Under the gig economy, a worker gets paid for each “gig” they do and does not get paid a regular wage. Typical gig economy jobs are Uber driving, Deliveroo deliveries and web development.

Those in favour of the gig economy claim that it gives workers flexibility to pick up shifts or work as and when they want to. This can be beneficial for people with families who want flexible hours. It also allows people with a regular job to create a new income stream or make money from a hobby.

However, many opponents claim that it exploits workers. Many gig economy workers have no guaranteed income and often do not have any employment rights, such as protection from unfair dismissal, the right to paid holidays and the right to be paid the National Minimum Wage.

There is often a lot of uncertainty around the rights that gig economy workers have, so here is a guide to try to help shine some light on the subject.

Establish if you are an employee, worker or self-employed

There are three categories of employment status:

• employee
• worker
• self-employed

It is important to note that the “employer” cannot choose what category you fall into. “Employers” will sometimes put clauses in contracts that explicitly state that the individual is not a worker or employee. However, which category of employment status you fall into depends on the circumstances and arrangements that are in place between you and your “employer”.

The category you fall into will determine the rights that you have.

You’re classed as an employee if you:

• have an employment contract from your employer, formed when you accept the job
• tend to be provided with regular work by your employer
• are employed to do the work personally
• must do the work that your employer tells you to do

Employees’ employment rights include:

• a written document outlining your job rights and responsibilities, as a minimum
• sick, holiday and parental leave pay
• being able to claim redundancy and unfair dismissal after two years’ service

You are likely to be classed as a worker if:

• you have a ‘contract for services’ (to do work or provide a service for a payment or reward), which can be verbal or written
• you are employed to do the work personally
• you have very little obligation to receive or do work (for example, a zero-hours contract where you’re offered work on an ‘as and when’ basis) but should do work you’ve agreed to

A worker’s employment rights include:

• National Minimum Wage
• paid holiday
• payslips
• protection against unlawful discrimination
• protection for whistleblowing
• not being treated less favourably if you work part time

You’re usually classed as self-employed if you:

• are responsible for how and when you work
• are the owner of a company or are a freelancer
• invoice for your pay
• get contracts to provide services for clients
• are able to send someone else to do the work for you, if appropriate
• are able to work for different clients and charge different fees
• do not get paid holiday or sick leave

If you’re self-employed you have some employment rights including:

• protection for your health and safety on a client’s premises
• protection against discrimination

Workers should closely examine all of the circumstances and arrangements of their relationship with their “employer” to determine which category of employment they are most likely to fall into and what rights they are entitled to.

Changes on the horizon

In April 2019, the European Parliament approved new minimum rights for gig economy workers. When the new changes are implemented, gig economy workers across Europe will have a right to compensation from their bosses for last-minute cancellation of work. Any mandatory training will have to be provided free of charge to workers, and counted as paid working time. The new rules will also require employers to give workers a formal starting date and pay information, and an indication of what the standard working day will be. Employers will also have to give workers a formal description of their duties from day one. Whether these changes will be implemented in the UK post-Brexit remains to be seen.

Written by Employment Law Glasgow

DISCLAIMER: This article should not be regarded as constituting legal advice in relation to particular circumstances. It is merely a general comment on the relevant topic. If specific advice is required in connection with any of the matters covered above, please speak to Employment Law Glasgow directly