Research Highlights Issues in Gig Economy Worker Status and Pay

Research by Matthew Taylor, which builds on a review conducted by the Tories, highlights problems in the parcel delivery sector. The report suggests that many self-employed drivers are paid based on parcel numbers or unreasonable targets, rather than actual hours or costs incurred, leading to sub-minimum wage pay and poor service quality. The report notes that approximately 900,000 people are in what is termed “bogus self-employment” and are denied minimum wage and holiday pay by firms.

The findings relate to the classification of gig workers, who are legally entitled to minimum wage and benefits but are denied them by companies. The Labour Party has promised an imminent “clampdown” to reclassify these workers as ‘workers,’ which would fundamentally change labor costs and operational requirements for courier and private hire firms.