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    "Gig Economy" and Employee Rights

    With the ever growing demand for convenience in life, more and more companies have started to set up agreements where people work under their brand, but as self-employed individuals. Technically these companies act as a middle man between the customer and the provider, connecting them to fulfill the customer’s needs.

    Although you expect self-employment to be the best of both worlds, earning money whilst working your desired hours, the legal workers’ rights that come with it are very minimal. Since you technically work for yourself there aren’t really any employment rights as it is expected that you would decide how much you charge, how many holidays to give yourself and how many hours you work. However, with gig economy businesses, there isn’t the choice to decide how much you charge as the company decides how to charge the customer, and what split you get of it. This is has sparked an uproar among Deliveroo workers recently.

    gig economy

    Deliveroo riders originally got £7 an hour with and extra £1 for each delivery, they have now suggested scrapping this and just paying £3.75 for each delivery. This decision has been met with bitterness from riders who feel as though the new system would cause them to earn less. However, as they are classed as self-employed there isn’t any legal rights to say that they must at least be paid the minimum wage per hour. Following this recent dispute, the CEO William Shu has been forced to announce that riders will be able to opt for an hourly rate or a rate by deliveries.

    These recent events are looking to force change among the class of self-employed workers, who work under a larger business.

    Should they be classed as employees? Or should the rights of a self-employed worker be edited to include more rights to cover this new style of self-employment?

    Our Employment team are experts in a range of employment matters.

    Book your free initial consultation with our Employment Solicitors in Birmingham and Manchester today.

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