In the changing conditions of the digital transformation of the global economy, significant changes are taking place in all socio-economic subsystems. The labor and employment market is no exception. With the emergence of new forms of employment (alternative employment) and their rapid growth, the traditional system of social and labor relations has also undergone changes. The article examines the problems of social and labor relations of alternative employees. The author's interpretation of the concept of alternative employment is given. Institutional changes in the functions of alternative employment are identified. The existing foreign practice of regulation of alternative or platform employment is shown. The author notes that in order to avoid the long-term negative social consequences of alternative employment, it is necessary to review the functions and role of institutions of social and labor relations, as well as to develop institutional mechanisms for regulating employees of a new era.