Gig Economy Flashcards
1
Q
What is the Gig Economy?
A
- Labour market based on prevalence of short term contracts or;
- free lance work
- No permanent jobs
2
Q
Why is the use of the word ‘gig’ regarded as misleading?
A
- ‘Gig’ usually refers to casual work
- Under the Gig economy the majority of persons who do work is their main source of income
3
Q
What are seen as some of the positives of the gig economy, in respect of FLEXIBILITY, for gig workers?
A
- in most cases they have flexibility over their own working hours
- they are not required to undertake work
- they are empowered
- people can use jobs as supplementary income
- women in particular are able to prioritise starting a family without sacrificing an income
- Students do not have to dedicate themselves to long hours and large amounts of control to earn a wage and can concentrate on other aspects of life to further their studying
4
Q
What are the positives of the gig economy, in respect of FLEXIBILITY, for companies?
A
- Firms with seasonal highs and lows can benefit from flexible staff as they are only needed when consumer demand is high, which enables them to maintain affordable overheads when demand is low
- Quite simply companies can avoid providing even the most basic work type protection
- companies can afford to undercut competition by keeping costs low as they do not need to pay workers when consumer demand is low
5
Q
What are the negative aspects of the gig economy, in respect of FLEXIBILITY, for gig workers
A
- there may be little to know worker protection, and the employer may not be bound by legislation
- The flexibility aspect in practice may not be as flexible as is made out e.g. deliver
6
Q
Aslam v Uber 2016
A
UBER DRIVERS WERE ‘WORKERS’ PER LIMB (B) OF THE ERA 1996
- In this case Uber drivers brought claims before an ET that they were entitled to the NMW
- Their argument was based on the fact that they were not independent contractors but workers under s.230(3)(b)
- Uber’s argument was based on the fact drivers were not obliged to turn on app and therefore it was not consistent with a contract of or for services
HELD - Drivers were workers at all times in which the Uber app was switched on, they were working in authorised area and were able and willing to accept assignments
- Drivers were subject to large amounts of control by Uber that independent contractors are not
- The written contract bore no resemblance to the reality
- Decision means Uber drivers are now entitled to holiday pay, sick pay and NMW
7
Q
How did the judge cleverly sum up the Uber drivers case?
A
- “the notion that Uber is a mosaic of 30,000 small businesses linked by a common ‘platform’ is, to our minds, faintly ridiculous
8
Q
Pimlico Plumbers v Smith 2018
A
DECISION OF THE SUPREME COURT
Employment rights of workers in the gig economy have been boosted by this decision
- Plumber in this case worked as part of Pimlico and argued he was a worker entitled to workers rights
- Pimlico argued that he was not a “worker” within the definition of the ERA 1996 s.230(3)(b), arguing that his contract contained a substition clause meaning he was not contractually obliged to undertake work himself
HELD - Appeal refused
- The appellant in this case was a “worker” within limb (b)
- He wore the uniform of the company, as well as driving a van branded with their logo
- Moreover, he was required to work a minimum number of hours per week showing a degree of control
- Smith’s services to the company’s customers were marketed through the company (therefore not an independent provider of services)
- Pimlico could therefore not be regarded as a customer or client of a business run by the appellant
9
Q
IWGB Union and Roofoods Limited t/a Devliveroo, 2017, Central Arbitration Committee
A
- This case show clear exploitation of the gig economy through use of a simple clause in a contract
- Deliveroo in this instance did not deny the existence of a contract between themselves and courses and accepted that they were not customers or clients of a business of the courier
- They made the case that couriers could not be “workers” within the limb (b) definition as they were not personally obligated to perform the job for deliveroo as it could be passed on to another
HELD - That the rider had a genuine contractual right to substitute another person to do their work and therefore did not satisfy the requirement of personal service
- Other factors such as being able to work for competitors and having no obligation to accept work helped in the decision
- NOT BINDING PRECEDENT, PIMLICO BINDING FROM SUPREME COURT
10
Q
Jivraj v. Hashwani 2011
A
GENUINE CASE OF SELF-EMPLOYMENT
- This case referred to an arbitrator who was appointed to arbitrate between proceedings of two men
- One man argued that his employment was unlawful as it breached the term of a contractual agreement
- the other man stated that agreement was now void due to implementation of new Regulations which stated it was discrimination to choose between different offerings of services based on religion
HELD - Arbitrator is not “employed” within the meaning of the Regulations and therefore they could not apply to him
- In this case the Supreme Court described an arbitrator as an independent provider of services and was not in a relationship of subordination
- This being despite the fact he was receiving payment for his work
11
Q
What is the significance of Jivraj v Hashwani 2011?
A
- It provided a clear picture of when a person is genuinely self-employed
- Contrasting to those in the gig economy in this case an arbitrator was being paid for his personal service for which he could not delegate
- However, the arbitrator did not render personal service for the parties
- What is key is that he was an independent provider of service and was not in a relationship of subordination
12
Q
Why is the gig economy beneficial for the ‘youth’?
A
- The ability to swap shifts without hassle
- Using apps to standardise their work
- Gives students particularly a chance of earning an income without the need for commitment
13
Q
Why is the gig economy arguably beneficial for women?
A
- provides an opportunity for women to remain working despite wanting to start a family
14
Q
What are recommendations of the Taylor Review?
A
- A clearer outline of the tests for employment status, which set out key principles in primary legislation
- Renaming, as ‘dependent contractors’, those workers who are not employees but work under a contract whereby they undertake to do or perform personally any work or services for another party to the contract
- A new dependent contractor test with the degree of control being of greater importance and with less emphasis on the requirement to perform work personally
- Consider the introduction of a higher NMW rate for hours that are not guaranteed as part of a contract
15
Q
Why is the outcome of Pimlico significant?
A
- Exposes how widely sham self employment is being used
- It has put further pressure on the government to step in and end exploitive practices within the gig economy
