China's Cabinet to Step Up Labor Protection in Its Platform Economy

China's cabinet has urged the country's digital platform companies to better protect labor rights and vowed to improve welfare for gig workers, the State Council said Wednesday, in the latest moves to tighten regulations in the country's tech sector.

Relevant companies should pay full labor remuneration in a timely manner, and mustn't set performance indicators that could harm workers' safety and health, the cabinet said in its executive meeting on Wednesday.

In addition, companies shouldn't illegally prohibit workers from working for other platforms, it said.

The cabinet said it would supervise platform companies to formulate and improve rules and algorithms for order distributions and commissions, and that companies should publicize the results after taking advice from labor representatives.

China will roll out a pilot program to offer occupational injury protection for gig workers, especially in prioritized businesses of ride hailing and food and instant delivery services, the cabinet said.

The cabinet pledged to offer subsidized vocational training and liberalize household registration restrictions for gig workers to enjoy social welfare including pension and medical insurance in places of their employment.

In recent months, China's leading tech on-demand platforms including the ride-hailing leader DiDi Global Inc. and food delivery giant Meituan have faced criticism over their labor rights records, prompting authorities to intervene.

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  07-07-21 1202ET
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