Rights And Responsibilities In The Labor Market Based On The Platform Economy

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Khujanazarov, . Y. (2021). Rights And Responsibilities In The Labor Market Based On The Platform Economy. The American Journal of Political Science Law and Criminology, 3(08), 1–5. https://doi.org/10.37547/tajpslc/Volume03Issue08-01
Yusufjon Khujanazarov, Tashkent State University Of Law

Independent Researcher

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Abstract

Platform employment is a dynamically developing flexible format that can play the role of both primary and secondary employment. Although the available statistics do not allow us to accurately estimate the size of this segment of the economy, we can talk about its large-scale growth, as well as the number of people involved and turnover. The platforms are intermediaries and assistants in the process of providing services. Without employers, they would now become an integral part of the labor market infrastructure. In fact, platforms perform the function of matching supply and demand, and in this sense, they do not hire employees, but serve them themselves and create a convenient platform for clients and clients to find work. In this context, when using platforms, platforms should be seen as partners offering services in the ecosystem they have created.

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The USA Journals Volume 03 Issue 08-2021

1

The American Journal of Political Science Law and Criminology
(ISSN

2693-0803)

Published:

August 14, 2021 |

Pages:

1-5

Doi:

https://doi.org/10.37547/tajpslc/Volume03Issue08-01





















































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ABSTRACT

Platform employment is a dynamically developing flexible format that can play the role of both primary
and secondary employment. Although the available statistics do not allow us to accurately estimate
the size of this segment of the economy, we can talk about its large-scale growth, as well as the
number of people involved and turnover.

The platforms are intermediaries and assistants in the process of providing services. Without
employers, they would now become an integral part of the labor market infrastructure. In fact,
platforms perform the function of matching supply and demand, and in this sense, they do not hire
employees, but serve them themselves and create a convenient platform for clients and clients to find
work. In this context, when using platforms, platforms should be seen as partners offering services in
the ecosystem they have created.

KEYWORDS

Platform economy, platform employment, self-employment, freelancer, social insurance, modern
labor market, rights and obligations, information technology, unsecured aspects of platform
employment.


INTRODUCTION


Getting a job through platforms is an easy and
inexpensive way to earn temporary or
permanent income. The development of
platform infrastructure will increase the


flexibility of the labor market and expand the
opportunities for finding additional jobs that
will help improve the well-being of the
population. Low barriers to entry, freedom of

Rights And Responsibilities In The Labor Market Based On
The Platform Economy


Khujanazarov Yusufjon Sayfullaevich

Independent Researcher At Tashkent State University Of Law, Uzbekistan

Journal

Website:

https://theamericanjou
rnals.com/index.php/ta
jpslc

Copyright:

Original

content from this work
may be used under the
terms of the creative
commons

attributes

4.0 licence.


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The USA Journals Volume 03 Issue 08-2021

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The American Journal of Political Science Law and Criminology
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working hours and the ability to move
remotely provide services for people with
disabilities, such as vulnerable groups. Young
people without work experience, persons of
retirement and retirement age, mothers with
children and the disabled. In some cases,
working on the platform will allow you to take
your income out of the shadows and create a
source of additional tax revenue.

At the same time, it is also dangerous to give
up a permanent guaranteed job and adapt to
working on the platform as the only source of
income on the other hand. In some segments
of the platform economy, the absence of a
minimum level of service cost or a weak link
between current minimum tariffs and national
minimum wage standards, as well as
temporary unemployment, including lack of
compensation during temporary disability,
increase low wages. Segment of employment
or creates a risk of overwork and health, which
leads to overly intense employment.

The COVID-19 pandemic has intensified the
debate over the development of a social
security network for platform workers in 2020-
2021. With the growing demand for general
contactless services, the economic downturn is
accompanied

by

an

unfavorable

epidemiological situation and an increase in
health risks, the economy shows that in the
employment platform segment there are social
consequences of the lack of social protection
and social insurance measures and, therefore,
a clear need for their institutionalization.

Working through platforms is a new form of
employment, be it self-employment or
entrepreneurship. The wrong approach to the
platform jeopardizes the stability of the
economy, increases costs and reduces its

operating margins and, as a result, excludes
some operators from this segment. As a result,
a significant part of the employed returns to
the shadow sector of the economy and to the
labor market, which leads to a decrease in
income.

Although employment regulation on the
platform has not yet been created, most
countries around the world are looking for
solutions to integrate this format into the
existing system of economic and social
relations. An employee's basic rights to a paid
job often end up in court cases around the
world. However, this is not the case and should
not be seen as an attempt to equate platform
employment with traditional wages. The main
reason this practice has not been fully
recognized is the legal gap in this area.
Therefore, it is necessary to develop
appropriate legislation for this segment of
employment.

In practice, the introduction of new forms of
labor relations and labor relations into national
legislation is rare. The future of sole
proprietorship is more in line with the platform
economy format than with the traditional labor
contract. For example, such freelancers are
called differently in different countries:
“economically independent self-employed”
(Spain),

“work

platforms”

(India),

“economically

dependent

workers”

(Colombia);

"Independent

dependence"

(South Korea). However, they still do not fully
take into account the specifics of the platform
workplace, and this segment is still in its
infancy.

There are no social guarantees for people
working through the platforms yet. Scientists
from all countries are studying the balance


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between economic efficiency and social justice
in a platform economy.

National regulation varies depending on:

a)

The willingness of enterprises and the
population to pay taxes and social security
contributions;

b)

The level of informal employment and the
ease with which businesses are covered;

c)

The existing model of social protection and
existing norms in the country, social
guarantees of employment and wages of
workers;

d)

Source of organization and financing of
health care;

e)

Primary or secondary employment on the
platform, which is usually measured by
setting a minimum income cap for
contributions.

In developed European countries, the
trajectory of "providing minimum guarantees
with minimal interference in the mechanisms
of the platform economy" was demonstrated,
that is, while protecting the basic rights of
workers, there is room for innovative
economic development.

Both international experience and expert
analysis show that the platforms already offer
additional tools for risk insurance and
infrastructure

development,

the

implementation of which requires co-financing
of some social programs with their contractors
and partners. Such schemes create more
convenience for those who work across
platforms.

Currently, there is no legal basis for the legal
registration of cooperation with sites in
Uzbekistan. However, in the CIS countries, in
particular in the Russian Federation, there are

two options for the legal registration of
cooperation with sites:

Individual entrepreneurship;

Self employed;

The third option is unregistered, that is, hidden
employment, the performers of which are
outside the legal framework. Once the legal
framework for the employment platform has
been established, all stakeholders believe that
employment can be achieved through the
platforms.

The new, specific platform work format cannot
be compared to classic labor relations. The
closest to the most optimal solution in terms of
cost-benefit ratio is self-employment, the
advantage of which is legal status, a simplified
tax regime, in other words, professional
income tax and at the same time a very simple
registration procedure. However, the absence
of minimum social guarantees may become a
source of new social risks in the future.

At the same time, according to the
stakeholders of the employment platform in
the Russian Federation, all social guarantees
are automatically distributed to this segment
with the amount of payments related to the
traditional social sphere. One development
option that meets the needs of the platform
economy could be soft regulation and
increased voluntary insurance opportunities
for some companies. For people with jobs on a
unified platform, the benefits package should
be a priority so that the economy is free of the
risks associated with maintaining self-
employment status.

Based on their experience in digital products,
platforms can understand the specifics of this


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segment of employment and act as a
developer of information and platform
infrastructure

for

implementing

social

participation schemes. In addition, platforms
should provide co-financing of individual
guarantees related to health and disability
insurance, primarily for parties to insurance
schemes, as well as for certain categories of
partners in cooperation with all stakeholders,
who can act as various initiators and
Developers.

To address this issue, the employment
platform will become an economic incentive
platform if tools are created to encourage the
voluntary inclusion of their employees in risk
insurance and continuing education programs.

Given the fact that the Republic of Uzbekistan
is a country rich in labor resources, it is
necessary to create a legal and practical
mechanism to attract the unemployed to the
platform system of employment and develop
their skills.

For this, the creation of schools and
universities specializing in the creation of
separate platform programs or the creation
and promotion of such specialties on the basis
of existing schools and universities, I think, will
lead to an increase in the number of
freelancers in the Republic of Uzbekistan.

Today, due to the lack of a legal basis for
platform employment in the Republic of
Uzbekistan, it is advisable to amend the Law of
the Republic of Uzbekistan "On Employment",
which includes platform labor, its rights and
obligations, as well as social insurance
guarantees.


REFERENCES

1.

Law of the Republic of Uzbekistan “On
employment of the population”.

2.

Decree of the President of the Republic of
Uzbekistan No.DP-5598 dated 13.12.2018
"On additional measures to introduce the
digital economy, electronic government, as
well as information systems in the state
administration

of

the

Republic

of

Uzbekistan."

3.

Resolution of the President of the Republic
of Uzbekistan No. RP-4699 of 28.04.2020
"On measures for the widespread
introduction of the digital economy and
electronic government."

4.

Resolution of the President of the Republic
of

Uzbekistan

No.

RP-4321

dated

05/18/2019 “On measures to further
improve the infrastructure of the digital
economy and the“ Electronic government
”system."

5.

Resolution of the Cabinet of Ministers of
the Republic of Uzbekistan No. 373 of
15.06.2021 "On measures to further
improve the rating system for assessing
the state of development of the digital
economy and electronic government".

6.

World Employment and Social Outlook
2021 (2021) The role of digital labour
platforms in transforming the world of
work. International Labour Office, Geneva:
ILO, 2021.

7.

Zhou I (2020) Digital labour platforms and
labour protection in China. ILO Working
Paper No. 11.

8.

Todoli-Signes A (2020) Platform work:
protection through case law while the law
is amended. Peer Country Comments
Paper. Spain.


background image

The USA Journals Volume 03 Issue 08-2021

5

The American Journal of Political Science Law and Criminology
(ISSN

2693-0803)

Published:

August 14, 2021 |

Pages:

1-5

Doi:

https://doi.org/10.37547/tajpslc/Volume03Issue08-01





















































I

MPACT

F

ACTOR

2021:

5.

952

9.

Sociaal-Economische Raad (2020) Hoe
werkt de platformeconomie [How does
the platform economy work?]

10.

Schmidlechner, L, Peruffo, E, Contreras, R
& Molinuevo, D 2017, Coordination by
platforms: literature review, European
Foundation for the Improvement of Living
and Working Conditions, Dublin, viewed 21
May 2021.

References

Law of the Republic of Uzbekistan “On employment of the population”.

Decree of the President of the Republic of Uzbekistan No.DP-5598 dated 13.12.2018 "On additional measures to introduce the digital economy, electronic government, as well as information systems in the state administration of the Republic of Uzbekistan."

Resolution of the President of the Republic of Uzbekistan No. RP-4699 of 28.04.2020 "On measures for the widespread introduction of the digital economy and electronic government."

Resolution of the President of the Republic of Uzbekistan No. RP-4321 dated 05/18/2019 “On measures to further improve the infrastructure of the digital economy and the“ Electronic government ”system."

Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 373 of 15.06.2021 "On measures to further improve the rating system for assessing the state of development of the digital economy and electronic government".

World Employment and Social Outlook 2021 (2021) The role of digital labour platforms in transforming the world of work. International Labour Office, Geneva: ILO, 2021.

Zhou I (2020) Digital labour platforms and labour protection in China. ILO Working Paper No. 11.

Todoli-Signes A (2020) Platform work: protection through case law while the law is amended. Peer Country Comments Paper. Spain.

Sociaal-Economische Raad (2020) Hoe werkt de platformeconomie [How does the platform economy work?]

Schmidlechner, L, Peruffo, E, Contreras, R & Molinuevo, D 2017, Coordination by platforms: literature review, European Foundation for the Improvement of Living and Working Conditions, Dublin, viewed 21 May 2021.

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