Sep 2019 | At Last, It Seems The Gig Economy Is About To Be Brought Within The Law

Date: 8 Sep 2019

Source: Forbes

Assembly Bill nº5 of the State of California, known as AB5, is about to be signed by state governor Gavin Newson.

What, you might ask, is so important about AB5? It establishes a legal framework for the gig economy, which much of the time involves employing so-called freelancers to do a whole bunch of things on a full-time basis without any of the rights and protections they would enjoy if covered by a full-time contract. When approved on September 13, the hope is that many other states and countries will follow suit with similar legislation.

The gig economy is pretty much a polite way of saying “exploitative economy”, whereby employers are able to make a profit by not having to pay for stuff like social security or insurance. If having a food delivery team is too expensive, hire them as freelancers, and they pay for their own vehicles, take unpaid holidays and if they get killed while out on the road, or fall ill, that’s their problem. Still, that’s basically how any number of recent highly successful entrepreneurs have made their fortunes.