The rise of the gig economy has led to a growing number of workers, from Uber drivers to Deliveroo couriers, challenging their “self-employed” status and fighting for better pay and conditions. As the number of people working in the gig sector continues to grow, there are increasing calls for the law to be updated to adequately protect these workers.
Under UK employment law, there is a clear distinction between “workers”, “employees”, and the “self-employed”. Workers and employees are entitled to certain rights, such as the national minimum wage and paid annual leave, while the self-employed have no such entitlements. However, the reality is that many gig economy workers are classified as self-employed by the companies they work for, despite the level of control these companies exert over them.
This summer, Uber drivers took the firm to an employment tribunal, while Deliveroo couriers withdrew their labour over plans to move them to a payment-per-delivery model rather than an hourly rate. UberEats couriers have also taken action over pay. The courts will now have to determine the true employment status of these workers under existing law.
The key factor in establishing employment status is the concept of “mutual obligation” – whether there is a genuine contractual relationship where both parties are obliged to fulfil their side of the bargain. For workers, this means they must be obliged to provide the services personally, rather than sending someone else in their place. For employees, there must also be an element of control by the employer.
However, the nature of the gig economy, with its shift-based arrangements and lack of guaranteed work, means the issue of “mutual obligation” is often unclear, particularly in the periods between shifts. This could mean workers are not considered employees or workers for those intervals, and therefore miss out on rights such as holiday pay and protection from unfair dismissal.
While the law needs to be reviewed to better protect gig economy workers, making changes will not be straightforward. The fundamental requirement of “mutual obligation” for a contractual relationship to exist means there will always be a grey area where workers fall short of full employee status. The law also has to recognise the distinction between those effectively controlled by an organisation, those with looser arrangements, and those genuinely self-employed.
As the gig economy continues to grow, ensuring fair treatment and adequate rights for these workers must be a priority. The upcoming court cases will be closely watched, as they could have significant implications for the future of employment law in the digital age.
