Mexico: The ILO adopts a historic convention to regulate work on digital platforms and requires a review of labor models and algorithms

The ILO recognizes that the platform economy has significantly transformed the world of work, generating employment and income opportunities, but also creating decent work deficits. Given that many platforms operate on a cross-border basis with clients, workers, and platforms located in different countries, it was necessary to adopt specific international standards.

The convention applies to all digital labor platforms and to all digital platform workers, both in the formal and informal economy. Member States may, after consultation with employers’ and workers’ organizations, exclude limited categories, provided they adopt measures to progressively extend its application.

Main contents of the convention:

• Fundamental principles and rights at work. States shall respect and promote freedom of association, collective bargaining, the elimination of forced labor and child labor, non-discrimination, and a safe and healthy working environment.
• Occupational safety and health. Measures must be adopted to prevent occupational accidents and diseases, specifying the responsibilities of authorities, platforms, and workers. Workers shall have the right to remove themselves from situations of serious and imminent danger without unjustified consequences.
• Protection against violence and harassment. This includes protection against violence and harassment perpetrated online or by third parties, such as clients.
• Correct classification of employment status. States must ensure that employment classification is based on the facts relating to the performance of work, remuneration, and the specificities of platform work.
• Fair and timely remuneration. Timely and full payment is guaranteed. Workers in an employment relationship shall receive at least the applicable minimum wage and be compensated for expenses incurred.
• Social security. Platform workers shall have access to social protection under conditions no less favorable than those of other workers with the same classification.
• Regulation of automated systems (algorithms). Platforms shall inform workers about the use of algorithms that affect working conditions. In the event of significant negative decisions generated by automated systems, workers shall have the right to a written explanation and to a review with appropriate human intervention.
• Protection of personal data. Guarantees are established for the lawful processing of data, including rights of access, rectification, and erasure.
• Prohibition of discriminatory suspension or termination. The suspension or deactivation of accounts based on discriminatory grounds or other unlawful reasons is prohibited.
• Protection of migrants and refugees. Abuses in the recruitment and employment of migrants and refugees as platform workers must be prevented.
• Access to safe, fair, and effective dispute resolution mechanisms.

The convention shall enter into force 12 months after the ratifications of at least two Member States have been registered with the Director-General of the ILO. For each member that subsequently ratifies it, the convention shall enter into force 12 months after the registration of its ratification.

Implications for employers

The adoption of Convention 193 poses significant challenges for companies that operate digital labor platforms, as well as for those that contract services through them. The requirement to correctly classify the employment relationship will force a review of current hiring arrangements, with the risk that models operated under the figure of independent contractors may be reclassified as subordinate employment relationships.

Likewise, platforms will need to invest in systems that allow them to document and explain algorithmic decisions that negatively affect workers, establish human review mechanisms, and guarantee timely payment of compensation and, where applicable, access to social security. Taken together, these changes will require a comprehensive review of operating models and compliance policies in the sector, particularly in cross-border operations.