International Labour Authority adopts first treaty to protect workers on digital platforms

The International Labour Organization (ILO), a subsidiary of the United Nations, has adopted the first international convention to regulate work through digital platforms, in a move described as a historic shift aimed at expanding the umbrella of legal and social protection for hundreds of millions of workers in the freelance economy around the world.

The adoption of the "Decent Work in the Platform Economy" was adopted during the work  of the 114th International Labour Conference,  which ended on Friday in Geneva, to include all digital work platforms and workers through them, whether in the formal or informal economy, in light of the rapid expansion of this type of work.

The agreement stipulates that workers on digital platforms must be guaranteed fair wages and social protection on terms that are no less preferential than those granted to workers in similar categories, and obliges states to ensure that clear, up-to-date and easy-to-understand information on terms of employment and contracting is provided.

Bridging an organizational gap

The international agreement seeks to address the regulatory gap that has accompanied the growth of the digital platform economy, where delivery companies, transportation services, and online freelancing rely on algorithms that control the distribution of tasks, setting wages, and appraising performance, while often categorizing workers as independent contractors rather than employees, often depriving them of the benefits of traditional labor protections.

In 2023, the World Bank estimated that up to 435 million people in the online freelancing economy worked around the world, most of whom were outside the protections provided by employment contracts.

ILO Director-General Gilbert Hongbo said the organization had issued "the first agreement focusing on the impact of digitalization in the world of work," considering the move a direct response to the transformations that technology has imposed on labor markets.

During the adoption ceremony, Brazil's representative to the United Nations, Tovar da Silva, said the new text "seeks to make tangible improvements in the lives of millions of workers around the world," noting that nearly two million workers in her country "will benefit from the enhanced opportunities, dignity and independence provided by the agreement."