A government review into the so-called ‘gig economy’ has called for a new worker category to be set up in order to ensure workers’ rights in what would be an employment law overhaul.
The new category, called “dependent contractors,” should receive benefits such as sick pay and holiday leave as well as some minimum wage requirements, according to the report.
The new rules will help clarify the grey area between employed and self-employed that these workers, such as Uber and deliveroo riders, occupy which is currently ignored by current employment law.
The review will also introduce a structure whereby firms operating with dependent contractors will need to outline how a person working for them can earn at least 1.2 times the current national living wage of £7.50 an hour for those over 25.
This would be illustrated by the number of tasks an average person can complete, working at an average rate.
In instances where workers are unlikely or unable to earn the minimum wage, due to a shortage of work for example, it will be up to the gig worker as to whether or not to accept this rate.
Workers rights increases
National Insurance contributions, holiday- and sick pay, are seen as part of the trade off between companies who offer flexible working within the gig economy.
However for those who are down as dependant contractors, this is likely to be back at the responsibility of the company as the report makes the provision that many workers work at these companies for an average amount of hours per week.
The Government is likely to act quickly on this issue, and it is likely to receive little push-back, meaning that changes to employment law are expected, therefore companies should be prepared for when and if that is the case, if they are using task-based workers.