Pros and Cons

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ePortfolio solutions paper ‘With a large proportion of the population worldwide who are
participating in the gig economy, there are both benefits for and drawbacks from individuals
participating in the this type of work’
Name: Joseph Martinez Molina
Student Number: S5131178
Tutorial: Wednesday 1:00pm
Word Count: 1070

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The emergence of the gig economy has had a profound impact on the modern labour
market, affecting the daily lives of many workers. This essay will concentrate on migrants - a
significant demographic that relies on this industry (International Labour Organisation,
2020). Migrants are defined as individuals living in a country other than their birthplace
(Australian Bureau of Statistics, 2021). This paper will explore the unique characteristics of
migrants and delve into the benefits and challenges they face in the gig economy. In addition,
recommendations will be proposed to address these challenges. The paper aims to shed light
on the importance of understanding and addressing the specific issues faced by migrant
workers in the gig economy, offering valuable insights for organisations, employees, and
society as a whole.
Participating in the gig economy presents a two-sided scenario, bringing forth benefits
and challenges for migrant workers. One of the advantages it offers is autonomy and
flexibility. Most platform-based jobs allow workers to choose when they want work while
also allowing them the freedom to adjust and reject offers without facing consequences,
thereby empowering migrants with a degree of control over their jobs (Van Doorn et al.,
2023). Furthermore, the flexibility provided allows workers to balance other commitments
outside of work. Therefore, migrants can make time for family and friends to support their
mental well-being, while also providing time to assimilate into their new cultural and social
environment (Chen et al., 2022).
Another advantage of the gig economy is its ability to create employment
opportunities for migrant workers who face difficulties in securing traditional employment.
Migrants often encounter intricate systemic and structural obstacles when seeking regular
jobs (Van Doorn et al., 2023). These obstacles comprise of language barriers, unfamiliarity
with the job market, non-recognition of foreign qualifications, limited access to career
resources and support, and systemic discrimination (Abkhezr & McMahon, 2022). In
contrast, the gig economy provides a more accessible avenue for finding work, effectively
bypassing many of these challenges. Numerous platforms within the gig economy have low
barriers to entry, while others focus solely on individual skill sets (Van Doorn et al., 2023).
This not only contributes to their economic self-sufficiency but also wellbeing and
independence.
Apart from these opportunities, workers also encounter challenges. One notable
challenge is the absence of benefits that regular employees typically receive. Traditional
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employment typically includes entitlements such as superannuation, sick leave, overtime pay,
holiday leave, and workplace compensation for injuries. However, many gig jobs classify
workers as independent contractors rather than employees, denying them of these
entitlements. The absence of these benefits leaves gig workers vulnerable during times of
illness and financial uncertainty. Additionally, unlike regular employees, gig workers often
lack a stable income, contributing to increased financial stress. This absence of fundamental
protections combined with an unstable income would increase financial stress, putting the
well-being of these workers at risk, highlighting a system that prioritises profit over its
workforce.
Migrant gig workers encounter another significant challenge in the form of
exploitative labour conditions. For instance, the lack of labour protections and entitlements
exposes migrants to exploitation by employers and platform operators, giving rise to the
notion of 'Sham Contracts’ (Myhill et al., 2021). This involves employers evading payment
of benefits through legal loopholes, and categorising individuals as independent contractors
when they perform tasks similar to those in standard employment relationships (Lata et al.,
2023). Furthermore, a platform can deactivate/terminate a worker at any point without giving
notice or a valid reason. Additionally, many gig workers are compensated per task, often
resulting in earnings that fall below minimum wage standards. Consequently, the exploitative
practices by some of these platforms can lead to wage underpayments, wage theft, and unfair
dismissals for workers in this sector (Van Doorn et al., 2023). These exploitative practices
highlight the need for widespread changes to address and resolve the injustices faced by
migrant workers in the modern labour environment.
Recommendation 1: Introduce new labour laws to classify gig workers separately

A solution to address the absence of benefits for gig workers involves developing and
implementing laws to close loopholes and improve the essential rights of workers. These new
labour laws should introduce the classification of gig workers, ensuring that they are not
denied essential benefits due to being incorrectly categorised as independent contractors.
These laws should outline the essential rights and protections that gig workers should receive
to mirror those of regular employment relationships. They should also include the right to
certain benefits such as sick leave, fair wages, workers compensation for injuries, and
protection against unfair dismissal. This recommendation is based on the finding that migrant
gig workers are vulnerable in times of illness and financial instability. By legally mandating
these rights, policymakers can bridge the gap between gig work and regular employment,
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providing a legal framework to safeguard the welfare of these individuals who are already at
a disadvantage, while creating a fair and just labour market.
Recommendation 2: Regulations to combat exploitation among gig workers

To address wage exploitation in the gig economy, regulations should be put in place to
combat wage theft and unfair dismissals. To prevent unfair dismissal, laws should be
established to protect gig workers from unfair deactivation. This means that platforms should
only terminate a worker's contract for a valid reason and with reasonable notice. This will not
only safeguard workers from unfair dismissals, but it will also provide them with a sense of
job security. With sham contracts and wage theft, penalties should be imposed for platforms
that intentionally underpay workers. By imposing penalties, there will be a financial
disincentive for companies engaging in this illicit practice, thereby promoting fair
compensation and compliance with labour standards. By establishing and strictly enforcing
these regulations, a fair and secure environment for gig workers can be created.
In conclusion, the gig economy presents a complex landscape for migrant workers,
offering both opportunities and challenges. On one side it offers them autonomy and
economic opportunities in an unequal labour market. However, the absence of benefits,
exploitative labour conditions, and the risk of financial instability pose significant threats to
their well-being. To address these issues, introducing new labour laws to classify gig workers
separately, ensuring entitlements like sick leave and fair wages, becomes crucial.
Additionally, strict regulations combating exploitation, unfair dismissals, and wage theft are
necessary. Implementing these recommendations will not only protect the rights of migrant
gig workers but also contribute to a fair and equitable labour market.
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References
Abkhezr, P., & McMahon, M. (2022). The intersections of migration, app-based gig work,
and career development: implications for career practice and research. International
Journal for Educational and Vocational Guidance, 1–19, 1–19.
https://doi.org/10.1007/s10775-022-09556-w
Australian Bureau of Statistics. (2021). Migrant Data Matrices.
https://www.abs.gov.au/statistics/people/people-and-communities/migrant-data-
matrices/latest-release#glossary
Chen, T., Song, W., Song, J., Ren, Y., Dong, Y., Yang, J., & Zhang, S. (2022). Measuring
Well-Being of Migrant Gig Workers: Exampled as Hangzhou City in
China. Behavioral Sciences, 12(10), 365. https://doi.org/10.3390/bs12100365
International Labour Organisation. (2021). The role of digital labour platforms in
transforming the world of work. World Employment and Social Outlook 2021.
Lata, L. N., Burdon, J., & Reddel, T. (2023). New tech, old exploitation: gig economy,
algorithmic control and migrant labour. Sociology Compass, 17(1).
https://doi.org/10.1111/soc4.13028
Myhill, K., Richards, J., & Sang, K. (2021). Job quality, fair work and gig work: the lived
experience of gig workers. International Journal of Human Resource
Management, 32(19), 4110–4135. https://doi.org/10.1080/09585192.2020.18676
Van Doorn, N., Ferrari, F., & Graham, M. (2023). Migration and migrant labour in the gig
economy: an intervention. Work, Employment and Society, 37(4), 1099–1111.
https://doi.org/10.1177/09500170221096581

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Name: Joseph Martinez Molina

Student Number: S5131178

Tutorial: Wednesday 1:00pm

Word Count: 1070

Recommendation 1: Introduce new labour laws to classify gig workers separately

Recommendation 2: Regulations to combat exploitation among gig workers

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