China’s draft rules offer millions of gig workers employment contracts

Beijing has proposed new labor regulations that would provide significant protections for China's expansive gig worker population, potentially covering millions of individuals employed by online platforms. The draft rules, issued by the China Human Resources and Social Security Ministry, mandate that these platforms establish standard employment contracts with their workers. This includes mandating the payment of the minimum wage, additional compensation for work on public holidays, and ensuring appropriate rest periods.

Critically, the draft would require online platforms like Alibaba, Meituan, and DiDi to refrain from enticing gig workers to register as independent contractors, thus avoiding the obligation to provide formal employment agreements. Presently, a substantial portion of China's workforce, estimated at 280 million flexible workers as of 2025, operates without comprehensive labor protections.

These workers often endure long hours for low wages, particularly in high-competition sectors such as food delivery, where platforms engage in competitive price wars.

Key to the proposed legislation is the requirement for platforms to disclose their management algorithms to workers, with any decisions to halt orders or ban worker accounts needing manual review rather than automated processing. This transparency aim seeks to safeguard workers against arbitrary treatment. In April, Chinese authorities announced plans to bolster the gig economy's regulatory framework, aiming to markedly improve working conditions within three years.