You may have heard the term ‘gig economy’ being used more frequently in recent times. A gig economy is not a new concept and it holds many characteristics that represent a traditional style of an employer-employee relationship. However, although this ‘style’ of working has been prevalent for a long time, it has evolved due to the current economic climate, as well as to attitudes towards work culture and a work-life balance that have been pushed into the spotlight thanks to the effects of the Covid-19 pandemic.
Essentially, the gig economy can be viewed as a career path that lacks the shackles (or benefits) sometimes associated with more ‘standard’ forms of employment. There are no probations, contractual obligations, long-term conditions, or a standardised work schedule. The gig economy allows for those with confidence, hard-work ethic and a free-spirit, the opportunity to thrive and forge their own career path.
Per capita, the UAE has one of the highest percentages of freelancers in the world, only behind Hong Kong, USA and South Korea. The UAE’s labour laws are favourable to independent workers, reflected in the fact that the UAE government offers part-time visas that allow individuals to work on a project basis.
This helps with the growth of the gig economy in the Middle East and develops a diverse pool of skilled talented in the country. It has undoubtedly advanced recently, which in turn complements and aids the UAE’s strategic efforts to drive economic recovery to pre-COVID levels.
The gig economy has the potential to play a pivotal role in the recently formed National COVID-19 Crisis Recovery Management and Governance Committee’s plans to resurge the UAE’s economic growth by supporting promising and priority sectors, whilst monitoring the recovery rate of business in the UAE.
While strategically planning for the next phases of a post-COVID economy is a recent topic, the UAE has historically dedicated itself to not falling to the pitfalls of the gig economy. The UAE has diligently emplaced benefits and mandates that have granted freelancers full-time styled employee benefits, such as healthcare and basic employee work benefits.
Moreover, the UAE has approximately 45 separate Free Zones that offer freelancers in the gig economy and entrepreneurs alike, the opportunity to legally establish their business and gain access to benefits and opportunities. Believe it or not, the UAE is an outlier in this respect, and actively ensures that no global organisation attempts to exploit their staff by registering them as ‘independent contractors’, and thus deny the provision of benefits.
In contrast, we saw California approve the controversial Proposition 22, which will exempt major gig economy tech companies, such as Uber, Lyft and Instacart, from classifying their gig workers as employees. This is great news for these large tech companies, as they will not be required to provide employee benefits.
However, this is incredibly damaging for the workers who are ultimately responsible for driving the growth of these companies and delivering their services to the general public. Unfortunately, outside of the UAE, it’s becoming the norm for organisations to brand their staff as independent contractors.
The car-riding apps that are used to take people from A to B, the food delivery services that are called when they don’t want to cook, and the parcels consumers receive after their online shopping spree; many of these profitable businesses are choosing to see their workers as independent contractors for the benefits of their own profit.
2020 has been a year of remote working
Flexibility and independence are amongst the top of the benefits of this kind of working style. Having the freedom to decide when you want to work is not empowering and drives productivity and efficiency.
Another key facet of flexibility is not only how and when your work, but where you work. For obvious reasons, 2020 has been a year of remote working. Zoom meetings are a thing of the present and are most likely here to remain. But there’s more to this point, much more; the normalisation of working remotely from home has unlocked a new opportunity within the gig economy where those that face challenges with frequent access to an office are now being considered for ‘the job’.
Whether it’s family commitments, physical limitations, or simply having little-to-no-access to transport, these challenges have been negated by the flexibility factor, and thus the talent pool has increased.
Further, the consideration towards gig talent is growing due to travel and distance barriers being broken down by technology. In times, it’s not unusual to see a UAE-based freelancer being awarded work for a project based in Europe. The amalgamation of the need to reduce costs, advancement of technology and recent travel restrictions have propelled the gig economy forward by years in a matter of months.
Which brings me to the next ‘opportunity’; money. Working in a gig economy is a bet on yourself. It’s asking yourself “can I do this on my own?” and if that answer is yes, you’re backing yourself to achieve more on your own then you would within the confines of an organisation.
To go one step further, this promotion of the ‘work hard and earn more’ will ultimately lead to a trickle-down effect, where the most successful gig talents go on to establish small businesses which stimulates job creation.
This certainly does come with some risk, and we all know life has no guarantees. The same can be said about the gig economy, and for a matter of fact, this can be said about all economies, sectors and lines-of-work; especially in the current economic climate.
It’s not unusual to see a UAE-based freelancer being awarded work for a project based in Europe
Typically, while working in a gig economy, benefits do not usually come as part of the package. You are a contractor, who is hired to fulfil a specific service or produce an item, and then you part ways with the recipient of your efforts. However, the UAE’s management of the gig economy has all but removed any possibility of organisations exploiting loop-holes in employment status; which is why it continues to advance as one of the strongest and most efficient gig economies in the world.
As long as these international practices are upheld in countries across the world, the more the UAE’s gig economy will appeal to inventors, start-ups and global talents. With that being said, I’d rather see the UAE’s model being an example to countries around the world, with the aim of seeing gig-talent being rewarded wherever they choose to operate.
As the UAE’s gig economy continues to advance, my call-to-action would be to encourage the public sector to embrace these new ways of working, in the same way the UAE’s private sector has shown adaptability and resilience in the face of COVID.
We have a leadership that believes in creating opportunities for all and I think this is the most opportune moment to utilise this notion to further build upon what the UAE has to offer to global economies.