Burnham urged to crack down on gig economy firms to protect 4m workers
Summary
Andy Burnham is being urged to protect 4 million gig economy workers by prosecuting companies that use false self-employment status to avoid giving worker rights. A report from the Fabian Society and Joseph Rowntree Foundation calls for stronger laws and enforcement to ensure gig workers receive protections like parental leave and redundancy pay.Key Facts
- About 4 million gig economy workers, such as drivers and personal trainers, often have limited rights due to being classed as self-employed.
- The Fabian Society and Joseph Rowntree Foundation warn many workers miss out on key legal protections like parental leave and protection against unfair dismissal.
- The report urges the Fair Work Agency to use its powers to prosecute companies that misclassify employees as self-employed.
- Britain’s employment law has three worker statuses: employee (most rights), self-employed (few rights), and an intermediate "worker" status with some rights.
- Labour once promised a single worker status but delayed the plan due to political pressure before the 2024 election.
- Proposed employment rights changes aim to ban exploitative zero-hour contracts and give sick pay from day one but face business opposition.
- The report recommends shifting the burden of proof so employers must prove a worker is self-employed, reducing legal fights for workers.
- Burnham has expressed determination to improve employment rights and protect insecure workers.
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