1. Michael Frosch ILO Department of Statistics
Revision of International Classification of Status in Employment (ICSE-93)
Michael Frosch
ILO Department of Statistics
ILO Department of Statistics

2. Process Working group (met four times from May 2015-September 2017)
Regional meetings
Tripartite Meeting of Experts (February 2018)
Next step
Present and discuss at the 20th ICLS in Geneva (10-19 October 2018)

3. Main conclusion from MoE
In general a strong support for the new framework
Strong support for structuring ICSE-18 in two different hierarchies: according to type of authority and according to type of economic risk
For the inclusion of the different forms of work in ICSaW-18
Several minor clarifications, changes, updates
Dependent contractors: strong but not universal support for inclusion of dependent contractors. There was a need for further work on details of the definition and operationalisation
Definition of employers: Proposed boundary of having employees in the reference period was supported by some but opposed by others preference for using ‘regularly’ engage employees as boundary.
Employees: Boundary to distinguish fixed-term from short-term and casual employees, which was proposed as 1 month. Several experts preferred a change to three months which would
Ensure the group might be large enough to measure in typical household surveys
Better align with legal and administrative concept of short-term employment in several countries
Cross cutting variables: domestic workers, multi-party relationship and reasons for non-permanent job required substantial redrafting
ILO Department of Statistics

4. Dependent contractors
Proposed definition “workers employed for profit, who are dependent on another entity that exercises explicit or implicit control over their activities and directly benefits from the work performed by them”
The dependency might be of an
operational nature, through organization of the work
and/or
economic nature such as through control over access to the market, the price for the goods or services produced, or access to raw materials or capital items
In addition a set of characteristics that do apply, may apply and that excludes workers from being defined as dependent contractors are stated
Gives a direction on possible operationalization of the identification of dependent contractors
Create a degree of flexibility
ILO Department of Statistics

5. Outline of proposed new standards for statistics on the work relationship
Conceptual framework for statistics on the work relationship
defines the key concepts, variables and classification schemes to be included in the new standards
Revised international Classification of Status in Employment (ICSE-18)
Comprises ten categories applicable to employment and that can be organised in two different hierarchies
International Classification of Status at Work (ICSaW-18)
Extension of the classification of Status in Employment to cover all forms of work, including own-use production work, volunteer work and unpaid trainee work, as well as employment.
A set of cross-cutting variables
That supports the derivation and analysis of the status at work categories
Guidance on measurement
ILO Department of Statistics

6. ICSaW-18 ICSE-18-A versus ICSE-93 -Employment -Own-use production work
I Independent workers
1 Employers
11 Employers in cooperations
12 Employers in household market enterprises
13 Employers in own-use production of services
14 Employers in own-use production of goods
2 Independent workers without employees
21 Owner-operators of corporations without employees
22 Own-account workers in household market enterprises without employees
23 Independent workers in own-use production of services without employees
24 Independent workers in own-use production of goods without employees
25 Direct volunteers
D Dependent workers
3 Dependent contractors
30 Dependent contractors
4 Employees
41 Permanent employees
42 Fixed-term employees
43 Short-term and casual employees
44 Paid apprentices, trainees and interns
5 Contributing family workers
51 Contributing family workers
52 Family helpers in own-use production of services
53 Family helpers in own-use production of goods
6 Unpaid apprentices, trainees and interns
60 Unpaid apprentices, trainees and interns
7 Organization-based volunteers
70 Organization-based volunteers
9 Other workers
90 Other workers
-Employment
-Own-use production work
-Unpaid trainee work
-Volunteer work
-Other work activities
5 Family helpers
ILO Department of Statistics

7. Classification of status based on the type of economic Risk (ICSE-18-R)
Workers in employment for profit
Employers in household market enterprises
Own-account workers in household market enterprises
Dependent contractors
Contributing family workers
Workers in employment for pay
Owner-operators of corporations
Employers in corporations
Owner-operators of corporations without employees
Employees
Permanent employees
Fixed-term employees
Casual and short-term employees
Paid apprentices, trainees and interns

8. Cross-cutting variables
The classification is complemented by a set of cross-cutting variables that provides information for characteristics that cut across several status categories
Output variables and categories to promote greater harmonization, coherence and international comparablity
Many of these are regulary covered by most LFS but are not in general covered by international standards
ILO Department of Statistics

9. Cross-cutting variables
Required
Duration of work agreement
Type of employment agreement
Contractual hours of work
Forms of remuneration
Place of work
Job-dependent social protection coverage
Reason for non-permanence of job
Essential
Duration of employment in the current economic unit
Seasonal workers
Preference for a non-permanent job
Usual hours worked
Full-time/part-time status
Domestic workers
Home-based workers
Multi-party work relationships
Paid annual leave
Paid sick leave
Recommended
number of employees in the economic unit in which the worker is employed
main form of remuneration
reasons for preferring a non-permanent job
ILO Department of Statistics

10. Data collection guidelines
ILO have in parallel develop a first draft of measurement approached that can be used as guidelines by countries for collecting ICSE-18 and the cross-cutting variables
Dynamic guidelines
Based on current practices and test results
Household surveys (LFS), Administrative sources, establishment surveys
ILO Department of Statistics

11. Testing ICSE-18
Tests have been / are carried out in: Thailand, Singapore, Finland, Denmark, Italy, Mexico, Chile, Ecuador, Uruguay, El Salvador and the Pacific community
Cognitive testing as well as field tests
Has focussed mainly on the identification of dependent contractors among self perceived self-employed, testing different operationalization
exercise of operational authority by main client
if the client or intermediary provides the material input
control over setting the price for goods or services produced
To a lesser extent on the identification on dependent contractors among self-perceived employees
ILO Department of Statistics

12. Conclusions so far
Shows questions are generally understood well by respondents
Numbers are small in some countries and more significant in others
approximately 0.5 pct. of total employment in DK
approximately 5 pct. of total employment in Thailand
only includes identification from one track
Sensitive to type of operationalization
Small overlap between the different approaches
Different characteristics in age, educational level, industry, occupation turnover, working time
Relative high share of dependent contractors in agriculture especially when using price control.
Dependent contractors in agriculture needs furhter work
ILO Department of Statistics

13. Next steps 20th ICLS in Geneva 10th to 19th October, 2018
Possible to access and comment on the draft resolution before the meeting in the electronic forum
Testing continues and will continue after the ICLS
Partners sought for testing on dependent contractors (both self-employed and employees) and other issues such as zero hours contracts, multi party relationships
Tests will be feed into the development of data collection guidelines, operationalization
ILO Department of Statistics

14. Thank you
ILO Department of Statistics

15. Characteristics of Dependent contractors
Do display the following characteristics:
their work is organized or supervised by another economic unit as a client, or as an entity that mediates access to clients
the mode of payment is by way of a commercial transaction.
May display the following characteristics:
the price paid for the goods produced or services provided is determined by the client or an intermediary;
access to raw materials, equipment or capital items is controlled by the client or an intermediary;
their actual working arrangements or conditions may closely resemble those of employees;
the entity on which the worker is dependent does not withhold income tax for the worker;
the worker is responsible for arranging his or her own social insurance and other social contributions
Excluded are workers who:
have a contract of employment (formal, informal, or implicit) with the entity on which they are dependent;
are paid for time worked;
employ one or more other persons to work for them as an employee; or
operate an incorporated enterprise.
ILO Department of Statistics

16. Three steps structure s STEP 1 Self-identified status in employment
Self-employed - Classification module
Contributing family workers - Classification module
Employees - Classification module
STEP 2
Sub-classification module
STEP 3
ILO Department of Statistics

17. Step 2 For self-employed (possibly 4 questions)
Identify if they have employees and are incorporated or not (employer vs own account worker)
If not incorporated and no employees assess if a dependent contractor (different possible approaches)
For employees (possibly 3 questions)
Identify payment type (wage, salary, profit)
Identify responsibility for taxes/social security contributions
For CFW (possibly 2 questions)
Identify if payment received
Identify role in decision making (can be reclassified to employer/own account worker)
ILO Department of Statistics

18. Third step Sub-classification modules targeting classified: Employees
Features of the contract (permanent, fixed term, duration)
Guarantee of hours (zero hours)
ILO Department of Statistics

19. ICSE-18
ILO Department of Statistics

20. Classification module for SI Self-employed
Having employees in the reference period (all SI Self-employed) Eneterprise is incorporated or not (all SI Self-employed)
ILO Department of Statistics

21. Classification module for SI Self-employed cont.
Option: Control over setting the price for goods or services produced
( Own-account workers in household market enterpises)
ILO Department of Statistics

22. Classification module for SI employees
Type of remuneration (all SI employees) Option 1. Responsibility for social insurance or deducting income taxes
For this work are you paid.. (Mark all that apply)
A wage, salary
By piece
-Commissions, tips
Fee for services
Profit
Unpaid OR
ILO Department of Statistics

23. Classification module for SI- CFW Might be relevant for some countries
Type of remuneration
For this work are you paid.. (Mark all that apply)
A wage, salary
By piece
-Commissions, tips
Fee for services
Profit
Unpaid
Operational decisions ( Not yet decided)
ILO Department of Statistics

24. Sub-classification module for employees
Guaranteed amount of hours (all employees)
ILO Department of Statistics

25. Sub-classification module for employees
Employment agreement is open-ended or limited (all employees) The duration of the limited employment (employees with limited contract/agreement)
ILO Department of Statistics

26. Classification of status based on type of Authority/dependency (ICSE-18-A)
Independent workers
Employers
Employers in corporations
Employers in household market enterprises
Independent workers without employees
Owner-operators of corporations without employees
Own-account workers in household market enterprises 
Dependent workers
Employees
Permanent employees
Fixed-term employees
Casual and short-term employees
Paid apprentices, trainees and interns
Dependent contractors
Contributing family workers