Gig economy workers should have better rights, review argues
Workers in the "gig economy" should be given a new status of "dependent contractor", with additional rights and protections, according to a report published today.
The review of employment practices carried out for the UK Government by Matthew Taylor, chief executive of the Royal Society of Arts, is based on the "overriding ambition" that "All work in the UK economy should be fair and decent with realistic scope for development and fulfilment."
This matters, the report states at the outset, so that people, especially the lower paid, have routes to progress and are treated with respect and decency; because quality of work is an major factor in enabling people to stay healthy and happy; because work that gets the best out of people is important in tackling low productivity; because we should, "as a matter of principle, want the experience of work to match the aspirations we have for modern citizenship"; and because "the pace of change in the modern economy, and particularly in technology and the development of new business models, means we need a concerted approach to work which is both up to date and responsive and based on enduring principles of fairness".
While the national living wage is a "powerful tool" for low paid workers, "It needs to be accompanied by sectoral strategies engaging employers, employees and stakeholders to ensure that people – particularly in low paid sectors – are not stuck at the living wage minimum or facing insecurity but can progress in their current and future work."
Regarding employment status, the report wants "legislation [to do] more of the work and the courts less". For those in the gig economy, the key employment protections are there to support anyone who is not genuinely self-employed and it should not be that easy for employers to avoid responsibilities in this way. "We therefore think that it is important for Government to ensure that the absence of a requirement to perform work personally is no longer an automatic barrier to accessing basic employment rights", it concludes. More emphasis should be placed on control as a test and less on personal service.
Firms such as Uber and Deliveroo, which control and supervise their workers should pay a range of benefits, including national insurance, sick pay and holiday pay. Such workers as these should be recognised as dependent contractors.
Zero hours contracts should not be banned, as many people who work zero hours want to do so. Instead, those on zero hours contracts are given the right to request fixed hours.
However cash payments for jobs such as window cleaning should be phased out, as many of these are untaxed. Mr Taylor hopes that, over time, transaction platforms such as PayPal and Worldpay would bring a shift away from these.
Speaking on BBC radio, Mr Taylor said there was too much work, particularly at the bottom end of the labour market, that was not of a high enough quality.
"There are too many people at work who are treated like cogs in a machine rather than being human beings, and there are too many people who don't see a route from their current job to progress and earn more and do better."
Labour and the trade unions said the report did not go far enough. TUC general secretary Frances O'Grady stated: "From what we've seen, this review is not the game-changer needed to end insecurity and exploitation at work."