The gig economy: Your rights as a UK worker

The UK’s gig economy is growing, offering lots of flexible jobs. For individual workers, figuring out the legal aspects, like what rights you have and what your job title really means, can be tricky.

This piece aims to unravel some of the confusion surrounding the UK gig economy, and to signpost you to some of the main areas you need to understand if you’re working in the gig economy. In particular it focuses on the different kinds of jobs out there and what your associated employment rights are.

 

What’s the gig economy all about?

The gig economy is like a large marketplace for short-term jobs or freelance work, rather than the usual 9-to-5 positions. The term “gig” is slang for musicians’ jobs but nowadays includes all sorts of temporary work, like driving for an app, delivering goods, writing, coding, or designing.

For businesses, the gig economy makes it easier to find help as and when they need it, without the costs and overheads associated with more traditional forms of employment.

For workers, it’s popular because individuals can choose when they work and where they work.

 

Your gig economy job category and why it matters

Where you fit in the gig economy – as a worker, employee, contractor, or self-employed person – really matters because it affects your rights at work.

Workers usually do jobs like app driving or task-based work. They’re legally entitled to minimum wage, paid holidays, rest breaks, and can’t have their pay unfairly cut.

Employees have a more regular job with one employer and get all the worker rights plus some extras, like paid leave for new parents, protection if they’re unfairly dismissed, redundancy pay if their job ends, and sick pay.

Contractors and self-employed people choose their projects and can often negotiate better deals for themselves.

But they miss out on the statutory rights that workers and employees have. They also have to deal with IR35 rules, which can affect their taxes if they’re not really working like a self-employed person.

Workers are also sometimes unfairly labelled as self-employed, so that their employers can avoid paying things like holiday pay, sick pay, employers’ national insurance contributions and sometimes even the national minimum wage.

 

Getting help when things go wrong

Workers and employees

UK laws like the Employment Rights Act 1996, the Equality Act 2010 and the National Minimum Wage Act 1996, protect you.

If you have problems, like unfair treatment or not getting your rights, you can try to settle out of court with a settlement agreement or take your case to an employment tribunal.

Contractors and self-employed

You might be able to argue that you are not really self-employed and that you are actually a worker. Tribunals will decide this kind of dispute if, for example, you think you’re owed holiday pay.

If you’re self-employed and face unfair treatment, there are ways to protect your rights, like county courts for contract issues. You can also get help with tax problems under IR35, or in special courts designed to deal with ‘intellectual property’ disputes if, for example, someone uses your work without permission.

 

Stay informed

The gig economy keeps changing, and new legal decisions can affect your job and rights. Whether you’re a worker, employee, self-employed, or contractor, it’s smart to keep up with your legal rights and get advice early if you run into problems.

Knowing your employment rights and where you stand can make a big difference in how well you do in the gig environment and how you handle any hurdles along the way.