Self-employed Persons Research Articles

Lithuania’s Binary Worker Classification Vs. A Teleological Interpretation of the EU’s ‘Worker’ Concept by Germany and the UK

Abstract The article explores whether Lithuania’s concept of darbuotojas (employee) and its rigid binary classification of work relationships is challenged by an evolving European employment law landscape, shaped by a rise of unconventional work relationships that blur the lines between employees and self-employed persons. This issue is examined in light of varying interpretations of the EU’s ‘worker’ concept(s) in the United Kingdom (UK) and Germany, where courts increasingly extend protections to individuals in atypical employment forms by broadly (re-)interpreting traditional terms. Additionally, their domestic systems recognize intermediate categories between employees and self-employed persons, such as arbeitnehmerähnliche Personen (employee-like persons) in Germany or the UK’s ‘limb (b) workers’, aiming to provide certain protection for a wider group of working individuals. These approaches influence both countries’ understanding of an autonomous EU ‘worker’ concept, particularly evident in connection with Council Directive 89/391/EEC, which introduced measures to enhance the safety and health of workers at work and was adopted more than 30 years ago.

The Concept of Subordination as an Element of Employment for Digital Platform Workers in the Republic of Lithuania

Abstract This research analyzes one element – subordination – of employment relations indicated by the case law of the Republic of Lithuania according to which a civil relationship can be understood as an employment relationship. The elements by which independent contractors (self-employed persons) can be considered employees are established in the case law of the Republic of Lithuania but have never been analyzed in the context of platform workers. Therefore, first, the nature and features of the digital platform and the platform worker are analyzed. Second, the definition of subordination is considered in light of the distinction between employment and civil relations. Third, subordination is analyzed vis-a-vis the relations between the platform and the platform worker (independent contractor) and in light of proposed legal acts for platform workers.

Can We Effectively Allocate Time for Work and Life and Be Happy? The Empirical Evidence from Self-Employed Persons in Lithuania

There is not enough attention paid to the analysis of time allocation in the context of happiness. Perhaps it is because happiness economics is an expanding interdisciplinary field. So, recommendations for self-employed persons in Lithuania how daily time should be effectively allocated for life (sleep, personal care, study, housework, family care, leisure, travel and other activities) and work in order to be happy still remain an open question. In this paper the specific recommendations about it are provided for that case. So, this paper analyses two phenomena, i.e. time allocation and happiness. The main attention is given to self-employed persons in Lithuania during 2019 years. Data collection (time diary, survey, interview) and optimization methods are used to identify how daily time should be effectively allocated for two main areas (work and life) in order for self-employed persons to be happy. Having mathematical modeling of time allocation and happiness accomplished, it has been found that 36.1% of day time should be allocated for work and the rest time of the day (63.9%) should be allocated for life. The person’s levels of job satisfaction, life satisfaction and happiness should be equal to 9 points (on a ten-point scale). In this case, monthly net income would be 1001 euros and desirable monthly net income 1101 euros. The number of children should be two. The scientific and practical uniqueness of this article lies in the creation of a mathematical model that can determine how to effectively allocate work time and life time in order for a person to be happy. Although the mathematical model constructed in this paper is based on Lithuanian data, it is not country specific.

Unemployment insurance for the self-employed: A conceptual way forward

In this contribution we give common guidelines on how unemployment schemes for the self-employed could be developed in practice. These guidelines have been derived from national descriptions contained in this special edition on unemployment protection for the self-employed, or in other recent comparative contributions on the matter. Our reference framework is the EU Council Recommendation (2019) on Access to Social Protection, and more in particular the overall objective that social protection should be designed in a labour status neutral manner and, where necessary, adapted to the specific work situation of the professional groups covered. Applied to unemployment, the design of the scheme should be as similar as possible to that of unemployment insurance for wage earners. However, it is crucial to adapt the rules as specifically as necessary to the nature of self-employed work, such as, for example, the fact that the self-employed do not work for an employer. Starting from this basis, we developed key rules with regard to unemployment schemes for the self-employed. We did so by addressing the essential components of unemployment schemes: the definition of the unemployment risk, financing, access and entitlement conditions, and re-eligibility in case of repeated claims for unemployment benefits. We also address recent evolutions in the labour market, such as coverage when multiple activities are performed (combining activities as an employee and as a self-employed person), and elaborate on situations involving temporary closure of the self-employed activity (e.g. due to Covid-19) and partial unemployment. In conclusion, we provide some reflections on the apparent ongoing evolution of the risk of unemployment towards a broader income protection scheme, which not only provides income replacement in case of a final loss of professional activity or self-employed business, but also gives structural income support if the person loses income partially due to external economic and/or social reasons.

Challenges to the exercise of collective labour rights outside the employment relationship

The importance of the issues covered in this article is due to the impact of information technologies on the labour sphere, transformation of the features of “classical” labour relations and the need to rethink the categories of “employee” and “employer” in order to ensure the exercise of collective labour rights, such as the right to association, collective bargaining and collective action by all workers regardless of the form of employment, first of all, by dependent self-employed persons. The author emphasises that the ILO, the CJEU in the opinions of their supervisory bodies, and the EU Court of Justice in their judgments use a broad approach to the interpretation of the concept of employee, including self-employed persons, in particular, in the context of exercising the right to association and collective bargaining. The author presents the experience of certain European countries, in particular, France and Poland, in terms of legislative consolidation of fundamental labour rights for self-employed persons. The article demonstrates that courts in different jurisdictions have different approaches to resolving the issue of the legal status of platform workers using the example of the decision of the Supreme Court of the United Kingdom and the Spanish court in the Deliveroo case. It is stated that in Ukraine today, one of the fundamental labour rights - the right to join a trade union de jure is not limited by the existence of an employment relationship or the status of an employee. At the same time, the right to collective bargaining, collective bargaining agreements and the right to collective action to protect one’s rights, which are an integral part of the right to freedom of association, is de facto only possible for those who are in an employment relationship based on an employment contract and have the status of an employee. As a solution to this problem, it is proposed to introduce a broad category of “working” or “employed” in national legislation, which will be used exclusively for the purposes of unionisation, exercise of the right to collective bargaining, conclusion of collective agreements and collective action. Such a definition should be separated from the definition of the narrow concept of an employee under an employment contract used in the context of individual labour relations.

Legal status of the self-employed person in the field of social protection in Ukraine

Due to the existence of many scientific studies and various statements regarding the legal status of the self-employed person and their legal status in the field of social protection. It is necessary to conduct a thorough analysis of important aspects of this issue. Especially in times of war, when the unemployment rate is steadily increasing and self-employed persons are increasing their value to the state. This is the reason for the relevance of the study. The purpose of this research is: to determine the legal status of the self-employed person in the field of social protection in Ukraine; to analyze the characteristics of legal regulation applicable to the self-employed; to process data on the basic principles of social security for the self-employed. Important steps are also to analyse the most significant problems faced by self-employed persons in the field of social protection and to discuss possible solutions.

Self-employment, financial access and economic welfare: empirical evidence from Africa

Purpose This study aims to investigate the empirical linkages between self-employment, financial access and economic welfare in Africa. It particularly examines the moderating role of financial access in the self-employment-economic welfare nexus and determines relevant thresholds. Design/methodology/approach The paper samples 52 African economies from 2000 to 2018 and deploys the fixed effects and bootstrap quantile regression estimators. Findings The results show that self-employment has a negative and significant relationship with economic welfare, while access to finance has a positive and significant relationship with welfare. More notably, the conditional effect of self-employment and finance is significant and positive, confirming a synergetic effect. The result suggests that pushing more people into self-employment does not necessarily enhance economic welfare, other than the avoidance of unemployment, due to the large number of replicative and necessity entrepreneurs. However, granting the self-employed more access to affordable finance that boosts entrepreneurial activities enhances economic welfare. Practical implications African governments and relevant policymakers must recognize that deepening the financial sector is crucial in creating sustainable opportunity entrepreneurs and boosting general economic welfare. Originality/value The uniqueness of this paper centers on the exposé of the relevance of financial access/development in promoting the economic welfare of self-employed persons and entrepreneurs. It also determines relevant thresholds at which finance is most significant in procuring positive impacts on economic welfare. In addition, the simultaneous quantile regression is used to show snapshots of human development index at which this impact is paramount.

Lifelong Learning in Multi-Purpose Activity of Self-Employed and Employed Persons

Introduction. Managing the lifelong learning environment requires a certain understanding of the educational needs and demands of learners of different categories. However, there is not enough research devoted to the psychological aspects of non-formal and informal learning of working subjects. The aim of the study is to characterize the main forms of learning, inducing and sustaining motivation, engagement and self-regulation of learning among employed and self-employed individuals. Materials and Methods. The study used the methods of theoretical analysis of the problem, testing and survey with the use of educational experience diagnostics methodology and author's questionnaires based on the Informal Learning Questionnaire and Academic Motivation Scale. The empirical sampling encompassed 295 people, including 143 self-employed and 152 employed. Results. The results showed the diversity of forms of lifelong learning used by employed persons, as well as the polymotivated nature of this activity. It was found that professional and cognitive motives are the most pronounced among the employed and self-employed. Respondents are motivated to learning by the desire for self-improvement, professional development objectives, interest in the subject of training, the need for new knowledge and skills. It is proved that self-employed persons, compared to employed persons, have a higher level of involvement, self-regulation of learning and intrinsic motivation focused on professional and personal growth and diverse interests. Discussion and Conclusion. The results of the study expand scientific ideas about lifelong learning and for the first time demonstrate the specificity of involvement and motivation for learning individuals with different employment status. The materials of the article will be useful for researchers, specialists in human resources development, marketers of the education segment, and developers of additional educational programs.

Dependent Self-Employment in Slovakia – Opportunity or Necessity?

Recently, the European labour market has witnessed a shift in work structures, notably with self-employed individuals without employees. Many of these individuals are performing self-employment involuntarily, aiming for stable full-time employment. Due to insufficient income, instability, limited career prospects, and inadequate access to social protection, they are dissatisfied with their self-employed status. This dissatisfaction could potentially affect their overall job satisfaction and performance. The goal of this study, conducted on the basis of original primary survey among self-employed persons in Slovakia in 2022, is to explore the motivations influencing self-employment. Specifically, the research aims to examine the initial driving factors behind self-employment among 306 individuals, categorized into 194 traditional independent selfemployed and 112 economically dependent self-employed persons. Results indicate that among economically dependent self-employed persons, necessity-driven motives prevail, particularly necessity to enter family business, job loss, and employer-induced self-employment. For traditional independent self-employed persons, opportunity-driven motives predominate, notably pursuit of better working conditions, desire for independence, and efforts to earn more.

Collective agreements on working conditions of solo self-employed persons: perspective of EU competition law

Abstract The 2022 Guidelines of the European Commission on the application of EU competition law to collective agreements regarding the working conditions of solo self-employed persons apparently introduced a fresh approach towards collective agreements in a gig economy era. The main aim of this paper is to discuss whether the 2022 Guidelines are an appropriate tool to address the problems of solo self-employed persons (i.e. persons who are not in a formal employment relationship and who rely primarily on their own personal labour to provide services) from the perspective of EU competition law. To this end, we first present key competition problems related to collective agreements (section 1). Second, we analyse the regulatory framework for exemptions from competition law, with a view for a potential exemption relevant for collective agreements, as well as an approach to collective agreements in EU case law (sections 2 and 3). Third, the background for adopting the Guidelines, and their goals, is analysed (sections 4 and 5). Fourth, the Guidelines are discussed in more detail in sections 6 and 7 from the perspective of exemptions from Art. 101(1) TFEU. Finally, we examine the relationship between the Guidelines and a proposal for a platform work directive. The article attempts to verify the hypothesis that the Guidelines may be considered a pseudo-development.

ASSESSMENT OF TAX RISKS OF PERSONS, PROFESSIONAL INCOME TAXES

The article analyzes the issues of assessing the tax risks of individuals, Transferred to Professional Income Tax. The features of tax control are considered, in the current economic situation (preventive, Current, Before and after tax audits). The main measures of tax control are highlighted, used to improve its effectiveness, and the implementation of pre-test analysis in the context of identifying tax schemes involving self-employed persons. Suggested options for determining the amount of tax risk. Tax risk matrix developed, which it is advisable to implement in the mobile application «My tax». Purposes of writing a research paper: to identify the main tax risks, Taxpayers who have a tax on professional income and highlight the areas of their assessment. Conclusions, obtained in the course of the study: the current situation on the implementation of tax control of self-employed persons is estimated and the possibilities of eliminating tax risks are considered.

Трансформация роли банков в условиях развития гиг-экономики

The role of banks in the gig economy in Russia and foreign countries is considered in the article. It is noted that the growth of the number of people employed in the gig economy indicates the need for legal regulation of both the status of such workers and their interaction with other market participants, including banks, which act as intermediaries between the employee (contractor), on the one hand, and his consumers and customers, on the other. The importance of legalizing the legal status of self-employed persons is noted, due to the public interests of the state, as well as the fact that their legal status is regulated in different ways in different countries. In the context of the development of the gig economy, banks offer gig workers and freelancers new banking and related services using financial technologies, which predetermines the development of banking ecosystems as a whole.

ABM Position Statement: Paid Maternity Leave-Importance to Society, Breastfeeding, and Sustainable Development.

Background: Paid maternity leave benefits all of society, reducing infant mortality and providing economic gains. It is endorsed by international treaties. Paid maternity leave is important for breastfeeding, bonding, and recovery from childbirth. Not all mothers have access to adequate paid maternity leave. Key Information: Paid leave helps meet several of the 17 United Nations' Sustainable Development Goals (2, 3, 4, 5, 8, and 10), including fostering economic growth. A family's expenses will rise with the arrival of an infant. Paid leave is often granted with partial pay. Many low-wage workers earn barely enough to meet their needs and are unable to take advantage of paid leave. Undocumented immigrants and self-employed persons, including those engaging in informal work, are often omitted from maternity leave programs. Recommendations: Six months of paid leave at 100% pay, or cash equivalent, should be available to mothers regardless of income, employment, or immigration status. At the very minimum, 18 weeks of fully paid leave should be granted. Partial pay for low-wage workers is insufficient. Leave and work arrangements should be flexible whenever possible. Longer flexible leave for parents of sick and preterm infants is essential. Providing adequate paid leave for partners has multiple benefits. Increasing minimum wages can help more families utilize paid leave. Cash benefits per birth can help informal workers and undocumented mothers afford to take leave. Equitable paid maternity leave must be primarily provided by governments and cannot be accomplished by employers alone.

Unemployment protection for self-employed persons and platform workers in Austria

The article describes the protection against unemployment for self-employed persons and platform workers under Austrian law. The aim is to provide an overview of the respective protection systems. Interpretation issues regarding individual provisions are not discussed in detail, as they are unlikely to yield insights for a comparative study. The article concludes with a brief summary of the current policy debate in Austria.

Занятость, самозанятость и платформенная занятость граждан в свете законопроекта о занятости населения в Российской Федерации

The article presents an analysis of the Draft Law No. 275599-8 “On Employment in the Russian Federation” in terms of introducing new definitions of “employment”, “self-employment”, “platform employment” and other related provisions. Attention is focused on the fact that the purpose of the adoption of the Draft Law is to ensure employment, social guarantees and measures to support unemployed citizens. In this connection, the author substantiates the conclusion that the concepts of “self-employment” and “platform employment” established in the Draft Law cannot be the basic provisions that determine the main status of the persons who carry them out. The conclusion is made about the tendency to separate the modes of activity of citizens as individual entrepreneurs, self-employed persons, proposals are formulated to improve the legislation.

Reformoptionen – die keine sind

Abstract In the German pension debate, reform options are repeatedly proposed that are doomed to failure right from the start as they cannot be legally implemented to begin with. One of these is the inclusion of civil servants in the German state pension scheme. This option, however, is prohibited by the German Constitution. Another example is the inclusion of self-employed persons. This demand cannot be met as many freelancers are unable to pay their full contributions. Inflation adjustment of pensions would mean too much of a burden for women as well as for the sick and the disabled. Redistributing money from pensioners with high benefits to pensioners with a low pension would not be conducive, either. Not only would this mean an infringement of the principle of equality, but also there are too few high pensions to redistribute.

Patterns of work and retirement in a pension system with a flexible old-age retirement age: a register study of Finnish employees and self-employed persons born in 1949

Abstract The aims of this study were to explore patterns of work and retirement of Finnish employees and self-employed persons in a pension system with a flexible old-age retirement age and how income develops in these patterns. We used individual-level register data from Statistics Finland of the total Finnish birth cohort born in 1949. The cohort was 62–70 years old over the study period 2011–2019. Sequence and cluster analyses were used to identify typical trajectories of individuals’ transitions in and out of salaried work and self-employment and work in old-age retirement. Our analysis yielded a ten-cluster solution: four clusters were found for employees who did not continue working in retirement (62%), four clusters for those employees who continued working in retirement (26%), and two clusters for the self-employed (12%). The clusters differed by the timing of retirement. The results showed that employees who retired earlier on an old-age pension and who were not working afterwards had lower incomes. Their incomes also decreased after old-age retirement. Employees who worked for several years in retirement had higher incomes which remained stable between the ages of 62 and 70. We found two types of self-employed persons: those who continued working in retirement with high incomes and those who stopped working earlier and had lower incomes. The results indicate that inequalities between lower and higher income groups might become exacerbated in a flexible retirement system.

Problems of social security of self-employed persons regarding unemployment security

Problems of social security of self-employed persons regarding unemployment security

Variations of Self-Employed in Eurozone Countries: The Role of Corruption and Wage Rate Growth

This study emphasizes two variables as significant determinants of the number of individuals who choose self-employment. First, it is assumed that the opportunity cost of self-employment has a negative effect. This cost is measured as the income that would be earned in wage employment. Second, self-employment provides more opportunities for tax evasion and tax avoidance. The higher the corruption rate, the higher the self-employment rate. These two variables—wages and corruption scores—are used as potential determinants of the ratio of self-employed persons to the total labor force. Data from the twenty Eurozone countries are employed to test these hypotheses. Both hypotheses cannot be rejected based on the empirical evidence. Keywords: Eurozone countries, wage growth, self-employment corruption, labor force, unemployment

Self-employment in Spanish law

The objective of the article is to analyse legal regulations concerning self-employed activity in force in Spain. Spain is the first EU Member State to have adopted a separate law (on 11 July 2007) to comprehensively and systemically regulate the legal status of the self-employed. The Spanish 2007 LETA act aimed to sort out the situation of the self-employed and grant them additional rights. A new category of economically dependent self-employed persons was introduced and accorded special protection. The author discusses the concept and typology of self-employment, including classic, economically dependent, and bogus self-employment. In her view, the Spanish solution of regulating self-employment in a single piece of legislation appears attractive, but the criteria introduced in the law to determine the status of economically dependent self-employed do not adequately fulfil their role in practice. Their restrictive nature, far-reaching casuistry, and the criterion of economic dependence of the self-employed, who must receive at least 75 per cent of their income from a single counterparty, which is difficult to verify objectively and relatively easy to circumvent, result in a negligible number of self-employed persons benefiting from the protective guarantees provided by LETA.