The Gig Economy – What is it?
The term ‘gig economy’ is now being referred to on a regular basis, but what is it?
A definition of the gig economy is ‘a way of working that is based on people having temporary jobs or doing separate pieces of work, each paid separately, rather than working for an employer’.
This way of working is becoming increasingly popular with the individual arguably having the flexibility to undertake different types of work. A view of this type of working has also been viewed as a situation where people are exploited as cheap labour.
Recently this type of working has been challenged via the employment tribunal system with two high profile cases involving Uber and Pimlico Plumbers. The initial outcome of such cases has determined that individuals engaged within this method of working as a worker. Thus resulting in workers entitled to be paid the national minimum or living wage, and to receive annual leave and statutory sick pay.
This situation has raised questions about the status of an individual whilst undertaking short term work or ‘gigs’. Are they a worker or are they self- employed?
If you are an organisation working or considering using individuals on a ‘gig’ basis you should obtain the right advice in order to avoid any pitfalls.
For further advice you can contact us at Atom HR for peace of mind.