The unregulated GIG economy: a critical analysis of labor laws in Pakistan

Abstract

This study attempts to critically analyze the legal status of gig workers by thoroughly dissecting the legal frameworks governing gig work with a particular focus on the United Kingdom (UK), United States (US) and Pakistan. It begins by elucidating the profound impact of the gig economy on contemporary labor markets, underscoring the myriad challenges faced by gig workers in securing their fundamental rights. These rights encompass equitable compensation, access to insurance, paid leave, and the freedom to participate in trade unions. The gig economy, catalyzed by the fourth industrial revolution, has redefined labor markets, ushering in a new era of technology-driven work arrangements. This transformation has sparked debates worldwide regarding the appropriate legal classification of gig workers whether they should be designated as employees or independent contractors. The International Labor Organization (ILO) played an important role in addressing these global labor concerns. ILO conventions and recommendations lay down essential guidelines for universal labor rights, placing significant emphasis on the precise determination of employment status to ensure comprehensive social and labor protections. The investigation of this study is fully supported by the illustrative case studies from the UK, the US, and Pakistan, illuminating the legal battles and progress achieved in safeguarding the rights of gig workers. Notably, the Razak v. Uber Technologies case sets a significant precedent regarding gig workers' employment status and their entitlement to minimum wage and overtime protections. The developed nations like the UK and the US have made efforts in addressing the concerns of gig workers, formidable challenges persist but Pakistan is still struggling to deal with this sector. This study offers invaluable insights into the legal developments and case law in these countries and provides a comprehensive understanding of the global ramifications of gig work for labor rights and international legal obligations. Ultimately, it highlights the necessity for comprehensive legislation to be enacted for gig workers, addressing their needs and concerns more effectively.