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ARTICLE · 29 SEPTEMBER 2015

The "sharing economy": the next frontier for workplace relations law headaches

The "sharing economy" is generally defined as a socio-economic ecosystem where human and physical resources are shared.

AustraliaEmployment and HR

The "sharing economy" is still in its infancy but steadily establishing itself as a force to be reckoned with. It's generally defined as a socio-economic ecosystem where human and physical resources are shared. Put simply, it's about sharing stuff like cars (Uber) and accommodation (Airbnb) when the owner decides the resource is available, for a fee.

While the business model is evolving, the law is typically lagging behind. The challenge for the "sharing economy" is working out how it can comply with the law while retaining the flexibility (and cost efficiency) it requires.

Deciding how to engage the workforce is one area of significant challenge given the workplace relations legislation heavily regulates the forms of engagement available. Broadly speaking, these can be divided into two categories; employees or contractors. There are pros and cons with each and neither seems to provide a perfect fit.

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