The online gig economy is one of the most significant developments in the labour market, but employment rights must keep up with employment practices, said Damien Green, UK secretary of state for work and pensions.

Green made his comments during a speech on the welfare system at a London-based think tank called Reform.

“Just a few years ago the idea of a proper job meant a job that brings in a fixed monthly salary, with fixed hours, paid holidays, sick pay, a pension scheme and other contractual benefits,” Green said. “But the gig economy has changed all that. We’ve seen the rise of the everyday entrepreneur.”

He continued: “This is one of the most significant developments in the labour market. The potential is huge and the change is exciting. But we need to make sure that employment rights keep up with employment practices, and the welfare system is increasingly flexible itself to cope with a more flexible world of work.”

The need to keep up with modern forms of work such as the gig economy is why the government announced the Taylor Review, he said.

Staffing Industry Analysts defines the gig economy as all contingent work; however, the term is also defined more narrowly by many as temporary work facilitated through the use of an online platform such as Upwork or Freelancer.com.