What does employment mean in the gig economy?

The fourth industrial revolution (4IR) has become a byword for transformation.

- Letlhokwa Mpedi & Tshilidzi Marwala

As entire industries and social norms shift beneath our feet because of artificial intelligence (AI), so too does the very concept of employment.

Less than a decade ago, employment structures were largely rigid, characterised by fixed hours, physical workplaces and clearly defined responsibilities. The Covid-19 pandemic catalysed a dramatic break from this paradigm. In 2020, the world was forced into a remote-first mode, revealing the limitations of traditional employment models.

This transformation, as Oluwaseun Kolade and Adebowale Owoseni term it, has ushered in “Employment 5.0”, an evolving reality that continues to redefine how, where and by whom work is done.

To grapple with the legal implications of this shift, we must first understand how the scope of employment — the range of activities an employee is expected to perform — has evolved. Remote work, hybrid arrangements, platform-based jobs and the gig economy are no longer anomalies; they are becoming the norm. Flexibility and autonomy, once considered perks, are now central pillars of modern work culture.

As Soumya Vadavi and Chandrasekaran Sharmiladevi explain, “The structure of an economy is dynamic ... changes in the structure of jobs are the net result of changes in demand and productivity.” The evolution of the economy from agrarian to industrial to service-based sectors has blurred the once clear boundaries between professional and personal life. This, in turn, has complicated the legal determination of when an employee is acting within the course and scope of their employment, which is critical in assigning employer liability.