Burnham urged to protect 4 million gig economy workers
Campaigners are calling for action to safeguard gig economy workers' rights, including sick pay and protection against unfair dismissal.
By The Guardian
Campaigners are urging Andy Burnham, the Mayor of Greater Manchester, to take action to protect 4 million gig economy workers by prosecuting companies that employ widespread 'bogus' self-employment practices. The call comes from the Fabian Society and the Joseph Rowntree Foundation, who warn that many workers are missing out on essential statutory rights such as parental leave, redundancy pay, and protection against unfair dismissal.
In a joint report, the Fabian Society and the Joseph Rowntree Foundation stress the need for changes to ensure that work pays, particularly amid the ongoing cost of living crisis. They recommend that the government's Fair Work Agency, which was launched in April 2026, utilise its civil proceedings powers to take action against companies suspected of engaging in bogus self-employment.
The report highlights that Britain's employment laws are unique among leading economies, featuring three classifications of employment status: employee, worker, and self-employed. The latter two categories offer limited protections, and many gig economy workers, including hairdressers, personal trainers, and delivery drivers, fall into this gap. Experts suggest that gig economy companies often hire workers in this manner to avoid granting them full employment rights.
Previously, Labour had proposed creating a single 'worker' status for all but genuinely self-employed individuals, but this plan was retracted to mitigate Conservative criticism ahead of the 2024 general election. Although Labour has promised to consult on moving towards a single worker status, no concrete steps have been taken yet.
The report also calls for a shift in the burden of proof regarding employment status from the worker to the employer, which would help workers avoid lengthy legal battles to secure basic rights such as minimum wage and holiday pay.
Luke Raikes, deputy general secretary of the Fabian Society, stated that the government must ensure that employers who exploit employment law do not undermine those who comply with it. He emphasised that if a situation resembles employment, workers should be treated as employees by default, with enforcement actions taken against non-compliant employers.
A government spokesperson responded, stating, 'Our plan to make work pay will boost secure employment, improve job security and deliver stronger, higher living standards. The Fair Work Agency is already helping workers get the rights they are entitled to. We’ve committed to consult on employment status and will consider how the Fair Work Agency can use its civil proceedings power alongside that.'