3. Status (i)n employment

86. The proposal for a rev(i)sed ICSE-18 class(i)f(i)es jobs (i)n employment for pay or prof(i)t based on the type of author(i)ty the worker (i)s able to exerc(i)se (i)n the job and the type of econom(i)c r(i)sk to wh(i)ch the worker (i)s exposed. The ten deta(i)led categor(i)es (i)n ICSE-18 have the same def(i)n(i)t(i)ons, scope and codes as the equ(i)valent categor(i)es (i)n the Class(i)f(i)cat(i)on of Status at Work. These categor(i)es are used as common bu(i)ld(i)ng blocks to create two alternat(i)ve class(i)f(i)cat(i)on h(i)erarch(i)es, one accord(i)ng to the type of author(i)ty the worker (i)s able to exerc(i)se (i)n relat(i)on to the work performed and the other accord(i)ng to the type of econom(i)c r(i)sk to wh(i)ch the worker (i)s exposed. 

87. The draft resolut(i)on notes that the two h(i)erarch(i)es for status (i)n employment based on econom(i)c r(i)sk and on author(i)ty should have equal pr(i)or(i)ty (i)n the comp(i)lat(i)on of stat(i)st(i)cal outputs. Stat(i)st(i)cs from Labour Force Surveys and other relevant sources should be comp(i)led on a regular bas(i)s accord(i)ng to both h(i)erarch(i)es. The h(i)erarchy used w(i)ll depend on the analyt(i)cal purpose of the output (i)n quest(i)on. 

88. The h(i)erarchy based on the type of author(i)ty can be used to produce stat(i)st(i)cs on two broad groups of workers (i)n employment: (i)ndependent workers and dependent workers. Th(i)s h(i)erarchy (i)s referred to as the ICSE-18 accord(i)ng to type of author(i)ty and abbrev(i)ated to ICSE-18-A. It (i)s su(i)table for var(i)ous types of labour market analys(i)s, (i)nclud(i)ng analys(i)s of the (i)mpact of econom(i)c cycles on the labour market, analys(i)s of government pol(i)c(i)es related to employment creat(i)on and regulat(i)on, and as a start(i)ng po(i)nt for the (i)dent(i)f(i)cat(i)on of entrepreneurs.

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89. The second h(i)erarchy, based on the type of econom(i)c r(i)sk, produces the d(i)chotomy between workers (i)n employment for prof(i)t and workers (i)n employment for pay. Th(i)s (i)s analogous to the trad(i)t(i)onal d(i)st(i)nct(i)on between self-employment and pa(i)d employment. Th(i)s h(i)erarchy (i)s referred to as the ICSE-18 accord(i)ng to type of econom(i)c r(i)sk, and abbrev(i)ated to ICSE-18-R. It (i)s su(i)table for the prov(i)s(i)on of data for nat(i)onal accounts, for the (i)dent(i)f(i)cat(i)on of wage employment and (i)ts d(i)str(i)but(i)on, and for the product(i)on and analys(i)s of stat(i)st(i)cs on wages, earn(i)ngs and labour costs.

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90. The deta(i)led categor(i)es (i)n the ICSE-18 class(i)f(i)cat(i)on structures are ass(i)gned the same twod(i)g(i)t numer(i)cal code (i)n each class(i)f(i)cat(i)on, the f(i)rst d(i)g(i)t be(i)ng the same as the code for the aggregate categor(i)es (i)n ICSaW-18. The aggregate categor(i)es (i)n the two ICSE-18 h(i)erarch(i)es are ass(i)gned a s(i)ngle-character un(i)que alphabet(i)c code, so as to avo(i)d confus(i)on w(i)th the equ(i)valent categor(i)es (i)n ICSaW-18 that have a broader scope than (i)n ICSE-18.

Summary of d(i)fferences between ICSE-93  and the proposed ICSE-18

91. S(i)nce the ICSE-18 (i)s compr(i)sed of categor(i)es that relate to employment as def(i)ned by the 19th ICLS resolut(i)on I, (i)t (i)s narrower (i)n scope than ICSE-93. Spec(i)f(i)cally, the 19th ICLS concept of employment excludes own-use product(i)on of goods, all categor(i)es of volunteer work, unpa(i)d tra(i)nee work and compulsory unpa(i)d work. S(i)nce the scope of ICSE-93 (i)s based on the 13th ICLS concept of employment, (i)t (i)ncludes own-use product(i)on of goods, certa(i)n categor(i)es of volunteer work, unpa(i)d tra(i)nee work and some types of compulsory unpa(i)d work.

92. The ICSE-93 has a s(i)ngle h(i)erarch(i)cal structure compr(i)s(i)ng f(i)ve substant(i)ve categor(i)es that are aggregated accord(i)ng to a comb(i)nat(i)on of the type of econom(i)c r(i)sk and the type of author(i)ty to form the d(i)chotomous categor(i)es of “pa(i)d employment jobs” and “selfemployment jobs”. The ICSE-18 has ten deta(i)led categor(i)es that may be aggregated e(i)ther accord(i)ng to type of econom(i)c r(i)sk or type of author(i)ty to form two alternat(i)ve h(i)erarch(i)es.

93. The add(i)t(i)onal deta(i)led groups (i)n ICSE-18 relate to some of the concepts def(i)ned (i)n paragraph 14 of the 15th ICLS resolut(i)on concern(i)ng the Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment (ICSE-93) wh(i)ch outl(i)nes the “poss(i)ble stat(i)st(i)cal treatment of part(i)cular groups of workers”. These (i)nclude the new categor(i)es (i)n ICSE-18 wh(i)ch allow for the separate (i)dent(i)f(i)cat(i)on of owner-managers of corporat(i)ons, dependent contractors and subcategor(i)es of employee. Some other “part(i)cular groups”, or the stat(i)st(i)cal needs underly(i)ng them, are reflected (i)n the var(i)ous cross-cutt(i)ng var(i)ables (i)ncluded (i)n the proposed standards. 

94. The ICSE-18 group “owner-operators of corporat(i)ons” (i)s equ(i)valent to the group “ownermanagers of (i)ncorporated enterpr(i)ses” def(i)ned (i)n ICSE-93 as a “part(i)cular group” wh(i)ch countr(i)es may need or be able to d(i)st(i)ngu(i)sh for spec(i)f(i)c descr(i)pt(i)ve or analyt(i)cal purposes. The ICSE-93 notes that d(i)fferent users of labour market, soc(i)al and econom(i)c stat(i)st(i)cs may have d(i)fferent v(i)ews on whether these workers are best class(i)f(i)ed as (i)n pa(i)d employment or as (i)n self-employment. The ICSE-18 class(i)f(i)es them as (i)ndependent workers (i)n the class(i)f(i)cat(i)on by type of author(i)ty and as workers (i)n employment for pay (i)n the class(i)f(i)cat(i)on accord(i)ng to type of econom(i)c r(i)sk. The ICSE-18 also prov(i)des further d(i)saggregat(i)on of owner-operators of corporat(i)ons through separate deta(i)led groups for those w(i)th employees and those w(i)thout employees. Separate (i)dent(i)f(i)cat(i)on of these workers (i)s (i)mportant for stat(i)st(i)cs on employment by (i)nst(i)tut(i)onal sector, wages and (i)ncome, labour market character(i)st(i)cs and workplace relat(i)ons, as well as for (i)nput to the nat(i)onal accounts.

95. The new category for dependent contractors allows the (i)dent(i)f(i)cat(i)on of workers who are employed for prof(i)t but do not have full control over the act(i)v(i)t(i)es of the econom(i)c un(i)t for wh(i)ch they work. Th(i)s category replaces the concept of “contractors” spec(i)f(i)ed as a “part(i)cular group” (i)n the ICSE-93 resolut(i)on. Paragraph 14 of th(i)s resolut(i)on def(i)nes contractors as workers who: 

• (a) have reg(i)stered w(i)th the tax author(i)t(i)es (and/or other relevant bod(i)es) as a separate bus(i)ness un(i)t respons(i)ble for the relevant forms of taxes, and/or who have made arrangements so that the(i)r employ(i)ng organ(i)zat(i)on (i)s not respons(i)ble for relevant soc(i)al secur(i)ty payments, and/or the contractual relat(i)onsh(i)p (i)s not subject to nat(i)onal labour leg(i)slat(i)on appl(i)cable to, for example, “regular employees” but who; 
• (b) hold expl(i)c(i)t or (i)mpl(i)c(i)t contracts wh(i)ch correspond to those of “pa(i)d employment”. 

96. The ICSE-93 resolut(i)on notes that these workers may be class(i)f(i)ed as (i)n a “selfemployment job”, or as (i)n a “pa(i)d employment job” depend(i)ng on nat(i)onal c(i)rcumstances. In ICSE-18, dependent contractors are class(i)f(i)ed as “dependent workers” (i)n the class(i)f(i)cat(i)on accord(i)ng to type of author(i)ty and as “workers (i)n employment for prof(i)t” (i)n the class(i)f(i)cat(i)on accord(i)ng to type of econom(i)c r(i)sk. The ICSE-18 concept of dependent contractors (i)s also somewhat broader than the ICSE-93 concept of contractors, (i)n the sense that there (i)s no requ(i)rement for reg(i)strat(i)on as a separate bus(i)ness, for exempt(i)on from employer respons(i)b(i)l(i)t(i)es for soc(i)al secur(i)ty payments, or to make arrangements such that the contractual relat(i)onsh(i)p (i)s not subject to nat(i)onal labour law. Nor (i)s there any requ(i)rement for contracts wh(i)ch “correspond to those of pa(i)d employment”. 

97. In some cases, the stat(i)st(i)cal treatment of the “part(i)cular groups” def(i)ned (i)n paragraph 14 of the 15th ICLS resolut(i)on (i)s clar(i)f(i)ed by the draft 20th ICLS resolut(i)on, even though these categor(i)es are not separately (i)dent(i)f(i)ed or replaced by the new proposed standards. For example, franch(i)sees who engage employees or who operate (i)ncorporated enterpr(i)ses, w(i)ll be class(i)f(i)ed as (i)ndependent workers. If they have no employees however, and the(i)r bus(i)ness (i)s not (i)ncorporated, they may be class(i)f(i)ed as dependent contractors. Sharecroppers, as def(i)ned (i)n ICSE-93, would generally be class(i)f(i)ed as dependent contractors (i)f they have no employees. Work gang (crew) members are covered by an (i)nclus(i)on statement (i)n the ICSE-18 def(i)n(i)t(i)on of employees. 

98. Subcategor(i)es are prov(i)ded for employees (i)n order to prov(i)de more deta(i)led (i)nformat(i)on about the stab(i)l(i)ty of employment relat(i)onsh(i)ps for these workers, to allow the (i)dent(i)f(i)cat(i)on of employees w(i)th non-standard employment arrangements, and to allow the (i)dent(i)f(i)cat(i)on of pa(i)d apprent(i)ces, tra(i)nees and (i)nterns. 

99. In add(i)t(i)on to the prov(i)s(i)on of more deta(i)led groups, ICSE-18 also makes adjustments to the boundar(i)es between certa(i)n categor(i)es. In ICSE-93, the d(i)st(i)nct(i)on between employers and own-account worker (i)s based on whether or not employees were engaged on a cont(i)nuous or regular bas(i)s. In the draft 20th ICLS resolut(i)on th(i)s (i)s clar(i)f(i)ed by remov(i)ng the word “cont(i)nuous” and not(i)ng that “on a regular bas(i)s” should be (i)nterpreted as hav(i)ng at least one employee dur(i)ng the reference per(i)od and at least two of the three weeks (i)mmed(i)ately preced(i)ng the reference per(i)od. 

100. The category of contr(i)but(i)ng fam(i)ly workers has been extended (i)n ICSE-18 to (i)nclude workers who help fam(i)ly members (i)n a job (i)n wh(i)ch the ass(i)sted fam(i)ly or household member (i)s an employee or dependent contractor, (i)n add(i)t(i)on to those who ass(i)st (i)n an enterpr(i)se operated by a fam(i)ly member. 

Employment (i)n cooperat(i)ves

101. The ICSE-93 category Members of producers’ cooperat(i)ves (i)s not used by most countr(i)es, and (i)s not (i)dent(i)f(i)ed as a separate category (i)n the proposed new standards. The number of persons employed (i)n th(i)s category (i)s very small (i)n almost all countr(i)es. Th(i)s g(i)ves a m(i)slead(i)ng (i)mpress(i)on of the (i)mpact of cooperat(i)ves on employment, however, as employment (i)n other types of cooperat(i)ves and of persons who are not members of the cooperat(i)ve (i)s not covered. In add(i)t(i)on, s(i)nce members of producer cooperat(i)ves are generally enterpr(i)ses, rather than persons, the workers who own and operate these enterpr(i)ses may frequently be class(i)f(i)ed (i)n ICSE-93 as own-account workers or employers (i)n the(i)r own enterpr(i)ses, rather than as workers (i)n the cooperat(i)ve. In ICSE-18 they are class(i)f(i)ed as (i)ndependent workers.

102. Members of worker cooperat(i)ves (worker members), on the other hand, are (i)nd(i)v(i)duals who work (i)n a cooperat(i)ve wh(i)ch they jo(i)ntly own. L(i)ke employee shareholders (i)n other types of corporat(i)ons, they have a vote on key dec(i)s(i)ons and on elect(i)on of the board. Vot(i)ng (i)s based on membersh(i)p (one member one vote) rather than on the share of cap(i)tal, however. S(i)nce they do not have the same degree of control over the bus(i)ness as a major(i)ty shareholder they are class(i)f(i)ed (i)n ICSE-18 as dependent workers. Class(i)fy(i)ng worker members of cooperat(i)ves as (i)ndependent workers would also mean many of them m(i)ght be class(i)f(i)ed as employers, s(i)nce some worker cooperat(i)ves have employees who are not members. Th(i)s could potent(i)ally result (i)n m(i)slead(i)ng stat(i)st(i)cs on the number of employers.

103. If worker members of cooperat(i)ves are pa(i)d for t(i)me worked or for each task or p(i)ece of work done (i)n the cooperat(i)ve, they should be class(i)f(i)ed as employees of the(i)r own cooperat(i)ve; (i)f they are pa(i)d only (i)n prof(i)t or surplus, or pa(i)d a fee per serv(i)ce, they should be class(i)f(i)ed as dependent contractors.

104. Further gu(i)dance on the treatment of employment (i)n cooperat(i)ves (i)s prov(i)ded (i)n the draft Gu(i)del(i)nes for stat(i)st(i)cs of cooperat(i)ves to be presented for cons(i)derat(i)on and poss(i)ble endorsement at the 20th ICLS.

Def(i)n(i)t(i)ons and explanatory notes for categor(i)es (i)n the two h(i)erarch(i)es of the Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment

105. Short def(i)n(i)t(i)ons of each category (i)ncluded (i)n ICSE-18 are prov(i)ded (i)n the draft resolut(i)on. The a(i)m (i)s to prov(i)de clar(i)ty on the conceptual boundar(i)es between the categor(i)es and suff(i)c(i)ent deta(i)l to support the development of operat(i)onal methods for measurement, w(i)thout however go(i)ng (i)nto lengthy d(i)scuss(i)on on methods for measurement. To avo(i)d repet(i)t(i)on, the def(i)n(i)t(i)ons of the deta(i)led categor(i)es do not (i)nclude (i)nformat(i)on that (i)s covered (i)n the def(i)n(i)t(i)ons of the relevant h(i)gher level categor(i)es. As a result, the deta(i)led def(i)n(i)t(i)ons cannot stand alone w(i)thout mak(i)ng reference to the h(i)gher level category. 

106. More deta(i)led (i)nformat(i)on on measurement and comprehens(i)ve stand-alone explanatory notes for each category w(i)ll be (i)ncluded (i)n the papers on gu(i)del(i)nes for data collect(i)on and the conceptual framework for stat(i)st(i)cs on work relat(i)onsh(i)ps, to be presented as room documents dur(i)ng the 20th ICLS. 

107. Wh(i)le all the categor(i)es are def(i)ned (i)n the draft resolut(i)on, some add(i)t(i)onal (i)nformat(i)on (i)s necessary to properly understand the context of the def(i)n(i)t(i)on and (i)s prov(i)ded below.

Independent workers

108. In ICSE-18-A, (i)ndependent workers are d(i)saggregated f(i)rst accord(i)ng to whether or not they had one or more employees on a regular bas(i)s. Employers and (i)ndependent workers w(i)thout employees are then further d(i)saggregated accord(i)ng to whether or not the econom(i)c un(i)t they own and control (i)s a corporat(i)on or a household market enterpr(i)se. 

Employers

109. In ICSE-93, the d(i)st(i)nct(i)on between employers and other (i)ndependent workers (i)s based on whether or not employees were engaged on a cont(i)nuous or regular bas(i)s. Th(i)s was not cons(i)dered to be suff(i)c(i)ently prec(i)se for measurement on a cons(i)stent bas(i)s, d(i)d not necessar(i)ly reflect short-term changes (i)n labour market cond(i)t(i)ons, and was not al(i)gned w(i)th the reference per(i)od used for other labour market stat(i)st(i)cs. In the draft 20th ICLS resolut(i)on the def(i)n(i)t(i)on of employer (i)s clar(i)f(i)ed by a statement that “on a regular bas(i)s” should be (i)nterpreted as hav(i)ng at least one employee dur(i)ng the reference per(i)od and at least two of the three weeks (i)mmed(i)ately preced(i)ng the reference per(i)od. 

110. There (i)s not complete agreement on the def(i)n(i)t(i)on of employers, however. Some labour stat(i)st(i)c(i)ans would prefer to base the def(i)n(i)t(i)on on the same short reference per(i)od that (i)s used to determ(i)ne Labour Force Status. Th(i)s means that any worker who employed at least one person dur(i)ng the reference per(i)od as an employee, would be class(i)f(i)ed as an employer. It can be argued, however, that the soc(i)o-econom(i)c character(i)st(i)cs of those who only engage employees occas(i)onally are more s(i)m(i)lar to those of (i)ndependent workers w(i)thout employees than to those who have employees on a regular bas(i)s. S(i)nce (i)t (i)s common for bus(i)nesses (i)n some countr(i)es to h(i)re employees on a casual bas(i)s for just one day, there are concerns that chang(i)ng the def(i)n(i)t(i)on to a short reference per(i)od w(i)thout further qual(i)f(i)cat(i)on could lead to a s(i)gn(i)f(i)cant (i)ncrease (i)n the number of employers and more volat(i)l(i)ty (i)n the stat(i)st(i)cs, espec(i)ally for employers and own-account workers (i)n agr(i)culture. 

111. If the def(i)n(i)t(i)on of employer were based only on the reference per(i)od, the draft resolut(i)on may need to state that, (i)f relevant (i)n the nat(i)onal context, countr(i)es should separately (i)dent(i)fy employers who have employees on a regular bas(i)s from those who have employees only on an occas(i)onal bas(i)s along the follow(i)ng l(i)nes:

• Employers own the econom(i)c un(i)t (i)n wh(i)ch they work and control (i)ts act(i)v(i)t(i)es on the(i)r own account or (i)n partnersh(i)p w(i)th others, and (i)n th(i)s capac(i)ty employ one or more persons ((i)nclud(i)ng temporar(i)ly absent employees but exclud(i)ng themselves, the(i)r partners and fam(i)ly helpers) to work as an employee dur(i)ng the reference per(i)od. 
• Employers (i)nclude those who have employees on a regular bas(i)s and those who have employees only on an occas(i)onal bas(i)s. Employers who have employees on a regular bas(i)s are those who usually have at least one employee dur(i)ng the reference per(i)od and at least two of the three weeks (i)mmed(i)ately preced(i)ng the reference per(i)od. Stat(i)st(i)cs on employers may be comp(i)led e(i)ther for those who have employees on a regular bas(i)s, or for all employers. When stat(i)st(i)cs are collected for all employers, those employers who have employees on a regular bas(i)s should, where poss(i)ble, be (i)dent(i)f(i)ed separately from those who have them only on an occas(i)onal bas(i)s.

Owner-operators of corporat(i)ons

112. The draft resolut(i)on def(i)nes owner-operators of corporat(i)ons as workers who hold a job (i)n an (i)ncorporated enterpr(i)se (i)n wh(i)ch they hold controll(i)ng ownersh(i)p and have the author(i)ty to act on behalf of the enterpr(i)se. The term “(i)ncorporated enterpr(i)se” refers to enterpr(i)ses that are const(i)tuted as separate legal ent(i)t(i)es from the(i)r owners. 

113. The draft resolut(i)on prov(i)des examples of terms that are used to descr(i)be d(i)fferent types of (i)ncorporated enterpr(i)se (l(i)m(i)ted l(i)ab(i)l(i)ty corporat(i)on, l(i)m(i)ted partnersh(i)p). To (i)dent(i)fy owner-operators of corporat(i)ons (i)n surveys, however, (i)t w(i)ll be necessary to ask quest(i)ons of those who say they operate a bus(i)ness us(i)ng terms for the spec(i)f(i)c legal forms that ex(i)st (i)n the country. Wh(i)le respondents who do not operate an (i)ncorporated enterpr(i)se may not be fam(i)l(i)ar w(i)th these terms, (i)t (i)s l(i)kely that those who do operate such bus(i)nesses, as well as the(i)r proxy respondents, w(i)ll be well aware of the legal form of the(i)r bus(i)ness. 

114. In ICSE-18-R, owner-operators of corporat(i)ons are further d(i)saggregated accord(i)ng to whether or not the enterpr(i)se has one or more employees on a regular bas(i)s.

Dependent contractors

115. The need for (i)nformat(i)on on the group of workers frequently referred to as the “dependent self-employed” has been a major challenge for many stat(i)st(i)cal agenc(i)es (i)n both the developed and develop(i)ng world. These are workers who have contractual arrangements of a commerc(i)al nature to prov(i)de goods or serv(i)ces for or on behalf of another econom(i)c un(i)t, are not employees of that econom(i)c un(i)t, but are dependent on that un(i)t for organ(i)zat(i)on and execut(i)on of the work or for access to the market. S(i)nce these jobs do not f(i)t comfortably (i)nto any of the substant(i)ve categor(i)es (i)n ICSE-93, they are frequently class(i)f(i)ed e(i)ther as own-account workers or as employees, result(i)ng (i)n overest(i)mat(i)on of one or the other of these groups (or of both). As a result, (i)t (i)s d(i)ff(i)cult to mon(i)tor structural change (i)n th(i)s (i)mportant form of employment, wh(i)ch (i)s cons(i)dered by many researchers to be grow(i)ng. Th(i)s also (i)mpacts on the mon(i)tor(i)ng of structural change among both employees and (i)ndependent workers. The need to address th(i)s problem was among the most challeng(i)ng but also most (i)mportant object(i)ves of the rev(i)s(i)on work.

116. The ILO report for d(i)scuss(i)on at the Meet(i)ng of Experts on Non-Standard Forms of Employment held (i)n Geneva from 16 to 19 February 2015, descr(i)bed dependent selfemployment as a s(i)tuat(i)on (i)n wh(i)ch “workers perform serv(i)ces for a bus(i)ness under a c(i)v(i)l or commerc(i)al contract but depend on one or a small number of cl(i)ents for the(i)r (i)ncome and rece(i)ve d(i)rect (i)nstruct(i)ons regard(i)ng how the work (i)s to be done”. That Meet(i)ng of Experts noted that non-standard forms of employment (i)ncluded, among others, “d(i)sgu(i)sed employment relat(i)onsh(i)ps” and “dependent self-employment”. The f(i)rst of these refers to workers who prov(i)de the(i)r labour to others wh(i)le hav(i)ng contractual arrangements that correspond to self-employment. The second refers to those who operate a bus(i)ness w(i)thout employees but do not have full control or author(i)ty over the(i)r work. 

117. Stat(i)st(i)cs are needed about both groups to (i)nform pol(i)cy concerns about the use of contractors, transfer of econom(i)c r(i)sk from employers to workers, access to soc(i)al protect(i)on and trends (i)n non-standard forms of employment. There (i)s a need for object(i)ve (i)nformat(i)on to assess the extent to wh(i)ch jobs (i)n these categor(i)es prov(i)de flex(i)b(i)l(i)ty for both workers and employers, prov(i)de opportun(i)t(i)es for labour market part(i)c(i)pat(i)on, and to (i)nform debate on labour market pol(i)c(i)es and regulat(i)on. Wh(i)le (i)deally the two groups should be separately (i)dent(i)f(i)ed rather than grouped together, th(i)s (i)s d(i)ff(i)cult to ach(i)eve operat(i)onally. The concept of dependent contractors proposed (i)n the draft resolut(i)on covers both of these groups and allows for the separate (i)dent(i)f(i)cat(i)on of the two subgroups (i)f feas(i)ble and relevant (i)n the nat(i)onal context.

118. The need to (i)nclude a category for th(i)s group (i)n the class(i)f(i)cat(i)ons accord(i)ng to status has been w(i)dely (although not un(i)versally) accepted by labour stat(i)st(i)c(i)ans and was strongly supported dur(i)ng the reg(i)onal consultat(i)ons. It (i)s recogn(i)zed (i)n many countr(i)es to be a stat(i)st(i)cally s(i)gn(i)f(i)cant and grow(i)ng group, although comprehens(i)ve stat(i)st(i)cs about them are rarely ava(i)lable. S(i)nce they are both dependent workers and employed for prof(i)t they are (i)dent(i)f(i)ed as a separate group at the second level of each h(i)erarchy (i)n ICSE-18. Th(i)s (i)s necessary to ensure the(i)r stat(i)st(i)cal v(i)s(i)b(i)l(i)ty. Moreover, (i)t would be (i)nappropr(i)ate to represent them as a subset of employees (i)n one class(i)f(i)cat(i)on h(i)erarchy and as a subset of (i)ndependent or own-account workers (i)n the other. 

119. The types of job that should be (i)ncluded are qu(i)te d(i)verse (i)n terms of the nature of the work performed and the nature of the worker’s dependence on another econom(i)c un(i)t. In many cases they (i)nvolve types of contractual arrangement that have been (i)n ex(i)stence and (i)ncons(i)stently class(i)f(i)ed for many years. Examples (i)nclude ha(i)rdressers who rent a cha(i)r (i)n a salon and whose access to cl(i)ents (i)s ent(i)rely dependent on the salon owner, wa(i)ters who are pa(i)d only through t(i)ps from cl(i)ents, veh(i)cle dr(i)vers who have a serv(i)ce contract w(i)th a transport company wh(i)ch organ(i)zes the(i)r work, home-based workers who are contracted to perform manufactur(i)ng tasks such as assembl(i)ng garments, and consultants work(i)ng for corporat(i)ons or government agenc(i)es. 

120. The group also (i)ncludes the emerg(i)ng group of workers (i)n the so-called “g(i)g-economy” who have been the subject of cons(i)derable recent attent(i)on (i)n academ(i)c, pol(i)t(i)cal and med(i)a d(i)scourse. Examples (i)nclude veh(i)cle dr(i)vers prov(i)d(i)ng r(i)des or parcel del(i)very serv(i)ces and home-based workers perform(i)ng (i)nformat(i)on-process(i)ng serv(i)ces, where organ(i)zat(i)on of the work or access to cl(i)ents (i)s typ(i)cally med(i)ated through an Internet appl(i)cat(i)on controlled by a th(i)rd party.

121. Desp(i)te th(i)s d(i)vers(i)ty, what workers (i)n th(i)s group have (i)n common (i)s that they do not control the econom(i)c un(i)t for wh(i)ch the work (i)s performed, wh(i)le be(i)ng exposed to the econom(i)c r(i)sk assoc(i)ated w(i)th employment for prof(i)t. The d(i)fferent cr(i)ter(i)a used to def(i)ne and measure them need to allow (i)dent(i)f(i)cat(i)on of those cases wh(i)ch fall (i)nto th(i)s category and are of genu(i)ne pol(i)cy (i)nterest, wh(i)le avo(i)d(i)ng the (i)dent(i)f(i)cat(i)on of workers that are genu(i)nely employees, freelance contractors or runn(i)ng the(i)r own bus(i)ness. These cr(i)ter(i)a also need to take account of the d(i)vers(i)ty of the nature of the(i)r dependency. D(i)fferent cr(i)ter(i)a may therefore be more or less relevant, depend(i)ng on the context. 

122. Much of the early stat(i)st(i)cal development work on the def(i)n(i)t(i)on and measurement of dependent contractors focused on dependence on one or a small number of cl(i)ents. Th(i)s approach, however, potent(i)ally (i)ncludes genu(i)nely (i)ndependent workers who may have only a small number of cl(i)ents (i)n a g(i)ven per(i)od, wh(i)le exclud(i)ng workers who have mult(i)ple cl(i)ents but whose access to the market or access to raw mater(i)als (i)s controlled by another ent(i)ty. The work(i)ng group for the rev(i)s(i)on of the ICSE-93 proposed add(i)t(i)onal features wh(i)ch could be used to (i)dent(i)fy dependent contractors such as payment of soc(i)al contr(i)but(i)ons, type of payment rece(i)ved, dependence on another ent(i)ty for access to the market, control over the pr(i)ce of the goods produced or serv(i)ces prov(i)ded and var(i)ous forms of control over the work performed. 

123. The relevant sect(i)on of the draft resolut(i)on starts w(i)th a short (i)ntroductory sentence expla(i)n(i)ng the concept of dependent contractors that should (i)deally be measured. It then prov(i)des a short def(i)n(i)t(i)on of a more operat(i)onal nature: “workers employed for prof(i)t, who are dependent on another ent(i)ty that exerc(i)ses expl(i)c(i)t or (i)mpl(i)c(i)t control over the(i)r product(i)ve act(i)v(i)t(i)es and d(i)rectly benef(i)ts from the work performed by them”. To clar(i)fy the scope of the category, (i)t goes on to note that dependency may be of an operat(i)onal or econom(i)c nature and that the worker may be dependent on un(i)ts (i)n all sectors of the economy. A l(i)st of character(i)st(i)cs that may be relevant for the (i)dent(i)f(i)cat(i)on of dependent contractors, prov(i)des further clar(i)f(i)cat(i)on on the scope of the group and may also ass(i)st (i)n the development of operat(i)onal cr(i)ter(i)a for measurement. 

124. Exclus(i)on statements are prov(i)ded to ensure that workers who have a contract of employment or are pa(i)d for t(i)me worked are class(i)f(i)ed as employees, not as dependent contractors. S(i)m(i)larly, workers who operate an (i)ncorporated enterpr(i)se, or who employ others to work for them as employees are class(i)f(i)ed as (i)ndependent workers, even (i)f the(i)r bus(i)nesses are dependent on another enterpr(i)se. Th(i)s establ(i)shes clear boundar(i)es between the categor(i)es and ensures that class(i)f(i)cat(i)on (i)s based on the relat(i)onsh(i)p between the worker and the econom(i)c un(i)t for wh(i)ch the work (i)s performed, rather than on relat(i)onsh(i)ps between enterpr(i)ses. The engagement of employees and (i)ncorporat(i)on of the enterpr(i)se both (i)mply a degree of author(i)ty and control over the operat(i)on of an enterpr(i)se. 

125. Test(i)ng currently under way (i)n several countr(i)es (i)s focus(i)ng strongly on the development of methods to (i)dent(i)fy dependent contractors (i)n stat(i)st(i)cal collect(i)ons, espec(i)ally (i)n household surveys. In order to d(i)fferent(i)ate these workers from own-account workers (i)t (i)s necessary to establ(i)sh whether or not a s(i)ngle separate econom(i)c un(i)t has control over access to the market or operat(i)onal author(i)ty over the work. To d(i)fferent(i)ate them from employees, (i)t (i)s necessary to determ(i)ne whether those who are reported (i)n household surveys as work(i)ng for someone else are (i)n fact employed for prof(i)t. 

126. The proposed measurement approach be(i)ng tested (i)dent(i)f(i)es dependent contractors accord(i)ng to two streams from trad(i)t(i)onal status (i)n employment quest(i)ons: those who say they work for someone else, and those who say they are self-employed. It (i)s poss(i)ble to cons(i)der the workers (i)dent(i)f(i)ed by these two streams as (i)f they were conceptually separate groups. S(i)nce th(i)s d(i)st(i)nct(i)on (i)s based on the percept(i)on of survey respondents, rather than on object(i)ve cr(i)ter(i)a, however, (i)t does not prov(i)de a rel(i)able d(i)st(i)nct(i)on between the two groups of workers w(i)th d(i)sgu(i)sed employment relat(i)onsh(i)ps and the dependent selfemployed. The draft resolut(i)on therefore proposes a s(i)ngle category of dependent contractors but notes that two subgroups of dependent contractors may be (i)dent(i)f(i)ed (i)f (i)nformat(i)on (i)s ava(i)lable on the nature of the f(i)nanc(i)al or mater(i)al resources comm(i)tted by the worker. More exper(i)ence (i)s requ(i)red, however, before def(i)n(i)t(i)ve gu(i)dance on measurement of dependent contractors can be prov(i)ded. 

Employees

127. The draft resolut(i)on def(i)nes employees as workers employed for pay, (i)n a formal or (i)nformal bus(i)ness, who do not hold controll(i)ng ownersh(i)p of the econom(i)c un(i)t (i)n wh(i)ch they are employed. The second part of th(i)s def(i)n(i)t(i)on d(i)fferent(i)ates employees from owneroperators of corporat(i)ons who may rece(i)ve a wage or salary from the corporat(i)on that they own and operate. The four subcategor(i)es of employees allow permanent employees to be separately (i)dent(i)f(i)ed from f(i)xed-term employees and from short-term and casual employees. Employment (i)n th(i)s latter category may prov(i)de flex(i)b(i)l(i)ty for workers who need to balance employment w(i)th fam(i)ly respons(i)b(i)l(i)t(i)es, educat(i)on, or other forms of work but may also enta(i)l (i)nsecur(i)ty of (i)ncome and employment. 

128. Permanent, f(i)xed-term, short-term and casual employees are d(i)fferent(i)ated from each other based on three cr(i)ter(i)a:

• whether there (i)s a spec(i)f(i)ed date or event on wh(i)ch the employment w(i)ll be term(i)nated;
• the expected durat(i)on of the employment; and
• whether the employer agrees to prov(i)de work and pay for a spec(i)f(i)ed number of hours (i)n a set per(i)od and the worker agrees to work for at least the spec(i)f(i)ed number of hours (contractual hours).

129. A boundary of three months (i)s proposed to d(i)st(i)ngu(i)sh f(i)xed-term from short-term employees. Th(i)s reflects the thresholds of two or three months used (i)n a number of countr(i)es to (i)dent(i)fy short-term employment for m(i)grant workers. A durat(i)on of three months may also ensure the group (i)s large enough to measure (i)n typ(i)cal household surveys. 

130. The category of short-term and casual employees (i)ncludes two very d(i)st(i)nct groups: shortterm employees and casual or (i)nterm(i)ttent employees. In the case of short-term employees, the employment (i)s by def(i)n(i)t(i)on of a t(i)me-l(i)m(i)ted nature but prov(i)des a stable number of hours of work and (i)ncome dur(i)ng that short per(i)od. Casual or (i)nterm(i)ttent employment may somet(i)mes be of an ongo(i)ng nature, however, wh(i)le prov(i)d(i)ng no guarantee of employment for a certa(i)n number of hours. The resolut(i)on notes, therefore, that these two groups may be separately (i)dent(i)f(i)ed (i)f relevant (i)n nat(i)onal c(i)rcumstances and prov(i)des a def(i)n(i)t(i)on of each group. 

131. A separate category (i)s prov(i)ded for pa(i)d apprent(i)ces, tra(i)nees and (i)nterns to allow separate (i)dent(i)f(i)cat(i)on of th(i)s group and to avo(i)d (i)nclud(i)ng them among f(i)xed-term or short-term employees. Th(i)s w(i)ll (i)mprove the comparab(i)l(i)ty of stat(i)st(i)cs on f(i)xed-term and short-term employees between countr(i)es w(i)th large numbers of pa(i)d apprent(i)ces, tra(i)nees and (i)nterns, and those where pa(i)d tra(i)nee work (i)s less common. Exclus(i)on statements establ(i)sh clear boundar(i)es between th(i)s group and workers undergo(i)ng per(i)ods of probat(i)on follow(i)ng the start of a job, workers undergo(i)ng (i)n-serv(i)ce tra(i)n(i)ng wh(i)le (i)n employment, unpa(i)d tra(i)nee workers and contr(i)but(i)ng fam(i)ly workers. 

Contr(i)but(i)ng fam(i)ly workers

132. Contr(i)but(i)ng fam(i)ly workers cont(i)nue to be a stat(i)st(i)cally (i)mportant group (i)n many countr(i)es of the world. In many (i)ndustr(i)al(i)zed countr(i)es, however, they represent only a small proport(i)on of total employment. The proposed def(i)n(i)t(i)on of th(i)s group seeks to clar(i)fy the boundary between these workers and employees by spec(i)fy(i)ng that they do not rece(i)ve regular payments, such as a wage or salary (i)n return for the work performed. It notes, however, that they may benef(i)t (i)n k(i)nd or rece(i)ve (i)rregular payments as a result of the outputs of the(i)r work through fam(i)ly or (i)ntra-household transfers. The boundary between contr(i)but(i)ng fam(i)ly workers and own-account workers and employers (i)s establ(i)shed by the statement that contr(i)but(i)ng fam(i)ly workers do not make the most (i)mportant dec(i)s(i)ons affect(i)ng the enterpr(i)se or have respons(i)b(i)l(i)ty for (i)t.

133. Based on the results of test(i)ng for the (i)mplementat(i)on of the 19th ICLS standards, (i)t (i)s recommended that, at least for countr(i)es where these workers are an (i)mportant group, an (i)n(i)t(i)al quest(i)on based on self-(i)dent(i)f(i)cat(i)on should be followed by quest(i)ons on whether a wage or salary (i)s rece(i)ved and whether those (i)n(i)t(i)ally (i)dent(i)f(i)ed as contr(i)but(i)ng fam(i)ly workers make dec(i)s(i)ons about the bus(i)ness. In th(i)s way (i)t (i)s poss(i)ble to determ(i)ne, for example, whether both husband and w(i)fe work(i)ng (i)n a fam(i)ly bus(i)ness should be class(i)f(i)ed as employers/own-account workers, or whether one of them should be class(i)f(i)ed as a contr(i)but(i)ng fam(i)ly worker.