{"id":35033,"date":"2020-05-20T14:50:21","date_gmt":"2020-05-20T06:50:21","guid":{"rendered":"https:\/\/zegal.com\/?p=35033"},"modified":"2020-05-19T15:33:35","modified_gmt":"2020-05-19T07:33:35","slug":"gig-economy-are-you-protected","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-nz\/blog\/post\/gig-economy-are-you-protected\/","title":{"rendered":"Gig Economy &#8211; Are You Protected?"},"content":{"rendered":"<div id=\"contentsContainer\">\n<div id=\"contents\">\n<figure id=\"attachment_35458\"  class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-35458\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-1-1024x683.jpg\" alt=\"\" width=\"1024\" height=\"683\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-1-1024x683.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-1-300x200.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-1-768x512.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-1-1536x1024.jpg 1536w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-1-2048x1365.jpg 2048w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-1-640x427.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-1-1200x800.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-1-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><figcaption class=\"wp-caption-text\">Photo by Mika on Unsplash<\/figcaption><\/figure><\/p>\n<p id=\"E263\" class=\"qowt-stl-Normal1\"><span id=\"E264\">There is no doubt that the gig economy is a new reality with more and more people taking up on-demand jobs through online platforms and smartphone applications. For those, unfamiliar with the term, the gig economy refers to companies that engage freelancers for temporary or project-based tasks. When compared to permanent employees, the labour benefits, protections and compensation enjoyed by f<\/span><span id=\"E265\">lexible workers tends to be inferior. <\/span><\/p>\n<p class=\"qowt-stl-Normal1\"><span id=\"E265\">In this article, we will look at the laws around this mode of employment in Hong Kong.\u00a0<\/span><\/p>\n<h4 id=\"E267\" class=\"qowt-stl-Normal1\"><span id=\"E268\">Employee or independent contractor?<\/span><\/h4>\n<p id=\"E270\" class=\"qowt-stl-Normal1\"><span id=\"E271\">The first step is to understand your contract. Are an employee or an independent contractor\/ self-employed person? All employees are covered by the Hong Kong Employment Ordinance which stipulates protections including statutory leave, sickness allowance, minimum statutory wage, and compensation arising from work injuries, etc. Employees under continuous contracts are entitled to an even broader range of benefits. However, <strong>contractors and self-employed persons are not covered by the Employment Ordinance,<\/strong> hence their statutory protections are very minimal. The difference makes it all the more important to know exactly your employment status.<\/span><\/p>\n<p id=\"E275\" class=\"qowt-stl-Normal1\"><span id=\"E276\">Gig workers may think the law will consider them as self-employed persons for tasks carried out on an ad-hoc basis. This may not be true. The determination of employment status is more intricate than simply by job title or industry. The law in Hong Kong categorises employees or independent contractors by substance rather than form. This means the term \u2018contractor\u2019 on your written contract is not conclusive. It is also false to think you must not be an employee if you have never signed a conventional contract. There is also not a hard and fast rule in delineating between the status of an employee and a contractor. Rather the court takes into account various aspects when coming to a decision. <\/span><\/p>\n<p class=\"qowt-stl-Normal1\"><span id=\"E276\">Subsequent to the Hong Kong case <\/span><strong><span id=\"E277\">Lee Ting Sang v Chung Chi-Keung<\/span><\/strong><span id=\"E278\"><\/span><span id=\"E280\">, common factors that point to a relationship of employment include: <\/span><\/p>\n<ul style=\"list-style-type: disc;\">\n<li id=\"E282\" class=\"qowt-li-1_0 qowt-list qowt-stl-Normal1\"><span id=\"E283\">a <\/span><span id=\"E284\">high degree of control by the employer (eg. working time and mode);<\/span><\/li>\n<li><span style=\"font-size: inherit;\">ownership and provision of resources and tools by the employer;<\/span><\/li>\n<li><span style=\"font-size: inherit;\">the majority of financial risk lies in the employer; and<\/span><\/li>\n<li><span style=\"font-size: inherit;\">low degree of independence and freedom enjoyed by the worker.<\/span><\/li>\n<\/ul>\n<p id=\"E292\" class=\"qowt-stl-Normal1\"><span id=\"E293\">On the other hand, if these criteria are largely satisfied, the court would likely infer that a contract of employment did not exist: <\/span><\/p>\n<ul>\n<li id=\"E295\" class=\"qowt-li-0_0 qowt-list qowt-stl-Normal1\"><span id=\"E296\">no employment-type benefits were previously provided;<\/span><\/li>\n<li><span id=\"E298\" style=\"font-size: inherit;\">the worker does not have to carry out the work personally and can freely hire sub-contractors;<\/span><span style=\"font-size: inherit;\">\u00a0<\/span><\/li>\n<li><span style=\"font-size: inherit;\">remuneration is not paid periodically;<\/span><\/li>\n<li><span style=\"font-size: inherit;\">neither the worker or the service receiver is allowed to terminate the contract before the end date by giving prior termination or money in lieu of notice;<\/span><\/li>\n<li><span style=\"font-size: inherit;\">the worker is not subject to supervision and control that is usually exercised by an employer; and<\/span><\/li>\n<li><span style=\"font-size: inherit;\">neither the worker or the service receiver has represented to outsiders that there is an employment relationship.<\/span><\/li>\n<\/ul>\n<p id=\"E308\" class=\"qowt-stl-Normal1\"><span id=\"E309\">The above is a non-exhaustive list of considerations that will affect the court\u2019s judgement but factual circumstances will govern the relative weight of each factor or other additional factors. <\/span><\/p>\n<p class=\"qowt-stl-Normal1\"><span id=\"E309\">No matter which industry you work in within the gig economy, ultimately it is a question of overall impression for the court in settling each dispute. <\/span><\/p>\n<h4 id=\"E311\" class=\"qowt-stl-Normal1\"><span id=\"E312\">Case Law <\/span><\/h4>\n<p id=\"E314\" class=\"qowt-stl-Normal1\"><span id=\"E315\">As there does not exist a black and white answer to the determination of employment status, it is practical to look at some Hong Kong and overseas case law to get a view of how the court resolves this issue.<\/span><\/p>\n<h5 id=\"E317\" class=\"qowt-stl-Normal1\"><span id=\"E318\">Uber B.V. and others v Aslam, Farrar and others<\/span><span id=\"E320\"><\/span><\/h5>\n<p id=\"E323\" class=\"qowt-stl-Normal1\"><span id=\"E324\">In this UK landmark case, it was ruled that uber drivers are not self-employed contractors but are, in fact, <\/span><span style=\"font-size: inherit;\">employees. This meant they are entitled to national minimum wage and paid leave. The reasons for such a decision included the follows:<\/span><\/p>\n<\/div>\n<\/div>\n<div id=\"contentsContainer\">\n<div id=\"contents\">\n<ul>\n<li id=\"E326\" class=\"qowt-li-2_0 qowt-list qowt-stl-Normal1\"><span id=\"E327\">drivers are required to accept trips assigned to them;<\/span><\/li>\n<li><span style=\"font-size: inherit;\">drivers would breach their agreement with Uber if they cancelled trips on their own;<\/span><\/li>\n<li><span style=\"font-size: inherit;\">drivers had to accept terms and fares set by Uber; and<\/span><\/li>\n<li><span style=\"font-size: inherit;\">Uber handled complaints from passengers for drivers.<\/span><\/li>\n<\/ul>\n<p id=\"E335\" class=\"qowt-stl-Normal1\"><span id=\"E336\">Hong Kong has not come across a case about ride hailing services and it is also unclear what implications this UK case has on Hong Kong law. Moreover, differences do exist between the two jurisdictions\u2019 employment law. However, it is still worthwhile to understand the reasoning given by the UK court as Hong Kong judges may be inclined to adopt a similar legal basis and logic. <\/span><\/p>\n<p class=\"qowt-stl-Normal1\"><span id=\"E336\">In a nutshell, it could be seen that the level of control exercised by the company has a significant impact on the decision.<\/span><\/p>\n<h5 id=\"E338\" class=\"qowt-stl-Normal1\"><span id=\"E339\">Poon Chau Nam v Yim Siu Cheung trading as Yat Cheung Airconditioning &amp; Electric Co.<\/span><span id=\"E340\"><\/span><\/h5>\n<p id=\"E343\" class=\"qowt-stl-Normal1\"><span id=\"E344\">In this Hong Kong case, the worker, Mr Poon, worked for the defendant, an air-conditioner company. Mr Poon was injured during work and sought compensation, which the company refused as he was not their employee. Despite the fact that the written contract between them stated Mr Poon as a self-employed person, and Mr Poon also made his own MPF arrangements as a self-employed person, the case was decided in favour of Mr Poon by reason of the following: <\/span><\/p>\n<ul>\n<li id=\"E346\" class=\"qowt-li-3_0 qowt-list qowt-stl-Normal1\"><span id=\"E347\">jobs were assigned to the worker by the company;<\/span><\/li>\n<li><span style=\"font-size: inherit;\">the worker was paid at a daily rate and compensated for overtime work;<\/span><\/li>\n<li><span style=\"font-size: inherit;\">the company bore all the financial risks; and<\/span><\/li>\n<li><span style=\"font-size: inherit;\">the worker required minimal supervision or control but this was because he is skilled enough.<\/span><\/li>\n<\/ul>\n<p id=\"E355\" class=\"qowt-stl-Normal1\"><span id=\"E356\">From this case, the takeaway is that what is written on the contract is not conclusive. Different features of the relationship between the employer and the person undertaking the work may sway the decision one way or the other. Workers who are labelled as self-employedmay have grounds for dispute when the company they work for denies their compensation or benefits. Employment law around the gig economy is largely unsettled and still open to different possibilities.<\/span><\/p>\n<p class=\"p1\" style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n<p class=\"p2\" style=\"text-align: center;\"><i>The opinions expressed in the column above represent the author\u2019s own.<\/i><\/p>\n<p class=\"p3\" style=\"text-align: center;\"><span class=\"s1\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/span><\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/the-coronavirus-working-from-home-in-hong-kong\/\">FURTHER READING: Working From Home During The CoronaVirus<\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/asia-apps-work-remotely\/\">READ MORE: 6 Apps Helping You Work Remotely<\/a><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>There is no doubt that the gig economy is a new reality with more and more people taking up on-demand jobs through online platforms and smartphone applications. For those, unfamiliar with the term, the gig economy refers to companies that engage freelancers for temporary or project-based tasks. When compared to permanent employees, the labour benefits, [&hellip;]<\/p>\n","protected":false},"author":51,"featured_media":35452,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[42,55],"tags":[6405,30,11167,9021,10307],"usecases":[],"businesstypes":[],"country":[],"class_list":["post-35033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customers","category-productivity","tag-gig-economy","tag-hong-kong","tag-laws","tag-self-employed","tag-z-syndicate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Gig Economy - Are You Protected? | Zegal New Zealand<\/title>\n<meta name=\"description\" content=\"What is written in an employment contract is not always the definitive factor when disputes arise between contractors and those they undertake work for.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zegal.com\/en-nz\/wp-json\/wp\/v2\/posts\/35033\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gig Economy - Are You Protected?\" \/>\n<meta property=\"og:description\" content=\"What is written in an employment contract is not always the definitive factor when disputes arise between contractors and those they undertake work for.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/zegal.com\/en-nz\/blog\/post\/gig-economy-are-you-protected\/\" \/>\n<meta property=\"og:site_name\" content=\"Zegal New Zealand\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/getzegal\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-20T06:50:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/mika-ypVM8PnygUo-unsplash-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Will Elton\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@getzegal\" \/>\n<meta name=\"twitter:site\" content=\"@getzegal\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Will Elton\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/blog\\\/post\\\/gig-economy-are-you-protected\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/blog\\\/post\\\/gig-economy-are-you-protected\\\/\"},\"author\":{\"name\":\"Will Elton\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/#\\\/schema\\\/person\\\/35f6500efc50a6bfea56d0c481815347\"},\"headline\":\"Gig Economy &#8211; Are You Protected?\",\"datePublished\":\"2020-05-20T06:50:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/blog\\\/post\\\/gig-economy-are-you-protected\\\/\"},\"wordCount\":1028,\"publisher\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/blog\\\/post\\\/gig-economy-are-you-protected\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/zegal.com\\\/wp-content\\\/uploads\\\/2020\\\/05\\\/mika-ypVM8PnygUo-unsplash-scaled.jpg\",\"keywords\":[\"gig economy\",\"Hong Kong\",\"laws\",\"self-employed\",\"z-syndicate\"],\"articleSection\":[\"( Customers )\",\"( Productivity )\"],\"inLanguage\":\"en-NZ\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/blog\\\/post\\\/gig-economy-are-you-protected\\\/\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-nz\\\/blog\\\/post\\\/gig-economy-are-you-protected\\\/\",\"name\":\"Gig Economy - Are You Protected? 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