Gig economy workers need more protection: review

LONDON — Workers in the so-called gig economy, from Uber drivers to delivery cyclists, need greater labour protections, according to a review published Tuesday that underscores fears of growing insecurity in the workforce.

The study by Matthew Taylor, a former adviser to Tony Blair, concluded that a new category of worker — the “dependent contractor” — should be created to secure genuine flexibility for labourers. While some workers like the flexibility, others suffer from job security in contracts that, for example, offer no guarantee on the number of hours to be worked. Such insecurity can make it hard, say, to get a mortgage — even when someone is in regular work.

By one estimate there are some 1.1 million people in Britain’s gig economy — almost as many as those who work in the National Health Service. Such workers are often dispatched by app-based companies like the ride-hailing service Uber, as the internet and smartphones cut the link between jobs and the traditional workplace. The new “dependent contractor” term signals a shift in thinking, said Sean Nesbitt, a partner at the international law firm of Taylor Wessing.

“The use of ‘worker’ carries associations of Victorian law of master and servant which to some are just too old school, and not fit for a modern industrial strategy,” he said. “(Dependent contractor) is a term ... consistent with the idea that you can be an economic agent and have rights, without needing to be an employee — a status that might be available to fewer people in the future.”

Taylor’s report is considered to be an important piece of research in addressing the challenges of a quickly changing workplace. Taylor set out seven “principles for fair and decent work,” including additional protections for workers suffering unfair, one-sided flexibility.

“At its heart, this review is about the relationship between employers and the people who work for them,” the report said. “We have heard many examples of excellent employment relations where the principles of quality work are woven into the fabric of the corporate ethos. We have also heard accounts of poor management practices which make people’s working lives miserable.”