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What the gig economy is

The “gig economy” is a relatively recent term. Generally, it is the idea that people do flexible, short-term work by providing services for an organisation, such as a company. Often, but not always, the gig economy is associated with companies who use digital platforms (e.g. phone apps) to promote their services to customers (e.g. food delivery).

Some other phrases for the gig economy include:

  • Insecure labour
  • Platform, on-demand or online economy

A ‘gig’ is a job that lasts until that specific task is completed. For example, the ‘gig’ for a food delivery driver is delivering a specific customer order they received from the organisation they work for.

Food or goods delivery, taxi services, retail, cleaning, care, accountancy, IT, construction and many more.

Working out your employment status in the gig economy and why it matters

It is important to work out what your employment status is because this affects the number and type of employment rights you have. Genuinely self-employed people have the fewest employment protections; workers have some; and employees have the most.

It can be difficult to determine your correct employment status when working in the gig economy. More information about how to do so can be found on our page how to work out your employment status. What is written in your contract can help you work out your employment status, but it is not the final say. It is important to consider the actual working relationship you and the organisation you do ‘gigs’ for have.

For example, if you personally have to undertake the ‘gig’ and are not allowed to send someone else in your place, then you are more likely to be classed as a worker, rather than self-employed. If the company you work for closely controls your work, such as telling you where, when and how to work, or what to wear, this also suggests you are a worker. Conversely, if you are able to pick and choose your ‘gigs’, set the prices you charge or even send someone else if you are not available, then you may be genuinely self-employed.

If you think you are self-employed, you can access information on our page about rights for the self-employed.

You and the organisation you perform ‘gigs’ for may disagree about your correct employment status.

Some companies operating in the gig economy have been treating people doing ‘gigs’ for them as self-employed. Disputes have arisen between companies and staff about employment status and been considered by the courts. In February 2021, a group of drivers won a landmark case against the business Uber, best known for its ride hailing app (Uber BV v Aslam [2021] UKSC 5 case). In the Uber case, the written contract said the drivers were self-employed. The Supreme Court decided that because of the way the relationship worked in reality, the drivers were actually workers and therefore entitled to all the employment protections that workers have. The case shows how courts will not just look at your written contract but at how your working relationship operates in real life.

As a result of cases like Uber, some organisations operating in the gig economy have changed the terms they give to the people performing ‘gigs’ for them, for example by now offering national minimum wage or paid holiday entitlement.

Not all people working in the gig economy have got the legal rights of a worker: it depends on the specific working relationship with the organisation you do ‘gigs’ for. But you can potentially challenge the employment status you have been told you have if it does not reflect your actual working arrangements (through internal company processes and/or at an Employment Tribunal).

For more information on the Uber case visit: Uber drivers are workers not self-employed, Supreme Court rules.

You can find more information about bringing a Tribunal claim on the ACAS website.

People working in the gig economy are usually offered work in the form of ‘gigs’, such as completing a delivery.

A zero hours contract is a type of contract someone in the gig economy might be working under. A key feature of this type of contract is that it does not guarantee the person performing the work a minimum number of hours of work. Zero hours contracts may also be used in other sectors.

For more information visit our pages about zero hours contracts.

Where you can find the terms of your gig economy work

Right to receive a written statement of terms

If you are legally classed as a worker and started your job after 6 April 2020, you have the right to receive a written statement of terms. This document includes key information about your working arrangements e.g. hours and location of work, how much and how often you will get paid.

The written statement must be provided on or before the first day you start work.

Your written statement does not override the minimum statutory rights that you have as a worker. For example, if your written terms say you will be paid £3 per hour, this would not be correct; you are entitled to be paid at least National Minimum Wage.

A full list of the information that must be listed in the statement can be found on the government's website.

If you think you have a problem with your written terms, there are lots of different ways to try and deal with the problem yourself.

If you believe that the document containing your written statement exists, but you have not received it yet, you can make a formal Subject Access Request. There is a helpful guide explaining how to do this on the Information Commissioner’s Office website: Your right of access | ICO

Citizens Advice has some good advice on their website about what you can do.

Rights you might have as a gig economy worker

Right to National Minimum / Living Wage

The National Minimum Wage (if you are of school leaving age, up to 22) and National Living Wage (if you are over 23) is the minimum amount that a worker (or employee) should be paid for every hour they work. If you are self-employed you are not entitled to this.

The amount you are paid depends on your age. The rates change every April and the most up to date rates are available on the Government website. Your wage should be set out in your written statement of terms. Your wage should not be less than the statutory minimum, but it could be more.

For general guidance on National Minimum Wage, you can visit the government's website. You can also check the rates for the National Minimum/Living Wage.

For more information on your entitlement, you can review the guidance on the ACAS website.

If you think you are not being paid the minimum wage, there are lots of different ways to try and deal with the problem yourself. ACAS has some good advice on their website about what you can do.

If you are too unwell to work, you can potentially receive Statutory Sick Pay from the organisation you work for. The rate changes each year and is available on the government website.

To qualify for Statutory Sick Pay (SSP) you must be:

  1. Classed as an employee or a worker;
  2. Earn at least £120 per week; and
  3. Have been ill or self-isolating for at least 4 days in a row (including no-working days)

SSP is not available to self-employed gig economy workers.

To find out how much sick pay you can get, look at your written terms of work. You cannot receive less than the Statutory Sick Pay but you can receive more if your organisation has an enhanced sick pay scheme.

Further guidance regarding sick pay entitlement can be found on the government's website.

If you are not eligible for SSP, you may be eligible for benefits such as Employment Support Allowance. Check your eligibility.

If you think the amount of sick pay you have been offered is wrong, or you have been refused sick pay, there are lots of different ways to try and deal with the problem yourself.

Citizens Advice has some good advice on their website about what you can do.

Your right to holiday pay

Statutory holiday

You must be classified as a worker (or employee) to qualify for holiday pay. Holiday pay is not available to self-employed gig economy workers. If you are a worker, you have the right to 5.6 weeks’ (28 days) paid annual holiday. It is often referred to as statutory leave entitlement or annual leave.

If you work irregular or part time hours, your pay will be calculated in proportion to every hour that you work. To calculate this, you can use the government’s holiday entitlement calculator tool: Calculate your holiday entitlement.

Further guidance regarding your holiday entitlement can be found on the government's website.

If you think the amount of holiday entitlement you have been offered is wrong, there are lots of different ways to try and deal with the problem yourself.

Citizens Advice has some good advice on their website about what you can do.

If your employer will not pay you for any holiday you have not taken, you can also contact your nearest Citizens Advice here: Contact us - Citizens Advice.

Your right to a rest break

As a worker, you are entitled to statutory rest breaks at work. You are not entitled to statutory rest breaks at work if you are a self-employed gig economy worker.

If your daily working time is more than 6 hours, you can take one uninterrupted 20-minute rest break during the working day. You are also entitled to spend it away from your workstation (if you have one).

By law this does not have to be paid. Only certain organisations will do this, so check your written contract to see if your break will be paid.

Your written contract may say you are entitled to longer breaks to those mentioned, but it must never be less than the statutory minimum.

There is more detailed information on entitlement to rest breaks on the government's website.

If you think you are working too many hours without a break, there are lots of different ways to try and deal with the problem yourself.

Citizens Advice has some good advice on their website about what you can do.

Protection from discrimination in the workplace

Discrimination is when you are treated less favourably because of your age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, or sexual orientation.

Workers are entitled to protection from discrimination in the workplace. Specifically for workers in the gig economy, the law protects you from being discriminated against when being allocated work.

There is more information on equal treatment at work on our page about being treated fairly and equally.

There is more information about discrimination at work found on the government's website.

If you do think you have been treated unfairly at work, there are lots of different ways to try and deal with the problem yourself.

Citizens Advice has some good advice on their website about what you can do if you are discriminated against at work.

If you are struggling to deal with the problem yourself, there are lots of places where you can get more help.

Before you contact anyone for support, it’s really important to have as much information as possible.

Things you might need include:

  • a description of the problem you are having
  • a copy of your employment contract (if you have one)
  • a copy of any recent pay slips (if you have one)
  • a copy of any letters or emails between you and the person you work for that relate to the problem you are having
  • details of any conversations about the problem you have had with the person you work for

We’ve compiled a list of advice centres in London to help you find out where to get help.

The following services can also provide general advice on employment rights:

  • Law Centres (national) – find out if you have a local free legal advice centre
  • Citizens Advice – find your nearest Citizens Advice
  • ACAS (the Advisory, Conciliation and Arbitration Service)

We've created a map of advice centres in London to help you find out where you can visit someone to get help. We've also provided their details in a list. Lots of them also give advice over the telephone or via email.

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