China MHRSS: Draft Platform Gig Worker Contracts Mandate Formal Pacts

• China's Ministry of Human Resources and Social Security has proposed new draft rules requiring online platforms to sign employment contracts with gig workers.
• The regulations, open for public comment until November 8, aim to provide formal labor protections to millions of takeout delivery drivers, parcel couriers, and ride-hailing drivers.
• Platforms like Alibaba, Meituan, and DiDi would be prohibited from encouraging workers to register as individual business owners to avoid contracts.
• Gig workers would be entitled to minimum wage, extra pay for public holidays, and appropriate rest under the proposed rules.
• The draft also mandates that platforms explain management algorithms to workers and require manual review for critical decisions like stopping orders or banning accounts.

The new regulations signify a concerted effort by the Chinese government to bring greater order and fairness to the rapidly expanding gig economy.

China's Ministry of Human Resources and Social Security recently unveiled draft regulations, which build upon comprehensive labor protections enacted in April 2026 by the CPC Central Committee and State Council, and are poised to further reshape the landscape for millions of platform gig workers. Announced on Thursday, these proposed measures mandate that online platforms engaging in the recruitment, organization, and management of workers for platform tasks must enter into standardized employment agreements. This move aims to extend formal labor protections to a vast segment of the workforce currently operating without such safeguards.

The draft, which is open for public comment until November 8, specifically targets workers in sectors such as takeout delivery, parcel courier services, and ride-hailing. These individuals frequently lack formal labor contracts, leaving them vulnerable to precarious working conditions. The new rules represent a substantial shift from the current practice where many gig workers operate as freelancers or through subcontractors, often with limited recourse.

Under the proposed framework, major online platforms, including tech giants like Alibaba, Meituan, and DiDi, would be explicitly prohibited from encouraging gig workers to register as individual business owners. This practice has historically been used to circumvent the requirement of signing formal employment contracts, effectively denying workers basic labor rights. The new regulations seek to close this loophole, ensuring that platforms assume greater responsibility for their workforce.

Beyond formalizing employment relationships, the China draft platform gig worker contracts also stipulate several key entitlements for workers. These include the right to receive the minimum wage, additional compensation for work performed on public holidays, and provisions for “appropriate rest.” These protections address long-standing concerns about low pay and extensive working hours prevalent in competitive sectors like food delivery, which are often characterized by intense price wars among rival online platforms.

A crucial aspect of the draft regulations involves increased transparency regarding platform management algorithms. Online platforms will be required to explain their operational algorithms to workers, a measure intended to demystify how tasks are assigned, performance is evaluated, and compensation is determined. This initiative aims to empower workers with a better understanding of the systems governing their daily work.

Furthermore, the proposed rules stipulate that decisions impacting a worker's livelihood, such as stopping orders or banning accounts, cannot be made solely by algorithms. Instead, such critical actions will necessitate a manual review process, introducing a human element to safeguard against potentially arbitrary automated decisions. This builds on an earlier commitment made by Chinese authorities in April to strengthen gig economy management through improved legal protections, with a stated goal of achieving “substantial progress” in working conditions within three years.

The impetus for these comprehensive regulations stems from the significant growth and evolving nature of China's flexible workforce. According to a 2025 report by the China New Employment Forms Research Centre, a prominent think tank, the world's second-largest economy was home to an estimated 280 million flexible workers. This substantial demographic has historically faced challenges, including limited protections, extended working hours, and comparatively low remuneration.

The new regulations signify a concerted effort by the Chinese government to bring greater order and fairness to the rapidly expanding gig economy. By mandating formal employment contracts and introducing specific worker entitlements, the Ministry of Human Resources and Social Security aims to provide a more secure and equitable environment for millions of individuals who form the backbone of China's digital service sector.

Lawyers advising tech platforms or companies utilizing gig workers in China must closely monitor these draft regulations. They should prepare clients to review and potentially restructure their engagement models to comply with new employment contract requirements, minimum wage, and algorithm transparency obligations, impacting operational costs and legal liabilities.

Source: Original reporting via AFP