In a recent Uber case an employment tribunal held that two drivers were workers (rather than self-employed), and were therefore entitled to the national minimum wage, paid rest breaks and statutory holiday pay The plight of the gig workers has been hot news for some time – with accusations of exploitation by the platform companies, “bogus” self-employment, sham contracts and underpayment regularly featuring in the media. Reform is now on the agenda.
But before looking at what changes could be introduced, it’s helpful to understand current employment law and how it affects people working in the gig economy . Distinctions in status
The law differentiates between workers, employees and the self-employed. The distinctions are important because workers and employees have certain rights, such as entitlement to the national minimum wage and paid annual leave. Employees also have additional rights, such as the right to statutory sick pay and protection from unfair dismissal (normally subject to two years’ service). Self-employed contractors have no such rights. Read more What is written in the contract does not determine employment status and it’s what is happening in practice that counts. While unscrupulous businesses operating in the gig economy may deliberately refer to a “self-employed” […]