MPs' report calls for legislation to protect gig economy workers
A parliamentary report has called on the government to introduce legislation which will aid so-called 'gig economy' workers and prevent companies from withholding benefits from their staff.
The Work and Pensions and Business, Energy and Industrial Strategy select committees have prepared the report, which criticises the behaviour of 'irresponsible companies' which take advantage of workers.
Companies such as Deliveroo and Uber have been criticised by the select committees in the past for their employment model, which they say gives workers more flexibility to choose their own hours.
Work and Pensions committee chair Frank Field has led the charge against gig economy firms and said that those working under such conditions were not getting a fair deal.
"The bill would put good business on a level playing field, not being undercut by bad business. It is time to close the loopholes that allow irresponsible companies to underpay workers, avoid taxes and free ride on our welfare system," Field said.
A draft bill is to be jointly introduced by the two committees to tackle the issue.
There are an estimated 1.3m gig economy workers in the UK, representing over 20% of the freelance workers in the country.
Earlier this month, Uber lost a major employment tribunal case in London, after it challenged a ruling last year which upheld drivers James Farrar and Yaseen Aslam’s claims that they were entitled to benefits such as sick pay and paid holidays.
Union group Unite said on Monday that the introduction of the bill would be a "step forward" in tackling bogus self-employment.
Unite assistant general secretary Gail Cartmail said: “The draft bill would be an initial step forward in tackling the rampant bogus self-employment which afflicts industries such as construction.
“Unite has always been clear that without decisive government action the rampant exploitation, casualisation and the hire and fire culture which is undermining the long-term effectiveness of the construction industry, will not be tackled.