The next government should sweep away confusion over rights for workers in the so-called gig economy, the Institute of Directors says.
The organisation, which represents 30,000 business leaders, said that while the growth of self-employment has created flexibility for individuals and companies, it has created uncertainty over employment status. In a recent survey, three quarters of IoD members said they would support clearer legal definitions of the terms “worker”, “employee” and “self-employed”.
The IoD is calling on the next government to create an online portal that workers, especially those in the gig economy, can use to determine whether they qualify for employee benefits such as sick pay and pension contributions.
In its latest pre-election briefing paper, the IoD said the government should use the same format as the questionnaire on the gov.uk website that tells people whether they are self-employed or an employee for tax purposes.
The paper calls for “a range of new policies to make sure the changing jobs market works for everyone”.
Advertisement
Its recommendations include opening up the apprenticeship levy to allow the self-employed to use its funds and courses. Employment agencies that pay the levy would be able to use it to train self-employed contractors.
It also recommended that workers on online platforms for services including cleaning and other chores be allowed to carry their profile and customer reviews from one platform to another, to keep their ratings. It points out that such reviews are effectively a CV.
The paper also calls for government departments and the Advertising Standards Agency to ensure that adverts for self-employed work fully state both the benefits and the costs of the job.
Jamie Kerr, co-author of the IoD’s report, said: “Whoever is in No 10 after June 8 must tackle the specific challenges of gig work, while ensuring that self-employment continues to be a worthwhile route for those looking for the flexibility and autonomy that it offers.”
The status of gig economy workers has become contentious as companies including Uber, Deliveroo and Amazon have faced legal claims from some of the drivers and couriers they use.
Advertisement
In April, a parliamentary inquiry by the work and pensions committee accused these sorts of companies of tricking or forcing their workers into signing away their employment rights.
As a result, the companies were spared having to pay the living wage, employer pension contributions or sick pay, thereby “contributing little to the public purse or our social safety net”.
Frank Field, Labour chairman of the committee, told The Times: “These companies are laughing all the way to the bank. They want to present themselves as enlightened, 21st-century companies yet they employ 19th century work practices.”