13 January 2017

The Law Society has backed the idea of simplifying the definition of employment status to reduce exploitation in the gig economy.

In evidence to the Department of Business' Committee inquiry into the future world of work and rights of workers, the Law Society said that granting a different suite of rights to "workers" and "employees" causes confusion and opens workers up to abuse.

"The very existence of a separate category of 'worker' creates uncertainty. As a result many people have no clear idea of their true legal status. This can encourage a business to try to impose a particular status, which is more closely related to what they wish the relationship to be rather than what the relationship is in reality," the authors said.

Indeed, this has been seen to happen in the gig economy in companies such as Uber and CityLink courier services, both of which have lost tribunal cases in which they attempted to argue their workers were self-employed. In reality, the tribunal found on both occasions that the relationship between the company and those working for it was that of a worker, not of an independent contractor.

The Institute of Employment Rights recommends in its Manifesto for Labour Law that a universal definition of worker should be imposed, which provides all people in employment with access to all workers' rights from day one.

Read more about our Manifesto for Labour Law and purchase your copy