Freedom or Fraud? The Hidden Cost of South Africa’s Gig Economy
Denika Benton is a university lecturer in Industrial, Organisational, and Labour Studies with a decade of experience in the Human Resources field. She is currently pursuing her PhD and is a committed feminist advocate, passionate about promoting equity and inclusion in the world of work. Her areas of expertise include the Fourth Industrial Revolution, globalisation, feminist labour studies, diversity and equity in the workplace, and the social psychology of work. Denika is especially driven by a strong commitment to advocating for the rights and representation of minority groups.
Many South Africans are turning to contract work in search of freedom and flexibility, but the reality often falls short. Independent contractors remain unprotected by labour laws, with no rights to unionise, mobilise, or access formal representation. This legislative loophole has enabled a system of self-exploitation, where only a privileged few benefit.
Source: Getty Images
South Africa has seen a surge in contract work, also known as gig work. Stripped of its polished promises, gig work reveals a dangerous level of precarity that is pushing workers into self-exploitation.
Depth of our inequality
We live in a society that sells the illusion of freedom through self-employment. But that freedom is reserved for the privileged few. In South Africa, where the Gini coefficient blatantly reflects the depth of our inequality, we cannot ignore the reality: what is sold on social media is not easily within reach for most of us.
PAY ATTENTION: Briefly News is now on YouTube! Check out our interviews on Briefly TV Life now!
Have you noticed that the same delivery driver who brings your orders from one company is also delivering for multiple others? This is not by chance. It is the result of a legislative loophole that demands nothing from companies while costing workers everything. The responsibility for exploitation no longer lies with the employer.
These workers are classified as independent contractors, meaning they are treated as separate legal entities responsible for their own conditions. In practice, this allows companies to profit while workers are left to exploit themselves. On paper, it sounds empowering to set your own hours and determine your own income. But the real question is, at what cost?
In South Africa, our Constitution supports the right of workers to be represented by trade unions and other employee bodies. However, the Labour Relations Act and Basic Conditions of Employment Act define employees under specific terms that exclude independent contractors. These workers fall outside the protection of basic labour rights, have no legal right to representation, and are left exposed to precarious working conditions. The result is a growing trend of self-exploitation, enabled by a system that does not recognise their vulnerability.
Definition of an Employee (as per Section 213 of the LRA and Section 1 of the BCEA):
"Employee" means—
(a) any person, excluding an independent contractor, who works for another person or for the State and who receives, or is entitled to receive, any remuneration; and
(b) any other person who, in any manner, assists in carrying on or conducting the business of an employer.
Unemployment crisis
Not only are local gig workers self-exploiting, but we are also seeing a growing trend of international companies hiring South Africans as independent contractors. These companies are capitalising on a legislative loophole that removes all responsibility from them, allowing them to leverage cheap labour and the desperation of South Africans facing an economic and unemployment crisis.
Independent contractors do not receive benefits like UIF, pensions, medical aid, or paid leave. In a society where saving and long-term financial planning are already in crisis, this lack of protection leaves many dangerously exposed. While gig work may offer the appeal of multiple income streams, we are failing to confront the deeper systemic issues that make this model so harmful.
Source: Getty Images
Working conditions
The Commission for Conciliation, Mediation and Arbitration (CCMA) does provide recourse for workers who have been misclassified, but no formal legal reform has been enacted to expand the definition of 'employee' to include gig workers. As a result, thousands remain unprotected by existing labour laws.
Even Michael Bagraim, a Member of Parliament for the Democratic Alliance, has publicly spoken out in defence of the working conditions faced by Checkers Sixty60 drivers. These are just a few examples of industries where independent contracting is rapidly replacing permanent employment.
Trade unions are feeling the impact as membership declines rapidly. Workers are overworked, underpaid, and have nowhere to turn. Tax compliance is largely unmonitored in the gig economy, which directly harms the national economy. These workers operate in isolation, without connection, communication, or mobilisation. This legislative loophole is not creating opportunity; it is creating oppression without accountability.
If South Africa continues down this path unchecked, who will be left with rights, and who will be left behind? It’s time we stop calling it flexibility and start calling it what it is: a quiet crisis.
3 More stories about the workplace
- Briefly News also reported that workplace inclusion has often been driven by legal obligation rather than meaningful cultural change.
- A hun showcased how she was welcomed at work by her co-workers in a clip making rounds online.
- One young lady received a grand surprise from her colleagues for her farewell, which left SA in awe.
Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect the official policy or position of Briefly News.
Source: Briefly News
