The issue is that minimum employment rights are less effective in general if it’s possible to opt out of them. For lots of people, they’re not worth sacrificing earning potential for (this is one of the reasons contractors exist).
Most people wouldn’t think that a person earning a high hourly/daily rate working in some big enterprise, or a freelancer that takes home a respectable annual income is being exploited. But lots of people think that lower income gig contractors are definitely being exploited. I think the truth is actually a bit more complicated than that, but in any case, the law in most countries is that a person must not be allowed to enter into any arrangement that resembles employment if a set of minimum entitlements aren’t provided.
One way of looking at contracting arrangements is that they’re simply a way of bypassing these requirements. This never used to be a contentious issue, because contractors used to be primarily high income earners. But now that there’s a new class of lower income contractors, they must be protected, and the regulatory response has generally been to outlaw elements of contracting agreements in general.
A more sensible approach, if you wanted to achieve this outcome, would be to apply these regulations only to contractors that bill below a particular rate. But that would require making legislative concessions for high income earners, and nobody cares about doing that. I’ve been a contractor for years, and I can guarantee you that nobody is being exploited when I bill some huge bank an especially high hourly rate for months on end, but anti-contractor regulations routinely interfere with my ability to do so.
Most people wouldn’t think that a person earning a high hourly/daily rate working in some big enterprise, or a freelancer that takes home a respectable annual income is being exploited. But lots of people think that lower income gig contractors are definitely being exploited. I think the truth is actually a bit more complicated than that, but in any case, the law in most countries is that a person must not be allowed to enter into any arrangement that resembles employment if a set of minimum entitlements aren’t provided.
One way of looking at contracting arrangements is that they’re simply a way of bypassing these requirements. This never used to be a contentious issue, because contractors used to be primarily high income earners. But now that there’s a new class of lower income contractors, they must be protected, and the regulatory response has generally been to outlaw elements of contracting agreements in general.
A more sensible approach, if you wanted to achieve this outcome, would be to apply these regulations only to contractors that bill below a particular rate. But that would require making legislative concessions for high income earners, and nobody cares about doing that. I’ve been a contractor for years, and I can guarantee you that nobody is being exploited when I bill some huge bank an especially high hourly rate for months on end, but anti-contractor regulations routinely interfere with my ability to do so.