The media appears to be full of headlines talking about the gig economy at the moment. The topic even featured in election campaigning last week, with political parties talking about zero-hours contracts and other employment related issues. But what exactly is the gig economy and does it matter?
The gig economy is a way of working that is based on people having temporary jobs or doing separate pieces of work, each paid separately, rather than working for an employer. Source: Cambridge Dictionary
The gig economy is another form of freelancing or self-employment. The gig economy phrase was coined to highlight the fact that people get paid for each ‘gig’ they complete. This is in contrast to a standard employment contract – whether permanent or temporary, which would usually be based on a number of hours worked. Famous examples of the gig economy include food deliveries for companies such as Deliveroo, taxi drivers for companies such as Uber, couriers and even independent contractors such as plumbers, in the recent employment case affecting Pimlico Plumbers.
Flexibility or exploitation?
On the one hand, the gig economy like other forms of freelancing and self-employment usually offers greater flexibility. People can choose to work as and when they have time available, rather than being tied to a regular hours arrangement. However it does mean that gig workers are not classed as employees, so they have no rights when it comes to things like holiday pay, sick pay or maternity pay.