In the U.K., calls have been made to strengthen protections for 4 million gig economy workers
In the United Kingdom, the Fabian Society and the Joseph Rowntree Foundation have called on Prime Minister Andy Bernam to strengthen protections for approximately 4 million gig economy workers. They propose initiating civil proceedings against companies suspected of widespread use of bogus self-employment to deprive people of their labor rights, according to The Guardian World.
In a joint report, the organizations stated that millions of people lack statutory protections, including parental leave, severance pay, and protection against unfair dismissal. According to the authors, changes are needed to ensure that work provides a decent income amid the cost-of-living crisis.
The report’s authors called on the government’s Fair Work Agency—launched in April as a body to oversee workers’ rights—to use its authority to pursue civil proceedings against companies suspected of widespread use of bogus self-employment. They also propose continuing labor law reforms to combat abuses of the system for determining employment status.
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British law provides for three categories of employment status: employees under an employment contract, self-employed individuals, and the intermediate status of “worker” (or “limb (b)”). According to the report, up to 4 million people—including hairdressers, personal trainers, couriers, and drivers for gig-economy platforms—may fall under this intermediate category. Experts believe that some companies use this status to avoid granting people their proper labor rights.
The Fabian Society and the Joseph Rowntree Foundation also propose shifting the burden of proof regarding a person’s status from the worker to the employer. In their view, this would help avoid lengthy legal disputes over basic rights, including minimum wage and paid vacation.
A government spokesperson stated that the government will hold consultations on employment status and consider ways for the Fair Work Agency to exercise its powers in civil proceedings. The government’s labor reform also includes a ban on exploitative contracts with zero guaranteed working hours and the right to statutory sick pay starting from the first day of employment.
