UK (Parliament Politics Magazine) – The British government has contacted gig economy firms, such as YoungOnes and Temper, over potential violations of employment laws after concerns raised.
Following a series of reports from The Observer, the government has issued a warning that gig economy companies providing “freelance” employees to shops, restaurants, and warehouses might be breaching the law. The matter is now under official investigation, as reported by The Guardian.
What did the employment minister, Justin Madders, warn YoungOnes and Temper about breaching employment laws?
In a letter sent last week, Justin Madders informed YoungOnes and Temper, which provide thousands of self-employed workers to companies in Britain, warning that their business practices could be in breach of employment laws and staffing agency regulations.
Mr. Madders issued nearly identical letters to the Butch-owned platforms, stating that “bogus self-employment is entirely unacceptable,” and added that he would “not hesitate to ask all relevant authorities to scrutinise employers or agencies whose behaviour appears to be exploitative.”
He raised concerns over the absence of employment rights for freelancers on these marketplaces. The employment minister further stated that it is not acceptable for firms to describe individuals as self-employed, “when it does not represent the reality of the relationship.”
Mr. Madders has urged the CEOs of YoungOnes and Temper to outline the measures their businesses are implementing to ensure compliance with legal requirements and agency guidelines.
Why did YoungOne’s new payment system spark complaints from gig workers?
The letters come in the wake of The Observer investigation, which reveals how gig workers who declined to pay fees for prompt wage payments were left without their pay over the Christmas period.
The Trades Union Congress (TUC) has described the growing use of gig economy workers in the retail industry, who are deprived of fundamental employment rights, as “worrying.”
YoungOnes’ new payment system has sparked more complaints from employees, who, if they refuse to pay a fee for quicker payments, are forced to wait for clients to clear the company. This delay creates financial instability for gig workers who rely on regular income to cover living costs.
Why did YoungOnes leave a gig worker waiting for payment?
A bar worker, who remained anonymous, revealed that he has yet to receive payment for a shift he finished over a month ago.
While telling about the payment he stated,
“The company have been awful to deal with and have sent me tone-deaf replies, essentially stating they haven’t been paid either, so it’s not too bad. The difference being I’m a person trying to supplement my wages and make ends meet by picking up gig work and they are a huge company profiting off of that.”
In response to the worker’s complaint, YoungOnes clarified the matter, stating, “wait for the client to pay,” there is always a risk if the buyer fails to pay their charges.
What did YoungOnes say in response to the employment minister’s letter?
In a reply to Mr. Madders’ letter, YoungOnes argued that the company is not bound by employment rights regulations or staffing agency laws.
James Medd, chief operating officer of YoungOnes, said,
“While neither framework applies to YoungOnes, we remain aware of, respect and understand these laws and regulations.”
Mr. Medd added that YoungOnes does not assign shifts but allows firms to post gigs, and freelancers can choose those that match their preferences.
What was the Temper stance on the letter written by the employment minister?
The gig firm, Temper, in response to the letter, welcomed the chance to engage in a positive discussion with the Department for Business and Trade.
A spokesperson from Temper stated,
“Temper operates with full confidence in the legality of our model, which has been rigorously evaluated in both the Netherlands and the UK.”
It continued that the firm is dedicated to ethical practices and making a positive impact on the labor market.
Keir Starmer urged to introduce single legal status for workers
Earlier this month, during the Prime Minister’s Questions session, Sir Keir faced pressure to establish a unified legal status for employees to prevent further violations of employment rights.
Andy McDonald, Labour’s former shadow employment rights secretary, urged Keir Starmer that insecure work undermines workers’ rights. He suggested,
“Having a single status for workers will help end such abusive practices.”