3 min read
Insight
The ILO Is Examining the Status of Freelancers — Here’s Why It Matters
Cristin Monnich
June 9, 2025
By Cristin Monnich, Head of Global Compliance Strategy & GM of AOR at Worksuite
💡 TLDR
The International Labour Organization (ILO) met from June 2nd to 10th with a focus on regulating digital platforms and formalizing associated labour. Based upon the outcome of these discussions, we could see significant changes in regulation impacting how governments around the world define and enforce worker classification. As platform work is booming, this is an important development for companies who provide or rely on platform workers to monitor. We anticipate this could have impacts to the standards applied to both classification as well as worker’s rights and social protections.
What Is the ILO Discussing and Why Does It Matter?
The ILO is currently evaluating labor standards related to digital platform work. The conversation centers around regulation of how companies utilize freelancers who secure work through technology platforms. Many governments have taken the position that platform workers should be presumed employees unless proven otherwise.
This review reflects growing concern over how labor laws apply to freelance work, particularly when those engagements fall outside traditional employment relationships. Some recent frameworks that may inform this decision include:
- The European Union’s Platform Work Directive
- The United Kingdom’s IR35 classification rules
There is also mention of worker’s rights, including social protections and freedom to organize. If new standards are implemented, the ILO’s guidance could have a major impact on how countries enforce classification standards and how businesses are expected to demonstrate compliance.
What This Means for Companies That Work with Freelancers
Even if your company does not operate a marketplace or digital platform, the impact could still reach you. Any business that hires independent contractors — directly, through staffing firms, or via software tools — may be subject to new compliance expectations based on how countries interpret the ILO’s guidance.
Key areas to watch include:
- Greater need to maintain clear classification logic for every contractor
- Rising enforcement activity targeting compliance gaps
- Increased documentation requirements during audits or reviews
This is especially important for organizations that operate across multiple regions or manage distributed teams.
How Worksuite Helps Organizations Stay Ahead of Global Compliance
Worksuite was designed to help companies scale their freelance workforce while maintaining strong compliance. Whether or not the ILO’s framework is formally adopted, the global direction is clear — more oversight, more documentation, and more accountability is expected.
Classification Checks During Onboarding
Our workflows apply local rules (whether it’s AB5 in California, IR35 in the UK, or another unique in-country test) — to each engagement before a contractor begins work.
Audit-Friendly Record-keeping
All freelancer documents and contracts are stored in a central repository, acting as your defense file. HR, Legal, and Finance teams can access critical signed contracts, classification supporting documentation, or tax and compliance forms as needed.
Scalable International Onboarding
We support onboarding and payments in over 120 countries. Our platform adjusts to each country’s legal requirements, ensuring compliance without slowing your team down.
What Compliance and HR Leaders Should Keep in Mind
The ILO’s review does not immediately change the law, but it is a signal that international regulators are looking for more consistency and protection for workers in freelance arrangements. This means:
- Countries may introduce tighter classification rules or adopt employment presumptions
- Companies may face fines, back wages, or legal disputes for noncompliance
- Proactive classification frameworks will be essential
Preparing for What Comes Next
The conversation about freelancer classification is not new, but the momentum for global action is increasing. Companies that treat compliance as a foundational part of their freelance program — not an afterthought — will be better positioned as regulations evolve.
With Worksuite, you can:
- Run classification checks before any work begins
- Store and maintain defense files to protect during audits or legal inquiries
- Manage freelancers confidently across borders
Stay ahead of changing regulations. Schedule a demo to see how Worksuite can help you manage classification and compliance with confidence!
FAQ: Understanding the ILO’s Focus on Freelancer Classification
Q: What is the ILO reviewing?
A: The ILO is exploring whether freelancers who work through digital platforms should be treated as employees by default. Their recommendations could shape how national governments approach worker classification and labor protections.
Q: Will this affect companies that do not operate a platform?
A: Yes. Any business that hires independent contractors may see new compliance requirements based on how countries adopt and enforce the ILO’s recommendations.
Q: What risks are involved?
A: Companies may face legal exposure, back pay obligations, government fines, and reputational damage if contractors are found to be misclassified.
Q: What does an Agent of Record do?
A: An Agent of Record like Worksuite serves as the legal intermediary. We classify, contract, and pay freelancers on your behalf, reducing risk and simplifying compliance for your internal teams.
Q: How is Worksuite different from other platforms?
A: Most tools handle payments. Worksuite manages the entire contractor lifecycle — including onboarding, classification, documentation, and compliance — across international borders.
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Cristin Monnich is the Senior Director and GM of Global Compliance and AOR at Worksuite. She works with global teams in HR, Legal, Procurement, and Finance to build risk-aware contractor programs that support growth, flexibility, and compliance.
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