The Gig Economy and the Future World of Work

Agenda for today What is the gig economy? Does it fit into employment law? What might change in the future?

What is the Gig Economy?

The Gig Economy What is it? “a labour market characterised by the prevalence of short-term contracts or freelance work as opposed to permanent jobs” – Oxford English Dictionary

The Gig Economy in the UK 33m workers in the economy 5m self employed (and increasing) 1.1m gig workers (and increasing) Larger numbers of young people working in it London centric

Why is it attractive? Flexibility (on both sides) Chance to develop skills Talent pipeline Less of a fixed overhead for employers Avoids costs of hiring and training Saves tax

BUT! “Tracking the work they do … All of that feels Dickensian in its failure to respect workers as human beings. They are just commodities. There is something really sickening about it.” -Frances O’Grady, general secretary of the TUC

Surge in Gig Economy is costing £4bn a year in lost taxes BUT! Surge in Gig Economy is costing £4bn a year in lost taxes

DPD courier dies awaiting treatment – fined for taking a day off BUT! DPD courier dies awaiting treatment – fined for taking a day off

Gig Economy Recent cases draw attention to employment status issues Aslam and others v Uber BV and others- 2016: A number of Uber drivers brought claims for unlawful deductions from wages on the basis that Uber had failed to pay them the National Minimum Wage and failed to provide them with paid leave The tribunal had to consider whether the drivers were ‘workers’ and could bring the claims Uber’s case was that it was simply a technology platform which puts drivers in touch with passengers and it is in no way a provider of taxi services Uber had complex contractual documentation which set out the relationship between it, the drivers and the passengers

Gig Economy Recent cases Employment Tribunal confirmed that the claimants were workers. The ET findings: The contractual documentation between Uber and drivers said one thing, but the reality was different Asserted control over the drivers by, for example, threatening to block drivers from their app if they turned down work Uber was not a client or customer of the drivers as it contended Uber’s claims that there was a contractual relationship between driver and passenger was not the reality of the situation. Driver had no idea of passenger identity and could not negotiate on fare price

The Uber Case ‘The notion that Uber in London is a mosaic of 30,000 small businesses linked by a common platform is to our minds faintly ridiculous’

Gig Economy Uber summary Tribunal concluded that drivers were workers once the driver has: Turned on the app; Is ready and willing to accept fares; and Is in the territory in which they’re authorised to drive. Now going to the Court of Appeal

Deliveroo Speak Induction ‘Onboarding’ Performance Management ‘Supplier Agreement Review’

Deliveroo Speak AWOL ‘Your rider App has been inactive of late’ Dismissal ‘Deactivation’

Employed V Self employed

Zero Hours Contracts

Taylor Review Why was it commissioned? Rise of the “gig economy” Fear that employment law has not kept up Lack of worker rights The context of tax

Recommendations Greater clarity on employment status “Dependent contractors” Written statement of terms Easier enforcement of rights NMW and platform workers

Recommendations Higher rate of pay for non guaranteed hours Right to request guaranteed hours Proposals for holiday pay Greater involvement of employees

Contact Lee Jefcott Partner, Employment and Pensions Brabners LLP DDI: 0161 836 8898 Mobile: 07989 810008 Email: lee.jefcott@brabners.com