New Employment: Challenges and Opportunities of the Platform Economy

The platform component is playing an increasingly important role in the national economy. Digital platforms help to reduce transaction costs, increase productivity, and provide millions of people with a primary or additional income. Platform employment, in which ordinary citizens participate in economic relations through platforms, is precisely what has enabled the institution of self-employment to become such a success in Russia. Even 10-15 years ago, there was an acute problem with replacing labour-based relations with civil law-based relations in the employment sphere, which mainly pertains to the traditional economy. This was largely due to the desire of employers to save money on taxes and to simplify relations with the workforce. Amendments were made to industry legislation to resolve this problem. Now the pendulum has swung in the other direction, as attempts are being made to replace the original civil law-based relations of platform employees with labour-based relations. It would appear that the mere emergence of platform employment and the need for legal institutions to evolve should be recognized in order to balance the legal pendulum and generate the maximum cumulative effect for market participants and the economy as a whole. Institutional changes require regulatory changes. What new opportunities does platform employment offer compared with traditional employment? What limitations and risks are associated with this form of employment? How can these limitations and risks be mitigated? What role does platform employment play in combatting unreported employment?