Two gig economy apps that provide ‘freelance’ workers to high street retailers have been warned they may be operating illegally by the government.
Employment rights minister Justin Madders has written to YoungOnes and Temper, two Dutch-owned companies which provide UK businesses with “self-employed” workers, to tell them their operations could be in breach of employment law and staffing agency regulations.
In the letters, Madders stated that “bogus self-employment is entirely unacceptable” and he would not hesitate to ask authorities to “scrutinise employers or agencies whose behaviour appears to be exploitative”.
Last month, several retailers were accused of recruiting young ‘gig workers’ without basic employment rights for seasonal work, according to an investigation by the Observer. It said high-street brands including Urban Outfitters, Lush, Gymshark and Uniqlo were recruiting “freelance” workers through gig economy apps, such as YoungOnes and Temper.
Gig economy apps
Deliveroo, Just Eat and Uber face calls for app transparency
Earlier this month, the newspaper also revealed that gig workers who refused to pay a charge to YoungOnes to receive their wages within three days were left waiting up to 30 days for payment.
Madders said it is unacceptable for businesses to claim people are self-employed “when it does not represent the reality of the relationship”.
He has called on the chief executives of YoungOnes and Temper to confirm the steps their companies are taking to comply with the laws governing employment status and employment agencies in the UK.
He has also asked the Employment Agency Standards Inspectorate, part of the Department for Business and Trade, to investigate YoungOnes and Temper.
The letters state: “We believe your business to be an employment agency”. They add: “If the legislation and regulations apply to you, some of your business practices that have come to our attention are unlikely to be compliant with the law”.
Madders also referred to a Temper briefing – since deleted – that said freelancers are not covered by fair tipping laws, which was first reported in the Observer. He wrote that the workers the company provides are “likely to be agency workers” and therefore covered by the Employment (Allocation of Tips) Act 2023, which came into force in October.
YoungOnes told the Observer it had responded to Madders’ letter saying employment rights law and agency regulations do not apply to the company. “While neither framework applies to YoungOnes, we remain aware of, respect and understand these laws and regulations,” said James Medd, chief operating officer.
He said the platform did not offer or assign shifts, but that businesses post gigs and freelancers choose the ones that suit them.
Medd added: “They have full transparency regarding hours, can negotiate their pay and decide whether to accept – it is entirely their choice.”
The company said it offered freelancers a range of payment options to choose from. “When applying for a gig, freelancers can view the average payment speed of a business, ensuring they are fully aware of the expected timeline,” said Medd.
A spokesperson for Temper said: “Temper operates with full confidence in the legality of our model, which has been rigorously evaluated in both the Netherlands and the UK. We stand firmly committed to ethical practices, transparency and contributing positively to a sustainable labour market.”
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
HR roles in retail and wholesale on Personnel Today
Browse more HR roles in retail and wholesale