Fairwork Germany Ratings 2020: Labour Standards in the Platform Economy - Labour Standards in the Platform Economy
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Labour Standards in the Platform Economy | 1
Fairwork Germany
Ratings 2020:
Labour Standards in
the Platform Economy
2 | Fairwork Germany Ratings 2020
Editorial:
Towards Fair Work
As the COVID-19 virus spreads rapidly across the world, many
countries are enforcing far-reaching curfews or lockdowns, and
closing state borders to contain it. Meanwhile, local shops and
supermarkets have become sites of contagion. Platform workers
have found themselves at the frontlines of this global health
crisis.1,2
For example, some deliver food to University of Berlin (TUB), together of these five principles. The first two
those self-isolating or quarantined, with the Oxford Internet Institute principles concern whether workers
whilst others provide care and (OII) at the University of Oxford, receive a fair pay for their work and
other essential services to those in are now implementing the Fairwork if their jobs are characterised by
need. Together with other essential rating scheme in Germany. In healthy and safe working conditions.
workers, they make it possible for the collaboration with other research The three others focus on whether
population to access basic needs from partners, the model is also being the platform has engaged in a fair
the comfort and safety of their homes. operationalised in Brazil, Chile, contractual agreement with the
But at what risk to themselves? Ecuador, Indonesia and the UK. workers; whether there are clear and
We are particularly grateful for the transparent management processes
Many platform workers—especially support of the Wissenschaftszentrum and communication channels; and
those who are self-employed—do Berlin (WZB) and the Weizenbaum whether workers are able to express
not have adequate health and safety Institute for the Networked Society themselves collectively through open
protections, access to sick pay, or in implementing Fairwork Germany. worker representation.
other forms of financial support in the Fairwork Germany has been endorsed
case that they are unable to work. This by Elke Breitenbach, Berlin’s We assessed evidence against each
pandemic has shone a light on the Senator for Integration, Labour and of these Fairwork principles through
fundamental role platform workers Social Services,3 and is included in a combination of desk research,
play in our lives, while at the same time the Federal Government’s Digital worker interviews in Berlin, and semi-
highlighting the extreme insecurity Implementation Strategy.4 structured interviews with platform
of their work arrangements. But not managers. We acknowledge that, due
all platforms are the same. Labour Fairwork Germany aims to shed to the dynamic nature of the platform
standards in the platform economy light on the working conditions of economy and data confidentiality,
vary a great deal from platform to platform workers and make practical reliable information may be difficult
platform, and from country to country. suggestions for improving them. The to obtain. We therefore only award a
Therefore, it is ever more important to analysis we present in this report is point when there is clear and sufficient
assess labour standards of different founded upon five core principles evidence that supports a principle. In
platforms in order to establish a fairer of fair platform work: Fair Pay, Fair other words, our research strategy is
platform economy in Germany. Conditions, Fair Contracts, Fair not based on the principle of voluntary
Management, and Fair Representation. participation by platforms.
After launching in India and South Each principle is divided into two
Africa last year, in 2020, the Fairwork thresholds. We award scores out of Our findings indicate that Germany’s
project has expanded its research ten to a platform based on whether relatively stringent labour regulations
activities to Germany. As set out they meet the basic threshold (1 provide some protections for workers,
in this report, the Department of point) and then achieve the higher but do not always translate into fairer
Entrepreneurship and Innovation threshold (1 additional point) for each working conditions in the platform
Management (EIM) at the Technical economy. This discrepancy is perhaps
Labour Standards in the Platform Economy | 3
Contents
not surprising, given that in recent
years, the German labour market
has increasingly relied on low-wage,
casual and migrant labour; partly
undermining the historically strong
labour regulations framework.
With Germany moving towards the
Fourth Industrial Revolution at full
speed, it is crucial that we safeguard 02 Editorial: Towards Fair Work
important protections for all workers.
The range in Fairwork scores across
German platforms is proof that very
different models of work are possible 04 The Fairwork Framework
within the platform economy. Crucially,
this points to pathways for effective
06
regulation, and provides a basis from Overview of the German Platform
which collective bodies of workers can Economy
formulate their demands. Our hope is
that workers, consumers, regulators
09
and companies use the Fairwork The Legal Context: What Makes a
framework and ratings to imagine, Worker an Employee?
and realise, a fairer German platform
economy.
11 Fairwork Scores
13 Platform in Focus: CleverShuttle
14 Platform in Focus: Zenjob
15 Workers’ Stories
16
Theme in Focus: COVID-19 and
Platform Workers in Germany
Dr. Maren Borkert, Chair
of Entrepreneurship and
18 Impact and Next Steps
Innovation Management (EIM)
at the Technical University of
Berlin (TUB) 21 Appendix: Fairwork Scoring
System
25 Credits and Funding
26 Endnotes
4 | Fairwork Germany Ratings 2020
01 The five
principles
Fair Pay
Workers, irrespective of their
employment classification, should
earn a decent income in their home
jurisdiction after taking account of
work-related costs.
Fair Conditions
The
Platforms should have policies in place
to protect workers from foundational
risks arising from the processes of
Fairwork
work, and should take proactive
measures to protect and promote the
health and safety of workers.
Framework
Fair Contracts
Terms and conditions should be
transparent, concise, and provided
to workers in an accessible form. The
party contracting with the worker must
be subject to local law and must be
identified in the contract. If workers
are genuinely self-employed, terms
The Fairwork project evaluates of service are free of clauses which
the working conditions of digital unreasonably exclude liability on the
part of the platform.
platforms and ranks them on how
well they do. Our goal is to show Fair Management
There should be a documented process
that better, and fairer, jobs are through which workers can be heard,
can appeal decisions affecting them,
possible in the platform economy. and be informed of the reasons behind
those decisions. There must be a
clear channel of communication to
To do this, we use five principles that digital platforms should workers involving the ability to appeal
comply with in order to be considered to be offering ‘fair work’. management decisions or deactivation.
We evaluate platforms against these principles to show not only The use of algorithms is transparent
what the platform economy is, but also what it should be. and results in equitable outcomes
for workers. There should be an
The five Fairwork principles were initially developed at a multi-
identifiable and documented policy that
stakeholder workshop at the International Labour Organisation.
ensures equity in the way workers are
We then held follow up workshops for local stakeholders in Berlin,
managed on a platform (for example,
Bangalore, Cape Town, and Johannesburg. Our Berlin workshops
in the hiring, disciplining, or firing of
were held in collaboration with the Weizenbaum Institute in
workers).
May 2019. Attendees represented a variety of key stakeholders,
including Berlin’s Senate Department for Labour and Social
Affairs, the Federal Ministry of Labour and Social Affairs, and the Fair Representation
German Trade Union Confederation (DGB). These workshops and Platforms should provide a documented
our follow-up conversations with platform workers, platforms, process through which worker voice
trade unions, regulators, academics, and labour lawyers allowed can be expressed. Irrespective of their
us to revise and fine-tune the principles, and ensure that they employment classification, workers
were applicable to the German context. should have the right to organise in
collective bodies, and platforms should
Further details on the thresholds for each principle, and
be prepared to cooperate and negotiate
the criteria used to assess the collected evidence to score
with them.
platforms, can be found in the Appendix.
Labour Standards in the Platform Economy | 5
02 Methodology
overview
The Fairwork project uses three approaches
to effectively measure fairness at work.
Desk Research Worker Interviews
The process starts with desk research The third method involves interviewing
to ascertain which platforms are platform workers directly. We aim for a
operating in each city, as well as noting sample of 6-10 workers interviews at
the largest and most influential ones. each platform. Workers are approached
In Germany, we focused on platforms either through the platform directly
operating in Berlin. This research or at known worker meeting points.
provides the overall range of the These interviews do not aim to build a
platforms that are ranked, as well as representative sample. They instead
identifying points of contact or ways seek to understand the processes
to access workers. Desk research of work and the ways it is carried
also flags up any public information out and managed. They allow us, for
03
that could be used to score particular instance, to see contracts and learn
platforms (for instance the provision about platform policies that pertain to How we
of particular services to workers, or workers. The interviews also allow the
ongoing disputes). team to confirm or refute that policies score
or practices are really in place on the
Each of the five Fairwork principles is
Platform Interviews platform.
broken down into two points: a basic
The second method involves point and a more advanced point that
approaching platforms for evidence. Putting it all together can only be awarded if the basic point
We interview platform managers This threefold approach provides a has been fulfilled. Every platform
and request evidence for each of the way to cross-check the claims made receives a score out of 10. Platforms
Fairwork principles. This provides by platforms, while also providing the are only given a point when they
insights into the operation and opportunity to collect both positive can satisfactorily demonstrate their
business model of the platform, while and negative evidence from multiple implementation of the principles.
also opening up a dialogue through sources. Final scores are collectively
which the platform could agree to Failing to achieve a point does not
decided by the Fairwork team based
implement changes based on the necessarily mean that a platform
on all three forms of information
principles. In cases where platform does not comply with the principle
gathering. The scores are peer-
managers do not agree to interviews, in question. It simply means that we
reviewed by the country team, the
we limit our scoring to evidence are not—for whatever reason—able to
Oxford team and two reviewers from
obtained through desk research and evidence its compliance.
other country teams. This allows us
worker interviews. to provide consistency and rigour to See the Appendix for further details
the scoring process. Points are only on the Fairwork scoring system.
awarded if clear evidence exists on
each threshold.
6 | Fairwork Germany Ratings 2020
Overview
of the
German
Platform
Economy
The German economy has long been characterised by a rich
tradition of tripartite social partnership. In post-war Western
Germany, this model of regulating the labour market involved
close coordination between three pillars of competing interests:
strong labour unions representing a relatively homogeneous
domestic workforce, financially well-equipped employers’
organisations, and the government.5
Social Partnership
On a smaller but certainly no less and the Platform
important scale, practices of co-
determination have frequently brought
Economy
“Could Germany about potent legal mechanisms At first glance, the historical legacy
serve as a vanguard for workers to actively influence
decisions at their workplaces, through
of strong social partnership between
employers’ and workers’ organisations
for other countries arrangements such as works councils.
With that in mind, a question that
means we have powerful regulatory
frameworks to thwart precarity,
when it comes to bears asking is how does Germany’s discrimination, and atomisation in
distinctive labour market environment
taming the worst relate to the rise of digital platforms?
the platform economy. However, the
spread of non-standard employment
excesses of platform Could Germany serve as a vanguard
for other countries when it comes to
and the increased tertiarisation of
the economy, in combination with
capitalism?” taming the worst excesses of platform
capitalism?
increased migration from within and
Labour Standards in the Platform Economy | 7
beyond the EU, is giving rise to a rather environment conducive to growth in These characteristics make platform
different picture. Most importantly, Germany. A range of labour platform work particularly attractive for
many companies relying on migrant companies have been founded in migrants.
work often evade sectoral collective Berlin, including Helpling and Betreut.
bargaining agreements and undermine de, with the city receiving the second- Migration and
minimum labour standards. As long- largest volume of venture capital
term analyses of essential sectors such investment among European cities.12 Platform Work
as the meat industry,7 the construction The country shows very high levels
It is thus not surprising that most of the
industry8 and the health care sector9 of internet connectivity, with nearly
platform workers we interviewed in the
show, outsourcing and subcontracting three quarters of the population using
course of our research have a migration
practices have been widespread in a smartphone in 2019, and almost
background. In our interviews,
Germany in the last two decades. 90 percent of the population using
migrants often stressed that they
the internet regularly.13 While there
These examples demonstrate that find platform work more accessible
is no comprehensive or comparative
concerns about a two-tier labour than much of the rest of the local
public data on the precise number
market in Germany are by no means labour market. When migrant workers
of platform workers in Germany,
new. In 2018, more than half of the engage in platform work, a number of
estimates range between 500,000 to
working population (33.3 million) particular issues come to the fore. For
1.6 million workers.14 The majority
were registered employees subject instance, language proficiency might
of these work in household-related
to social security contributions, with affect a worker’s ability to understand
services (e.g. cleaning, pet-sitting, care
an unemployment rate of slightly a platform’s terms and conditions.
work), logistics (e.g. food delivery), and
above five percent.10 Despite this It might also affect their ability to
transport (e.g. ride-hailing services).
low unemployment rate, there is a communicate with their coworkers and
high share of low-wage earners (22.5 Platform work in Germany is often the platform’s management to discuss
percent), which significantly exceeds lauded for its flexibility and low entry any issues they might experience.
the European average (17.2 percent).11 barriers, as there is generally no need Moreover, newcomers often lack a
In other words, in recent years, the for specific occupational licences and clear understanding of workers’ rights
German labour market has been it can often be performed with limited in their new country of residence,
characterised by a comparatively high knowledge of the German language. including the legal procedures and
reliance on low-wage, non-standard Therefore, platform work can provide institutions that might protect them.
employment. a fast route to earning income, and
Our research shows that clear
is frequently a lifeline for those who
Against this background, several contracts, as well as transparent terms
face barriers to standard employment.
digital labour platforms have found an and conditions, available in languages
8 | Fairwork Germany Ratings 2020
other than German, can make an debates and policy proposals at could also be applied in contexts in
enormous difference for many migrant the intersections of migrant labour, which transportation platforms rely
workers. At the same time, establishing subcontracting, and the dynamics of on intermediary firms that employ
formalised and well-advertised social partnership. For instance, in workers.17 In short, the ongoing cat-
channels for workers to communicate late 2019, the German government and-mouse games between strong
with platforms, both to raise grievances issued a new law for protecting labour market regulations and creative
and to appeal disciplinary decisions, subcontracted parcel delivery drivers counter-strategies by private sector
are fundamental to empower workers (Nachunternehmerhaftung)15 —the actors to undermine them provide the
to express their voice and exercise majority of whom were migrant context for understanding the German
their rights. Finally, the existence of a workers from Central and Eastern platform economy.
collective body representing workers Europe. The law has been critiqued
can monitor working conditions, by unionists and labour rights While recent technological
improve the bargaining power of advocates for not going far enough advancements have made the rise of
workers against arbitrary decisions, to improve the status quo in terms digital labour platforms possible, they
and help to protect the most vulnerable of workload and safety.16 Still, it have not brought about a concomitant
workers from exploitation. puts a spotlight on the ways in which (novel or disruptive) development in
companies find sophisticated ways labour standards. Our focus on working
New Technologies, of evading obligations of social conditions in the platform economy
brings to the foreground familiar
security contributions and minimum
Familiar Questions? wage laws by establishing opaque questions relating to the struggle to
and layered networks of contractors create decent working conditions for
Given these developments in the all workers in Germany, irrespective
and subcontractors within the
German labour market, it is crucial of their employment status or
parcel delivery sector. Recently, it
that we contextualise our results background.
has been debated whether that law
within the broader context of ongoing
Labour Standards in the Platform Economy | 9
The Legal Context:
What Makes a Worker
an Employee?
In Germany—as in most other jurisdictions18 —worker
protections, derived from labour law and social security laws, are
mostly predicated on workers being classified as ‘employees’.
German labour law is embedded denied him employee status, and Several policy responses to worker
in the country’s model of a social justified its decision by finding that misclassification have been discussed.
market economy.19 The legal there was neither an obligation to First and foremost, it is necessary to
definition of ‘employee’ has been accept an order nor, conversely, an enforce existing labour laws in cases of
developed over more than a hundred obligation for the platform operator disguised employment relationships.
years in the context of hierarchical to offer orders.20 However, the court Most labour platforms—despite
organisations typical of the Fordist left open the question of whether a their claims to the contrary—are
production system and informed by fixed-term employment relationship not simply intermediaries between
collective agreements. Therefore, the (befristetes Arbeitsverhältnis) becomes workers and customers. Instead,
classification of workers in atypical and established when a worker accepts they exert significant control over the
platform-mediated working contexts a specific order on the platform, and labour process, and should be held
presents problems. Indeed, several has allowed an appeal to be heard by accountable as such. Second, the
digital labour platforms do not classify the Federal Labour Court. This appeal, legislative definition of ‘employee’
their workers as employees, depriving which is expected to take place later must be clarified. A recent attempt at
them of the contingent protections. this year, may hopefully provide further doing this failed in 2017.22 The policy
For such platform workers, security clarity on this fiercely disputed issue. process showed the problems around
over their employment status can such attempts: they usually address
only come through the courts. But it is This legal situation creates a range of only one very specific form of work.
difficult to know for certain how a court loopholes that digital labour platforms The 2017 attempt was designed to
or tribunal would end up classifying take advantage of. According to the address the particular problem of
the employment relationship in definition of what constitutes an how outsourced workers in industrial
adjudicating disputes. ‘employment contract’,21 a good sectors should be classified and would
number of geographically tethered possibly have been of limited help in
In these disputes, the definitional labour platforms could be argued classifying platform work. Yet even
blurriness of what constitutes a to qualify as employers. However, labour relationships in the platform
‘platform’ and ‘platform work’ has by contractually classifying—or, economy that are based on the
fundamental consequences for in the frequent case of ‘disguised employee model have been subject
legal decisions that directly affect employment relationships’ to ongoing legal disputes. Lieferando,
the livelihoods of workers. Most (Scheinselbstständigkeit), for instance, does classify its German
recently, in December 2019, the misclassifying—platform workers workers as employees. However, in
Munich Regional Labour Court ruled as independent contractors, digital Münster as well as in Cologne, the
that a 52-year-old worker was not platforms circumvent obligations to platform has been continuously fighting
an employee of Roamer, a Dutch provide workers with employment in the courts over the establishment of
labour platform. The platform worker rights. These include minimum wages, effective Works Councils after its Dutch
claimed that the contract between health and safety regulations, sick pay, parent company Takeway.com had
him and the platform constituted an working time regulation, and collective acquired Delivery Hero and Foodora in
‘employment contract’ (Arbeitsvertrag) bargaining rights. Furthermore, these Germany.
that could not be terminated without platforms also leave workers with
considering Germany’s Dismissal limited social protection, such as It is also important to note that
Protection Act. The court, however, unemployment benefits. labour law is by no means the only
10 | Fairwork Germany Ratings 2020
regulatory framework that affects the Regulating the German platform These initiatives show that we need to
platform economy in Germany. For economy remains a priority for collaboratively develop—by bringing
example, in the rich regulatory history policy-makers, including the Federal workers and key stakeholders to
of Uber Germany,23 the law of public Ministry of Labour and Social the table—an enforceable code of
transport and unfair competition Affairs, which established a think worker rights that is compatible with
has long played a key role in shaping tank in 2018 (Denkfabrik Digitale sustainable business models. The
the company’s operations, including Arbeitsgesellschaft) to develop diversity of digital labour platforms and
its relationship with intermediary comprehensive regulatory approaches. types of employment classification do
companies employing drivers. In We would argue that any such not make such regulation necessarily
December 2018, the The Federal Court approach must consider the collective unfeasible. It is in this context that we
of Justice ruled that Uber’s business bargaining rights of platform workers— see the Fairwork framework providing
model violates Germany’s rules of they must be able to form trade unions an intervention for responsive and
public transport and constitutes unfair and conclude collective agreements effective policy responses in Germany,
competition.24 As a result, Uber has with platforms in order to contribute to which may inspire other countries to
been adjusting its business model – regulation of working conditions and adapt similar measures. Through the
most recently by operating with only pay. The European Court of Justice, Fairwork scores, we hope to stimulate
one intermediary firm as a general in December 2014,26 has already policy discussions on how to guarantee
contractor (Generalunternehmer) in all shown how this could be argued—and that platform work is fair and to
cities, instead of multiple intermediary even the EU Commissioner Margrethe highlight good practice from which
companies.25 Vestager now considers collective both platforms and policymakers can
bargaining rights of platform workers learn.
as imperative.27Labour Standards in the Platform Economy | 11 Fairwork Scores Score (out of 10) CleverShuttle 9 Zenjob 8 InStaff 7 BerlKönig 6 Lieferando 5 Amazon Flex 4 Betreut.de 4 Careship 4 Helpling 2 Uber 1 The breakdown of scores for individual platforms can be seen at: www.fair.work/ratings
12 | Fairwork Germany Ratings 2020
CleverShuttle is the only platform that
provided evidence for establishing a
collective body of workers. In the case
of Zenjob, the company included in their
general agreement a commitment to
Fair Pay Fair Management encourage and support the establishment
of a collective body of workers. However,
Only half of the platforms were able to
All platforms but one were able to for the majority of digital platforms,
demonstrate that their management
evidence that workers are paid at least there was no evidence of a documented
processes allowed for due process for
the minimum wage (which in Germany process through which workers’ collective
decisions affecting workers. Only one
is set at €9.35 per hour in 2020). For voice could be heard, nor was there any
platform, InStaff, has a substantial policy
the vast majority of platforms, workers evidence of platforms encouraging the
in place to prevent discrimination against
are hired through an employment formation of a collective workers’ body
people from disadvantaged backgrounds.
contract, rather than on a self- with which they would cooperate. This
The secrecy surrounding how some
employment basis, and they are thus leaves most German platform workers
platforms use algorithms meant that
paid an hourly or monthly wage. Of without institutionalised channels for
it was difficult for them to clearly
those paying at least the minimum worker representation, and means
demonstrate that they had meaningful
wage, the majority were also able to that they have little influence over the
pro-equity policies in place.
show that workers earn the minimum decisions that impact their jobs.
wage even after work-related costs are
taken into account.
Fair Representation
The principle of fair representation
Fair Conditions was only met by two platforms,
CleverShuttle and Zenjob.
Seven out of ten platforms were able
to evidence that they have policies in
place to protect workers from risks
arising from the processes of work.
Only one company, CleverShuttle, was
able to evidence that it had adopted
proactive measures to go beyond basic
protections and improve the well-being
of its workers. Our findings in this
category indicate that more efforts are
needed to improve job quality.
Fair Contracts
All platforms provide terms and
conditions in a clear, transparent and
accessible form. For six out of ten
companies, the contract was shown
to genuinely reflect the nature of the
relationship between the platform and
the workers.Labour Standards in the Platform Economy | 13
Platform in Focus:
CleverShuttle Total
Principle 1: Pays at least the local Pays the local minimum 2
minimum wage wage plus costs POINTS
Fair Pay
Principle 2:
Mitigates task-specific risks
Actively improves working 2
POINTS
Fair Conditions conditions
Principle 3: Clear terms and conditions Genuinely reflects the 2
Fair Contracts are available nature of the relationship POINTS
1
Evidence of preventing
Principle 4: Fair Provides due process for
discrimination and
decisions affecting workers POINT
Management promoting equity
2
Principle 5: Fair Includes freedom of Recognises body can
association and worker undertake collective
Representation
POINTS
voice mechanism representation/bargaining
CleverShuttle overall score 09
CleverShuttle sits at the top of the CleverShuttle is the only company in collective voice can be heard. In
Fairwork rankings in Germany this Germany to be awarded point 2.2, as Berlin, the creation of a works council
year. CleverShuttle is a ride-hailing it is the only platform to have adopted is underway, meaning that in the
platform founded in 2014. It provides proactive measures to promote the future, CleverShuttle drivers in the
an environmentally friendly car- health and safety of its workers. city will be able to exert their right
pooling service in six German cities. of codetermination, and potentially
All CleverShuttle drivers are classified Workers are hired on either a part-time influence management decisions.
as employees and are required to or full-time basis, and the contract
have a passenger transport certificate genuinely reflects the nature of the At the moment, CleverShuttle is close
(P-Schein). The platform pays monthly relationship between the platform to being an example of best practice in
wages to its workers, and there exists and the drivers. The contract is Germany with respect to fair working
a documented policy which ensures made available to drivers in a clear practices. The company should be
that drivers earn a minimum hourly and accessible form. Moreover, recognised for adopting proactive
wage after work-related costs, which CleverShuttle has a clearly established measures to improve the health and
is higher than the German national process through which workers can safety of its workers and encouraging
minimum wage. communicate with the company and a collective body through which its
raise any issues. workers will be represented. In the
The platform also has a documented future, we hope CleverShuttle will
policy in place which ensures that In contrast to the majority of remain an example of fair working
customers agree to protect workers’ other platforms rated by Fairwork, practices for other platforms in
health and safety in compliance with CleverShuttle has a documented Germany and beyond.
German regulations. Furthermore, process through which workers’14 | Fairwork Germany Ratings 2020
Platform in Focus:
Zenjob Total
Principle 1: Pays at least the local Pays the local minimum 2
minimum wage wage plus costs POINTS
Fair Pay
Principle 2:
Mitigates task-specific risks
Actively improves working 1
Fair Conditions conditions POINT
Principle 3: Clear terms and conditions Genuinely reflects the 2
Fair Contracts are available nature of the relationship POINTS
1
Evidence of preventing
Principle 4: Fair Provides due process for
discrimination and
decisions affecting workers POINT
Management promoting equity
2
Principle 5: Fair Includes freedom of Recognises body can
association and worker undertake collective
Representation
POINTS
voice mechanism representation/bargaining
Zenjob overall score 08
Zenjob is one of the top-scoring The platform uses either temporary Zenjob has now agreed to make a
platforms in our rating. Zenjob contracts (kurzfristige Beschäftigung) proactive effort to encourage collective
provides a range of temporary jobs for or working student contracts representation among its workers,
students in a variety of sectors, such (Werkstudentenvertrag) for its workers. and has explicitly stated this in the
as hospitality, retail, and logistics. The While temporary contracts are capped updated general agreement. This is
platform’s wages exceed the German at 70 days per year, the duration of a commendable step to ensure fair
minimum wage, even after including working student contracts ranges worker representation. Having voice
work-related costs. between three and six months, and the and collective power in the workplace
working hours are between 10 and 20 is essential for workers if they wish
Zenjob has a documented policy hours per week. to move away from exploitative
which ensures that clients agree to relationships.
protect workers’ health and safety in Zenjob has a formalised process
accordance with German regulations. through which workers can
Jobs that are advertised on the communicate with the platform and
platform are constantly reviewed be informed of disciplinary decisions
by the management to ensure affecting them. In the event of a
compliance, and workers are able to contract being terminated, the platform
raise complaints about issues related interface is still available for appeals.
to their health and safety. That said, However, a policy to protect workers
the platform does not offer health and against discrimination is still needed
safety training to its workers. for the company to receive full points in
the Fair Management category.Labour Standards in the Platform Economy | 15
Workers’ Stories
Mia* had been working for a domestic work problems they face during work, and where
platform in Berlin for about five months when possible, help each other out. Overall, she is
we spoke to her. She signed up to the platform satisfied with the platform but she is also wary
Mia as she saw it as a “fast way to earn money of “negative aspects like high commission and
without providing a lot of documents and unpaid travel time to customers”. Mia also
certifications, plus you don’t have to speak does not like that she is unable to comment
German”. Previously, she had worked in retail on the behaviour of her customers: while
in her home country in South America. Some of they can leave her public reviews on her
her friends from home suggested the platform platform profile, she cannot reciprocate it.
to her. It is hard for her to estimate her average She gets the impression that the platform
monthly earnings from this work because she prioritises consumers over workers. For this
has not submitted her tax declaration for this reason, she sometimes asks clients she finds
year yet. through the platform if she can work for them
independently. That way, she does not have
Mia keeps in regular contact with others using to pay the platform a commission or deal with
the platform through Facebook and WhatsApp negative reviews on her profile.
groups. They talk about challenges and
Lech* completed a university degree in graphic tends to fluctuate quite a lot. In the month
design in his home country in Eastern Europe, we met him, he made just over half of what
Lech and worked as a designer for several years he had made in the previous month. He does
before moving to Berlin. Upon arrival, he signed not have any contact with other drivers using
up with a prominent ride-hailing platform. the same platform or other employees of
He was attracted to the platform because the intermediary firm, so he does not know
of its flexibility. He also hoped the regular whether his experience is similar to other
contact with riders would help him improve drivers or not. Being far from home, one thing
his German. However, practising German while Lech worries about is what would happen if
working as a driver proved rather difficult for he had an accident—he is not sure whether he
Lech. He found that most of his customers has insurance that would protect him. Luckily,
were not actually native German speakers, but nothing serious has happened so far, save for
tourists visiting the city. He still sees driving the occasional unruliness from the passengers
in Berlin as “easy money, and a way to get in he sometimes drives back and forth between
touch with people”. Berlin’s clubs.
When we interviewed Lech, he had been
working for four months on the platform, but
not exactly for the platform. He receives his
payslips, as well as the car he uses to work,
from an intermediary company, which leases
cars to many others like him. Lech says he
does not know how many drivers work for
that intermediary or what relationship that
*Names changed firm has with the platform he uses. Though he
Photo: VladanRadulovicjhb / Shutterstock
to protect worker works around 40 hours per week, his income
identity16 | Fairwork Germany Ratings 2020
Theme in Focus:
COVID-19 and
Platform Workers in
Germany
An increasing number of countries, including Germany, have
implemented COVID-19 related lockdown measures, obliging
people to stay at home, unless for specific essential activities.
Together with other essential workers like cashiers, care
workers, police, and construction workers, platform workers
have been at the frontlines of the health crisis, allowing those
who are self-isolating to purchase goods and services without
leaving their home. But at what risk to themselves?
Platform workers, both full-time and the fore recently in France, where leading to rather absurd cases where
part-time, often live from paycheck to Amazon was forced to close its French workers learn about platform policies
paycheck. Many of them do not have warehouses after a court ruled that its through the media rather than from
any option but to continue working safety measures to protect warehouse the platform.30 However, workers have
during the health crisis. workers against COVID-19 were started to push back against platforms’
inadequate.28 It is highly advisable insufficient responses. For example,
In view of the crisis, a number of for German delivery platforms as well a petition demanding that Lieferando
platforms in Germany have started to consider the enormous risks being provide disinfectants and protective
to offer improved health and safety borne by workers, and establish robust clothes for all workers was signed by
protections for their workers. In the health protection safeguards. nearly 10,000 people in April 2020,
delivery sector, for instance, platforms though this has yet to see any impact.31
have widely publicised the introduction In the ride-hailing sector, platforms
of so-called ‘contact-free deliveries’, have also adopted measures to Beyond platform measures, the
intended to minimise the risk of protect against COVID-19. For German government has also
workers and clients infecting each instance, CleverShuttle has introduced introduced certain measures to
other. While this measure benefits a partition between drivers and compensate workers for income lost
customers and workers at the moment passengers for some vehicles.29 due to COVID-19, both for workers
of delivery, it remains unclear if and However, many of the measures classified as ‘employees’, and those
how German platforms are protecting adopted by platforms have been classified as ‘self-employed’. Workers
their workers at the other stages of superficial and insufficient, leaving employed by platforms can claim
work that involve physical proximity to many workers at risk of contracting the sick leave and qualify (through their
others, including, for example, when virus during work. In fact, platforms employer) for Kurzarbeitergeld
workers pick up the item for delivery sometimes seem to put a lot of energy (reduced hours compensation),
at a collection points frequented by into telling customers how they are which compensates them for 60%
other workers, or when they travel protecting workers, without actually of lost income (paid by the German
in public spaces. This issue came to informing the workers themselves, government).32 The Berlin SenateLabour Standards in the Platform Economy | 17
also announced a generous support million full-time jobs in the second
programme for self-employed workers, quarter of 2020.35 When people are
where each worker could claim 5,000 stripped of their work, they experience
Euros as a non-repayable grant. loss at all levels—not only of income,
Self-employed platform workers but also dignity, meaning and hope.
could in theory have benefitted from Although losing work is hard for
this, but the funds for this scheme everyone, its dangers are likely to
dried up after only three weeks in disproportionately affect those who
operation.33 The currently available can least afford it, including platform
governmental support is rather geared workers.36 Platform workers will be
“Many platform towards supporting companies with particularly affected, as they tend
workers do not have their expenses, including personnel
costs for employees. Most platform
to be low paid, and have unstable
employment and limited savings,
any option but to workers—not being employees—see no
benefit from this scheme.34
meaning that they have a reduced
ability to withstand the negative effects
continue working Besides the current impacts of the
of the crisis.
during the health COVID-19 pandemic on platform To protect this vulnerable contingent of
workers in Germany, another aspect our societies, it is now more important
crisis.” that bears mention concerns the crisis than ever to hold all platforms
of jobs and work which is unfolding accountable for the way they treat their
alongside the health crisis. According workers, and ensure that standards of
to the ILO, the pandemic could result fair work are not undermined in this
in a devastating worldwide loss of 195 period of crisis.18 | Fairwork Germany Ratings 2020
Impact
and Next Steps
The scores presented in this report are Our first and most direct pathway to
improving working conditions in the
the result of a one-year pilot project platform economy is by engaging
in Germany. We will continue our directly with the platforms we rate.
In other countries, we have found a
research into the Germany platform number of platforms to be eager to
work with us to improve their Fairwork
economy, updating our ratings on an scores. Fairwork’s engagement with
platforms in Germany has already
annual basis. As Fairwork’s reach and yielded important contributions to
visibility increases, we see four avenues improving working conditions for
platform workers.
for contributing to improvements in the For instance, Zenjob has amended
conditions faced by German platform its General Agreement with workers
to formally indicate its willingness to
workers. encourage workers to form a collective
body and engage in negotiations
with it. Both Zenjob and InStaff
have welcomed our suggestions on
codifying and institutionalising anti-
discrimination policies, incorporating
into their terms of service the anti-
discrimination and anti-harassment
guidelines recommended by the
federal and regional agencies. Zenjob
have also begun to use their business
data to develop their own localised
anti-discrimination strategy. These
first achievements point to greater
possibilities in the future, testifying to
the effectiveness of Fairwork’s rating
system in incentivising platforms to
change their policies, and also setting
the bar for other platforms operating
under the same legal and regulatory
context.
Fairwork’s theory of change draws
on the understanding that human
empathy is a powerful force. Given
enough information, many consumers
will be intentional about the platforms
they choose to interact with. Our
yearly ratings give consumers the
ability to choose the highest scoring
platform operating in a sector, thus
Fairwork’s Pathways to Change contributing to put pressure on
platforms to improve their workingLabour Standards in the Platform Economy | 19
Fairwork’s Principles: Continuous
Worker-guided Evolution
Fairwork
Principles
Changes to Principles
(agreed at annual Fairwork symposium that
brings together all country teams)
Periodic International Annual Country-level Yearly Fieldwork
Stakeholder Stakeholder across Fairwork
Consultations Consultations Countries
(involving gig workers’, workers’ (involving gig workers’, workers’ (involving surveys and in-depth
organisations, cooperatives, etc) organisations, cooperatives, etc) interviews of gig workers)
Ongoing Advocacy Efforts
(involving campaigns for worker rights and
support to workers’ organisations)
conditions and their scores. In this Services, and is included in the Federal needs. Through continual engagement
way, we enable consumers to be Government’s Digital Implementation with workers’ representatives and
workers’ allies in the fight for a fairer Strategy.37 We will continue our policy advocates, we aim to support workers
platform economy. Beyond individual advocacy efforts in the coming years in exercising their rights.
consumer choices, our scores to help ensure that workers’ needs and
can help inform the procurement, platforms’ business imperatives are A key challenge in the platform
investment and partnership policies effectively balanced. economy is that workers are often
of large organisations. They can serve isolated, atomised, and placed
as a reference for institutions and Finally, and most importantly, workers in competition with one another.
companies who want to ensure they and workers’ organisations are at The platform work model presents
are supporting fair labour practices. the core of Fairwork’s model. Our challenges for workers to connect
principles have been developed, and create networks of solidarity.38
We also engage with policy makers and are continually refined, in close But many of the workers we have
and government bodies to advocate consultation with workers and their interviewed are either already
for extending appropriate legal representatives. Our fieldwork starting to organise or have said they
protections to all platform workers, data, combined with feedback would want to join a labour union if
irrespective of their legal classification. from workshops and consultations one existed. For example, we have
Fairwork Germany is endorsed by involving workers, inform how we observed that CleverShuttle workers
Elke Breitenbach, Berlin’s Senator systematically evolve the Fairwork have started conversations to exert
for Integration, Labour and Social principles to remain in line with their their legal right to establish a works20 | Fairwork Germany Ratings 2020
council in Berlin, with the platform implementing changes to protect
actively supporting their efforts. Our their workers. Workers who find their
principles can provide a starting point jobs through platforms are ultimately
for envisioning a fairer future of work, still workers, and there is no basis
and setting out a pathway to realise for denying them the key rights and
it. Principle Five in particular, on the protections that their counterparts in
importance of fair representation, is a the formal sector enjoy. Our scores
crucial way in which we aim to support show that the platform economy,
workers to assert their collective as we know it today, already takes “There is nothing
agency. many forms, with some platforms
displaying greater concern for workers’ inevitable about
There is nothing inevitable about poor
working conditions in the German
needs than others. This means that
we do not need to accept low pay,
poor working
platform economy. Notwithstanding
their claims to the contrary, platforms
poor conditions, inequity, and a lack
of agency and voice as the norm. We
conditions in the
have substantial control over the
nature of the jobs that they mediate.
hope that our work—by highlighting platform economy.”
the contours of today’s platform
That power is especially evident in economy—helps paint a picture of what
the context of the ongoing COVID-19 it could become.
crisis, with many platforms rapidlyLabour Standards in the Platform Economy | 21
Appendix:
Fairwork Scoring
System
The five Principles of Fairwork were Each Fairwork Principle is divided evidence is available that meets a given
developed through an extensive into two thresholds. Accordingly, for threshold, the platform is not awarded
literature review of published each Principle, the scoring system that point.
research on job quality, stakeholder allows one ‘basic point’ to be awarded
meetings at UNCTAD and the ILO corresponding to the first threshold, A platform can therefore receive a
in Geneva (involving platform and an additional ‘advanced point’ maximum Fairwork Score of ten points.
operators, policymakers, trade unions, to be awarded corresponding to the Fairwork scores are updated on a
and academics), and in-country second threshold (see Table 1). The yearly basis. For example, Fairwork’s
stakeholder meetings held in India advanced point under each Principle South Africa 2020 scores – which were
(Bangalore and Ahmedabad), South can only be awarded if the basic point published in March 2020 – were based
Africa (Cape Town and Johannesburg) for that Principle has been awarded. on data pertaining to the 12 months
and Germany (Berlin). This document The thresholds specify the evidence between March 2019 and March 2020,
explains the Fairwork Scoring System. required for a platform to receive and are valid until March 2021.
a given point. Where no verifiable
Table 1 Fairwork Scoring System
Principle Basic point Advanced point Total
Fair Pay 1 + 1 = 2
Fair Conditions 1 + 1 = 2
Fair Contracts 1 + 1 = 2
Fair Management 1 + 1 = 2
Fair Representation 1 + 1 = 2
Maximum possible Fairwork Score
1022 | Fairwork Germany Ratings 2020
and worker hours for any three-month
period over the previous twelve
months.
Principle 1:
Threshold 1.2 – Pays the Principle 2:
minimum wage plus costs (one
Fair Pay additional point)
Fair Conditions
Threshold 1.1 – Pays at least Workers earn at least the local Threshold 2.1 – Mitigates task-
the local minimum wage (one minimum wage after work-related specific risks (one point)
point) costs, or there is a policy which
There are policies to protect workers
requires payment above this level
from risks that arise from the processes
Irrespective of the employment status
The threshold for the minimum wage of work
of the worker, workers earn at least
a local minimum wage, or there is a plus costs varies between different
This threshold requires the platform
policy which requires payment above kinds of platform work. In order to
to ensure that there are safe working
this level establish a threshold, the platform is
conditions, and that potential harms
asked to provide an estimate for work-
are minimised.44 For 2.1, this means
The threshold for 1.1 is based on the related costs, which are then checked
identifying the task-specific risks
level for a local minimum wage.39 (by the Fairwork team) through worker
that are involved for the worker,
Workers on the platform must earn interviews.43 To be awarded this point,
for example, if a vehicle is used, or
more than the minimum wage rate in there must be either:
there is interaction with customers.
their working time,40 and this can be
• A policy that guarantees workers The specific practices leading to the
evidenced by either:
earn at least the local minimum awarding of this point may vary by the
• A policy that guarantees the wage plus costs; or type of work and the risks involved.
workers receive at least the local
• Evidence from the platform that To be awarded a point for 2.1, the
minimum wage in their working
workers earn at least the local platform must be able to demonstrate
time;or
minimum wage plus costs. that:
• The provision of summary
If the platform has completed Table 2, • There are policies or practices in
statistics of transaction data.
the mean weekly earnings minus the place that protect workers’ health
In the case of (b), the platform is asked estimated work-related costs must be and safety from task-specific risks
to submit a weekly earnings table (see above the local minimum wage (see
Table 2) that averages worker earnings Table 2 below).
Table 2 Weekly earnings table
X to
Weekly earnings 2X
(X+(X/2))
Active hours less than 40 hours/week (part-time) % % % %
Active hours between 40 and 48 hours/week (full-time) % % % %
Active hours more than 48 hours/week (full-time plus overtime) % % % %
Note: X = the local minimum wage, calculated at 45 hours per week. This row is filled
out by the Fairwork team, before submitting it to the platform for completion.42Labour Standards in the Platform Economy | 23
Threshold 2.2 – Actively form.45 Platforms must demonstrate To be awarded a point for 3.2, the
improves working conditions that the contracts are accessible platform must be able to demonstrate
for workers at all times, whether that:
(one additional point)
through the app itself or direct
communication with the worker. • The employment status of the
There are proactive measures to
This is necessary for workers to workers is accurately defined
protect and promote the health and
understand the requirements of their in the contract issued by the
safety of workers or improve working
work. The contracts should be easily platform; and,
conditions
understandable by workers, and
• There is no unresolved dispute
For 2.2, the threshold is higher, available in the language/languages
about the nature of the
involving practices that go beyond commonly spoken by the workers on
employment relationship; or,
addressing the task-specific risks the platform.
addressed by 2.1. This means a • The self-employed status
policy that goes beyond ameliorating To be awarded a point for 3.1, the
of the worker is adequately
the direct task-specific risks, by platform must be able to demonstrate
demonstrated and free from
promoting greater health and safety or all of the following:
unreasonable clauses.
improvements in working conditions,
• The contract is written in clear and
beyond what is specified by local
comprehensible language that
regulations for employment. For
the worker could be expected to
example, an insurance policy that
understand; and,
covers workplace accidents would
meet the threshold for 2.1, while one • The contract is issued in the
that also covers the worker or their language/languages spoken by
family outside of work would meet workers on the platform; and, Principle 4:
2.2. As policies and practices may be
focused on the specific form of work, • The contract is available for
Fair Management
the examples that meet the threshold workers to access at all times.
Threshold 4.1 – There is due
may vary by the type of work.
Threshold 3.2 – The contract process for decisions affecting
To be awarded a point for 2.2, the
genuinely reflects the nature of workers (one point)
platform must be able to demonstrate:
the employment relationship There is a documented process
• There is a documented policy (or (one additional point) through which workers can be heard,
policies) that promotes the health can appeal decisions affecting them,
and safety of workers or improves The party contracting with the worker and be informed of the reasons
working conditions, going beyond must be subject to local law and must behind those decisions. There is a
addressing task-specific risks be identified in the contract. If workers clear channel of communication to
are genuinely self-employed, the terms workers involving the ability to appeal
of service are free of clauses which management decisions or deactivation
unreasonably exclude liability on the
part of the platform The threshold for 4.1 involves a
platform demonstrating the existence
The threshold for 3.2 involves the of clearly defined processes for
platforms demonstrating that the communication between workers and
Principle 3: contract issued to workers accurately the platform. This includes access by
describes the relationship between
Fair Contracts the platform, the workers, and the
workers to a platform representative,
and the ability to discuss decisions
users. In the case where there is an made about the worker. Platforms must
Threshold 3.1 – Clear terms unresolved dispute over the nature of be able to evidence that information
and conditions are available the employment relationship, a point about the processes is also easily
(one point) will not be awarded. accessible to workers.
The terms and conditions are If workers are genuinely self- To be awarded a point for 4.1, the
transparent, concise, and provided to employed,46 platforms must be able to platform must be able to demonstrate
workers in an accessible form demonstrate that the contract is free all of the following:
of clauses that unreasonably exclude
The threshold for 3.1 involves liability on the part of the platform • The contract includes a
demonstrating that the terms and for harm caused to the workers in the documented channel for workers
conditions of the contract issued to course of carrying out their duties. to communicate with a designated
workers are available in an accessible
representative of the platform; and,You can also read
