Increasing the use of a little-known middle category of worker is one way to start
The author of this contribution is Deputy General Secretary of the Fabian Society
Legal experts and unions have been tearing their hair out over inconsistencies in rulings on the status of these workers.
How to give gig economy workers more rights
For drivers and couriers in the UK’s gig economy, employment status really matters. Most of them are classed as self-employed and do not receive statutory sick pay, for example.
It’s worth remembering this as they shuttle from car to car trying to earn enough money to live on and not end up injured or worse.
Efforts to improve the rights of this group have resulted in some changing their employment status, but often to one where they are neither self-employed nor employed. Instead, they fall into a little-known middle category of work, known by the opaque term «extreme(b)».
In 2021, the UK Supreme Court moved Uber drivers into this middle category
Until last year, Just Eat delivery drivers were also included in it. Workers in this category are entitled to annual leave and a minimum wage, but they still do not have all the rights of employees. They have no protection against dismissal, for example. The trade-off is that they tend to have more autonomy.
However, recently, this branch (b) category has become very controversial, mainly due to how some of the major gig economy companies operate in the grey areas of employment law.
Before the general election, the Labour Party suggested that all such workers should become full-time employees
A policy known as sole worker status. While this idea was not included in the King’s Speech, the impending Employment Rights Bill will have an impact on any future reform of the status. For example, gig economy drivers who previously had no employment rights could be granted employee rights from day one.
This won’t make things better for everyone in the gig economy, but it could help clarify and enforce the law.
Many legal experts and unions have been tearing their hair out over inconsistencies and confusion in employment rulings, which have classified Uber drivers as branch (b) workers but Deliveroo couriers as self-employed.
But do workers want the middle-of-the-road worker status gone?
The answer is not clear. Our research project found that their views reflected the complexities of life at the tough end of the labour market, where the realistic alternative to many wage jobs is harsh.
Any move to turn them into employees (designed to improve their rights) must ensure that the change does not actually make their working lives more unpleasant.
Crucially, the middle-of-the-road worker status was initially created to extend labour law protection to vulnerable self-employed workers. But this group does not fit easily into employer-employee relationships, which is what sole-worker status might do in practice.
One option might be to keep the intermediate worker status, but reform it to include more people
This at least in the short term. This could offer a quick and practical way of wrapping a new group of the most vulnerable workers in the informal economy in a protective layer of labour law, much sooner than the widespread shift to sole-worker status suggested by the government could achieve.
In particular, it could emphasise the degree of control that companies exercise over workers as the primary test of their status. It could pay less attention to whether employers can send a substitute or not, which is how some companies have tried to keep their workforce classified as self-employed.
This is clearly a debate we need to have, and it is important to start now. Listening to the voices of those affected by these policies is a vital first step.
Fortunately, most of us do not have to constantly police our labour rights. With the right reforms, the most vulnerable workers in our society can also enjoy that security.
Gig economy: how the EU is improving rights for platform workers
This contribution is from the European Parliament’s portal regarding new EU rules that aim to strengthen the rights of people working in the gig economy and ensure better working conditions.
New EU rules aim to strengthen the rights of people working in the gig economy and ensure better working conditions.
More and more people are buying goods and services online through platforms such as Deliveroo and Uber. People offering their services through these platforms are often not protected by standard employment contracts, making them more vulnerable. The EU wants to change this with the EU directive on platform workers.
What are gig economy workers? How many are there?
Online platforms use a website or app to match people looking for a specific service with others willing to provide it in exchange for payment.
Most services, such as driving, delivery or house cleaning, require on-site work, but others can be done online, such as accounting or graphic design.
43 million people are expected to work for digital work platforms in 2025
These atypical jobs have become more frequent due to changes in the world of work, such as increasing digitalisation and the creation of new business models.
More than 28.3 million people were working for digital work platforms in the EU in 2022 and this number is expected to rise to 43 million in 2025.
Of all people working for platforms, 26.3 million (93%) are currently classified as self-employed.
But it is suspected that around five million of them could be misclassified.
In the so-called gig economy, temporary positions and short-term contracts with independent workers are common. This puts workers in a weak position when dealing with digital platforms. The EU wants to ensure that these workers enjoy minimum protection.
The EU directive on platform workers
In April 2024, Parliament voted in favour of new rules to improve the working conditions of gig economy workers. The EU directive on platform workers aims to correct the employment status of those who have been wrongly classified as self-employed, improve transparency and regulate the use of algorithms and data in decision-making about platform workers.
The new law aims to provide workers with all the employment rights
they should have and correct false claims of self-employment.
All EU countries will have to set national rules to ensure that if there are indications that platforms exercise de facto direction and control over people working for them, these people are presumed to have an employment relationship with the platform.
Platforms will be able to challenge this presumption, but will have to prove that there is no employment relationship.
Under the new directive, a platform worker cannot be dismissed based on a decision made by an algorithm or automated decision-making system. Human monitoring and oversight will be required for decisions affecting people’s working conditions.
Platforms will not be able to process certain types of personal data of those working for them
Such as private exchanges with colleagues or personal beliefs. Platforms will be required to inform workers about the use of algorithms and automated systems in decisions about their hiring, working conditions and earnings, among other things.
In 2019, MEPs approved new rules introducing minimum rights for all employees
This legislation gave new rights to the most vulnerable employees with atypical contracts and in non-standard jobs, such as gig economy workers.
The rules included measures to protect workers by ensuring:
– more transparent and predictable working conditions.
– free mandatory training.
– limits on working hours and the length of the probationary period.
Next steps
The Parliament approved the directive on platform work in April 2024. The Council will also have to approve it.
Once both institutions have formally approved it, EU countries will have two years to adapt their national legislation to the directive.
Rights of gig economy workers
This contribution corresponds to what the City of London government website explains about the gig economy. We found it of great interest due to the precision of the explanations.
What is the gig economy
The “gig economy” is a relatively new term. Generally, it is the idea that people perform flexible, short-term work providing services for an organization, such as a company.
Often, but not always, the gig economy is associated with companies that use digital platforms (e.g. phone apps) to promote their services to customers (e.g. food delivery).
How to Determine Your Employment Status in the Gig Economy and Why It Matters
It’s important to determine what your employment status is because this affects the amount and type of employment rights you have. Genuinely self-employed people have fewer employment protections; workers have some; and employees have most.
It can be difficult to determine your correct employment status when working in the gig economy
What’s written in your contract can help you determine your employment status, but it’s not the final word.
It’s important to consider the actual employment relationship you and the organization you’re doing “gig work” for have.
For example, if you have to personally handle “gig work” yourself and aren’t allowed to send someone else in your place, you’re more likely to be classified as a worker, rather than a freelancer.
If the company you work for closely controls your work—for example, by telling you where, when, and how to work, or what clothes to wear—this also suggests that you’re a worker. On the other hand, if you can choose your “team jobs,” set the prices you charge, or even send someone else out if you’re not available, you may be a true freelancer.
Rights you may have as an informal economy worker
Right to the national minimum wage/living wage
The national minimum wage (if you are of school-leaving age, up to 22) and the national living wage (if you are over 23) is the minimum amount that a worker (or employee) must be paid for each hour they work. If you are self-employed, you are not entitled to this.
The amount you are paid depends on your age
Rates change every April and the most up-to-date rates are available on the Government website. Your wage must be set out in your written statement of conditions. Your wage must not be less than the legal minimum, but could be more.
Your right to paid holiday
Mandatory holiday
You must be classed as a worker (or employee) to qualify for paid holiday. Paid holiday is not available to self-employed workers in the informal economy. If you are a worker, you are entitled to 5.6 weeks (28 days) of paid annual leave. This is often referred to as the right to mandatory holiday or annual leave.
If you work irregular hours or part-time, your pay will be calculated in proportion to each hour you work. To calculate this, you can use the government’s paid holiday calculation tool: Calculate your paid holiday.
Your right to a break
As a worker, you are entitled to mandatory breaks at work. You are not entitled to mandatory breaks at work if you are self-employed in the informal economy.
If your daily working time is more than 6 hours, you can take an uninterrupted 20-minute break during the working day. You are also entitled to spend the time away from your workstation (if you have one).
By law, this does not have to be paid. Only certain organisations will do so, so check your written contract to see if your break will be paid.
Your written contract may say that you are entitled to longer breaks than those mentioned, but it must never be less than the legal minimum.
Protection from discrimination in the workplace
Discrimination is when you are treated less favourably because of your age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation.
Workers have the right to protection from discrimination in the workplace. Specifically for informal economy workers, the law protects them from being discriminated against when they are assigned work.
The gig economy and labour rights: Uber case study
This contribution is from the Labour Laws UK portal, which analyses the Uber case and is of great interest in clarifying the situation of workers’ rights in this sector of activity.
Have you ever wondered what the labour rights of gig workers in the gig economy are? Are they entitled to the same protections as traditional employees?
The recent legal case against Uber has shed light on this issue and raised important questions about the rights of gig workers. Let’s explore the gig economy, the impact of the Uber case and the need for clear legislation to protect the rights of gig workers.
Key takeaways:
The gig economy refers to a temporary work structure in which people work small jobs or «gigs» rather than having a full-time job.
Recent legal cases, such as the ruling against Uber, have declared that gig workers are entitled to certain labour rights.
Gig workers often do not have the same benefits and protections as traditional employees, leading to debates about their rights and classification.
Legal battles between gig economy companies and workers, such as Uber and Deliveroo, have implications for future regulations. The growth of the gig economy has tax implications for the UK government, requiring a re-evaluation of national insurance contributions and tax revenues.
Understanding the gig economy and gig workers
Gig workers play a vital role in today’s economy, taking on small or temporary jobs rather than traditional full-time employment.
These individuals are compensated based on the number of temporary jobs they complete, offering them flexibility and autonomy in their work. However, the gig economy has raised important questions about the benefits and rights gig workers should have.
One of the key challenges for gig workers is the lack of traditional employment benefits
Unlike traditional employees, gig workers often do not have access to benefits such as health insurance, paid time off, or retirement plans. This can leave gig workers vulnerable and without essential protections.
The debate over gig workers’ rights revolves around the question of classification. Should they be considered employees or self-employed contractors? This classification determines the level of benefits and protections they are entitled to under the law.
While classifying gig workers as employees would give them greater benefits and rights, it could also have implications for the flexibility and business models of the gig economy.
Understanding gig workers’ rights is crucial to creating a fair and sustainable economy
It requires finding a balance between the benefits and flexibility of gig work and the protections workers deserve.
Advocacy groups and policymakers are actively working to address these issues and establish clearer guidelines and regulations that protect gig workers’ rights.
“Gig workers deserve the same benefits and rights as any other worker. Their contribution to the economy should be valued and their well-being protected.” – Gig worker advocate
It is important to recognise the value and importance of freelancers in our economy
They provide essential services and play an important role in a number of industries, from ride-sharing to food delivery to freelancing.
As the freelance economy continues to grow, ensuring the benefits and rights of freelancers becomes a top priority for policymakers and businesses alike.
Issues to consider
– Freelance worker benefits.
– Freelance worker rights.
– Flexible working hours.
– Fair compensation.
– Promotion of collective bargaining.
– Autonomy and independence.
– Safe working conditions.
– Access to social security benefits.
– Opportunity for supplementary income.
– Protection from unfair treatment.
– Clear contracts and payment terms.
