MPs move to limit gig economy

MPs move to limit gig economy

"This aligns with Taylor's desire to replicate good working practices which are undertaken by many United Kingdom employers and this together with the recommendation that the Director of the Labour Inspectorate takes a proactive approach to enforcement, conducting a deep dive into industry practices, will have a similar effect", Nicol said.

The Committees also stated in the bill that the current situation in the gig economy puts an unacceptable burden on workers to address poor practice through an expensive and risky court case while the companies themselves operate with relative impunity.

The Labour-led committees have supported a large number of the recommendations of the government-backed Matthew Taylor review into modern employment and gig economy working.

Frank Field, chairman of the Work and Pensions Committee said the draft bill would "end the mass exploitation of ordinary, hard-working people in the gig economy".

We set out below the Report's key recommendations - we have noted where the proposal is also reflected in the draft Bill.

"Currently, these 1.3 million workers have few rights and are entirely excluded from the auto-enrolment programme due to their self-employed status", NOW: Pensions director of policy, Adrian Boulding, said.

In the gig economy, instead of a regular wage, workers get paid for the "gigs" they do, such as a food delivery or a auto journey.

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That would mean they'd have to pay them minimum wage, grant them time off for holidays or illness and contribute to a pension pot. So they want a "wage premium" for hours when work is not guaranteed, along with encouraging these companies to provide staff rotas and shift details.

"Uber, Deliveroo and others like to bang the drum for the benefits of flexibility for their workforce but now all the burden of this flexibility is picked up by taxpayers and workers", Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy Committee, said. "A flexible workforce is fundamental to many businesses to be able to respond to the fickle demands of our present economy, particularly if they want to grow and continue to offer work to those who need flexibility in their working life", she said".

It is also facing a challenge to retain its operating licence in London after transport chiefs said it could not be renewed on corporate responsibility grounds. Last week, Deliveroo won in a case that ruled its riders are self-employed and not employees.

MPs have called for a change in the law to prevent companies exploiting workers.

"Riders make on average £9.50 an hour with Deliveroo, well above the National Living Wage".

The CAC said it made the decision because Deliveroo's riders have the right to put forward a substitute to do their work in place of them.

"Swedish derogation" loophole to be eliminated: This has enabled some employers to opt-out of equal pay for agency workers with more than 12 weeks' service, which has been "subject to widespread abuse". The company has previously said it would pay sickness and injury benefits to its riders if laws were changed.

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