GHARAR (UNCERTAINTY) AND ALGORITHMIC MANAGEMENT: ENSURING LABOR EQUITY FOR GIG WORKERS UNDER ISLAMIC CONTRACT LAW

Abstract

The rapid growth of gig-economy platforms has introduced algorithmic management systems that control work allocation, pricing, performance evaluation, and disciplinary actions. These systems often generate significant uncertainty for workers, including unstable income, unpredictable job availability, and opaque decision-making. In Islamic economic jurisprudence, such uncertainty constitutes Gharar, which is prohibited because it can lead to injustice and exploitation in contractual relations. This study examines how Gharar is embedded in algorithmic management practices and evaluates the potential of Islamic contract law to promote labor equity in the gig economy. The research aims to identify sources of uncertainty in platform algorithms, assess their impacts on workers, and propose Shariah-compliant contractual models that reduce Gharar while preserving technological efficiency. A qualitative research design was adopted, incorporating document analysis of platform policies, in-depth interviews with gig workers, and thematic analysis guided by Islamic legal principles. Comparative interpretation between conventional algorithmic management systems and Shariah-based contractual norms was used to evaluate ethical compliance. The findings indicate high levels of Gharar in dynamic pricing, automated sanctions, and non-negotiable digital contracts, resulting in income instability, informational asymmetry, and reduced worker autonomy. Applying Islamic contract principles—particularly transparency, risk-sharing, and mutual consent—offers practical mechanisms for mitigating these problems. The study concludes that aligning algorithmic management with Shariah contract law can enhance labor fairness, reduce uncertainty, and strengthen ethical governance in digital labor markets.