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Report Finds Widespread Worker Exploitation in Online Gig Economy

A new report analyzing digital labor platforms found only 4 of 16 gig platforms ensure minimum wage, and reveals more issues around unpaid work, unfair contracts and more.

Allwork.Space News TeambyAllwork.Space News Team
May 21, 2025
in News
Reading Time: 2 mins read
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Report Finds Widespread Worker Exploitation in Online Gig Economy

A global report finds major gig platforms failing to meet basic labor standards, with many workers unpaid, underpaid, or working under unfair and unsafe conditions.

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A new report found that most major online gig work platforms are failing to meet basic labor standards, leaving millions of workers underpaid, unprotected, and without recourse.

Published by the Fairwork Project, 16 of the world’s largest platforms that offer remote, task-based jobs such as data entry, transcription, and design were evaluated. Not one platform met the minimum standards across all five of Fairwork’s core principles: fair pay, fair conditions, fair contracts, fair management, and fair representation.

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Platforms including Amazon Mechanical Turk, Upwork, Fiverr, and Freelancer were among the lowest scorers. Only four of the 16 platforms could demonstrate that workers consistently earn at least the local minimum wage after costs. The rest either failed to provide evidence or were found to pay workers below minimum wage for certain tasks.

Nearly one third of workers said they had not been paid for completed work. A similar number reported being paid late. Despite the sector being valued at more than half a trillion dollars, many workers continue to face financial uncertainty and a lack of basic protections.

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Contracts used by more than half of the platforms include vague terms and clauses that place responsibility and risk on workers without sufficient clarity or fairness. Only six platforms had contracts that reflected the actual work performed and respected workers’ rights.

Representation remains limited. While six platforms now formally recognise workers’ right to organise, the report found no evidence that any are actively engaging with worker groups or supporting collective bargaining in practice.

Health and safety support is also lacking. Just seven platforms had policies to address common risks such as burnout or musculoskeletal issues. More than half had no wellbeing measures in place at all.

Despite the overall poor performance, the report notes some improvement. Since last year, eight platforms have made a total of 56 changes in response to Fairwork’s assessments, including revising contracts, enhancing pay transparency, and improving dispute processes. 

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These changes could impact as many as two million workers, but the researchers stress that voluntary reforms by individual platforms are not enough to address the systemic issues.

The findings point to an industry where growth has outpaced regulation. Without stronger national and international oversight, the report warns that millions of workers will remain in precarious and poorly paid roles, with few protections and limited ability to challenge unfair treatment.

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Source: FairWork
Tags: North AmericaRemote WorkTechnologyWorkforce
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Allwork.Space News Team

Allwork.Space News Team

The Allwork.Space News Team is a collective of experienced journalists, editors, and industry analysts dedicated to covering the ever-evolving world of work. We’re committed to delivering trusted, independent reporting on the topics that matter most to professionals navigating today’s changing workplace — including remote work, flexible offices, coworking, workplace wellness, sustainability, commercial real estate, technology, and more.

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