Classify gig workers as workers rather than self-employed and abolish exploitative zero-hour contracts, says new report

Gig workers should be classed as workers rather than self-employed, and exploitative zero-hour contracts should be abolished, says a new report released on Monday.

The report, authored by ReWAGE, the independent expert advisory group hosted by Warwick and Leeds Universities, offers a set of recommendations aimed at addressing the challenges faced by gig workers, as well as those in other precarious and insecure working arrangements such as zero-hours contracts.

Gig work is work where an individual uses a digital ‘platform’ provided by a company, accessed via an app or a website, to find and perform short-term jobs, such as Lyft drivers or Deliveroo workers. It is estimated that around half a million people work in the platform economy.

The report, supported by the abrdn Financial Fairness Trust, proposes greater clarity around the contractual and legal status of gig workers, saying gig workers should be presumed to be workers of platform companies rather than self-employed. This recommendation aligns with a recent EU Directive on Platform Work.

Those in the gig economy classed as workers rather than self-employed are entitled to greater benefits including the minimum wage and holiday pay. Some companies are reluctant to class their staff as workers due to the knock-on financial consequences for them.

The report follows on from the Uber drivers Supreme Court case in 2021, where Uber drivers took the company to court and received recognition as workers rather than self-employed.

‘Gig work in the UK is on the rise but, for many, it remains a highly precarious form of work, with relatively low levels of pay, fluctuating income and little job security’, said Chris Forde, Professor of Employment Studies at the Centre for Employment Relations Innovation and Change and lead author of the report.

‘There is an urgent need for the introduction of greater employment rights and protection for those in gig work as a way of improving the quality of these jobs’, continued Professor Forde. ‘Adopting a presumption of “worker” status for those in the gig economy would immediately improve access to basic employment rights for over a million workers in the UK.’

Furthermore, the report advocates for robust mechanisms to ensure gig workers have access to essential social protections such as sick pay, pension provision and parental/carer leave. This includes mechanisms to ensure the accumulation of state-accrued benefits and access to employment rights when gig workers find work across multiple platforms and where employment is often on and off, or intermittent in nature.

Recognised trade unions are also urged to be provided with legislated access to platform companies, enabling them to advocate for the rights of gig workers. Moreover, the report argues that platforms should provide comprehensive information to workers on trade unions and how to join them at the start of their employment.

The report also emphasizes the importance of state-provided training for gig workers to enhance their skills and help transitions to more secure forms of employment if they wish to.

Additionally, platforms should be required by law to disclose critical data on employment conditions to appropriate inspection and labour market enforcement bodies, including data on employment levels, pay, progression and the use of algorithmic management practices.

In addition to recommendations specific to gig work, the report calls for uniform access to employment rights for workers across other forms of precarious work, including agency and zero-hours contracts. It proposes the abolition of exploitative zero-hours contracts and the implementation of regulations to prevent similar arrangements, such as ‘one-hour’ or ‘two-hour’ contracts.

Mubin Haq, CEO of abrdn Financial Fairness Trust, said:

“Whilst only a small number are employed in the gig economy, levels of insecurity, low pay and the lack of social protection is much greater for gig workers than for other workers. The government has made strong commitments to improve employment protections which will be set out in the forthcoming employment rights bill. This is not just good for those working in insecure work but also good for employers by providing a level playing field, helping to avoid them being undercut by poor practice.”