Fines Suggested For Gig Economy Companies Exploiting Loopholes

Businesses in the “gig economy” are exploiting loopholes in employment law to the disadvantage of workers, according to a group of cross-party MPs.
 
In a draft bill, two Commons committees suggest companies should be fined if they falsely classify workers and deny them benefits such as holiday pay and sick pay.
 
The proposed legislation comes from the work and pensions committee and the business, energy and industrial strategy committee. It seeks to put pressure on the Government to respond to Matthew Taylor’s report on the modern job market which was published earlier this year.
 
Labour’s Rachel Reeves, who chairs the business committee, said “companies should pay higher wages when they are asking people to work extra hours or zero-hours contracts”.
 
A spokesman for the Government said it recognises the “labour market is not working for everyone”.
 
Gig economy businesses such as Uber and Deliveroo argue their workers are self-employed, although Uber has lost several legal cases over the issue. 

Image: Deliveroo has been subject to a legal challenge.