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The world is moving to freelancers - and the country must protect them

Erez Buganim

TEL AVIV, ISRAEL, March 3, 2020 / -- Freelancers offer many benefits to companies - 30% savings in employer costs, pay only for actual hours worked, high motivation and rich knowledge and experience.

In Israel, the world of freelancers is completely disorganized and there is no law governing their work - they need to unite, raise awareness and claim their rights.

The working environment is changing at a fast pace and includes phenomena that we would not imagine a decade ago - integrating robots as automation engines with humans into the work environment that creates new and high value for companies, flexible working agreements that allow home and a part-time job and the growing freelance phenomenon.
In an interview with Erez Buganim, the Deputy and acting CEO of Synel MLL Payway, which provides integrated solutions for workforce management, Erez Buganim said "these phenomena optimize the work resources of companies, to make them more valuable and more competitive. Employees enjoy the ability to realize their personal potential in more accommodating and rewarding conditions resulting from the great value they provide to the company."

Erez Buganim gives an example: "According to the Statista website, in 2018 there were about 60 million freelancers working in the US, and by 2027 the number is anticipated to grow to 86.5 million - 50.9% of the country's workforce. This phenomenon will continue to grow as the Millennial generation become the majority of the world's workforce. It's no coincidence, but stems from a lot of economic benefits that freelancers provide: 30% savings in employer costs, pay only for the hours worked, high motivation, richer and more diverse knowledge and experience that comes from engaging in various disciplines."

"Freelancers sometimes disrupt markets and raise strong opposition, including the intervention of regulators. For example, Taxi drivers in the country have caused the regulator to act against the entry of Over service into the market, which is based on private car owners who want to serve as freelance taxi drivers. The entry of the shipment service to the country has not been obstructed by regulatory barriers - thousands of motorcycle, scooter and scooter owners have easily become freelancers serving as restaurant delivery agents, significantly streamlining their services” notes Erez Boganem.

"Despite the great benefit offered by freelancers, they are vulnerable to their rights including delays in payment or non-payment, low rewards, a clear mission definition and scope, and more. This has led freelancers worldwide as well as in Israel to come together to protect their rights as a group and demand supportive regulation. This is how the American Freelancers Association, the EU Freelancers Association and other unions came into being. A survey by the American Association of 5,000 Freelancers found that 70% of them were affected by non-payment of job orders, and average damages caused were $ 6,000 (a loss of about 13% of annual income).

Freelance Damage Awareness has prompted New York City to enact their freelance law that guarantees their rights, including obtaining a signed agreement for any work opportunity for a sum of at least $ 800.-, accurately defining the scope of work and payment terms (without specifying a due date, payment will be made 30 days after completion). The Japanese Government Fair Trade Commission is seeking similar legislation to protect the rights of the country's 3.5 million freelancers and regulate their working conditions."

Erez Boganem says: "On the bright side, there is a noted increase in the demand for freelancers, due to the high value they provide to organizations. In addition to this, many employers are adopting advanced human resource management systems that support freelance work, with a cloud-based app that allows them to remotely report hours, complete tasks, or complete billing projects."

"In Israel, the world of freelancers is completely disorganized. There is no law governing their work and there is no qualified data on their amount. The first step toward changing this is to unite and raise awareness of their contribution to the economy and to the violation of their rights. In the second step, regulations must be drafted to regulate the field.

The State of Israel must come to terms with this new reality of the new world of work and its strategic benefits to the economy. The economic benefits inherent in freelancers are too high to ignore and their rights" Recommend Erez Boganem.

See more at the Erez's Blog in Synel

Erez Boganem synel
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