Regulatory Compliance in the Gig Economy Navigating Worker Classification and Employment Law Evolution

Abstract

The intricacies of worker classification and the development of employment law are the focus of this study, which focuses on the shifting dynamics of regulatory compliance in the gig economy. The primary objective was to investigate how much or how little established legal frameworks are adapting to the rising popularity of gig work. The study used a desktop research approach and only used secondary data from government reports, academic journals, and industry publications. This approach made it possible to conduct a cost-effective but comprehensive examination of the most recent literature and regulatory policies in a number of nations. According to the findings of the research, there is a significant gap between the evolving characteristics of gig work and conventional employment laws. The flexible and frequently risky nature of gig work is not adequately addressed by the existing legal classifications, which are primarily intended for full-time, permanent employment. Due to regulatory gaps caused by this misalignment, numerous gig workers lack essential protections like a minimum wage, health benefits, and job stability. The study emphasizes the urgent need for new legal definitions and hybrid employment frameworks that balance equity and flexibility. The theoretical and practical formulation of policy are enhanced by this research, which is based on the Theory of Precarious Work, Flexicurity Theory, and Labor Market Segmentation Theory, respectively. The creation of flexible regulatory frameworks, the establishment of hybrid job categories, enhanced mechanisms for worker representation, and international collaboration for standardized practices are all essential recommendations. The study calls for extensive education and awareness programs to give gig workers and employers more power. In the future, these modifications aim to establish a gig economy that is more inclusive, equitable, and compliant.