According to a recent report, most online platforms that offer gigs do not meet minimum labour standards. This includes basic protections such as pay, contracts, and working conditions.
Fairwork is a research initiative at the University of Oxford, and WZB in Berlin. The report assessed 16 major cloudwork platforms, including Fiverr.com, Upwork.com, Freelancer.com, and Amazon Mechanical Turk.
Cloudwork is a term used to describe remote jobs that are task-based, such as data labelling and transcription, or software development and design. A large and growing global workforce performs these roles, which are often crucial to the development of artificial intelligence and the digital economy in general. The World Bank estimates that 435 million people are involved in this type of work worldwide.
The report revealed that there were significant gaps in the fair treatment of workers, despite the projected $647 billion value for the sector by 2025. Only four (16%) of the platforms were able show that the workers earn the minimum wage in their locality after all costs. The other 12, including some of the most popular platforms, did not provide such guarantees.
As part of its research, Fairwork surveyed over 750 workers in 100 countries. Thirty-one percent of respondents reported non-payment, and 38 percent were paid late. Amazon Mechanical Turk worker from Nigeria said: “I would rather have my money in my account than in gift cards.”
Contracts, representation, and well-being remain weak points
In addition, the report found that more than half of platforms evaluated have contract clauses which limit workers’ rights. This includes unclear job descriptions and extensive liability clauses, as well as a lack of transparency in the contract. Only six of 16 platforms (38%) provide contracts that accurately reflect the nature and scope of work.
Worker representation remains limited. Six platforms (also 38%) recognise formally the right to organize, but none have demonstrated an active involvement in collective bargaining and worker governance. There is little evidence that these rights are actually implemented, even on platforms where they are nominally acknowledged.
The study also revealed a lack in support for the wellbeing of workers. Over half of the platforms do not provide any wellbeing support, and only seven out of sixteen have implemented measures that mitigate health and safety risk such as back pain and burnout.
As digital employment models are increasingly prevalent in all industries, these findings should raise concern for HR professionals as well as policymakers. The risks of unregulated cloudwork become more evident as the number of workers in this ecosystem increases.
Sector improvements are still below minimum expectations
The report does note some progress despite these challenges. Fairwork has been working with eight platforms since 2023 to improve 56 areas, including dispute resolution procedures and contract terms, as well as pay transparency. These updates may have a positive impact on up to 2 million workers.
Fairwork has set minimum standards for platforms, but most still do not meet them. Researchers stress that voluntary actions alone will not protect workers. The report calls on stronger national and global regulation, including due-diligence legislation and binding platform-work directives.
Dr Jonas C. L. Valente is a postdoctoral research fellow at the Oxford Internet Institute, and the co-leader of the Cloudwork Project. He said: “This report exposes a brutal reality: The global online gig economies fails the vast majority its workers. They are the unseen workers who make the AI systems and applications we use each day possible. Although some platforms show that change is possible for millions, they are still denied the basic rights they have been expecting. “Voluntary improvements are happening, but they have proven insufficient and won’t ever be enough.”
He said that the government and regulators must take action to ensure fairness in the industry.
We urgently need government and regulators step up to hold platforms accountable. This can be done through global frameworks or laws requiring due diligence, or by strengthening platform work directives. “Without action, millions will remain trapped in low paid, insecure digital work with no voice and no protection.”
Digital exploitation
Prof Mark Graham, Director and Professor of Internet Geography, Oxford Internet Institute at Oxford University, has echoed this call for reform.
“Behind AI’s dazzling promises and the billions that flow into the online gig-economy, millions of workers are powering this without the most basic labor protections. Our research shows that even though a $600-billion-dollar industry is able to pay minimum wages to millions of workers around the world, it still cannot guarantee them.
If regulators continue to allow inequity, we’ll hard-code exploitation for the digital future. It’s high time that governments and platforms make fair work the norm, not the exception.
