Remember the good old days when everybody had a formal job with a structured salary and fixed working hours? Regardless of where you found yourself in an organizational hierarchy, you could expect a predetermined schedule, work hours, corresponding wages, etc. Not anymore. What is increasingly changing the dynamics is the concept of the gig economy — an alternative model consisting of people employed on a contractual basis and offered short-term assignments or “gigs”.
The gigs could be recurring, or it could be a one-off assignment. Touted as the silver bullet that enables workers to draw their own work schedule, leading to more flexibility and better work-life balance, the gig concept is all the rage in the developing world. It is increasingly making inroads into the UAE as well. But is the gig parade a win-win for all stakeholders?
Gig or no gig?
An unbiased look at the working and structure of the gig economy reveals that it is not all milk and roses. It does have earning opportunities for a workforce that is desperate to get back in the saddle in the post-pandemic world. Besides, it provides flexible work timings, letting employees choose their work hours. The freelance nature of the jobs also means one can do more than one gig at a time, thus adding to one’s income.
The gig economy is also proving to be a great opportunity for certain demographics such as students and housewives, who can earn an extra buck in their free time. It enables companies to tap into the idle and non-productive time of this section of the population, leading to a mutually beneficial situation where corporates can get the work done at low prices while those who cannot work in formal jobs get a chance to make some money. Hailed as the magic solution to on-demand staffing, this flexible-hiring model indeed has several benefits.
Not all gigs are great
While there are reasons to celebrate the gig economy and its benefits, the fact remains that gig workers are temporary freelancers, who are informal/unorganised workers with no legal protection, social security or rights. The working conditions, particularly at the lower end of the skill chain, are often pathetic.
Gig employees work very hard, earn very little, and have no job security and grievance redressal system. While it suits the corporates, who can get their work done at a fraction of the cost, the workers often suffer greatly.
Traditionally, the UAE has not had many options for contractual or gig workers. This could be owing to the fact that underpaid gig workers are prevalent in nations with high populations, considerable unemployment rates, unenforceable labour laws, etc. — conditions that don’t apply to the UAE. However, the emergence of digital-first brands, quick commerce, and the rise in e-commerce will open up the gig economy, necessitating corresponding laws. Several large-scale projects being planned by the government, which require a diverse, flexible and on-demand talent pool, too, will energize the gig economy.
Gulf nations must take stock of countries with sizable gig economies where they are proving to be more beneficial for big companies than for workers. At the end of the day, there is a certain inevitability to the growth of the gig economy, with MNCs, start-ups, and unicorns driving their businesses on the back of less-skilled workers.
So, the sooner the worker-friendly policies are formulated the better. The first order of business is to recognize gig workers as employees who have rights. Besides, the authorities need to ensure better pay, more job security, and that the dignity of labour is upheld under all circumstances.
