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Zero hoursLatest NewsEmployment contractsRetail

Retailers accused of hiring ‘gig’ workers with no rights

by Jo Faragher 16 Dec 2024
by Jo Faragher 16 Dec 2024 Lush is one of the retailers accused of hiring gig workers via casual work apps
Richard Oldroyd / Shutterstock.com
Lush is one of the retailers accused of hiring gig workers via casual work apps
Richard Oldroyd / Shutterstock.com

Retailers are recruiting young ‘gig workers’ without basic employment rights for seasonal work, an investigation by the Observer has alleged.

A number of high-street brands including Urban Outfitters, Lush, Gymshark and Uniqlo are accused of recruiting “freelance” workers through gig work apps such as YoungOnes and Temper.

These apps are then promoted to young people via social media platforms such as TikTok.

As gig economy workers, they are technically self-employed, so do not have the same employment rights as other salaried workers or agency temps, such as holiday pay, the national minimum wage and rest breaks.

Urban Outfitters, for example, posted an advert on YoungOnes for “friendly young people” to work across a number of stores in Stratford, Marble Arch, Glasgow and Edinburgh.

Gig workers

Zero-hours reforms should exclude agency workers, says APSCo

Where the agency workers’ zero-hours consultation falls short 

Lush advertised for five freelance checkout staff during busy periods in Liverpool, and Gymshark sought 30 assistants for its main London store.

Tim Sharp, senior policy officer for employment rights at the TUC, told the newspaper that this was a “worrying” new development.

“It would seem absurd to most people that someone can do a job like working in a shop and not be entitled to basic legal protections. There is a big question mark over the employment status of these supposed freelancers.

“It’s about firms being able to flex staff up and down – this is clearly passing on risk from the business owner to the individual staff member and we think that’s unacceptable.”

The government has pledged to crack down on “exploitative” zero-hours contracts, but apps such as those used by the retailers could potentially get around any forthcoming legislation.

Under the bill as it stands, employers must offer zero-hours workers a guaranteed hours contract at the end of every “reference period”.

However, trade body APSCo has recommended that agency workers are not covered by the ban, claiming that guaranteed hours for agency workers could be impractical for employers.

In response to the claims, Uniqlo told the Observer that it sometimes used “independent professionals” to supplement its team, while Urban Outfitters, Lush and Gymshark did not respond to an approach for comment.

YoungOnes told the paper it operated in accordance with UK law, connecting businesses with self-employed professionals.

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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