PanamaTimes

Friday, Apr 19, 2024

What is the gig economy and how will it be affected by Uber's announcement?

What is the gig economy and how will it be affected by Uber's announcement?

The taxi app has been forced to upgrade conditions after a lengthy legal battle, but what might it mean for other workers?

Uber's announcement of basic employment rights for its drivers comes after a long-running court battle that could force a shake-up in the so-called gig economy.

What is the gig economy?


The term describes a way of working where work is assigned on a short-term or job-by-job basis via platforms such as Uber, a taxi app, Deliveroo, a takeaway food service, or courier companies such as Hermes or DPD.

Other smaller platforms connect people with opportunities from office and administration work to teaching, gardening and domestic jobs.

Some use the work to top up their main salary or as a stop-gap, while for others it is the main source of income.

Until now, employers have been able to save on costs because those workers are classed as self-employed contractors rather than employees.

That meant they were not seen to be entitled to paid sick leave or holiday, or pensions, and - the companies argue - gave those contractors the flexibility to pick and choose when and how much they want to work.

Data on the UK gig economy is scarce, but the Chartered Institute for Personnel and Development (CIPD) estimated in 2017 that 1.3 million people, or 4% of all those in employment, worked in it.

Delivery firms such as DPD also use self-employed workers


What's the problem?


Uber's argument about the independence of drivers was not accepted by the Supreme Court.

It pointed out that the company sets fares and other terms and drivers have no say in them, and they can be penalised for not taking enough jobs or if they score poorly on a customer rating system.

The judges concluded that drivers are "in a position of subordination and dependency to Uber", with "little or no ability to improve their position through professional or entrepreneurial skills".

Unions say gig economy workers should be entitled to the same benefits and protections as everyone else.

While Uber says it will now do the right thing on worker benefits, for its private hire drivers at least, critics say that is only because they have been dragged "kicking and screaming" to do so.

The Supreme Court rejected Uber's arguments


Does this mean gig economy workers now have the same rights as everyone else?


No. The court ruling at the centre of all the latest developments classed the Uber drivers who brought the case as "workers".

That's a halfway house somewhere between self-employed and employee status.

It means that they are entitled to rights such as minimum wages and paid holiday - and in some cases statutory sick pay and paid parental leave.

But they usually miss out on others, such as minimum notice periods if they are sacked, time off for emergencies and statutory redundancy pay.

Courier firm DPD has already, in 2018, offered its drivers the chance to upgrade their employment protections to those of a "worker".

People classed as workers are entitled to minimum wages


What are the wider implications?

Susannah Streeter, an analyst at Hargreaves Lansdown, thinks Uber's move will "reverberate through the entire gig economy".

But Uber argues that it is specific to the private hire vehicle part of its business - and not, say, food delivery operations such as its own Uber Eats brand or rival Deliveroo.

It has also caused disquiet over the issue of what time its cab drivers should be paid for.

The Supreme Court says they should be entitled to wages for any period when they are logged on to the Uber app, but the company says they will only be paid from the time they accept a trip request.

Lawyers for the drivers in the case, James Farrar and Yaseen Aslam, said they were concerned that Uber was seeking to "cherry-pick" aspects of the judgment and would be poring over the detail.

Mr Farrar and Mr Aslam said Uber's move would leave Uber drivers "short-changed to the tune of 40-50%"

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×