(Yicai) March 4 -- China should revise its labor law as soon as possible to strengthen the protection of gig economy workers' rights, the leader of the highest court in Shanghai proposed ahead of a high-caliber political meeting.

China’s labor law is primarily designed to serve employees with traditional contracts, making it difficult to address the characteristics and needs of flexible workers, Jia Yu, president of the Shanghai High People’s Court, said in a recent interview with Yicai. Jia, who is also a deputy to the National People’s Congress, made the remarks ahead of the annual meeting of the country’s top legislative body, starting tomorrow.

The gig economy provides minimal guarantees and lacks proper documentation. A large number of flexible employees have not signed labor contracts, few contribute to social insurance, and many struggle to define their labor relationships, Jia pointed out.

In 2023, China had 200 million flexibly employed workers, with over 40 percent engaged in "new employment forms" within the digital economy, such as food delivery, courier, and ride-hailing platforms, according to official data.

Last year, Shanghai courts handled over 1,220 labor dispute cases related to new employment forms. This highlights that the current labor law lacks clear legal definitions for the platform economy, making it difficult for flexibly employed individuals to protect their rights, Jia explained.

Legal cases involving takeout platforms frequently show how these companies use labor outsourcing firms to avoid employer responsibilities, the legal expert said. Moreover, these agencies are often not transparent about their commission structures, which negatively affects the income of flexible workers, he added.

In the absence of standardization, social insurance is becoming an extra perk for recruitment. Last month, Chinese e-commerce giant JD.Com, a newcomer to the takeout business, announced it would begin paying social insurance premiums for full-time food delivery riders starting on March 1. Rivals Meituan and Ele.me soon followed suit.

Local courts handle labor relationship cases on an individual basis. The city has established a dispute mediation platform for new employment forms in collaboration with municipal human resources and social security departments, focusing on safeguarding the legitimate rights and interests of flexible employees, Jia said.

Zhang Junqiang, a lawyer at Shanghai Pacific Legal, told Yicai that revising the labor contract law could help include platform-dependent, flexibly employed workers under labor management, granting them protections such as minimum wage, paid leave, and basic social security.

Editors: Dou Shicong, Emmi Laine