Gig economy workplace rights receives a welcome boost

Agency workers, those on zero hour contracts or “gig economy” workers to be protected by a package of workplace reforms, following the government's positive response to the Taylor Review.

What are the stats?

There are now around five million people currently working in the gig economy in the UK* who make up around 15% of the total full and part-time workers in the country.

The review into the 'gig economy' and those on zero-hours (or flexible contracts) highlighted the need for some recognition of how this kind of working impacted on workers' rights and employers' obligations, and the need for them to be treated fairly.

What is the gig economy?

A growing trend is for companies to employ contractors and freelancers (instead of using full-time employees), offering complete flexibility to work as and when they want, and only be paid for the jobs they do.

So, who are the big players?

The biggest names are taxi firm Uber and food delivery service Deliveroo.

In a report titled 'Good Work', the government has taken in 51 of 53 Taylor recommendations and pledged to provide greater protection for agency and gig economy workers. The new rules will:

• Ensure agency staff are paid at the same level as permanent employees.
• Increase the holiday reference period from 12 to 52 weeks, so that seasonal or other workers receive their entitlement of paid time off.
• Require companies to provide a written statement of rights to workers from the first day of employment, setting out paid leave, sickness and maternity/paternity leave entitlements.
• Increase employment tribunal fines four-fold from £5,000 to £20,000

The announcements were met with the expected up-beat 'pat on the back' assessment from the government and criticism from both the trades unions and Labour, who felt the review didn't go far enough to protect the most vulnerable workers.

The national minimum wage is also under scrutiny in a separate consultation that closes in March. We will have more for you on that nearer the time.

Employers who have workers on flexible or zero hour contracts will need to be aware of the changes outlined in the 'Good Work' report (which you can view via the link) that are likely to become legislation.

* Data compiled by the McKinsey Global Institute.