Authors: Bernard Nicholas Nakireza, Phillip Ayazika, and Robinah Kagoye
The digital revolution is transforming labour markets across the globe bringing about the platform economy, and Uganda is no exception. The platform economy characterised by digital labour platforms is by far one of the most significant manifestations of the changes induced by digitalization encompassing location-based platforms where services are provided by individuals in a specific location including ride-hailing and food delivery among others as well as cloud-based platforms where services are provided remotely. This development has over the years opened up new markets significantly creating new forms of employment and income opportunities with low entry barriers. However, this sector raises a new frontier for the labour agenda that calls for a multistakeholder approach to ensuring fair labour practices for those at the heart of this economy, tackling worker misclassification, safeguarding workers’ human and digital rights and protections, and rethinking social protection in this new work landscape.
These were the key issues raised at the recently concluded Specialized Parliamentary and Inter-agency Workshop on Promoting Fair Labor Practices in the Digital Platform Economy organized by Pollicy and the Uganda Women’s Parliamentary Association (UWOPA) in Kampala, Uganda. This inter-agency workshop brought together Ugandan legislators from the parliamentary committees on Gender, Labour & Social Development, Finance, Planning and Economic Development, ICT, and Science & Innovation as well as civil society experts, and advocates to explore the challenges and opportunities emerging from the platform work in Uganda.
1. Worker Misclassification: The Root of Labour Inequality
One of the most striking discussions revolved around the misclassification of workers and schools of thought were entertained. Are they independent contractors, employees, or something else altogether? The Constitution of Uganda under Article 40(1) and Article 40(2) provides a progressive and inclusive framework for labour rights that applies to all workers, including platform workers. However, the Employment Act of 2006 limits these protections to formal employees, creating a legal gap that leaves platform workers vulnerable to exploitation.
It was agreed, however, that misclassification, though beneficial for employers seeking to reduce costs and liabilities, was described as “a convenient loophole that systematically erodes the rights of workers,” according to one participant.
The consequences of this worker misclassification were laid bare:
- Workers are denied protections under the Employment Act, 2006 cap 226
- Access to benefits such as social security and health insurance is systematically excluded.
- Misclassification enables exploitative practices such as wage theft and arbitrary terminations.
- Exclusion from unionisation rights
In the case of Sadat Sserunjogi vs Guinness Transporters Ltd t/a Safeboda (Labour Dispute Reference №47 of 2022). A Safeboda rider’s case was shared, highlighting the challenges faced when contesting unfair dismissal for example. His termination, dictated by algorithmic control, left him caught in a judicial tug-of-war between labour and commercial courts. The issue of jurisdiction had to be determined based on whether the courts thought him an employee, such as to warrant his jurisdiction before the industrial court, or whether they thought he was an independent contractor, who by the breach of a contract was entitled to redress before the commercial courts of Uganda. “It is not just a matter of legal definitions but of justice delayed and justice denied,” a participant emphasized.
The room called for Uganda to adopt a clear determination of how one can fall within the brackets of a digital platform worker, such as is the case for the tests to define employment relationships, such as the Control Test (measuring the employer’s level of control over the worker) and the Economic Reality Test (assessing a worker’s financial dependence on the employer). Uganda must update its labour laws or draft special legislation to reflect the realities of digital platform work and workers, ensuring they receive the constitutional protections they are entitled to, such as fair wages, social protections, and the right to unionize.
2. Legal Frameworks and Gaps
The workshop laid bare the gaps in Uganda’s legal framework that perpetuate the vulnerability of platform workers:
- The NSSF Act Cap 230 excludes platform workers from social security benefits due to their misclassification as independent contractors, leaving them without protections like retirement, health insurance, and unemployment support, while platforms profit without contributing to their welfare.
- The Labour Unions Act cap 228 grants the right to collective bargaining only to employees, denying platform workers a collective voice. While Article 40 of the Ugandan Constitution guarantees all workers, regardless of their employment status, the right to form or join trade unions, the Labour Unions Act limits this right to those in employer-employee relationships. Additionally, the regulations for registering trade unions require proof of employment relationship, further locking out platform workers. Without recognition under labour laws, platform workers cannot negotiate for better wages, severance pay, or improved working conditions.
- The Data Protection and Privacy Act cap 97 while progressive grants individuals the right not to be subjected to decisions based solely on automated processing, which is a safeguard against algorithmic control. However, enforcement of this provision is weak, leaving platform workers vulnerable to unfair automated decisions. Without robust enforcement mechanisms, platforms continue to use algorithms to manage workers without accountability, exposing them to privacy risks and opaque decision-making processes that affect their livelihoods.
One legislator observed, “Our laws were designed for an economy of factories, not algorithms. It’s no wonder platform workers find themselves excluded.”
Global examples were cited as potential guides:
- California’s Workplace Technology Accountability Act,2022 establishes minimum wage and social protections for platform workers.
- The EU’s Platform Work Directive seeks to balance worker rights with platform flexibility.
- British Columbia’s amendments to the Employment Standards Act,2024 extend protections to platform workers.
The workshop consensus was that Uganda must urgently amend its laws to address these gaps.
3. Technology and the Future of Work
The workshop also delved into the role of technology in reshaping labour dynamics. “Algorithms have become the invisible managers of the platform economy,” one participant noted, “but they are often as opaque as they are powerful.”
Key challenges discussed included:
- Algorithmic Control: Workers’ earnings, ratings, and task allocations are dictated by algorithms, undermining their autonomy and leaving them vulnerable to biases.
- Data Exploitation: Platforms profit from the data generated by workers without offering protections or fair compensation later on trading clients’ data for a profit.
The conversation underscored the need for human-centric technological policies that prioritize transparency and fairness, ensuring that technology serves workers rather than exploiting them. The workshop didn’t just diagnose problems; it proposed actionable solutions to create a fairer platform economy:
- Strengthen Labour Laws: Amend existing frameworks to explicitly include platform workers, or develop special regulations that grant platform workers access to social protections like social security and fair wages.
- Tax Platforms Equitably: Advocate for the taxation of platforms alongside workers to ensure fair revenue sharing and greater accountability.
- Promote Freedom of Association: Extend collective bargaining rights to platform workers, empowering them to negotiate for better conditions.
- Policy Advocacy: Uganda must participate in the upcoming 113th Session of the International Labour Conference which will for the first time feature Decent work in the platform economy (standard-setting, first discussion) as item number 5 on the Agenda to explore and contribute to the framing of decent work in the platform economy and innovative approaches to promoting transitions from the informal to the formal economy.
One legislator summarized the spirit of the workshop: “This isn’t just about catching up with global trends. It’s about setting a standard that reflects the dignity of work in a digital age.”
As work evolves beyond traditional employment relationships, Uganda has a unique opportunity to lead. The workshop demonstrated the urgency of addressing misclassification, filling legal gaps, and adopting a rights-based approach to digital labour.
The partners in the room resolved to draft a positional paper to present to Parliament, outlining concrete steps to protect platform workers. The Uganda Women’s Parliamentary Association (UWOPA) pledged its support, recognizing the sense of urgency in addressing this legal void.
While the workshop focused on amending existing laws, Barefoot Law, proposed an alternative vision. Employment, as known, was a creation of the First Industrial Revolution, a legal innovation designed to protect workers tethered to factory floors. But the platform economy is a fundamentally different creature, decentralized and algorithmically managed.
To reclassify platform workers as employees under traditional frameworks may seem like pouring new wine into old wineskins risking stifling the very flexibility that makes platform work attractive, potentially driving platforms to exit markets, as we saw with Deliveroo in the Australian market.
Instead, Uganda has the opportunity to pioneer a new legal framework, one that recognizes platform work as its category. Grounded in principles of Fairwork, this framework could ensure fair pay, clear terms, and decent conditions without demanding the rigidity of traditional employment. It would protect workers while encouraging platforms to remain and invest, offering opportunities to Uganda’s unemployed to earn dignified livelihoods.
Bernard Nicholas Nakireza is a Legal Associate at Barefootlaw Uganda. Phillip Ayazika is the Director of Programs at Pollicy and Robinah Kagoye, is the Executive Director at Voices for Labour
