There is a consistent pattern that if you have more flexible terms of work, then you are less secure. And this is the problem in nowadays world. Employers want to attract employees with such new types of “flexible contracts”, and employees agree because they can work almost as they like, but they all forget about social security. As for now, we need to find a way how to find that perfect balance between flexible work forms and employee’s security.
Flexible work forms can promote better work/life balance for employees but there should not be a misapplication or overuse of them. It is important to balance employee’s autonomy with access to social security benefits.
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The flexible labor market does not mean that governments need to make new work contacts that are very flexible as today’s world requires it, and at the same time make them less secure. People fear that they will not be able to find decent work due to globalization and other reasons, so they agree to as they think flexible work contracts but without proper social security.
The term flexicurity tries to optimize both labor flexibility and job security. This scheme is hard to implement worldwide, as it requires the government to be extremely helpful to its citizens. The social security system should be well established and streamlined. As an example, we can take Denmark, where the employer can almost “easily” hire/fire an employee, but employees in return are well-secured by the government through social welfare. Employees are not afraid of being fired, as they can find other work, they are socially secure and they have an opportunity to get their work skills developed, and this creates a possibility for creating new working places. Thus we have a relatively flexible labor market, where there is no too strict legislation with excessive protection, that excludes the possibility of job creation.
This concept seems great to employers, as well as to employees. But as for now, it is relatively hard to reach the balance between flexible work and employee’s security in most countries, as this concept requires extensive state support, budgetary costs, implementation of training for unemployed people, and change of people’s minds, etc.
The realization of the flexicurity concept foresees the complex process of its adaptation considering national, socio-economic, and cultural peculiarities. It seems that this concept is not suitable for countries with high unemployment level and budgetary difficulties.
Impact of International Labor Standards to national labor law
International labor standards were evolving together with economical and society demands. The International Labor Organization has been developing International Labor Standards, together with governments, employees, and workers, due to the tripartite system, for 100 years. Huge amount of Conventions and Recommendations that were created and implemented to member states national legal systems helps to somehow unify the worldwide system of labor standards.
Due to the implementation of these international labor standards into national labor laws of different nations, the system of labor standards in these 187 member states of ILO is quite similar and differs in accordance with national economic situation and etc.
International labor standards are tools by which governments can develop their national legal systems in relation to the world’s fast globalization. These standards shape national law, and ILO recommendations provide guidance for policy changings. Countries use International Labor Standards to bring national legislation to the level of international standards. They help countries to match to world’s economical and social improvements. Also, compliance with standards often goes along with improvements in national legal systems, productivity, and economic performance.
ILO standards tend to be fair, flexible, universal, and transparent. They play a crucial role in providing minimum floor of rights to workers throughout the whole world.
Despite the fact that a lot of member states have not implemented/ratified a huge amount of ILO convention, there is ILO Declaration on Fundamental Principles and Rights at Work (1998), that does not need ratification, as it is binding to all ILO member states. This Declaration provides core principles and rights at work such as freedom of association and the effective recognition of the right to collective bargaining; the elimination of all forms of forced or compulsory labor; the effective abolition of child labor; and the elimination of discrimination in respect of employment and occupation. They surpass the worldwide spread of lowering labor standards. The main global goal of these standards is to ensure decent work conditions throughout the world.
ILO standards are constantly changing and developing, as nowadays our society is totally different than 100 years ago when ILO only started their work and issued its very first Convention. ILO standards ensure the basic minimum social standards agreed by governments, workers, and employers. They reflect the problems that arise in the majority of countries. Regarding its tripartite system, ILO’s policy is practical and effective. As these standards only provide the minimum level of protection, they are an ascending point for governments from which whey should start improving their national labor standards.
Self-employment and employment: the most problematic issues
There are plenty of pros and cons of self-employment, as well as employment. For example, people tend to believe that self-employment is better as you can be more flexible, you can work remotely, you are not dependent on the big boss/your employer, and are able to shorten or completely avoid your commute, focus on things that matter to you. But there are a lot of problematic issues like less security when you are self-employed.
The main problems of self-employment are less social security, instability in payment and in the whole, financial insecurity, higher risk of unemployment, poverty in the old age, etc. After all, self-employment has a very risky nature.
Talking about flexibility in working hours, self-employed are more flexible in arranging their time, but usually, they work longer than employed people and they dedicate all their time to work, there are no strict work hours from 9 till 6 and particular rest time, in self-employment all this have mixed and all personal time becomes working time.
Regarding dependency, it is true that self-employed are not dependent on the employer, but they are always dependent on the economic situation in their country or in the other countries to which their work is related.
The main problem is low social security. When you are employed, then you are mostly secured; health insurance, paid maternity/paternity leave, paid leave, pension, and other social security benefits. The problem arises when you are self-employed, you are left almost by yourself.
Self-employed are vulnerable because they are financially insecure in case of illness; they are economically dependent, so it is more difficult for them to change their financial situation.
In many countries, self-employment has been used to reduce labor costs for salaried employees, to avoid social security contributions, and entrap labor law legislation. These type of workers are convenient for employers, as they can save a lot of money to their businesses
Self-employed generally have less effective access to social protection than employees and many European countries like Italy, Austria, and others have implemented into their labor law the concept of self-employment and they provide some kind of social-security to such people. For example the right to parental leave, pension and unemployment schemes, health insurance and so on.
In conclusion, the main problem of self-employed people is their financial vulnerability and lack of social security. Nowadays policymakers need to implement legal norms to somehow protect self-employed people; create separate insurance and unemployment schemes. National social protection systems need to adapt to the changing world of work and ensure comprehensive social protection not only for employed persons but also for other groups as self-employed.
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