Most online gig economy platforms are failing to meet even minimum labour standards, according to a new report – with widespread non-compliance with basic protections around pay, working conditions and contracts.
The report by Fairwork, a research initiative based at the University of Oxford and WZB Berlin, assessed 16 major global cloudwork platforms – including Fiverr, Upwork, Freelancer and Amazon Mechanical Turk.
Cloudwork refers to remote, task-based jobs such as data labelling, transcription, software development and design. These roles, often central to artificial intelligence development and the broader digital economy, are carried out by a large and growing global workforce. According to the World Bank, as many as 435 million people worldwide are engaged in this kind of work.
Despite the sector’s projected value of $647 billion by 2025, the report found significant gaps in fair treatment. Only 4 of the 16 platforms (25%) were able to show that workers consistently earn at least the local minimum wage after costs. The remaining 12, which include some of the most widely used platforms, failed to provide such guarantees.
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Fairwork surveyed more than 750 workers across 100 countries as part of the research. Among them, 31 percent reported having experienced non-payment and 38 percent had been paid late. A worker in Nigeria, who uses Amazon Mechanical Turk, said, “I wish I could get my money in my bank account rather than gift cards.”
Contracts, representation and wellbeing remain weak points
The report also found that over half of the platforms assessed include contract clauses that diminish workers’ rights. These include unclear job descriptions, extensive liability clauses and a general lack of contractual transparency. Only 6 of the 16 platforms (38%) offer contracts that fairly reflect the nature of the work.
Worker representation remains limited. While 6 platforms (also 38%) formally recognise the right to organise, none demonstrated active engagement in collective bargaining or worker governance. Even on platforms where such rights are nominally recognised, there is little evidence they are put into practice.
The study also highlighted a lack of support for worker wellbeing. More than half of the platforms provide no wellbeing support of any kind, and only 7 out of 16 have implemented measures to mitigate health and safety risks such as back pain or burnout.
These findings raise concerns for HR professionals and policy makers as digital employment models become more prevalent across industries. With such large numbers of workers now part of this ecosystem, the long-term risks of unregulated cloudwork are becoming more apparent.
Sector improvements still fall short of minimum expectations
Despite these challenges, the report notes some progress. Since 2023, Fairwork has worked with eight platforms to make 56 improvements, including changes to dispute resolution procedures, contract terms and pay transparency. These updates could positively impact up to two million workers.
However, most platforms still fall short of meeting the minimum standards outlined by Fairwork. The researchers stress that voluntary measures alone are not enough to protect workers. The report calls for stronger national and international regulation, including due diligence legislation and binding platform work directives.
Dr Jonas C. L. Valente, postdoctoral researcher at the Oxford Internet Institute and co-lead of the Cloudwork Project, said, “This report lays bare a brutal truth: the global online gig economy is failing the vast majority of its workers. These are the invisible workers making possible the AI systems and apps we use every day. While some platforms are showing that change is possible, the basic rights workers have long expected are not ensured to millions. Voluntary improvements have happened but have proved insufficient and will never be enough.”
He added that government and regulatory action is needed to ensure fair treatment across the sector.
“We urgently need governments and regulators to step up and hold platforms accountable, whether through global frameworks, due diligence laws or stronger platform work directives. Without action, millions of people will remain trapped in low-paid, insecure digital labour with no voice, no rights and no protection.”
Digital exploitation
Prof Mark Graham, Director of Fairwork and Professor of Internet Geography at the Oxford Internet Institute, echoed the call for reform.
“Behind the dazzling promise of AI and the billions flowing into the online gig economy, millions of people are powering this system without the most basic labour protections. Our research shows that a $600-billion industry still can’t guarantee even minimum wage to most of its millions of workers worldwide.
“If regulators allow this inequity to persist, we will hard-code exploitation into the digital future. It’s time for governments and platforms alike to make fair work the default, not the exception.”
