base. In the
case of Uber, which was previously described, customers request a lift from A
to B, Uber drivers who are closest to A then answer, they pick up the person
and drop the client of at B. In other words, the gig economy is based on an
on-demand service and individuals reply by providing their individual work. All
these businesses are connecting people directly without the need of a
middleman. Well, in this case the application or internet site is the middleman
but since they don’t produce physical goods, don’t provide a direct service or
don’t possess physical capital to make the good or service available, they are
not perceived as a typical intermediary. You can observe that, in the example
of Uber, the company doesn’t hold own vehicles but the cars used for their
provided service belong to the different drivers they hire through their
platform. It’s a simple representation for demand meets supply. For the
supporters of the gig economy, it is very efficient since freelancers can
simply find jobs to fulfil and therefore get paid for their work.

On the other hand, workers are classed as independent contractors, so
they have no fixed income and no right to a minimum wage, they have no
protection against unfair dismissal; paid holiday or sickness pay aren’t even
on the table. In fact, opponents of the gig economy don’t believe that
freelancers get enough paid with every small job they perform. Because what
happens if there is no work available at a certain point in time? The economy
makes it hard for the freelancers to have any safety net, also they really
depend on demand to earn their living. To add to this point, adversaries to the
gig economy elaborate on the fact that this working situation is very different
to the traditional working conditions, particularly when it comes to ending
working for unwanted reasons. Here is an example of a Deliveroo rider: While
delivering food from a restaurant to a customer, he breaks his foot. Thus,
during the time of recovery, he cannot execute his job as a food deliverer. The
deliveryman, who is considered as self-employed by the company, has no rights
to economic compensations while recovery. And as mentioned early, the gigs do
not provide a very strong safety net, therefore the deliveryman will have a
hard time not being able to perform remunerated tasks. Consequently, the main problem
for detractors to the gig economy is related to the fact that the workforces
depending on it do not benefit from the same employment protections other, more
traditional employees might enjoy.

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