Government targets gig economy workers with rights overhaul

The government introduced a package of workplace reforms aimed at workers on zero-hour contracts, agency employees or "gig economy" workers on Monday, in an attempt to woo voters who are "just about managing".

The new legislation is intended to ensure that workers are informed of their rights, including eligibility for sick pay and paid maternity of paternity leave, on their first day on the job, while also giving employees the ability to request more regular hours.

Ministers claim the legislation, which is based on recommendations made by former Tony Blair adviser Matthew Taylor, will also close a loophole that has allowed employers to pay agency staff less than permanent employees and increase maximum fines against employers from tribunals from £5,000 to £20,000.

Business secretary Greg Clark said: "Today's largest upgrade in workers' rights in over a generation is a key part of building a labour market that continues to reward people for hard work, that celebrates good employers and is boosting productivity and earning potential across the UK."

However, the Labour Party and trade unions have criticised the measures as not going far enough, especially for workers on zero-hour contracts.

Frances O'Grady, general secretary of the Trades Union Congress, said that even with the new legislation zero-hour contract workers would have "no more leverage than Oliver Twist".

"Unless unions get the right to organise and bargain for workers in places like Uber and Amazon, too many working people will continue to be treated like disposable labour," said O’Grady.

Meanwhile, shadow business secretary Rebecca Long Bailey said the government needed to do a lot more to reassure the growing number of people on zero-hour contracts, especially as people faced the threat of a "botched" Brexit deal.

But the government has agreed with Taylor’s view that completely banning zero-hour contracts "would negatively impact more people than it helped" as working for the likes of Deliveroo and Uber supposedly offers "genuine two-way flexibility" for employers and workers.