Exploration of Employment Models under New Business Models

2024 01/03

Question raising


On August 11, 2020, Tian registered as a driver on the A company's driving platform through the e-driving driver app. Tian's working hours and locations are not fixed, and the remuneration he receives depends on the number of orders received. After completing the delivery, the customer pays the fee, and Company A charges a certain fee from it. On June 2, 2021, an accident occurred while Tian was receiving an order. Tian believed that the medical expenses, hospitalization meal subsidies, and other expenses generated by the accident should be borne by Company A, but Company A refused to bear them and thus filed a lawsuit. The labor arbitration, first instance, and second instance have all ruled to reject all of Tian's litigation claims. The focus of the dispute in this case is the determination of the legal relationship between Tian and Company A.


Lawyer Interpretation


With the development of the internet platform economy, a large number of internet platforms such as online appointment delivery, mobile transportation, takeout, and online live streaming have emerged. The employment models under this new business model mainly include:


(1) A "labor employment model" where the platform directly establishes labor relations with practitioners. In this mode, the platform directly manages practitioners and fulfills the obligations of employers;


(2) The "outsourcing model" in which the platform collaborates with outsourcing agencies to establish labor relations with practitioners. In this mode, the outsourcing agency establishes a labor relationship with practitioners, the platform establishes a contractual relationship with the outsourcing agency, and no relationship is established between the platform and practitioners;


(3) The platform collaborates with labor dispatch units to establish labor relations with practitioners through the "labor dispatch" model. In this mode, the platform signs a labor dispatch agreement with the labor dispatch unit, with the platform as the employing unit and the labor dispatch unit as the employing unit;


(4) The crowdsourcing model where the platform establishes outsourcing relationships with practitioners who provide services in a free and voluntary manner and do not establish labor relations with them. Crowdsourcing refers to the practice of a company or organization outsourcing work tasks previously performed by employees to non-specific audiences. In this mode, the platform and practitioners only establish one civil legal relationship and accept adjustments to the civil legal relationship;


(5) The "intermediary model" aimed at matching supply and demand sides to achieve transactions. The platform only provides intermediary services, providing opportunities and convenience for customers and practitioners to connect resources and sign contracts.


In addition to the above models, the employment models under the new business model also include labor relations, shared employment, business contracting, and other models. At present, the "crowdsourcing model" is the most common form of employment on internet platforms. In this case, Tian provided driving services by registering a driver on the e-driving platform. Company A provided driving information to Tian through the platform, and Tian provided driving services to customers and collected driving fees. It can be seen that Company A's employment model is a typical "crowdsourcing model". But through this case, we can also see that there may be multiple subjects and more complex legal relationships in the new employment model. Therefore, all parties (whether platforms or practitioners) should be aware that the rights and obligations of each party are not the same under different employment models. It is recommended to (1) sign a written agreement to clarify the legal relationships of all parties; (2) The platform should set different forms of employment based on the type of service and business, formulate regulations and management measures that match the forms of employment, and provide sufficient and necessary explanations to practitioners.