Freelance platform YoungOnes accused of charging fees for timely wages
Freelance platform YoungOnes accused of charging fees for timely wages

main article
Retail assistants have accused Dutch freelance platform YoungOnes economy firm of “holding them to ransom” by making them pay a fee if they want to receive their wages within 30 days, according to The Guardian.
According to The Guardian, Tom Gillam, who has worked at least six shifts at mattress company Emma Sleep’s store in Manchester, said gig workers on low and irregular wages needed money quickly to buy essentials and pay bills. “People do gig work for short-term cash … it feels like we’re being held to ransom,” he said. “It is so immoral it’s unreal.”
Gillam also claimed some of the workers at the store were last week still waiting to be paid for shifts in late November and early December.
YoungOnes, which has its headquarters in London, offers three payment options. The first option is to receive payment once the client settles their invoice with Young Ones. The Guardian article failed to acknowledge that this is not unreasonable nor atypical. The company’s website explains that businesses usually take about 14 to 30 days to pay up and puts the onus on the freelancer to follow up with the client if payment is delayed.
The other options are where YoungOnes will cover the debtor risk on the freelancer’s behalf and, as The Guardian article explains, receive payment in three days for a 2.3% fee or within one minute for a 4.8% fee. While it is not unreasonable that YoungOnes should charge a fee given the additional risk and cash flow issues they will incur, whether the percentages charged for this service are fair is another point entirely.
Freelancers should be aware that other talent platforms offer different payment options and, as SIA’s recent Trends in Earned Wage Access report explains, some intermediaries will charge the client for this service, some charge the client and the freelancer, while others will not charge anyone at all.
Executive Director of Global Research, John Nurthen, said, “YoungOnes is not the only talent platform offering faster payment options and, if freelancers want to be paid quickly, they would be well advised to shop around to see where they can get the best deal. The good news is that, in order to attract talent, many workforce intermediaries, including temporary staffing agencies, have started to compete on speed of pay which is a wholly positive trend for workers.”
James Medd, YoungOnes’ Chief Operating Officer, told The Guardian that the new payment system allowed freelancers to choose between standard payment terms at no extra cost or pay for faster options. “We deeply value the freelancers on our platform and understand the challenges they face, particularly when it comes to payment timelines,” he added. “They have the freedom to decide when, where, and with whom they work.”
Emma Sleep said it took the allegations very seriously. It said “payment issues” were reported by some workers but the team had been paid for several weeks now. “Emma is committed to continuously improving the working experience for freelance employees in our stores while ensuring full compliance with labour laws,” said a spokesperson.
The minister for employment rights, Justin Madders, told the Observer he would be asking the Employment Agency Standards Inspectorate to investigate the allegations against YoungOnes.
Liam Byrne, chair of the business and trade committee, which is examining the government’s employment rights bill, told The Guardian, “We’re deeply concerned that companies will try to get around the law and continue to exploit vulnerable workers by pretending they are self-employed when they should enjoy the full protection of the law.”
The UK’s Employment Rights Bill will bring forward 28 individual employment reforms, however, the new protections will not apply to the estimated 4.4 million people working in the gig economy.
The UK government has pledged to consult on a streamlined two-tier employment framework, differentiating between genuine self-employment and other worker categories. However, no proposals have been released so far.
SIA reached out to YoungOnes for comment.
Tags: UK, gig worker, freelance platform, Netherlands, wages