The ILO adopts the first international convention on decent work in the platform economy

Articles15 June 2026
A landmark piece of legislation that redefines labour rights in the digital age and poses urgent regulatory challenges for the country.

On 12 June 2026, the International Labour Conference adopted the Decent Work Convention on the Platform Economy, the first instrument of international labour law specifically designed to address the working conditions of those who provide services via digital platforms. This Convention represents an unprecedented regulatory milestone in the history of the International Labour Organisation (ILO), primarily as it is the first convention that could come to apply more to service providers outside a formal employment relationship than to employees, recognising that the nature and growth of the platform economy are significantly transforming the world of work, and that there are gaps in decent work that require a coordinated international regulatory response, in the ILO’s view.


The Convention is based on a fundamental premise: whilst the platform economy has created opportunities for businesses and opened up new avenues for formalisation and income, it has also generated conditions that make it desirable to adopt specific standards which, together with other international labour standards, contribute to the full realisation of decent work in this sector. The instrument also recognises the cross-border nature of these operations, in which clients, workers and platforms may be located in different countries.


As regards its scope of application, the Convention applies to all digital labour platforms and all digital platform workers, whether they are in the formal or informal economy, or whether they are covered by an employment relationship or not.


The Convention will enter into force twelve months after two ILO Member States have deposited their instruments of ratification; however, this does not mean that it is directly applicable in Costa Rica, but rather that the country would first have to accede to it through the Executive Branch, and then have it ratified by the Legislative Assembly.


Impact on Costa Rica

The eventual ratification of the Convention by Costa Rica would have far-reaching implications for the national legal system and for the dynamics of the labour market in the digital platform sector. If approved, Costa Rica would undertake to apply the provisions of the Convention in relation to digital labour platforms and intermediaries operating within its territory, as well as in relation to digital platform workers employed in the country.


Firstly, the Costa Rican State would need to adopt measures to ensure the correct classification of the employment status of platform workers, based on the facts relating to the performance of the work and remuneration, and not solely on contractual designations. This obligation is particularly relevant given that, in practice, many platform workers in Costa Rica operate under commercial arrangements, formally classified as self-employed workers.


Secondly, ratification would oblige Costa Rica to ensure that platform workers have access to social security protection under conditions no less favourable than those applicable to other self-employed workers. Furthermore, it should be ensured that workers in an employment relationship receive remuneration not lower than the applicable minimum wage and are compensated for expenses incurred in the performance of their work.


Thirdly, the Convention would require Costa Rica to implement regulatory frameworks on algorithmic transparency, obliging platforms to report on the use of automated decision-making systems and to ensure that workers have access to a written explanation of significant decisions that adversely affect them, as well as a review of decisions involving the non-payment of amounts due, the suspension or deactivation of accounts, or the termination of their employment.


For platform companies operating in the country, ratification would entail a substantial transformation of their operating models, particularly with regard to the correct employment classification of their workers, the implementation of systems for human review of algorithmic decisions, the guarantee of personal data protection, and compliance with occupational health and safety standards.

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Comparison with Bill No. 23,736

This ILO Convention would be incompatible with Bill No. 23.736, currently under discussion in the Legislative Assembly under the title ‘Law on Non-Collective Paid Passenger Transport and Digital Platforms’, which reveals significant points of convergence, but also structural gaps and potential conflicts.


On the issue of gaps, whilst the ILO Convention applies to all digital work platforms and all platform workers, regardless of whether the work is carried out online or at a specific geographical location, Bill 23736 regulates exclusively the non-collective paid passenger transport service and the digital platforms that act as intermediaries for that service. This leaves a wide range of platform workers in sectors such as goods delivery, domestic services, online freelance work and other forms of the digital economy outside the scope of the bill. Ratification of the Convention would require Costa Rica to enact comprehensive legislation to cover all sectors of the platform economy.


The Convention obliges States to adopt measures to ensure the correct classification of workers, based primarily on the facts relating to the performance of the work and remuneration. In contrast, Bill 23736 expressly classifies drivers affiliated with platforms as “self-employed workers”, establishing that registration as a self-employed worker with the CCSS “does not imply an employment relationship between the technology platform and the affiliated drivers”. This regulatory presumption of the independent nature of the relationship could come into direct conflict with the convention’s obligation to classify workers according to the factual reality of the service provision; consequently, the model Costa Rica would follow differs from that proposed by the ILO.


Consequently, the Decent Work in the Platform Economy Convention marks a turning point in international labour regulation in the digital age, albeit with an uncertain impact, both in Costa Rica and internationally, as many countries have opted for non-labour regulatory regimes for this sector.

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