The International Labour Organization (ILO) has called on its member states to guarantee fundamental rights at work in the platform economy, including freedom of association and collective bargaining, protection from discrimination, the elimination of forced and child labour, minimum wage protection, and safe and healthy working conditions.

On June 12, the International Labour Conference adopted the landmark Convention on Decent Work in the Platform Economy (Convention No 193). It represents the first binding global labour standard aimed at improving working conditions for millions of people earning a living through digital platforms.

The Convention establishes a global framework to ensure that technological innovation and new business models go hand in hand with workers’ rights, fair competition and sustainable economic growth.

It applies to all digital labour platforms and platform workers, regardless of whether the work is performed online or at a physical location, and irrespective of how workers are classified under national law.

Adopted by ILO member states during the 114th Session of the International Labour Conference in Geneva in June 2026, the Convention comes as Nepal’s digital platform economy is expanding rapidly.

In a statement, ILO Nepal said the Convention arrives at a critical time for the country.

“Ride-hailing, food and parcel delivery, freelance digital services and other digital labour platforms are already supporting tourism, small and medium-sized enterprises, digital payments and youth employment,” the organisation said.

As Nepal’s digital economy grows, the platform economy is creating new opportunities for jobs and entrepreneurship, while also highlighting the need to ensure decent working conditions for platform workers.

“As Nepal’s platform economy continues to expand, this Convention offers useful guidance for balancing innovation with workers’ rights, enabling Nepal to foster digital entrepreneurship while ensuring that platform workers have access to fair conditions, social protection and opportunities for decent work,” said Numan Özcan, ILO’s country director for Nepal.

With an appropriate regulatory framework, Nepal can formalise this fast-growing sector without stifling innovation, the organisation said. The platform economy can become more than a source of flexible income—it can serve as a bridge to better jobs, stronger local enterprises, safer mobility and a more inclusive digital economy that delivers decent work for all platform workers.

Under the Convention, member states are required to take measures to respect, promote and realise the fundamental principles and rights at work in the platform economy.

The Convention also requires governments to take appropriate measures to prevent occupational accidents, occupational diseases and other injuries to the health of digital platform workers arising from or linked to their work.

It further guarantees workers the right to remove themselves from work situations they reasonably believe pose an imminent and serious threat to their life or health without suffering adverse consequences, provided they notify the digital labour platform without delay.

The Convention also calls on member states to protect digital platform workers from violence and harassment in the world of work, including abuse perpetrated online or by third parties such as clients and customers.

Nepal’s ride-hailing industry has expanded rapidly in recent years, particularly in Kathmandu, with companies reporting more than 200,000 riders engaged in the sector, underscoring its growing role in the country’s gig economy.

According to a report titled Nepal’s Gig Economy and its Implication in Labour Participation and Income Distribution, published by the Asian Productivity Organisation in December 2024, ride-sharing platforms are expanding beyond Kathmandu into other major cities.

Pathao, for instance, plans to expand its services to 17 cities across Nepal. The company currently engages more than 200,000 individuals, including around 190,000 motorbike riders, over 10,000 cab drivers and more than 5,000 delivery personnel.

The report estimates that Nepal’s gig economy contributes around 7 percent of the country’s gross domestic product.

Over the past decade, the country’s gig economy has grown significantly, driven by technological advancement, an abundant supply of low-cost labour and increasing entrepreneurial activity. The sector is concentrated in freelance work, transportation, food delivery and digital service platforms.

Although still at an early stage, Nepal’s platform economy has expanded to include services such as Foodmandu for food delivery, Pathao for ride-hailing, Khalti, iPay and eSewa for digital payments, Aayo Express for on-demand delivery and Chamkilo for laundry services. The report says the sector is creating new income opportunities through flexible work arrangements.

However, Nepal still lacks a comprehensive legal and regulatory framework to govern the gig economy and safeguard the rights of platform workers.

“The demand for online delivery services has increased alongside the rapid growth of e-commerce, creating employment opportunities for hundreds of thousands of gig workers,” said Manohar Adhikari, founder of Foodmandu.

Foodmandu, which has between 400 and 500 active delivery riders working on both full-time and part-time basis, said it complies with Nepal’s labour laws, including payment of the statutory minimum wage, insurance coverage and enrolment of eligible workers in the Social Security Fund.

“We treat our riders the same as company employees,” Adhikari said.