Gig Economy Workers: Campaigners warn millions are denied essential rights such as sick pay and protection from unjust dismissal
Andy Burnham calls for 4 million gig economy workers to be defended by pursuing corporations that exploit widespread “bogus” self-employment to deny individuals their rights.
Gig Economy Workers and Employment Rights
As the prime minister fleshes out his agenda the Fabian Society and the Joseph Rowntree Foundation have cautioned millions of workers are losing out on essential statutory rights including parental leave, redundancy compensation and protection against unfair dismissal.
Publishing a joint report urging for Burnham to act, the Labour-linked thinktank and anti-poverty charity said adjustments were necessary to guarantee employment paid in the cost of living crisis.
The research urges the government’s Fair Work Agency, founded in April as a tough watchdog on workers’ rights, to use its civil procedures powers to punish enterprises accused of widespread fraudulent self-employment.
It also calls on ministers to press ahead with reforms to employment law to tackle long-standing abuses of the system.
Four Million Workers in the Gig Economy
Britain has three types of employment status under its employment laws, unlike most other leading economies. The employe enjoys the highest rights and responsibilities, whereas the self-employed person has limited protection but also fewer liabilities. There is also an intermediate status of “worker” or “limb (b)” with fewer rights and obligations than a full employe.
The survey says as many as 4 million workers – including hairdressers, personal trainers, delivery workers and drivers for gig economy platforms – work in this gap. Many have been employed by gig economy enterprises in this way to avoid giving them work rights, experts believe.
Labour had pledged to introduce a single “worker” status for everybody but the really self-employed, before backing away from the proposal to stave off Conservative criticisms on its attitude to business before the 2024 general election.
Once in power, however, the idea was absent from Labour’s employment rights shake-up and, although it vowed to consult on “moving toward a single status of worker”, this has not happened.
Employment Rights Reform
Labour confronts fierce business lobbying over its broad-ranging Employment Rights Act, which would ban abusive zero-hours contracts and give employes day-one rights to statutory sick pay.
Official government analysis last week found that the measures would enhance economic growth and provide workers with better rights but would cost firms an estimated £350m to £2.9bn.
In his first week in office Burnham told business leaders he was determined to press on with the proposal for the biggest shake-up of employment rights in a generation.
But the Fabian Society and the Joseph Rowntree Foundation have argued modifications to employment status are needed to make sure gig economy workers benefit from these increased protections.
Proposed Changes for Gig Economy Workers
The report recommends for the burden of proof to be put on the employer, rather than the worker, to prove whether someone is an employe, worker or self-employed. This would save people from the long drawn out court fights which are often needed to win basic rights like minimum wage and holiday pay.
Luke Raikes, deputy general secretary of the Fabian Society said: “The government should ensure that those who play fast and loose with employment law can’t undercut the majority of good employers who play by the rules.
“If it looks like employment then employers should be treating people as employes by default and expect enforcement action if they are not complying. “Insecure workers shouldn’t have to fight a company’s lawyers – sometimes all the way to the supreme court – just to get the basic rights they are due.
“Our plan to make work pay will increase secure employment, improve job security and deliver stronger, higher living standards.” “We already have the Fair Work Agency assisting workers to get the rights they are entitled to. “We are committed to consulting on employment status and will look at how the Fair Work Agency can use its power to take civil proceedings alongside that.”