Governments are Offering Protection for the Remote Freelancer

As an entrepreneur and the CEO of a large company, I know how essential the work of freelancers is. Not only do they provide great services, but freelancers allow my global companies to get global perspectives. Without them, the world would not run the same way.

For the first time there’s consensus around the idea of protecting freelancers and independent contractors working from home, meaning social benefits usually reserved for traditional employees are reaching those invisible drivers of the modern economy.

The United Sates’ CARES Act provides unemployment benefits for freelancers, which is typically about 20 per cent to 50 per cent of their previous earnings. Freelancers in America will also be able to get an additional $600 per week under the CARES Act. The US is also putting a temporary eviction moratorium for tenants whose landlords’ are backed by the government. Together with other grants from the IRS and Small Business Association, this will help freelancers in the United States keep their heads above water during the Covid-19 pandemic.

The United Kingdom has responded with the Self-Employed Income Support Scheme, with those eligible receiving a cash grant worth 80% of their average monthly trading profit over the last three years. The South African government is deferring tax payments for the self-employed and small businesses, giving them breathing space while they sort themselves out during Covid-19. Gabon has rolled out rents and utilities subsidies for its citizens, easing the pressure on independent contractors. Singapore is covering up to 90 per cent of training expenses for self-employed persons who want to learn new skills during the crisis.

In a period of global distress governments around the world are also going to get much needed help from grants awarded by the IMF and World Bank to fight the coronavirus pandemic, as well as debt relief which has been announced for eligible countries.

There’s a long way to go before freelancers and gig workers get the recognition and benefits they deserve, but this crisis presents a watershed moment for future progress on their status and role in the global economy. Debates that have been sparked now will continue long after the crisis, and the choices governments and civil society make will shape the future of work and welfare.