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UK retailers have been accused of hiring young workers as dependents without basic employment rights during the busy Christmas period.
Major brands including Urban Outfitters, Lush, Gymshark, Uniqlo and Emma Sleep are reportedly recruiting “freelance” shop assistants through job apps for the holiday season, meaning workers would not be covered by most protections because they are technically classified as self-employed workers.
Tim Sharp, senior policy officer for workplace rights at the Trades Union Congress (TUC), described the new development as “worrying”. the independent: “Most people would find it absurd that someone could do work like a workshop and not be entitled to basic legal protections. There is a big question about the employment situation of these supposed self-employed workers.”
Stores often employ agency workers (who have basic employment rights including holiday pay, the national minimum wage and appropriate breaks) to cope with increased numbers of shoppers during November and December.
However, the Observer found that young social media influencers, who have hundreds of thousands of followers, are promoting platforms, including YoungOnes and Temper, where retailers hire workers who lack basic employment rights.
In recent years, thousands of people have signed up to these apps, which charge stores a flat rate for each hour worked by their pool of UK-based freelancers.
Workers will not be covered by the government's proposed workplace rights legislation, which includes a ban on exploitative zero-hours contacts.
Sharp said: “This is about businesses being able to flex staff up and down – this clearly involves transferring risk from the business owner to the individual member of staff and we think that is unacceptable.”
Warning that more companies in the future could take advantage of the loophole, he said: “At the same time that we are going to see much stronger labor rights, some operators are coming in and apparently offering employers a way to circumvent new legal protections and existing. “
The government plans to consult on a simpler two-part framework that differentiates between workers and genuinely self-employed workers.
A spokesperson for the Department of Business and Commerce said the independent: “Bosses should never try to deny people their employment rights and avoid their legal obligations by claiming that someone is self-employed when they are not. If they do, workers can take them to an employment tribunal where they can be forced to pay significant compensation.
“The Fair Work Agency will take a balanced approach that is fair to both workers and businesses, provide better support to businesses on how to comply with the law and take tough action against dishonest employers who exploit their workers.”
A Uniqlo spokesperson said: “To meet varying operational demands and maintain excellent standards for our customers during peak times such as the festive period, Uniqlo supplements its existing team by hiring temporary workers who receive the same salary as our permanent employees, £13 ,15. (central rate) and £12.15 (suburban rate). Temporary contract workers are independent professionals, we recognize the value of their contributions and are committed to treating all workers fairly and in accordance with local labor laws.”
A Temper spokesperson said: “In a growing unemployment crisis, Temper is proud to offer a platform that gives independent contractors flexibility, autonomy and competitive rates, in a way that fully complies with UK law. Unlike the zero-hours or “casual” contracts typical of UK retail, people working through Temper have the freedom to choose who they work for and when, they can negotiate their salary upwards (our average is over £14) and be paid within 24 hours. These are rights and protections that young people or those seeking flexible work really value, and that are not offered in zero-hours or casual contracts.
“We also take our responsibility to shift workers seriously. When working through Temper, any loss of income due to illness is covered for up to 12 months (much longer than statutory sick pay), all shift workers are insured and lump sum compensation is provided in the event of an accident. These protections are not required by law (we choose to provide them) and benefit both the client and the shift worker.”
Emma Sleep told the Observer that its work arrangements meet legal standards, adding that its approach allowed the company to “maintain an agile and adaptable workforce, while offering freelancers freedom and flexibility to choose their schedules and assignments.”
YoungOnes told the newspaper that it operates in accordance with UK law and described its work as matching companies with self-employed professionals, who can freely negotiate their hourly rates and choose who to work for.
the independent has contacted Urban Outfitters, Lush, Gymshark, Emma Sleep and YoungOnes for further comment.
