Strengthening Labour Market Institutions through Leveraging Industry 4.0 and 5.0: Working from Home Example in Swiss MSEs
Alain Neher1, Lucia Wuersch1, Alfred Wong1, Marc K. Peter2
1Charles Sturt University, Australia; 2University of Applied Sciences and Arts Northwestern Switzerland
In Industry 4.0, digital transformation (DT) and societal shifts have transformed telework over the past 50 years into working from home (WFH) (López-Igual & Rodríguez-Modroño, 2020). Industry 5.0 builds on Industry 4.0, expanding digital technology with the Internet of Things and ethical Artificial Intelligence (AI) (Peter, 2024). This ‘fifth industrial revolution’ promotes human-machine symbiosis (Pizoń & Gola, 2023), driving the transition toward ‘Society 5.0,’ where automation reduces working hours and enhances employee well-being.
Our research focuses on communication affordances in WFH settings within micro and small enterprises (MSEs; 4–49 employees), which constitute 70% of the global workforce (ILO, 2019) and over 98% of all businesses in Switzerland (FSO, 2020), significantly contributing to the economies. Hence, we examine the question: How can communication affordances used for WFH be leveraged from Industry 4.0 and Industry 5.0 (including AI) to strengthen the Swiss MSE labour market institutions and meet the demands in the employment context?
Over a four-year longitudinal study (2020–2023), we surveyed 2,015 Managing Directors (MDs) of Swiss MSEs regarding their adoption of digital communication tools reflecting Industry 4.0’s DT. In 2024, we conducted an additional survey of 526 MSE MDs, focusing on cybersecurity and AI adoption in response to Industry 5.0.
Inferential statistical analyses show a significant increase in digital communication tools, particularly online conferencing and collaboration platforms, a trend accelerated by the COVID-19 pandemic. We also observed a rise in WFH opportunities in MSEs across various industries. Moreover, 6% of Switzerland’s micro/small firms already use AI applications to enhance efficiency and innovation. A case study of an AI-powered customer support chatbot in a small enterprise will illustrate this adoption. Additionally, the World Economic Forum’s Future of Jobs Report (WEF, 2025) projects a rapid expansion of AI applications, emphasising the need for businesses and employees to develop AI-related skills.
Our study discusses the implications of Industry 5.0 for Swiss MSE employment and offers recommendations to strengthen labour market institutions. Given MSEs’ limited resources, policymakers should accelerate remote work policies and provide standardised digital policy templates and training programs to help MSEs transition into the digital age. Business leaders and employees must acquire digital skills to align with technology roadmaps and collaborate effectively. Senior management should establish ethical digital strategies and evaluate AI adoption to foster organisational trust. This will boost employee engagement and workplace quality, making organisations more resilient, competitive and well-positioned in the evolving landscape of ‘Society 5.0’.
Transnational Remote Work: Rethinking the Concept of Workplace in a Digital Era
Camilla Martins dos Santos Benevides
Instituto Iberoamericano de Estudos Jurídicos, Portugal
The traditional concept of the “workplace” has long been associated with a fixed, physical location—often the employer’s premises. However, globalization and digitalization have redefined the nature of work, making this notion increasingly obsolete. The rise of transnational remote work raises fundamental legal questions regarding the identification of the “place of service provision” and the determination of the applicable labor law.
This research explores the challenges of applying the Rome I Regulation to employment contracts executed via the internet. The core question is whether the “usual place of work” in remote work scenarios should be interpreted as the worker’s physical location, the employer’s headquarters, or an alternative criterion. Given the absence of a specific European standard, the study examines legal precedents, doctrinal positions, and decisions of the Court of Justice of the European Union (CJEU) related to cross-border employment.
The methodology involves a legal analysis of labor regulations governing remote work, examining their impact on determination of applicable national law. Additionally, the research incorporates doctrinal perspectives on the delocalized nature of digital labor and the regulatory gaps within current labor frameworks
Findings suggest that classifying the physical location of the remote worker as the “place of service provision” may lead to legal uncertainty, inequality among employees, and challenges for multinational companies. The study argues that, given the dislocation of work performed via Information and Communication Technologies (ICTs), a more coherent approach would be to apply the labor law of the employer’s headsquare country, as per Article 8(3) of the Rome I Regulation. This interpretation balances legal predictability with the protection of workers’ rights, avoiding excessive fragmentation of labor standards in the digital economy.
This research contributes to the literature by highlighting the urgent need for legislative adaptation to address the complexities of transnational remote work. It underscores the necessity of harmonizing labor regulations to ensure fair and enforceable working conditions, regardless of geographical location.
Remote Work vs Part-Time Employment: A New Work-Family Balance?
Marina De Angelis1, Thea Jansen2
1INAPP, Italy; 2GSSI, Italy
This paper investigates whether remote work influences part-time employment in Italy, a country where female under-employment significantly contributes to gender earnings inequality. According to 2018 data, Italian women earn on average 43% less than men, with part-time employment being a key driver of this gap (Eurostat, European Commission, 2024). Feminist economics literature has extensively explored the determinants of low female employment, emphasizing the role of childcare, family, and home care responsibilities in limiting women’s labor market participation (Folbre, 2012; Thévenon, 2013; Aloe, 2023). While part-time work has historically enabled women to balance paid employment with family life (Buddelmeyer et al., 2004; OECD, 2011), it often entails lower earnings, career stagnation, and financial insecurity in old age (Adabbo, 2020; OECD, 2010, 2012).
Given that many women in Italy opt for part-time work due to necessity rather than choice, the rise of remote work during the COVID-19 pandemic offers a potential alternative for work-family balance. Before the pandemic, remote work was primarily seen as a family-friendly arrangement with negative career trade-offs (Goldin and Katz, 2011). However, its large-scale adoption during the pandemic normalized its use, reducing the stigma and career penalties traditionally associated with flexibility (Barrero et al., 2021; Harrington and Kahn, 2023). The ability to work remotely allows individuals to handle family responsibilities without reducing their working hours, potentially decreasing reliance on part-time employment.
Using panel and cross-sectional data from the National Institute for Public Policies Analysis’ (INAPP) Participation, Labour, and Unemployment Survey (PLUS) for the period 2018–2021, we employ a Difference-in-Differences (DiD) framework to estimate the causal impact of remote work on part-time employment. By comparing individuals who worked remotely with those who worked on-site, we capture both immediate and lagged effects of remote work on employment status.
Our findings indicate that remote work significantly reduces part-time employment in the following year, suggesting that workers adjust their employment status after an initial trial period. This result underscores remote work’s potential to mitigate work-family conflicts and promote full-time employment among necessity-driven part-time workers. Given Italy’s low labor force participation and demographic challenges, expanding access to remote work could serve as a key policy tool for improving gender equality and labor market efficiency (Pissarides et al., 2005; OECD, 2017). Future research should explore long-term career effects of remote work, particularly for women balancing employment with caregiving responsibilities.
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