Gig economy firms warned by UK government they may be operating illegally
Gig economy firms warned by UK government they may be operating illegally
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Companies supplying ‘freelance’ workers contacted by minister over practices that could breach employment law. Gig economy companies supplying “freelance” workers to shops, restaurants and warehouses may be operating illegally, the government has warned, after a series of Observer reports highlighting their use.
![[Justin Madders ]](https://i.guim.co.uk/img/media/486b362a4ae1317b355180eb04597f9adf0d1ad1/0_133_4000_2400/master/4000.jpg?width=445&dpr=1&s=none&crop=none)
Justin Madders, the employment rights minister, last week wrote to YoungOnes and Temper, which provide thousands of purportedly self-employed workers to British businesses, to tell them their business practices could be breaching employment law and staffing agency regulations.
![[Andy McDonald]](https://i.guim.co.uk/img/media/91d122bf21c03369283164895ccd4e26de52c981/0_123_2916_1750/master/2916.jpg?width=445&dpr=1&s=none&crop=none)
In almost identical letters to the Dutch-owned platforms, Madders states that “bogus self-employment is entirely unacceptable” and he will “not hesitate to ask all relevant authorities to scrutinise employers or agencies whose behaviour appears to be exploitative”.
Madders is concerned the freelance workers on the platforms are not receiving employment rights. He adds it is unacceptable for businesses to claim people are self-employed “when it does not represent the reality of the relationship”. He demands that the chief executives of YoungOnes and Temper confirm the steps their companies are taking to comply with the laws governing employment status and employment agencies in the UK.
The letters come after the Observer revealed gig shop workers who refused to pay charges to YoungOnes to receive their wages promptly were left waiting for payment over Christmas. The growing use in the retail sector of gig economy workers, who lack basic employment rights, has been described as “worrying” by the TUC.
