A revitalised gig economy free from controversy is in all of our best interests

Back in 2009, the gig economy promised to revolutionise the relationship between companies and the people working for them. The main attraction of the gig economy is that it offers freedom; freedom to set your own rules and have the flexibility to work when it suits. This was the future of employment, but fast-forward a few years and the sector has become mired in debate and controversy, with many gig economy platforms being accused of exploiting workers.

These criticisms are valid. But today, the gig economy has an essential role to play in the UK’s post-pandemic recovery because it’s accessible: anyone who can’t find full-time employment can find work in the gig economy, which offers them greater financial security at a time when the job market is weak. Gig work also doesn’t have to be permanent; it can be a stop gap until a more stable career opportunity presents itself. On top of all the positives the gig economy offers workers, it also drives down public debt by reducing the need for out-of-work benefits programs. It can reopen the career ladder to unemployed workers, who for whatever reason, struggled with the strictures of set hours.

But let’s not pretend there isn’t an underbelly.

The vast majority of gig economy workers don’t receive any of the protections offered to contracted employees.

They’re overwhelmingly uninsured, don’t receive sick pay and have zero entitlement to annual leave. Even in the midst of labour shortages, there has been little incentive for employers to  improve workers’ conditions. They may shell out extra money but they don’t provide a safety net.

If we want to see the gig economy flourish, digital platforms need to take the initiative and offer workers the basic protections that they have long been denied, rather than leading to a race to the bottom on workers rights.

Not only will this help attract and retain the best talent, but there is a moral imperative as well: the protection of employees is something that every company in the world should care about.

Why should it be an issue to protect the people whose jobs drive your company’s valuation? This should be the number one rule of any business: first you should care for your employees and then your clients.

Gig economy platforms need to clearly address these pressing social issues and help build more sustainable workplaces for everyone.

Thankfully, a small number of companies have started to move in the right direction on this issue. JustEat now offers thousands of its riders employee status, which means they get holiday and  sick pay as well as  pension allowances.

For us, our prices had to increase by 25 per cent to offer our workers the protection they deserve.

A few customers left, but on the whole, the market can take it. Unlike the Uber model of gig economy employment, this arrangement offers workers proper contracts and protections while still ensuring flexibility for customers.

Offering gig economy workers a contract and better conditions results in a greater degree of employee retention, more consistency in companies and ultimately a great retention from clients.

It has a short term sting but no tail dragging after it; the long term benefit outstretches the initial pain.

Gig economy platforms should utilise tech for good in order to protect people and ensure they have a better future.