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Gig Economy: Legal Rights and Employment Status.
Flexible work is booming—but what rights do gig workers actually have?
The gig economy refers to short-term, flexible work arrangements outside traditional employment. Typical roles include ride-sharing, food delivery, freelance services, and platform-based tasks. While flexibility is a key benefit, legal protections have historically lagged behind.
Employment Status: What’s Changed?
Following the landmark Supreme Court ruling in Uber v Aslam (2021), many gig workers are now classified as ‘workers’, not self-employed contractors. This entitles them to core employment rights, including:
National Minimum Wage
- Paid Holiday Leave
- Rest Breaks and Maximum Working Hours
- Protection from Unlawful Deduction of Wages
Importantly, ‘worker’ status is a legal middle ground—not full employee status, but more than self-employed. It applies when individuals perform services personally and are not genuinely running their own business.
Government Guidance and HMRC Position.
The UK government has published consolidated guidance to help businesses and individuals determine employment status. HMRC also applies its own tests for tax purposes, which may differ from employment law. This can affect PAYE, NICs, and IR35 obligations.
Support for Small Businesses: Clearer rules help micro-businesses and SMEs avoid accidental non-compliance. By understanding obligations early, firms can support staff reasonably and reduce legal risk.
Why It Matters:
- Fair Pay and Conditions: Gig workers gain access to basic protections.
- Business Confidence: Employers can hire flexibly without breaching employment law.
- Reduced Exploitation: Legal clarity discourages misuse of self-employment models.
Disclaimer: Solicitors.com is not a firm of solicitors. Content on this site is not legal advice and should not replace consultation with a regulated solicitor. We strive to provide accurate and up-to-date information; however, no content is guaranteed to be completely accurate. Use of this site does not create a client relationship.
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