The lack of regulations in the online gig economy may leave this segment of the work force and companies vulnerable to exploitation, according to a study.
The results of the study were released as the online gig economy maintained its upward momentum following the COVID-19 pandemic, with more workers turning to informal online work for a living.
Freelancers, online workers and their virtual work environment were the focus of the recent knowledge sharing forum organized by the Socioeconomic Research Portal for the Philippines (SERP-P), an initiative of the Philippine Institute for Development Studies (PIDS).
The study titled, “Exploring Policies and Initiatives for Online Workers in the Philippines”, was presented by PIDS research specialist Queen Cel Oren, highlighting the challenges online workers face in securing decent work in this growing online economy.
Oren said that in 2019 to 2020, freelance earnings in the Philippines rose by 208 percent. The massive shift to virtual work during and after the COVID-19 pandemic only boosted this upward trajectory for remote work.
Filipino workers, however, face growing competition from countries with better internet infrastructure. Despite lucrative opportunities, gaps in local policies and infrastructure may hinder worker’s potential, according to the study.
“Online workers are also susceptible to risk and exploitation, such as oversupply of online workers, employment insecurity, discrimination, social isolation, overwork, psychological harm, free labor, and the race to the bottom wage rates,” Oren said.
She said that freelancers generally enjoy flexible work, but the lack of standardized compensation and social protections leaves them vulnerable to overwork and low wages. “The challenge for the government is how to ensure that online work adheres to decent work principles or ideals,” Oren said.
Oren said that ensuring decent work, as defined in the Sustainable Development Goals, would require fair income, workplace security, and social integration for online workers.
She noted a significant gap in coverage, saying of all the employment descriptors used to indicate online workers (freelancer, independent contractor, part-time worker, etc.), only those who are considered self-employed, an employee or an entrepreneur are covered by PAG-IBIG, SSS and PhilHealth.
She suggested reclassifying online workers under the proprietor and compensation earner categories.
Oren also called for necessary adjustments to social protection and taxation systems to ensure they effectively cover flexible work arrangements and safeguard the rights and well-being of online workers.
“The different types of workers and forms of online work imply that a one-size-fits-all policy may not be able to capture and address the various issues that online workers face,” Oren said.
