Examination of Location-Based Digital Platform Workers from a Labor Law Perspective
1.Introduction
Digitalization has led to profound changes in the labor market, reshaping traditional employment relationships. In particular, digital platforms have driven significant transformation in the service sector, streamlining processes in areas such as transportation, logistics, package delivery, and home services -offering a flexible, on-demand work model. This shift has also deeply impacted how workers operate and how they engage with employers.
In this context, location-based digital platform workers are individuals who perform tasks primarily through mobile applications or web-based platforms. Operating in sectors such as ride-hailing, food delivery, and package distribution, these workers receive their tasks via platforms, with their working hours and job arrangements largely dictated by algorithms. However, significant legal ambiguity surrounds their employment status. While employers often classify platform workers as independent contractors, many courts and legal scholars argue that their conditions more closely resemble those of traditional employees.
Determining the legal status of location-based platform workers is crucial for addressing key labor law issues such as social security, wages, jog security, union rights, and working conditions. This study aims to evaluate location-based digital platform workers from a labor law perspective, highlighting the shortcomings of the existing legal framework and exploring potential solutions.
2. Definition and Importance of Location-Based Digital Platforms
Before defining location-based digital platforms, it is essential to examine the concept of Digital Platforms.
Digital platforms are virtual assets that enable the matching of labor supply and demand by connecting them through a platform.[1] Digital platforms typically operate as software or web-based applications. Operating on a global scale, digital platforms can reach an unlimited number of users worldwide, or they can function regionally to facilitate location-based daily workflows. Key features that make digital platforms significant and unique include enabling user interaction, allowing the supply of labor to offer services or products, and ensuring the circulation of data and information. These characteristics have led to the rapid proliferation of and popularity of digital platforms in recent years, as they efficiently and transparently match labor supply with demand. However, digital platforms have a broad scope, encompassing various platforms such as Instagram, X (formerly Twitter), and Wikipedia.
Location-based digital platforms can be defined as digital platforms that enable the execution of tasks in the physical world based on demand through a digital platform.[2] Therefore, this type of work is also referred to as “Platform-Based on-Demand Work, Location-Based Digital Work, Location-Based Gig Work, or Gig Work”. In this context, examples of location-based digital platforms include Uber, Armut, and Yemeksepeti.
Certainly, platform work has many advantages and disadvantages both for service recipients and service providers. While platform work stands out with advantages such as flexibility and ease of access, it also brings disadvantages such as insecurity and low income.[3]
Among the advantages are the ability for workers to set their own working hours, the opportunity to earn additional income, and the acceleration of the job search process. Additionally, through platforms, workers can reach a broad customer base without being hindered by geographic constraints. However, the disadvantages of this model are also noteworthy. Workers are often deprived of job security, social rights, and union protection.[4]
Due to algorithmic management, the inability to have control over working conditions, irregular income, and exposure to risks regarding occupational health and safety are significant issues. Therefore, while platform work offers a flexible and accessible business model, without support from legal regulations, it can lead to serious rights losses for workers.
3. Work Models of Location-Based Digital Platforms
While platform work is commonly described as the matching of supply and demand through online platforms, the types of platform work fall within a heterogeneous concept.[5] In this regard, the doctrine makes several distinctions regarding platform work. These distinctions are based on various criteria, such as the location where the service is provided, the location of the service provider, whether a specific individual performs the task, and the skills required to perform the task.
However, platform work can essentially be examined under two main categories: Virtual Work and Location-Based On-Demand Work.
Virtual work, as a rule, is internet-based and carried out via computer over the Internet. The key factor in determining whether a task qualifies as virtual work is whether the task requested by the customer can be performed by someone located anywhere in the world through the internet, creating a relationship in which the customer and the worker interact without seeing each other. In this context, virtual work is further divided into two subcategories: “Work in the Virtual World” and “Crowd Work.”
In location-based on-demand work, although the customer and worker communicate via a platform and the customer uploads the task through the platform, it is the platform worker located within the customer’s geographical vicinity who performs the assigned task.[6]
In the context of this article, location-based digital platforms with be addressed, and the legal status of workers on these platforms.
In this article, location-based digital platforms will be explored, and the legal status of workers on these platforms will be examined within the scope of labor law.
4. Legal Status of Digital Platform Workers
The legal status of individuals working on digital platforms has yet to be clearly defined, even today. The legal framework of digital platform workers presents a structure that does not fully align with traditional labor law norms. These workers are often classified by platforms as independent contractors or freelancers, which is typically to their advantage, thus depriving them of the rights associated with employee status. However, when evaluating the actual working conditions, it becomes evident that many of these individuals are economically dependent on a specific platform, subject to its rules, and guided by algorithms. This situation has led to debates over whether they should be considered employees, freelancers, or independent workers.
To qualify as an employee, certain criteria must be met, including dependency, loyalty to the employer, and being subject to orders and instructions throughout the work period. Although digital platform workers may appear to act independently, they are dependent on algorithms set by the platform to receive tasks and must adhere to the platform’s rules while performing their work. In this context, it is a critical legal issue to assess whether platforms hold an employer-like position and whether their workers should be considered employees.
Some countries tend to recognize digital platform workers as employees, emphasizing that they should be entitled to rights such as minimum wage, overtime pay, severance compensation, insurance, and job security. On the other hand, some court rulings classify platform workers as self-employed, which results in their exclusion from labor law protections.
At this point, considering independent platform workers as employees could be far more beneficial in practice to prevent the emergence of a highly disadvantaged, unique group of workers – one that is exempt from labor law protections yet does not fully possess the independence typically associated with self-employed individuals.
5. Rights of Workers on Location-Based Digital Platforms Under Labor Law
Whether location-based digital platform workers are recognized as employees is crucial in determining the rights they may hold under labor law. Traditional labor law ensures the protection of employees in key areas such as the right to wages, working conditions and hours, social security entitlements, and occupational health and safety. However, the extent to which platform workers can benefit from these rights remains a subject of debate. In this context, the rights of location-based digital platform workers -particularly wage rights, union rights, occupational health and safety, and social security entitlements- will be addressed within the framework of traditional labor law.
The Status of the Employee Definition in the Context of Location-Based Digital Platforms
In traditional labor law, the term “employee” typically refers to individuals who work under the orders and instructions of a specific employer, provide services in a dependent manner, and receive wages in return.[7] However, the legal status of individuals working through digital platforms has become a subject of debate within the framework of these traditional labor law concepts.
Location-based digital platforms are systems that mediate jobs performed in physical spaces, such as passenger transport, courier services, painting, language education, and household services. These platforms reject the conventional employer-employee model, presenting themselves as “intermediaries” and claiming that workers are “independent contractors” or “business partners.”[8] However, this model raises the question of whether workers are legally entitled to employee status.
From a labor law perspective, certain elements such as personal, legal, and economic dependence must be present for an individual to be considered an employee. In this context, although the ability of workers on location-based digital platforms to set their working hours flexibly may appear as independence, they are subjected to an intense monitoring mechanism through algorithm management systems. These algorithms act as an authority by monitoring the performance of workers, determining task distribution, and setting earnings. Therefore, true independence cannot be fully claimed in this regard.
There are different approaches to the legal status of location-based digital platform workers in different countries:
Spain: Courts have recognized delivery workers on digital platforms as "employees" and have assessed them under labor law.[9]
United Kingdom: Courts have made assessments suggesting that evaluation can be made on a case-by-case basis.[10]
USA: While there are different practices at the federal and state levels, the AB5 law enacted in California has taken a step toward recognizing platform workers as employees.[11]
5. Rights of Location-Based Digital Platform Workers
The fundamental rights of location-based digital platform workers include wages, working hours, vacations, and leave. While these rights in traditional labor law are designed to ensure workers can work with security, the implementation of these rights for platform workers presents mechanical uncertainties and challenges.
Although location-based digital platforms define themselves as "intermediaries," in practice, they exert significant control over their workers. Algorithmic management authority, price-setting power, and the employment of workers in a dependent manner reflect the traditional elements of the employer-employee relationship. Therefore, legal frameworks need to be updated, with new regulations that address the status of platform workers and increase the responsibilities of the platforms.
Right to Remuneration: Platform workers’ wages are typically flexible and variable. Since pricing is determined by algorithms, workers’ earnings are not fixed and may fluctuate depending on market conditions. Likewise, uncertainties exist regarding overtime or additional payments.[12]
Working Hours: In traditional labor law, employees’ weekly working hours are regulated, and overtime compensation is mandated. However, no fixed working hours are defined for platform workers. Many of these workers are compelled to work long hours to earn a sufficient income. This situation can lead to physical and mental exhaustion, posing significant risks to occupational health.
Vacation and Leave Rights: Platform workers are often classified as independent contractors, leaving them deprived of entitlements such as paid annual leave, sick leave, and maternity leave. In response, the European Union and several countries have introduced regulations aimed at addressing this issue, emphasizing that platform workers should benefit from certain social rights.[13] However, the implementation of these rights varies from country to country.
Insurance, Occupational Safety, and Health Rights: Although the legal status of location-based digital platform workers remains unclear, they are typically classified as independent contractors, preventing them from dully benefiting from occupational health and safety rights and regulations. However, these workers - particularly couriers - face numerous hazards, including traffic accidents, occupational diseases, and physical risks. Consequently, several countries have introduced initiatives aimed at ensuring platform workers receive protection under occupational health and safety frameworks.[14] In traditional labor law, employers are required to provide insurance coverage on behalf of their employees. In contrast, platform workers often face uncertainty regarding social security access. While some countries mandate platform companies to offer limited insurance coverage, such protections remain absent in many countries.
Equity and Non-Discrimination Principle: The principle of equality and non-discrimination stands as one of the core pillars of labor law. However, platform workers are increasingly exposed to the risk of discrimination within algorithm-driven systems. For instance, workers who receive low ratings from service recipients may be assigned fewer tasks, and individuals belonging to certain demographic groups may face disadvantages in securing work. As a result, there is a growing need for new regulations to protect platform workers from algorithmic discrimination and ensure they receive equal treatment. The European Union and several countries have taken steps in this direction, striving to establish transparency and oversight mechanisms.[15]
As a result, it is evident that location-based digital platform workers enjoy less security in terms of wages, working hours, vacation and leave rights, insurance, occupational safety, and health rights compared to traditional employees, and are at a greater disadvantage regarding equality and non-discrimination. Considering that the concept of a traditional employee is increasingly aligned with that of digital platform workers, it is necessary to introduce legal regulations in this field to ensure social security for workers and establish fair working conditions.
6. Obligations of Location-Based Digital Platform Workers
The emergence and proliferation of the digital platform economy has brought about significant changes in the labor market and created new obligations for location-based workers. Although the legal status of location-based digital platform workers remains uncertain, these workers are subject to specific obligations while performing their tasks. These obligations can be examined under three main headings: the obligations outlined in the employment contract, service delivery, continuity and performance expectations, as well as adherence to ethical standards and platform policies.
Although the legal status of location-based digital platform workers varies, it is clear that they are obligated to perform work in practice. While platforms generally classify workers as independent contractors, these workers have obligations similar to those outlined in employment contracts.[16] These obligations, although not exhaustive, generally include performing the work with due diligence, accepting and completing tasks assigned by the platform, ensuring timely and complete completion of work, adhering to customer satisfaction standards, and complying with feed mechanisms.[17]
Performing the work with due diligence: Workers are required to perform their tasks in accordance with the service standards set by the platform.
Responsibility to accept and complete tasks assigned by the platform: Workers are generally obligated to fully perform the service when they accept job offers provided through the platform.
Timely and complete completion of the work: Providing the service within the specified period is crucial for enhancing customer satisfaction and contributing to the smooth operation of the platform.
Compliance with customer satisfaction and feed mechanisms: Workers may be rated based on customer reviews, and this feedback can directly impact their ability to secure future work.
Performance of Obligation, Continuity, and Performance
For location-based digital platform workers, job continuity relies on performance-based evaluation systems. Workers are expected to meet specific performance criteria to maintain their roles. These expectations and criteria can be outlined as follows:
Consistent and regular work: Platforms encourage workers to provide services on a regular basis and may algorithmically assign fewer tasks to those who remain inactive for extended periods.
Performance-based rewards and sanctions: Workers are rated based on customer feedback and the tasks they complete. Those who receive low ratings may face disadvantages in securing future work.
Maintaining service quality: Workers are expected to act diligently in transportation, delivery, and other services to enhance customer satisfaction.
Compliance with platform algorithms: Task allocation systems are typically managed by algorithms, and workers may be expected to log in and remain active on the platform at certain intervals.
Compliance with Ethical Rules and Platform Policies
Platform employees are required not only to ensure that provision of the service but also to comply with the ethical rules and policy guidelines set by the platform.
Platforms expect employees to adhere to certain behavioral rules. For example, Uber and other transportation platforms require drivers to follow specific safety procedures and rules for proper communication with customers. Likewise, it is crucial for employees to maintain respectful and safe communication with customers in order to uphold the platform’s reputation and reliability.
In addition, in order to protect the platform’s reputation and reliability, workers must avoid unethical practices such as creating fake orders, reporting false locations, or misleading customers. Likewise, employees are required to follow the protocols set by the platform during service delivery to ensure both their own safety and the safety of customers.
Although the obligations of location-based digital platform workers differ from traditional worker obligations, it is clear that they involve significant responsibilities that require compliance with platform rules and service standards. Within the framework of rules similar to an employment contract, performance expectations, and ethical guidelines, employees must act in accordance with the criteria set to ensure both their job continuity and customer satisfaction. While the legal dimension of these obligations may be contentious, it is clear in practice that platforms have a system in place to guide and supervise their workers.
7. Job Security of Location-Based Platform Workers
The digital platform economy provides flexibility in the labor market while creating uncertainties regarding job security. Individuals working on location-based digital platforms do not have the job security offered in traditional employment relationships and face numerous challenges concerning job continuity and their rights. These workers are typically classified as independent contractors or freelancers and are excluded from rights such as job security, severance pay, and protection against dismissal, which are provided under traditional employment contracts. Employment relationships can be unilaterally terminated by platforms, and when workers are removed from the platform, they do not receive any compensation or legal protection.[18] Since job continuity depends on the algorithms of the platforms, workers do not always have a guaranteed amount of work.
While location-based digital platforms may seem advantageous due to their flexible working model, they fall short in providing long-term job security. Job continuity is not guaranteed, and platforms can offer workers varying amounts of work depending on customer demand and business volume. In this system, managed by algorithms, workers with low performance scores are disadvantaged in securing work and, in some cases, may be completely excluded from the system. Due to lack of social security, platform workers are unable to benefit from unemployment benefits, severance pay, or unemployment insurance, and their job security is further weakened. Although workers can decide how much they want to work, the job opportunities provided by the platforms are irregular and unpredictable.
Due to the lack of job security, location-based digital platform workers face various economic and legal challenges. Income instability prevents workers from earning a regular and reliable income, and serious financial difficulties arise when job opportunities decrease. The lack of legal protection, as platform workers are not considered under employment contracts, limits their ability to seek justice in cases of dismissal, harassment, or unfair practices. Furthermore, their limited access to unionization and collective bargaining rights further weakens their job security. There are also significant challenges in accessing social rights, with platform workers attempting to individually secure benefits such as unemployment insurance, health insurance, and retirement. On the other hand, arbitrary dismissals by platforms pose a significant risk to workers. Platforms are not required to provide any justification for removing workers from the system and can restrict access to workers through algorithms.
In conclusion, location-based digital platform workers are deprived of traditional job security and work according to market conditions and platform policies. Temporary contracts, irregular income, lack of social security, and arbitrary dismissals make it difficult for these workers to achieve long-term job security.[19] Therefore, legal regulations need to be made to enhance job security for platform workers. Some regulations in Europe and the US have started to take steps in this direction, and discussions regarding job security for platform workers continue.
8. Conclusion
The increasing influence of digital platforms in the labor market has made the adequacy of traditional labor law norms a subject of debate. Although there are varying assumptions, the issue of whether location-based workers are considered employees or independent contractors remains legally ambiguous. As detailed in earlier sections of the article we are writing, from a labor law perspective, some of the fundamental issues faced by location-based platform workers include a lack of job security, absence of social security rights, income uncertainty long and irregular working hours, and limited rights to unionization and collective bargaining.
Job security provides significant protection in traditional employment relationships, but for location-based workers, this security has been greatly weakened. Platforms classify workers as independent contractors, exempting them from the protections offered by employment contracts, and can unilaterally remove workers from the system. Similarly, in this context, workers are deprived of guarantees such as severance pay or the right to reinstatement in the event of dismissal (being banned from the platform or removed from the platform). Furthermore, job allocation systems managed by algorithms make it uncertain for workers to secure work and earn income.
In terms of social security rights, location-based workers are unable to benefit from guarantees such as unemployment insurance, retirement benefits, and health insurance because they do not have “employee” status and are often considered independent contractors. While traditional labor law mandates that employers provide insurance for their employees, platform workers are required to secure their own insurance. This situation poses a significant social risk, especially for platform workers with uncertain incomes, and particularly for low-income platform workers.
Similarly, in terms of wages and working conditions, location-based workers face significant uncertainty. This is because wages are subject to dynamic systems determined by algorithms, offering no fixed or regular income guarantees. Workers are unable to benefit from labor law protections such as overtime pay, minimum wage guarantees, and holiday rights. Additionally, while working hours are flexible depending on customer demand and platform policies, the need for workers to work long hours to earn more creates risks in terms of occupational health and safety.
In conclusion, to address the issues faced by location-based workers under labor law, the legal framework needs to be updated, and regulations that secure the social rights of platform workers must be implemented. While some court decisions and legal changes in Europe and the US have taken significant steps to strengthen the rights of platform workers, more comprehensive regulations are needed on a global scale to resolve this issue.
[1] Schmidt, Florian A: Digital Labor Markets i The Platform Economy Mapping the Political Challenges of Crowd Work and Gig Work, Berlin 2017, p.9.
[2] Boyacı, Nil Belgin: Dijital Emek Platformları ve Sendikalar (Eng. Digital Labor Platforms and Unions), Ankara 2020, p.6
[3] Organization for Economic Co-operation and Development, 2016, Op. cit., 21; European Parliament, 2017, Op. cit., 42; Chartered Institute of Personnel and Development, 2017, Op. cit., 23; Pesole et seq. 2018, Op. cit., 43.
[4] Dagnino, E. 2016, Op. cit., 51; DeVault et seq., 2019, Op. cit., 17. A study conducted in the UK in 2017 stated that 70% of platform workers lacked financial security compared to traditional employees. Chartered Institute of Personnel and Development, 2017, Op. cit., 37.
[5] Maselli, I., Lenaerts, K. and Beblavy, M. (2016). Five things we need to know about the on-demand economy. Centre for European Policy Studies, No. 21. p. 4.
[6] Küçük, Doğan, 2023, Türk İş Hukuku Bakımından Platform Çalışanları (Eng. Platform Workers in Terms of Turkish Labor Law), p. 40
[7] Yıldız, Gaye Burcu: “Dijital Emek Platformları Üzerinden Çalışanların Hukuki Statülerinin Belirlenmesi” (Eng. “Determining the Legal Status of Workers on Digital Labor Platforms"), Labor Law Magazine, Vol. 0, No. 46, 2021, 28-41, p. 29; Erol 2020a, p. 278.
[9] Todoli-Signes, Adrian: “Spanish Riders Law and The Right to Be Informed About The Algorithm”, European Labor Law Journal, Vol.12, No. 3, 2021, 399-402, p. 400; Ezer, pp. 803-804
[10] Küçük, 2023, Türk İş Hukuku Bakımından Platform Çalışanları (Eng. Platform Workers In Terms of Turkish Labor Law), 133
[11] International Lawyers Assisting Workers Network, 2021, pp. 77-99
[12] Cherry, Miriam A./ Aloisi, Antonio: ""Dependent Contractors" In the Gig Economy: A Comparative Approach”, American University Law Review, Vol. 66, No. 3, 2017, p. 649
[13] Kilhoffer, Zachary / De Groen, Willem Pieter / Lenaerts, Karolien / Smits, Ine / Hauben, Harald / Giacumacatos, Elisa / Waeyaert, Willem / Lhernould, Jean-Philippe / Robin-Olivie, Sophie: Study to Gather Evidence on the Working Conditions of Platform Workers, Luxemburg 2020, p. 254
[14] Doğan 2020, p. 1138
[15] ILO 2016, p. 209.
[16] Günbattı, Naime Nur., 2023, Konum Tabanlı Dijital Platform Çalışanlarının Temel Hakları. Master's Thesis, TOBB Economics and Technology University.
[17] Küçük, Doğukan, 2023 Türk İş Hukuku Bakımından Platform Çalışanları. Doctoral Thesis, Anadolu University,
[18]ILO 2018, p.1; Baycık, Gaye/ Civan, Orhan Ersun/ Tolu Yılmaz, Hazal/ Bosna, Berrin: “Platform Çalışanlarını Yasal Güvenceye Kavuşturmak: Sorunlar ve Çözüm Önerileri”, Galatasaray University Faculty of Law Journal, Issue:1, 2021, 713-801, p. 716. Alpagut, p. 90.
[19] De Stefano, Valerio/ Aloisi, Antonio: European Legal Framework for “Digital Labour Platforms”, European Commission, 2018, p.13
BIBLIOGRAPHY
Schmidt, Florian A: Digital Labour Markets i The Platform Economy Mapping the Political Challenges of Crowd Work and Gig Work, Berlin 2017, p.9.
Boyacı, Nil Belgin: Dijital Emek Platformları ve Sendikalar, Ankara 2020, p.6
Organization for Economic Co-operation and Development, 2016, ibid., 21; European Parliament, 2017, ibid., 42; Chartered Institute of Personnel and Development, 2017, ibid., 23; Pesole et al., 2018, ibid., 43.
Dagnino, E. 2016, ibid., 51; DeVault et al., 2019, ibid., 17. A study conducted in the UK in 2017 indicated that 70% of platform workers do not have financial security compared to traditional workers. Chartered Institute of Personnel and Development, 2017, ibid., 37.
Maselli, I., Lenaerts, K. ve Beblavy, M. (2016). Five things we need to know about the on-demand economy. Centre for European Policy Studies, No. 21. p. 4.
Küçük, Doğan, 2023, Türk İş Hukuku Bakımından Platform Çalışanları, p.40
Yıldız, Gaye Burcu: “Dijital Emek Platformları Üzerinden Çalışanların Hukuki Statülerinin Belirlenmesi,” Labor Law Journal, Vol.: 0, Issue: 46, 2021, 28-41, p. 29; Erol 2020a, p. 278.
Schimdt, 2017, ibid.; International Labour Organization, 2018, ibid., 4.
Todoli-Signes, Adrian: “Spanish Riders Law and The Right to Be Informed About The Algorithm,” European Labour Law Journal, Vol.:12, Issue:3, 2021, 399-402, p. 400; Ezer, p. 803-804
Küçük, 2023, Türk İş Hukuku Bakımından Platform Çalışanları, 133
International Lawyers Assisting Workers Network, 2021, pp. 77-99
Cherry, Miriam A./ Aloisi, Antonio: “"Dependent Contractors" In the Gig Economy: A Comparative Approach,” American University Law Review, Vol.:66, Issue:3, 2017, p. 649
Kilhoffer, Zachary / De Groen, Willem Pieter / Lenaerts, Karolien / Smits, Ine / Hauben, Harald / Giacumacatos, Elisa / Waeyaert, Willem / Lhernould, Jean-Philippe / Robin-Olivie, Sophie: Study to Gather Evidence on the Working Conditions of Platform Workers, Luxemburg 2020, p. 254
Doğan 2020, p. 1138
ILO 2016, p. 209.
Günbattı, Naime Nur., 2023, Konum Tabanlı Dijital Platform Çalışanlarının Temel Hakları. Master's Thesis, TOBB University of Economics and Technology.
Küçük, Doğukan, 2023 Türk İş Hukuku Bakımından Platform Çalışanları. Doctoral Thesis, Anadolu University.
ILO 2018, p. 1; Baycık, Gaye/ Civan, Orhan Ersun/ Tolu Yılmaz, Hazal/ Bosna, Berrin: “Platform Çalışanlarını Yasal Güvenceye Kavuşturmak: Sorunlar ve Çözüm Önerileri”, Galatasaray University Faculty of Law Journal, Issue:1, 2021, 713-801, p. 716. Alpagut, p. 90.
De Stefano, Valerio/ Aloisi, Antonio: European Legal Framework for “Digital Labour Platforms,” European Commission, 2018, p.13
1.Introduction
Digitalization has led to profound changes in the labor market, reshaping traditional employment relationships. In particular, digital platforms have driven significant transformation in the service sector, streamlining processes in areas such as transportation, logistics, package delivery, and home services -offering a flexible, on-demand work model. This shift has also deeply impacted how workers operate and how they engage with employers.
In this context, location-based digital platform workers are individuals who perform tasks primarily through mobile applications or web-based platforms. Operating in sectors such as ride-hailing, food delivery, and package distribution, these workers receive their tasks via platforms, with their working hours and job arrangements largely dictated by algorithms. However, significant legal ambiguity surrounds their employment status. While employers often classify platform workers as independent contractors, many courts and legal scholars argue that their conditions more closely resemble those of traditional employees.
Determining the legal status of location-based platform workers is crucial for addressing key labor law issues such as social security, wages, jog security, union rights, and working conditions. This study aims to evaluate location-based digital platform workers from a labor law perspective, highlighting the shortcomings of the existing legal framework and exploring potential solutions.
2. Definition and Importance of Location-Based Digital Platforms
Before defining location-based digital platforms, it is essential to examine the concept of Digital Platforms.
Digital platforms are virtual assets that enable the matching of labor supply and demand by connecting them through a platform.[1] Digital platforms typically operate as software or web-based applications. Operating on a global scale, digital platforms can reach an unlimited number of users worldwide, or they can function regionally to facilitate location-based daily workflows. Key features that make digital platforms significant and unique include enabling user interaction, allowing the supply of labor to offer services or products, and ensuring the circulation of data and information. These characteristics have led to the rapid proliferation of and popularity of digital platforms in recent years, as they efficiently and transparently match labor supply with demand. However, digital platforms have a broad scope, encompassing various platforms such as Instagram, X (formerly Twitter), and Wikipedia.
Location-based digital platforms can be defined as digital platforms that enable the execution of tasks in the physical world based on demand through a digital platform.[2] Therefore, this type of work is also referred to as “Platform-Based on-Demand Work, Location-Based Digital Work, Location-Based Gig Work, or Gig Work”. In this context, examples of location-based digital platforms include Uber, Armut, and Yemeksepeti.
Certainly, platform work has many advantages and disadvantages both for service recipients and service providers. While platform work stands out with advantages such as flexibility and ease of access, it also brings disadvantages such as insecurity and low income.[3]
Among the advantages are the ability for workers to set their own working hours, the opportunity to earn additional income, and the acceleration of the job search process. Additionally, through platforms, workers can reach a broad customer base without being hindered by geographic constraints. However, the disadvantages of this model are also noteworthy. Workers are often deprived of job security, social rights, and union protection.[4]
Due to algorithmic management, the inability to have control over working conditions, irregular income, and exposure to risks regarding occupational health and safety are significant issues. Therefore, while platform work offers a flexible and accessible business model, without support from legal regulations, it can lead to serious rights losses for workers.
3. Work Models of Location-Based Digital Platforms
While platform work is commonly described as the matching of supply and demand through online platforms, the types of platform work fall within a heterogeneous concept.[5] In this regard, the doctrine makes several distinctions regarding platform work. These distinctions are based on various criteria, such as the location where the service is provided, the location of the service provider, whether a specific individual performs the task, and the skills required to perform the task.
However, platform work can essentially be examined under two main categories: Virtual Work and Location-Based On-Demand Work.
Virtual work, as a rule, is internet-based and carried out via computer over the Internet. The key factor in determining whether a task qualifies as virtual work is whether the task requested by the customer can be performed by someone located anywhere in the world through the internet, creating a relationship in which the customer and the worker interact without seeing each other. In this context, virtual work is further divided into two subcategories: “Work in the Virtual World” and “Crowd Work.”
In location-based on-demand work, although the customer and worker communicate via a platform and the customer uploads the task through the platform, it is the platform worker located within the customer’s geographical vicinity who performs the assigned task.[6]
In the context of this article, location-based digital platforms with be addressed, and the legal status of workers on these platforms.
In this article, location-based digital platforms will be explored, and the legal status of workers on these platforms will be examined within the scope of labor law.
4. Legal Status of Digital Platform Workers
The legal status of individuals working on digital platforms has yet to be clearly defined, even today. The legal framework of digital platform workers presents a structure that does not fully align with traditional labor law norms. These workers are often classified by platforms as independent contractors or freelancers, which is typically to their advantage, thus depriving them of the rights associated with employee status. However, when evaluating the actual working conditions, it becomes evident that many of these individuals are economically dependent on a specific platform, subject to its rules, and guided by algorithms. This situation has led to debates over whether they should be considered employees, freelancers, or independent workers.
To qualify as an employee, certain criteria must be met, including dependency, loyalty to the employer, and being subject to orders and instructions throughout the work period. Although digital platform workers may appear to act independently, they are dependent on algorithms set by the platform to receive tasks and must adhere to the platform’s rules while performing their work. In this context, it is a critical legal issue to assess whether platforms hold an employer-like position and whether their workers should be considered employees.
Some countries tend to recognize digital platform workers as employees, emphasizing that they should be entitled to rights such as minimum wage, overtime pay, severance compensation, insurance, and job security. On the other hand, some court rulings classify platform workers as self-employed, which results in their exclusion from labor law protections.
At this point, considering independent platform workers as employees could be far more beneficial in practice to prevent the emergence of a highly disadvantaged, unique group of workers – one that is exempt from labor law protections yet does not fully possess the independence typically associated with self-employed individuals.
5. Rights of Workers on Location-Based Digital Platforms Under Labor Law
Whether location-based digital platform workers are recognized as employees is crucial in determining the rights they may hold under labor law. Traditional labor law ensures the protection of employees in key areas such as the right to wages, working conditions and hours, social security entitlements, and occupational health and safety. However, the extent to which platform workers can benefit from these rights remains a subject of debate. In this context, the rights of location-based digital platform workers -particularly wage rights, union rights, occupational health and safety, and social security entitlements- will be addressed within the framework of traditional labor law.
The Status of the Employee Definition in the Context of Location-Based Digital Platforms
In traditional labor law, the term “employee” typically refers to individuals who work under the orders and instructions of a specific employer, provide services in a dependent manner, and receive wages in return.[7] However, the legal status of individuals working through digital platforms has become a subject of debate within the framework of these traditional labor law concepts.
Location-based digital platforms are systems that mediate jobs performed in physical spaces, such as passenger transport, courier services, painting, language education, and household services. These platforms reject the conventional employer-employee model, presenting themselves as “intermediaries” and claiming that workers are “independent contractors” or “business partners.”[8] However, this model raises the question of whether workers are legally entitled to employee status.
From a labor law perspective, certain elements such as personal, legal, and economic dependence must be present for an individual to be considered an employee. In this context, although the ability of workers on location-based digital platforms to set their working hours flexibly may appear as independence, they are subjected to an intense monitoring mechanism through algorithm management systems. These algorithms act as an authority by monitoring the performance of workers, determining task distribution, and setting earnings. Therefore, true independence cannot be fully claimed in this regard.
There are different approaches to the legal status of location-based digital platform workers in different countries:
Spain: Courts have recognized delivery workers on digital platforms as "employees" and have assessed them under labor law.[9]
United Kingdom: Courts have made assessments suggesting that evaluation can be made on a case-by-case basis.[10]
USA: While there are different practices at the federal and state levels, the AB5 law enacted in California has taken a step toward recognizing platform workers as employees.[11]
5. Rights of Location-Based Digital Platform Workers
The fundamental rights of location-based digital platform workers include wages, working hours, vacations, and leave. While these rights in traditional labor law are designed to ensure workers can work with security, the implementation of these rights for platform workers presents mechanical uncertainties and challenges.
Although location-based digital platforms define themselves as "intermediaries," in practice, they exert significant control over their workers. Algorithmic management authority, price-setting power, and the employment of workers in a dependent manner reflect the traditional elements of the employer-employee relationship. Therefore, legal frameworks need to be updated, with new regulations that address the status of platform workers and increase the responsibilities of the platforms.
Right to Remuneration: Platform workers’ wages are typically flexible and variable. Since pricing is determined by algorithms, workers’ earnings are not fixed and may fluctuate depending on market conditions. Likewise, uncertainties exist regarding overtime or additional payments.[12]
Working Hours: In traditional labor law, employees’ weekly working hours are regulated, and overtime compensation is mandated. However, no fixed working hours are defined for platform workers. Many of these workers are compelled to work long hours to earn a sufficient income. This situation can lead to physical and mental exhaustion, posing significant risks to occupational health.
Vacation and Leave Rights: Platform workers are often classified as independent contractors, leaving them deprived of entitlements such as paid annual leave, sick leave, and maternity leave. In response, the European Union and several countries have introduced regulations aimed at addressing this issue, emphasizing that platform workers should benefit from certain social rights.[13] However, the implementation of these rights varies from country to country.
Insurance, Occupational Safety, and Health Rights: Although the legal status of location-based digital platform workers remains unclear, they are typically classified as independent contractors, preventing them from dully benefiting from occupational health and safety rights and regulations. However, these workers - particularly couriers - face numerous hazards, including traffic accidents, occupational diseases, and physical risks. Consequently, several countries have introduced initiatives aimed at ensuring platform workers receive protection under occupational health and safety frameworks.[14] In traditional labor law, employers are required to provide insurance coverage on behalf of their employees. In contrast, platform workers often face uncertainty regarding social security access. While some countries mandate platform companies to offer limited insurance coverage, such protections remain absent in many countries.
Equity and Non-Discrimination Principle: The principle of equality and non-discrimination stands as one of the core pillars of labor law. However, platform workers are increasingly exposed to the risk of discrimination within algorithm-driven systems. For instance, workers who receive low ratings from service recipients may be assigned fewer tasks, and individuals belonging to certain demographic groups may face disadvantages in securing work. As a result, there is a growing need for new regulations to protect platform workers from algorithmic discrimination and ensure they receive equal treatment. The European Union and several countries have taken steps in this direction, striving to establish transparency and oversight mechanisms.[15]
As a result, it is evident that location-based digital platform workers enjoy less security in terms of wages, working hours, vacation and leave rights, insurance, occupational safety, and health rights compared to traditional employees, and are at a greater disadvantage regarding equality and non-discrimination. Considering that the concept of a traditional employee is increasingly aligned with that of digital platform workers, it is necessary to introduce legal regulations in this field to ensure social security for workers and establish fair working conditions.
6. Obligations of Location-Based Digital Platform Workers
The emergence and proliferation of the digital platform economy has brought about significant changes in the labor market and created new obligations for location-based workers. Although the legal status of location-based digital platform workers remains uncertain, these workers are subject to specific obligations while performing their tasks. These obligations can be examined under three main headings: the obligations outlined in the employment contract, service delivery, continuity and performance expectations, as well as adherence to ethical standards and platform policies.
Although the legal status of location-based digital platform workers varies, it is clear that they are obligated to perform work in practice. While platforms generally classify workers as independent contractors, these workers have obligations similar to those outlined in employment contracts.[16] These obligations, although not exhaustive, generally include performing the work with due diligence, accepting and completing tasks assigned by the platform, ensuring timely and complete completion of work, adhering to customer satisfaction standards, and complying with feed mechanisms.[17]
Performing the work with due diligence: Workers are required to perform their tasks in accordance with the service standards set by the platform.
Responsibility to accept and complete tasks assigned by the platform: Workers are generally obligated to fully perform the service when they accept job offers provided through the platform.
Timely and complete completion of the work: Providing the service within the specified period is crucial for enhancing customer satisfaction and contributing to the smooth operation of the platform.
Compliance with customer satisfaction and feed mechanisms: Workers may be rated based on customer reviews, and this feedback can directly impact their ability to secure future work.
Performance of Obligation, Continuity, and Performance
For location-based digital platform workers, job continuity relies on performance-based evaluation systems. Workers are expected to meet specific performance criteria to maintain their roles. These expectations and criteria can be outlined as follows:
Consistent and regular work: Platforms encourage workers to provide services on a regular basis and may algorithmically assign fewer tasks to those who remain inactive for extended periods.
Performance-based rewards and sanctions: Workers are rated based on customer feedback and the tasks they complete. Those who receive low ratings may face disadvantages in securing future work.
Maintaining service quality: Workers are expected to act diligently in transportation, delivery, and other services to enhance customer satisfaction.
Compliance with platform algorithms: Task allocation systems are typically managed by algorithms, and workers may be expected to log in and remain active on the platform at certain intervals.
Compliance with Ethical Rules and Platform Policies
Platform employees are required not only to ensure that provision of the service but also to comply with the ethical rules and policy guidelines set by the platform.
Platforms expect employees to adhere to certain behavioral rules. For example, Uber and other transportation platforms require drivers to follow specific safety procedures and rules for proper communication with customers. Likewise, it is crucial for employees to maintain respectful and safe communication with customers in order to uphold the platform’s reputation and reliability.
In addition, in order to protect the platform’s reputation and reliability, workers must avoid unethical practices such as creating fake orders, reporting false locations, or misleading customers. Likewise, employees are required to follow the protocols set by the platform during service delivery to ensure both their own safety and the safety of customers.
Although the obligations of location-based digital platform workers differ from traditional worker obligations, it is clear that they involve significant responsibilities that require compliance with platform rules and service standards. Within the framework of rules similar to an employment contract, performance expectations, and ethical guidelines, employees must act in accordance with the criteria set to ensure both their job continuity and customer satisfaction. While the legal dimension of these obligations may be contentious, it is clear in practice that platforms have a system in place to guide and supervise their workers.
7. Job Security of Location-Based Platform Workers
The digital platform economy provides flexibility in the labor market while creating uncertainties regarding job security. Individuals working on location-based digital platforms do not have the job security offered in traditional employment relationships and face numerous challenges concerning job continuity and their rights. These workers are typically classified as independent contractors or freelancers and are excluded from rights such as job security, severance pay, and protection against dismissal, which are provided under traditional employment contracts. Employment relationships can be unilaterally terminated by platforms, and when workers are removed from the platform, they do not receive any compensation or legal protection.[18] Since job continuity depends on the algorithms of the platforms, workers do not always have a guaranteed amount of work.
While location-based digital platforms may seem advantageous due to their flexible working model, they fall short in providing long-term job security. Job continuity is not guaranteed, and platforms can offer workers varying amounts of work depending on customer demand and business volume. In this system, managed by algorithms, workers with low performance scores are disadvantaged in securing work and, in some cases, may be completely excluded from the system. Due to lack of social security, platform workers are unable to benefit from unemployment benefits, severance pay, or unemployment insurance, and their job security is further weakened. Although workers can decide how much they want to work, the job opportunities provided by the platforms are irregular and unpredictable.
Due to the lack of job security, location-based digital platform workers face various economic and legal challenges. Income instability prevents workers from earning a regular and reliable income, and serious financial difficulties arise when job opportunities decrease. The lack of legal protection, as platform workers are not considered under employment contracts, limits their ability to seek justice in cases of dismissal, harassment, or unfair practices. Furthermore, their limited access to unionization and collective bargaining rights further weakens their job security. There are also significant challenges in accessing social rights, with platform workers attempting to individually secure benefits such as unemployment insurance, health insurance, and retirement. On the other hand, arbitrary dismissals by platforms pose a significant risk to workers. Platforms are not required to provide any justification for removing workers from the system and can restrict access to workers through algorithms.
In conclusion, location-based digital platform workers are deprived of traditional job security and work according to market conditions and platform policies. Temporary contracts, irregular income, lack of social security, and arbitrary dismissals make it difficult for these workers to achieve long-term job security.[19] Therefore, legal regulations need to be made to enhance job security for platform workers. Some regulations in Europe and the US have started to take steps in this direction, and discussions regarding job security for platform workers continue.
8. Conclusion
The increasing influence of digital platforms in the labor market has made the adequacy of traditional labor law norms a subject of debate. Although there are varying assumptions, the issue of whether location-based workers are considered employees or independent contractors remains legally ambiguous. As detailed in earlier sections of the article we are writing, from a labor law perspective, some of the fundamental issues faced by location-based platform workers include a lack of job security, absence of social security rights, income uncertainty long and irregular working hours, and limited rights to unionization and collective bargaining.
Job security provides significant protection in traditional employment relationships, but for location-based workers, this security has been greatly weakened. Platforms classify workers as independent contractors, exempting them from the protections offered by employment contracts, and can unilaterally remove workers from the system. Similarly, in this context, workers are deprived of guarantees such as severance pay or the right to reinstatement in the event of dismissal (being banned from the platform or removed from the platform). Furthermore, job allocation systems managed by algorithms make it uncertain for workers to secure work and earn income.
In terms of social security rights, location-based workers are unable to benefit from guarantees such as unemployment insurance, retirement benefits, and health insurance because they do not have “employee” status and are often considered independent contractors. While traditional labor law mandates that employers provide insurance for their employees, platform workers are required to secure their own insurance. This situation poses a significant social risk, especially for platform workers with uncertain incomes, and particularly for low-income platform workers.
Similarly, in terms of wages and working conditions, location-based workers face significant uncertainty. This is because wages are subject to dynamic systems determined by algorithms, offering no fixed or regular income guarantees. Workers are unable to benefit from labor law protections such as overtime pay, minimum wage guarantees, and holiday rights. Additionally, while working hours are flexible depending on customer demand and platform policies, the need for workers to work long hours to earn more creates risks in terms of occupational health and safety.
In conclusion, to address the issues faced by location-based workers under labor law, the legal framework needs to be updated, and regulations that secure the social rights of platform workers must be implemented. While some court decisions and legal changes in Europe and the US have taken significant steps to strengthen the rights of platform workers, more comprehensive regulations are needed on a global scale to resolve this issue.
[1] Schmidt, Florian A: Digital Labor Markets i The Platform Economy Mapping the Political Challenges of Crowd Work and Gig Work, Berlin 2017, p.9.
[2] Boyacı, Nil Belgin: Dijital Emek Platformları ve Sendikalar (Eng. Digital Labor Platforms and Unions), Ankara 2020, p.6
[3] Organization for Economic Co-operation and Development, 2016, Op. cit., 21; European Parliament, 2017, Op. cit., 42; Chartered Institute of Personnel and Development, 2017, Op. cit., 23; Pesole et seq. 2018, Op. cit., 43.
[4] Dagnino, E. 2016, Op. cit., 51; DeVault et seq., 2019, Op. cit., 17. A study conducted in the UK in 2017 stated that 70% of platform workers lacked financial security compared to traditional employees. Chartered Institute of Personnel and Development, 2017, Op. cit., 37.
[5] Maselli, I., Lenaerts, K. and Beblavy, M. (2016). Five things we need to know about the on-demand economy. Centre for European Policy Studies, No. 21. p. 4.
[6] Küçük, Doğan, 2023, Türk İş Hukuku Bakımından Platform Çalışanları (Eng. Platform Workers in Terms of Turkish Labor Law), p. 40
[7] Yıldız, Gaye Burcu: “Dijital Emek Platformları Üzerinden Çalışanların Hukuki Statülerinin Belirlenmesi” (Eng. “Determining the Legal Status of Workers on Digital Labor Platforms"), Labor Law Magazine, Vol. 0, No. 46, 2021, 28-41, p. 29; Erol 2020a, p. 278.
[9] Todoli-Signes, Adrian: “Spanish Riders Law and The Right to Be Informed About The Algorithm”, European Labor Law Journal, Vol.12, No. 3, 2021, 399-402, p. 400; Ezer, pp. 803-804
[10] Küçük, 2023, Türk İş Hukuku Bakımından Platform Çalışanları (Eng. Platform Workers In Terms of Turkish Labor Law), 133
[11] International Lawyers Assisting Workers Network, 2021, pp. 77-99
[12] Cherry, Miriam A./ Aloisi, Antonio: ""Dependent Contractors" In the Gig Economy: A Comparative Approach”, American University Law Review, Vol. 66, No. 3, 2017, p. 649
[13] Kilhoffer, Zachary / De Groen, Willem Pieter / Lenaerts, Karolien / Smits, Ine / Hauben, Harald / Giacumacatos, Elisa / Waeyaert, Willem / Lhernould, Jean-Philippe / Robin-Olivie, Sophie: Study to Gather Evidence on the Working Conditions of Platform Workers, Luxemburg 2020, p. 254
[14] Doğan 2020, p. 1138
[15] ILO 2016, p. 209.
[16] Günbattı, Naime Nur., 2023, Konum Tabanlı Dijital Platform Çalışanlarının Temel Hakları. Master's Thesis, TOBB Economics and Technology University.
[17] Küçük, Doğukan, 2023 Türk İş Hukuku Bakımından Platform Çalışanları. Doctoral Thesis, Anadolu University,
[18]ILO 2018, p.1; Baycık, Gaye/ Civan, Orhan Ersun/ Tolu Yılmaz, Hazal/ Bosna, Berrin: “Platform Çalışanlarını Yasal Güvenceye Kavuşturmak: Sorunlar ve Çözüm Önerileri”, Galatasaray University Faculty of Law Journal, Issue:1, 2021, 713-801, p. 716. Alpagut, p. 90.
[19] De Stefano, Valerio/ Aloisi, Antonio: European Legal Framework for “Digital Labour Platforms”, European Commission, 2018, p.13
BIBLIOGRAPHY
Schmidt, Florian A: Digital Labour Markets i The Platform Economy Mapping the Political Challenges of Crowd Work and Gig Work, Berlin 2017, p.9.
Boyacı, Nil Belgin: Dijital Emek Platformları ve Sendikalar, Ankara 2020, p.6
Organization for Economic Co-operation and Development, 2016, ibid., 21; European Parliament, 2017, ibid., 42; Chartered Institute of Personnel and Development, 2017, ibid., 23; Pesole et al., 2018, ibid., 43.
Dagnino, E. 2016, ibid., 51; DeVault et al., 2019, ibid., 17. A study conducted in the UK in 2017 indicated that 70% of platform workers do not have financial security compared to traditional workers. Chartered Institute of Personnel and Development, 2017, ibid., 37.
Maselli, I., Lenaerts, K. ve Beblavy, M. (2016). Five things we need to know about the on-demand economy. Centre for European Policy Studies, No. 21. p. 4.
Küçük, Doğan, 2023, Türk İş Hukuku Bakımından Platform Çalışanları, p.40
Yıldız, Gaye Burcu: “Dijital Emek Platformları Üzerinden Çalışanların Hukuki Statülerinin Belirlenmesi,” Labor Law Journal, Vol.: 0, Issue: 46, 2021, 28-41, p. 29; Erol 2020a, p. 278.
Schimdt, 2017, ibid.; International Labour Organization, 2018, ibid., 4.
Todoli-Signes, Adrian: “Spanish Riders Law and The Right to Be Informed About The Algorithm,” European Labour Law Journal, Vol.:12, Issue:3, 2021, 399-402, p. 400; Ezer, p. 803-804
Küçük, 2023, Türk İş Hukuku Bakımından Platform Çalışanları, 133
International Lawyers Assisting Workers Network, 2021, pp. 77-99
Cherry, Miriam A./ Aloisi, Antonio: “"Dependent Contractors" In the Gig Economy: A Comparative Approach,” American University Law Review, Vol.:66, Issue:3, 2017, p. 649
Kilhoffer, Zachary / De Groen, Willem Pieter / Lenaerts, Karolien / Smits, Ine / Hauben, Harald / Giacumacatos, Elisa / Waeyaert, Willem / Lhernould, Jean-Philippe / Robin-Olivie, Sophie: Study to Gather Evidence on the Working Conditions of Platform Workers, Luxemburg 2020, p. 254
Doğan 2020, p. 1138
ILO 2016, p. 209.
Günbattı, Naime Nur., 2023, Konum Tabanlı Dijital Platform Çalışanlarının Temel Hakları. Master's Thesis, TOBB University of Economics and Technology.
Küçük, Doğukan, 2023 Türk İş Hukuku Bakımından Platform Çalışanları. Doctoral Thesis, Anadolu University.
ILO 2018, p. 1; Baycık, Gaye/ Civan, Orhan Ersun/ Tolu Yılmaz, Hazal/ Bosna, Berrin: “Platform Çalışanlarını Yasal Güvenceye Kavuşturmak: Sorunlar ve Çözüm Önerileri”, Galatasaray University Faculty of Law Journal, Issue:1, 2021, 713-801, p. 716. Alpagut, p. 90.
De Stefano, Valerio/ Aloisi, Antonio: European Legal Framework for “Digital Labour Platforms,” European Commission, 2018, p.13
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