Gig work refers to temporary or flexible jobs that are characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. Gig work, broadly speaking, involves working arrangements that are closer to “gigs” than traditional kinds of jobs, hence the term “gig work” or “gig economy”. Gig workers are typically self-employed and responsible for their own taxes and benefits, and may work for multiple clients or companies, simultaneously.
Categories of gig workers. There are notably three (3) categories of gig workers that is,(1) independent contractors whowork for a specific period on a project with the understanding that the function ends when the project ends (2) platform gig workers who particularly work with gig online apps and platforms such as Uber, Lyft, Bolt, Uber Eats, Little Ride, among others, (these workers have general skills that allow them to work on these platforms or specialized skills and can only work on one platform) and (3) freelancer gig workers whowork directly with companies that require a specific service.
Characteristics of gig work. Gig work is characterized by (1) flexible working time whereby gig workers have autonomy and control over their working hours so that work becomes flexible and random, (2) independent working with minimum to no supervision at all whereby gig workers can work at any place and also commence work at any time to suit their schedules, (3) temporary in nature and based on individual tasks or projects, (4) duality whereby a gig worker can work for several companies simultaneously, for example, platform workers like Uber drivers can work for Uber as well as other platforms like Taxify, Bolt or Little Ride, simultaneously and (5) skill-based work whereby gig workers are engaged to provide a specific skill set to individuals as well as corporations whereby an individual gig worker bears the expenses for his/her skills development in the respective field.
In recent years, particularly after the break out of the Covid-19 pandemic in 2020, there has been a rapid increase in the number of gig workers as well as gig companies. This increase has been triggered by the increased unemployment rates that were caused by the lingering economic adverse effects of the Covid-19 pandemic that saw the closure of a large number of businesses as well as an increase in employee layoffs due to lack of work. As a result, many of the unemployed masses have ventured into gig work as means of generating income.
The increase in the number of gig workers has also triggered a shift into regulatory changes in several jurisdictions across the globe whereby some countries have enacted legislation that govern gig work and others have brought forward bills and proposals to potentially improve the working standards of gig workers such as granting them some employees’ benefits.
Notable legislative changes on gig work. Several notable legislative changes have taken place globally since the outbreak of the Covid-19 pandemic to accommodate gig work, these include: - the Digital Platform Workers’ Rights Act, 2022 passed in Ontario, Canada on 11th April, 2022 to regulate platform gig workers, the Proposal for a directive of the European Parliament and of the Council on Improving Working Conditions In Platform Work (COM(2021)0762 – C9-0454/2021 – 2021/0414(COD) passed by the European Union with theaim of improving working conditions of platform gig workers and granting them some employees benefits. The Worker Flexibility and Choice Bill (HR 8442) was tabled before the United States of America’s Congress by the House of Representatives on 20th July 2022 to enshrine gig work into the labour laws spectrum of the country, whereby the legislators call for gig workers to be subjected to worker-flexibility agreements to have an extension of some rights guaranteed to employees, such as those related to privacy, non-discrimination, non-harassment, non-retaliation, safety and leave. The enactment of the Code on Social Security In India on 28th September 2020 by the Ministry of Labour and Employment regulating employees, gig workers and platform workers by providing them with social security benefits.
Gig work in the Tanzania labour regime. Tanzania like many other jurisdictions, is also facing a rapid increase in gig work resulting predominantly from the unemployment created by the Covid-19 pandemic. Unfortunately, the current Tanzania labour regime does not recognize gig work nor gig workers.
Section 2 of the Employment and Labour Relations Act, Chapter 366, Revised Edition of 2019 (the “ELRA”) defines an employee as: - an individual who has entered into a contract of employment; or has entered into any other contract under which the individual undertakes to work personally for the other party to the contract.
Section 61 of the Labour Institutions Act, Chapter 300, Revised Edition of 2019 of the laws of Tanzania (the “LIA”)provides further clarity to the ELRA’s definition of an “Employee” by providing ingredients which, when present, creates a “presumption of employment”. Under this section, the LIA states that; for labour law, a person who works for, or renders services to, any other person is presumed, until the contrary is proved, to be an employee, regardless of the form of the contract, if any one or more of the following factors is present; (a) how the person works is subject to the control or direction of another person, (b) the person’s hours of work are subject to the control or direction of another person, (c) in case of a person who works for an organization, the person is a part of that organization, (d) the person has worked for that other person for an average of at least 45 hours per month over the last three months, (e) the person is economically dependent on the other person for whom that person works or renders services, (f) the person is provided with tools of trade or work equipment by the other person or (g) the person only works for or renders services to one person.
From the aforementioned provisions of the law, it is without a doubt that gig work is not recognized in the Tanzania labour regime and, as such, gig work engagements are generally under the ambit of the Law of Contract Act, Chapter 345, Revised Edition of 2019 whereby the rules governing a normal commercial contract apply. Gig work, more specifically for those using ride sharing applications, is embedded in legislation enforced by the regulators such as the Land Transport Regulatory Authority (“LATRA”) regulating transport-related gig platforms like Uber and Bolt and the Tanzania Communication Regulatory Authority (“TCRA”) as the overall regulator of digital online platforms (including gig platforms).
Based on the foregoing, it is clear that there is indeed a global shift into gig work and Tanzania is no exception to this trend. The main concern however is that Tanzania does not seem to have caught up with the necessary legislative changes that require to be implemented in order for the gig economy to thrive.
If gig work is codified within the Tanzanian labour regime then it may offer solutions to Tanzania’s high rate of unemployment which fundamentally leads to income inequality and low living standards. The Tanzanian Government should therefore look into how other countries have integrated a legal regime regulating gig work in their respective jurisdictions. This process can be achieved through collecting views and opinions from stakeholders of gig work including the gig digital platform operators, regulators like LATRA and TCRA, gig workers themselves and corporations (both public and private) that engage gig workers in order to identify and adopt best practices implemented worldwide then customize the same for the Tanzanian market.
Diana Bahesha - Advocate
Note: This is not a legal opinion and the contents hereof are not meant to be relied upon by any recipient unless our written consent is sought and explicitly obtained in writing.