The gig economy describes the employment contracts done by individuals on a temporary or specific project basis rather than being a full-time employee.
We have already written on this topic. Last week another similar case was ruled upon, which could have a significant impact on the gig economy.
The delivery network City Sprint had classed Maggie Dewhurst, a courier for the firm, as self-employed or an independent contractor, rather than a worker or employee. Because of this status she was not allowed sick pay, holiday pay or a guaranteed wage, despite having worked for the firm for two years.
Big firms such as Uber, CitySprint, Addison Lee, Deliveroo and Excel tend to consider their employees as self-employed rather than workers in order to avoid giving them the employment rights due to an employee. These rights include being paid the national minimum wage, getting the statutory minimum level of paid holidays and rest breaks. The fact that self-employed workers do not have the rights of those with employment contracts can be very convenient for these big firms.
The Employment Tribunal judged that Maggie Dewhurst’s contract in fact gave her worker status. Which therefore affords her many more employment rights than she had previously. While Uber intends to appeal, CitySprint has not clarified its position yet. In the UK, the firm currently has 3500 independent contractors, Maggie’s case could therefore lead to many other claims. It seems fair that these physical and intense jobs should have some sort of protection. While the gig economy can be considered a very innovative and productive way of working, it can lead to one party taking a advantage of the other. It appears that the law is not adapted to this new way of working, as the number of claims relating to the gig-economy is rising. CitySprint has 42 days since the day of the judgment to appeal, therefore we shall see the improvement made to the law in the following weeks.
While Uber intends to appeal, CitySprint has not clarified its position yet.
In the UK, the firm currently has 3,500 independent contractors, Maggie’s case could therefore lead to many other claims and the company will have to redraft its employment contracts, no doubt having to give up commercial advantages.
It appears that the law is not yet adapted to this new way of working, as the number of claims relating to the gig economy is rising.
CitySprint has 42 days from the day of the judgment to appeal, therefore we shall see the improvement made to the law in the following weeks and keep this article updated.
By Lily Wilde
Image used under CC courtesy of alx_chief