Flexible Business Model of Gig

The British government is all set to preserve the flexible business model of gig companies. Uber Technologies Inc. supported the government’s decision but the unions opposed the decision.

The taxi-hailing service, Uber and food delivery company, Deliveroo are employing temporary employees. These are self-employed workers who are not entitled to workplace rights and get minimum wage. Addison Lee, taxi service and Uber were sued in this issue. They fought in court and both of them lost in the battle.

The data are from RSA suggests that about 1.1 million people are working in Britain’s gig economy. In this huge number, 28% work in legal work, accountancy, or other consultancies, 17% in cleaning and other household services, 18% in plumbing, building and other skilled manual work, and 9% in delivery and courier services.

The issue of modern workplace practice is reviewed by the government commission. The business ministry said that it would legislate to improve the clarity of the employment status tests. Banning zero hours which gives no job guarantee on working hours will be reviewed by the government. The flexible ‘gig working’ is compatible with respect to employment protections.

An Uber spokeswoman informed that “We welcome more clarity from the government and look forward to working closely with them to make sure drivers can keep all the benefits that come from being your own boss”. Deliveroo also replied that it would work with the government to advance the interests of its riders.

Britain’s biggest trade union strongly opposed the government’s plan. The Independent Workers Union of Great Britain has won worker rights court cases against Uber. But it lost to Deliveroo. This union also criticized the government’s plan.

Britain’s governing Conservatives are introducing legislation to rule out the ‘Swedish derogation’. The ‘Swedish derogation’ will allow contract workers to be hired on cheaper rates than permanent employees by some companies.