Burnham urged to crack down on gig economy firms to protect 4m workers

Labour's Andy Burnham is facing pressure to crack down on gig economy firms to safeguard 4 million workers. Campaigners, including the Fabian Society and the Joseph Rowntree Foundation, argue that millions of gig economy workers are missing out on crucial rights, such as sick pay, parental leave, and protection against unfair dismissal.

Publishing a joint report, the thinktank and charity urge the government's Fair Work Agency to use its powers to prosecute companies suspected of "widespread bogus self-employment." The report also calls for changes to employment laws to combat the longstanding misuse of the system. Britain's employment laws are notably different from those of other leading economies, featuring three classifications of employment status: employee, self-employed, and a middle ground "worker" status.

However, an estimated 4 million workers, including those in hairdressing, personal training, delivery services, and gig economy platforms, find themselves in the "worker" status, lacking the same protections as full employees. Critics say many have been hired in this limbo to avoid granting them employment rights. Although Labour had pledged to create a single "worker" status, this plan was never enacted and remains unresolved.

Business lobbies Labour to maintain its Employment Rights Act, which includes anti-exploitation measures such as zero-hours contract bans and day-one statutory sick pay rights. However, experts contend that shifting the burden of proof to the employer would help secure these rights for gig economy workers and streamline legal battles.

A government spokesperson emphasized the plan to bolster secure employment and improve job security, with the Fair Work Agency already assisting workers in securing their rights.