Working styles are becoming more diverse as a result of digitalization. The government needs to review trade and labor rules in accordance with the current situation.
A government panel on social security for all generations compiled an interim report, whose focus is improving the working environment for freelancers. The government plans to draw up guidelines by the end of this fiscal year. It is hoped that effective measures will be adopted.
Freelancers don't belong to companies, they undertake work as sole proprietors. According to government estimates, there are as many 4.62 million freelancers, working in a wide range of occupations, including writers, designers and programmers. In recent years, there has also been an increase in the number of "gig workers," who receive one-off jobs via the internet.
Freelancers have the advantage of being able to use their skills and knowledge to work at any time or place. Many freelancers do such work as a side job. Companies can secure specialized human resources as needed. This trend may have been boosted by the development of smartphone apps through which work can be commissioned.
A wider range of work options will lead to more opportunities for entrepreneurship and the expansion of employment opportunities for the elderly. The importance of creating an environment in which freelancers can fully exercise their abilities is not small.
Freelancers can choose how they work, but they tend to be in a precarious position. This is especially true for those who do one-off work without specialized skills. According to a government survey, 40% of freelancers who deal with companies have experienced problems such as unilateral changes in contract terms.
The interim report calls for guidelines clarifying that transactions with freelancers are subject to the Antimonopoly Law and the Subcontract Law. It also states that companies are not allowed to use their dominant position to fail to write contracts or delay payment of compensation.
The government should strengthen its monitoring and guidance of companies that deal with freelancers.
The problem is there are many cases in which freelancers are effectively working as if they are employees, but without the same protections as workers.
Employees are protected by labor laws and rules, but freelancers are not covered as sole proprietors. For example, if deliverers working for the Uber Eats food delivery service are injured in the course of their duties, they will not be entitled to workers' compensation.
The government plans to stipulate clearly in the guideline that laws and rules on labor will be applied to freelancers who are in effect under the direction and supervision of clients. It is important that companies are made aware of this.
The current social security system is designed mainly for company employees: Freelancers are not eligible for generous benefits. Many people are anxious about illness or old age. How can a safety net be established amid these new working styles? It is important for the government to deepen its discussions from multiple perspectives.
-- The original Japanese article appeared in The Yomiuri Shimbun on July 5, 2020.
Read more from The Japan News at https://japannews.yomiuri.co.jp/
