Addressing The Pros And Cons Of Gigging

The gig economy is defined as ‘ a labour market characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs’. Whilst there is a lot of attention to the gig economy in recent months – so called as people only get paid for each ‘gig’ that they do, this isn’t a new thing. For years people have under taken work for several employers by being self-employed or by taking on specific roles on a contract or as an ‘interim’.  Short-term contracts and interim work was driven by organisations wanting more flexibility to get certain tasks and projects done without having to permanently employ people. That need and the popularity of interim roles, saw people switch to working through a registered limited company which allowed them to comply with the Inland Revenue rules and avoid being classed as a full time employee. Interim roles remain popular and guarantee certain hours of work. Cutting costs The increase in employers only wanting to pay people when they have the demand for the work has now led to an entirely different employment practice. Zero hours contracts came to the fore in recent years to give employers more flexibility and control over the wage bill. Those contracts at least award people holiday pay, but sadly not sick pay or any guaranteed hours of work. The gig economy is meant to provide individuals with flexibility but it does not provide for any employment benefits at all. So is it something that truly gives people flexibility to only work when they want to, or is it a method for employers to cut back on expensive employee costs and holiday pay? Exploitation or flexibility? The difference between it being a means of exploitation or an individual using it for flexible employment, really comes down to who is in control. If it genuinely allows an individual flexibility and a way of managing all of the demands of their life, and only working when they chose to, then it can work very well. The difficulty for individuals is when the employer is in control. As it is a way of cutting out the expense of holiday, sick pay and all the other costs of people on full employment contracts, it has become a very attractive option for organisations to keep their costs down. And if that is the only way of getting paid work, individuals have had to go along with it. With landmark high profile cases recently winning the right to be classed as employees, and a host of others taking out claims, it gives a very clear indication that for the majority of cases, it is the employer who is in control insisting on freelance work rather than the individual looking for flexibility. Is it time for a review? As it is estimated that the gig economy will mean a reduction in collected tax of £3.5billion by 2020, it has now sparked the interest of the Treasury and the Government has started an enquiry in to these different ways of working. As these employment practices have negatively hit the Government purse, undoubtedly the rules will be tightened up in the not too distant future and change will come. It will put costs up for organisations, which may have a negative effect and reduce their business and service offering, but it will at least provide for a better way of ensuring fair and equal treatment of individuals wanting to work.