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UK – Gig economy growth means 1.5 million workers at risk of missing out on employment protection

16 December 2016

One in ten workers in the UK are in “insecure employment” due to the growth of the gig economy, with 1.5 million workers at risk of being denied employment protection, according to a report from the Trades Union Congress.

The report, “Living on the Edge,” states that 3.2 million UK workers (1 in 10) are now in so called ‘precarious work’, and the number of workers at risk of missing out on key employment protections has nearly doubled in a decade to 1.5 million (an increase of 700,000). It states that 1.5 million people now risk missing out on protection from unfair dismissal and the right to redundancy pay (even if they have worked for two years or more for an employer). And nearly half a million (485,000) have no legal right to sick pay due to low pay.

Figures from the report show that zero-hours workers now earn £3.80 less an hour than the average employee, a third less (34%), compared to 26% less in 2006. Hourly pay for zero-hours workers has increased by 67p in the last decade. Self-employed workers now have earnings 40% lower than those of employees, compared to 28% lower a decade ago.  One in three (34%) self-employed households earn less than £200 a week, over 1.2 million families. Moreover, casual workers still get paid nearly 40% less an hour than the average worker, which showed no improvement on a decade ago.

The Trades Union Congress is calling on the Taylor Review to strengthen the employment protections for non-regular workers.

“Insecure work has exploded in the past decade. In far too many cases, the only people who’ve benefitted are bad bosses. Sports Direct can’t be the employment model for the 2020s,” Trades Union General Secretary Frances O’Grady said.

“Gig economy workers face the double hit of poverty wages and weaker employment rights,” O’Grady said. “Whether they’re waiting tables or driving for Uber, all workers deserve respect, fair pay and basic protections. But the law hasn’t kept pace with how work has changed.  That’s why the Taylor review must drag the rules that protect working people into the 21st century.”

“Every day, unions expose the worst excesses of the gig economy and win important victories for workers across the country – just look at what we’re doing at Sports Direct and Uber. Any serious attempt to crack down on precarious jobs has to have trade unionism at its heart,” O’Grady said.