summarise the text. the summary should include: 1)intro 2)body 3)introduction dont add up new information. just use the text. max 250 words.

CONFIDENTIAL Read the following article carefully. LGJUNE 2024/EL C560/SET 2 Working in the Gig Economy A gig economy is an economy that operates with flexibility, involving the exchange of labour and resources through digital platforms that actively facilitate buyer and seller matching. A gig economy produces cheaper as well as more efficient and flexible services that can offer con business practices. Some s a unique and fast alternative to regular, standardised amples of the jobs that operate in the gig economy include ride-hailing, e-commerce delivery as well as freelance online rvices such as writing, tutoring, and computer programming. Over the past 5 years, the gig economy has risen drastically in popularity and is now a very common way for individuals to earn a second stream of income. While operating in the gig economy offers an array of benefits, there are also downsides that need to be recognised by both businesses and workers. Minimising costs and expenses is widely considered as one of the major benefits of operating in the gig economy. This is because businesses can hire off-site workers and significantly reduce the need to maintain expensive workspaces and large offices. Not only that, hiring freelancers is usually less costly, as employers do not have to bear the onboarding costs when hiring full-time employees. In addition, hiring freelancers or independent contractors completely eliminates large expenses such as employee benefit packages, retirement plans, and paid sick leaves. This enables businesses to cut costs and only pay for the actual labour supplied by freelancers. Unlike full-time employees, gig workers have the flexibility to choose the types of jobs they do, as well as when and where they do them. In most cases, a task will be assigned to a worker with a deadline, but they have complete autonomy over when they choose to work on it. Gig workers also have the ability to work from home and can either pursue full-time employment or choose to work during hours that suit them best. This flexibility is beneficial for gig workers to set their own hours, allowing them to balance work with other commitments such as caregiving responsibilities, education pursuits, or personal interests. This flexibility not only enhances work-life balance but also empowers gig workers to optimise their productivity by aligning their work hours with their peak performance periods. Furthermore, the ability to adjust schedules on the fly enables gig CONFIDENTIAL @Hak Cipta Universiti Teknologi MARACONFIDENTIAL LG/JUNE 2024/EL C560/SET 2 workers to seize spontaneous opportunities or address unexpected personal matters without sacrificing their professional responsibilities. Despite the benefits, there are also downsides that can make working in a gig economy challenging. Freelancers may not be as committed to their organisations as full-time employees. Given the project-by-project nature of the gig economy, workers often find it difficult to develop a sense of long-term investment in their clients or projects. Furthermore, gig economy companies often fail to provide incentives to their employees, which results in employees prioritising their own needs over those of the company. This lack of incentives can decrease motivation, impact the likelihood of future work opportunities, and hinder the establishment of strong, lasting relationships. Moreover, individuals working for organisations that operate in a gig economy face a number of legal challenges. In the gig economy, employees often lack the protection of established regulations. Concerns arise regarding the absence of employment benefits and protections, such as minimum wage and overtime entitlements, particularly when workers are classified as independent contractors instead of full-time employees. Despite the long-standing employment of independent contractors and freelancers, their status has not been formally recognised by federal regulations. This lack of formal recognition means that independent contractors and freelancers often do not receive the same level of legal protection and benefits as traditional employees. As a result, gig workers might struggle with complex legal rules and have fewer options for solving problems or protecting their rights. In conclusion, organisations and workers need to recognise the downsides of operating in the gig economy, in spite of the benefits that can be gained by both parties. Benefits like cost-effectiveness and work flexibility do not outweigh the lack of commitment and legal challenges faced by both employers and employees. Nonetheless, with the rise of the gig economy, which relies on the increasing number of gig workers, there is a concerning need to understand its functionality. This understanding is vital for creating policies that fairly apply labour laws to the various gig economy jobs that people are doing today. Adapted from https://corporatefinanceinstitute.com/resources/economics/gig- economy CONFIDENTIAL @ Hak Cipta Universiti Teknologi MARA