The modern evolution of the “gig economy” through the growth of companies including Uber, Deliveroo and Pimlico Plumbers, is challenging the existing construction of employment law and its ability to adapt to and regulate this type of modern-day employment. If left unregulated, this working environment has the potential to give rise to increased job insecurity and contribute to the vulnerability of workers engaged without rights including sick pay and holiday pay. 

The employee status of those involved in the gig economy has had considerable attention in employment tribunals and courts in the UK and in many countries across the world where the gig economy has similarly prospered. Determining the legal status of individuals employed in the gig economy as either self-employed individuals or workers is a vital distinction in terms of the employment rights available to them. Workers benefit from employment rights including sick pay, holiday pay, rest breaks and the National Minimum Wage, whereas self-employed individuals don’t.

The ongoing ambiguity for individuals engaged in the gig economy has led to the much-anticipated Taylor Review of Modern Working Practices. This review, published in July 2017, intended to provide the Government with recommendations for much needed legislative reform in this area. Are these recommendations representative of solutions for the challenges facing those employed in the gig economy and how will employment law adapt to meet the needs of those employed in modern-day businesses?

Taylor Review Recommendations

The Taylor Review engaged with key stakeholders, including businesses, employee representative bodies and the legal profession, to analyse and understand the implications of modern-day business models and the current situation on rights and duties of workers. Despite this due diligence, the report has been criticised for failing to represent the struggles faced by the modern-day workforce. 

The report includes a number of recommendations concerning various aspects of employment law and current employment structures: 

How Should Employment Law Adapt to Modern-Day Challenges?

With an estimated 1.1 million people working in the gig economy in the UK, this style of work would appear to be here to stay. Although the gig economy provides individuals with a great deal of flexibility, in reality, employers are equally able to utilise the lack of security inherent in these contracts to their financial advantage, for example by denying basic employment rights including sick pay on the basis that those engaged in employment are self-employed.

In what has become a fast race to the bottom on employment conditions, many of the recommendations proposed in the Taylor Review seem inadequate and discouraging. The future of the gig economy and zero hour contracts will likely be determined by the outcomes of employment tribunal cases.

Brexit equally has the potential to shape the composition of employment law to meet the challenges presented by modern-day employment structures. The UK’s departure from the EU is unlikely to have a significant impact on many UK employment laws by virtue of the fact that many have been brought into effect via UK legislation that will remain in force post-Brexit. However, not to miss the opportunity presented by the constitutional and political crisis that has evolved following the Brexit vote, the inevitable review of EU aspects of UK employment law may be an opportune time to also consider a legislative regime affording specialised rights and duties for those engaged in the gig economy.

Contact Miller Samuel Hill Brown for Legal Advice regarding Employment Law

Our employment law team has experience advising clients on all aspects of employment law and HR issues. For legal advice on employment matters or concerns in relation to your employee status, please complete our online enquiry form or call us on 0141 413 9633.