The transformation brought about by digital platforms and technological progress has

redefined the employment landscape in the United Kingdom. An expanding workforce now
actively participates in short-term, freelance, or part-time positions facilitated by online
platforms, collectively referred to as the gig economy.

The rise of the gig economy is linked to the appeal of autonomy in project selection, the
promotion of work-life balance, and the empowerment of individuals with flexibility in location
and working hours, thereby increasing job satisfaction. However, this shift is not without
challenges Freelancers of the gig economy grapple with concerns like inadequate pay,
stress, and anxiety amid the escalating costs of living.

Classifying gig workers in the UK proves intricate, with distinct categories like employees,
workers, and independent contractors, each carrying different rights and responsibilities.
Different cases and rulings add complexity, showcasing variations in gig models.

legislative changes addressing tax evasion being introduced to suit the changing markets
bring a different perspective and its own set of challenges. Businesses are also adapting to
reporting requirements in the industry by reclassifying gig workers as employees, offering
benefits but curtailing flexibility.

To empower gig workers and rectify power imbalances and to improve their rights,
engagement, and overall well-being comprehensive strategies are required.. Ongoing
regulatory efforts are crucial to navigate complexities and shape a more equitable gig
economy.
 UK Gig Economy

The emergence of digital platforms and technological progress has ushered in a new way of
working in the United Kingdom. Presently, an expanding workforce participates in short-term,
freelance, or part-time positions facilitated by online platforms. This phenomenon is known
as the gig economy, encompassing a growing population of individuals who choose
freelance work, undertaking diverse tasks for various clients, as opposed to adhering to a
conventional nine-to-five job. In the past, the UK's traditional economy was distinguished by
a more secure and organized employment structure, with individuals committing to long-term
careers under a single employer.

A 2018 report showed that 4.4% of Great Britain’s working population was part of gig
economy which made approximately 2.8 million people. It was also found that the people
working in gig economy were comparatively younger than the rest of the working population,
between the age of 18 to 34. (THE CHARACTERISTICS OF THOSE IN THE GIG
ECONOMY Final report, 2018)

Analysis by CIPD shows that in 2023, gig economy in UK made approximately 1.4% of total
employment in a labor force of over 32.5 million workers. In which desk-based services
covers 53% of workers followed by Manual personal services (20%) and food delivery
drivers (18%). (CIPD | The true story of the UK gig economy).

The rise of gig economy in current UK market is observed because of many reasons
including freedom to select projects to work fostering a better work-life balance and the
flexibility to choose both the location and hours of work empowers individuals leading job
satisfaction. Overall this model helps employees to have a personalised and adaptable
approach towards working. (The rise of the gig economy | The Gazette).

This change in working environment is also coming with its own set of challenges for
workers. Taking an example of food delivery drivers like those working for Uber as this was
the most commonly mentioned platform used according to a 2018 report by government of
UK. A total of 18 percent of those who had been involved in the gig economy indicated that
they had delivered services using the application. (THE CHARACTERISTICS OF THOSE IN
THE GIG ECONOMY Final report, 2018).
From fighting with technological algorithms to chasing multiple jobs and shifts, delivery
drivers like those working for Ubereats face many challenges. Competing with one another
in adversaries in order to increase earnings, getting jobs on the basis of reviews and rating
forces them to work harder on the same pay and also increase the chances of reduced work
availability or even dismissal. These are some of the issues faced by these independent
workers. (Bates et al., 2021).

Whereas in other kind of freelance jobs in the UK gig economy there are other major
concerns like dealing with low pay, stress, and anxiety. With the constant rise in everyday
costs like food, fuel, and housing, these workers go through a tough time and deserve better
pay and more protection. One key reason for the low payment rates is the substantial time
spent waiting or actively seeking work while connected to the platform. This not only results
in meagre pay but also exposes workers to high levels of insecurity and risk.

Classifying gig workers in the UK is a nuanced challenge with distinct categories.

Employees, enjoying full-time benefits, have fixed contracts and employer control. Workers
get basic protections such as National Living Wage. Independent contractors, self-employed
with substantial control, lack guaranteed minimum wage. A grey area complicates rights for
many gig workers. The Deliveroo ruling in 2023 added complexity, showcasing variations in
gig models. Implications are profound, impacting access to rights, job security, and well-
being. Clarity in legal definitions and consistent application are crucial for fair treatment.
Ongoing government reviews and legislative proposals could shape the future of gig worker
protections. (Employment Status Manual, no date).

In a significant win, the UK Supreme Court's 2021 decision mandated Uber to acknowledge
drivers as workers, granting them benefits such as minimum wage and paid holidays. The
point to note here is that this ruling exclusively pertains to Uber drivers and doesn't extend to
other platforms. Despite this legal development, studies reveal that many platforms continue
to fall short in guaranteeing that workers earn at least the minimum wage after accounting
for associated costs. (Butler, 2021).

Identifying who qualifies as a "worker" in the gig economy is a complex task that varies
based on individual circumstances. This complexity introduces uncertainty for many gig
workers and potentially opens doors for platforms to exploit loopholes in the system.

A relevant example of this is the case Deliveroo, In 2017, the IWGB sued Deliveroo,
advocating for riders to be classified as "workers" with rights like minimum wage and
collective bargaining. Deliveroo argued riders were independent contractors with schedule
autonomy. The Supreme Court favoured Deliveroo, citing riders' ability to arrange
substitutes, excluding them from "worker" status. (BBC News, 2018). This contrasts with the
2021 Uber ruling that granted "worker" status due to drivers' limited control. These cases
reveal the gig economy's intricate worker classification challenges, highlighting the ongoing
fight for gig workers' essential rights.
Meanwhile it is important to consider that as per the law, individuals designated as workers,
starting their job after April 6, 2020, have the right to get a written document outlining key
details like work hours, location, and payment frequency. Providing this document is a must
and should be done on or before the first day of work. It's important to know that while this
document shares information, it doesn't override the basic rights workers have under the
law. For instance, if the written terms state a pay rate below the National Minimum Wage,
the legal entitlement takes precedence, ensuring fair pay for the worker. (Rights for gig
economy workers | London City Hall, no date).

In 2018, the UK government put forth a series of workplace reforms designed to strengthen
safeguards for individuals on zero-hour contracts, agency workers, and those engaged in the
gig economy. The legislation aimed to educate workers about their rights starting on their
first day of employment, covering aspects like eligibility for paid leave. Furthermore,
employees would gain the right to request more predictable work hours. The reforms also
targeted closing loopholes that permitted agencies to pay staff less than permanent
counterparts and increasing the maximum fine for employers in tribunals. Although the
government praised the proposed changes as a significant step forward in workers' rights,
critics, including the Labour unions, argued that the suggested reforms were insufficient. The
ongoing debate questioned whether these reforms effectively tackled the complexities faced
by workers in contemporary employment structures, including gig economy positions and
zero-hour contracts. (BBC News, 2018).

As considering that employment rights can be adjusted for gig workers, a practical concern
arises: is classifying them as "employees" truly beneficial? Employment status carries both
rights and duties. For example, working for competing platforms, common among gig
workers, might be disallowed. If platforms were mandated to treat all workers as
“employees,” contracts would likely change, making gig workers conventional employees.
This shift could strip workers of flexibility, as they lose the ability to choose when and if to
work, potentially prompting them to abandon gig work. The transformation would turn gig
platforms into conventional employers, altering the nature of gig work.

A new change starting from January 1st, 2024 is that online platforms operating in the UK
are required by law to directly report the earnings of gig workers to HMRC (Her Majesty's
Revenue & Customs). This notable modification is designed to tackle many fundamental
many issue historically, tax evasion and underreporting were common among gig workers
due to challenges in accurately tracking and reporting income, creating disparities compared
to traditional employment. The new system is supposed to promote fairness and
transparency by ensuring equitable tax contributions, levelling the playing field.
Simultaneously, this will empower HMRC with accurate gig economy data, facilitating the
development of fair policies and the identification of discriminatory practices. The reform can
potentially alleviate the compliance burden on gig workers, simplifying tax calculations and
reducing the risk of errors. Accurate earnings data reported by platforms can not only
enhance gig workers' eligibility for benefits such as mortgages or credit cards but can also
become pivotal if future policies extend benefits like sick pay or pensions. Furthermore, the
potential future automatic reporting system will facilitate platform accountability, encouraging
fairer work models and heightened transparency within the gig economy. This multifaceted
reform is poised to mark a crucial step towards addressing longstanding challenges and
fostering a more equitable landscape for gig workers and traditional employees alike.

There are many changes bought by businesses as certain businesses are opting to
reclassify specific gig workers as employees to alleviate reporting responsibilities and meet
minimum wage and benefits standards. While this move could enhance job security and
benefits for the reclassified workers, it simultaneously diminishes flexibility for both the
business and the workers. As an illustration, Deliveroo, influenced by the Uber ruling in
2021, chose to designate some of its riders as employees, ensuring them minimum wage
and holiday pay. (Butler, 2017).

Another intricate trend in the gig industry is the utilization of technology to streamline
earnings reporting and supervise worker hours. Platforms are creating technology to
automate the process of reporting earnings and to more precisely monitor worker hours.
Uber's automatic time tracking system is a prime example of this technology in action. It
simplifies the process of earnings reporting for its drivers. While this streamlines compliance,
it may give rise to concerns about data privacy and contribute to heightened worker
apprehension regarding increased surveillance. (Mahato, Kumar and Jena, 2021).

While recent regulatory developments offer potential enhancements to worker rights and
market fairness, persistent endeavours are required to confront many issues.
 Conclusion

The UK gig economy, characterized by freelance and short-term work, offers freedom and
flexibility but also faces challenges like low pay, insecurity, and unclear worker rights. Legal
developments like Uber's "worker" classification and platform tax reporting improve fairness
and protections, but questions remain about benefits access, platform accountability, and
maintaining flexibility. Ongoing government measures and adaptation from platforms are
crucial for securing a decent and equitable future for UK gig workers.

Derived from the findings above, it is apparent that a holistic strategy is imperative to
empower gig laborers and rectify power imbalances with digital platforms. Primarily, the
institution of representative councils on platforms, similar to the co-determination rights in
Sweden, featuring elected representatives, holds substantial promise. These councils would
play a pivotal role in greenlighting significant changes, offering consultation on planned
modifications, and overseeing appeals and minimum pay rates. Their role is crucial in
ensuring active worker participation in decision-making, particularly concerning technological
shifts and algorithmic adjustments. Secondly, the introduction of routine online general
platform assemblies is equally pivotal, providing workers a medium to articulate their
opinions and scrutinize management. Thirdly, the establishment of a nationwide network of
publicly owned co-working spaces is aimed at alleviating social isolation for distant gig
workers. Lastly, the proposition of a financial facility aims to stabilize erratic earnings for
local gig workers, guaranteeing a steady monthly income. This amalgamation of measures
collectively aspires to enhance workers' rights, involvement, and overall well-being in the gig
economy.