The future of gig work: addressing pay and conditions

Gig work—where individuals use digital platforms to find short-term, often task-based jobs—has seen a dramatic rise in recent years. However, the sector is characterised by significant challenges that urgently need attention.

As part of ReWAGE – the independent, expert advisory group conducting research to advise the government on challenges facing the UK’s productivity and prosperity – we have conducted a comprehensive study, summarising and synthesising existing data on gig work in the UK. The report offers a set of recommendations aimed at tackling the challenges faced by gig workers, as well as those in other precarious and insecure working arrangements such as zero-hours contracts.

The landscape of gig work in the UK

Gig work, also known as platform work, constitutes a small yet growing portion of the UK labour market. The key distinguishing feature of gig work is that it involves work that is arranged and organised via a platform or app.

According to the most recent data, just under 500,000 people—around 1.4% of the UK’s workforce—are engaged in gig work, often in sectors like taxi driving, food delivery, and courier services. Though the flexibility offered by gig work appeals to many, the reality is that gig workers face significant disadvantages compared to those in more traditional forms of employment.

Our summary of existing research highlights that earnings in the gig economy are low and often unpredictable, with up to a quarter of gig workers earning below the minimum wage. The task-based nature of gig work means that periods of inactivity between jobs are generally unpaid, leaving workers with uncertain incomes. Furthermore, research reveals that only 10-30% of gig workers view this work as their primary source of income, indicating that for many, it serves as a secondary or supplementary form of employment.

Legal status and social protections

One of the most contentious issues in the gig economy is the legal classification of gig workers. In the UK, the contract status of gig workers varies, with some classified as "self-employed contractors" and others as "workers," each of which offers different levels of legal rights and protections.

This lack of clarity exacerbates the precarious nature of gig work. Even when workers theoretically have access to certain employment rights, the inconsistent nature of gig work—irregular hours, low income—often renders these protections inaccessible in practice.

For example, because gig workers frequently work fewer hours or earn less than the thresholds required for various social protections (such as Universal Credit), they are often unable to accumulate benefits or rights in the same way as more traditionally employed workers.

The overlap with other precarious work

Our study extends beyond the gig economy to examine other forms of precarious work in the UK, such as temporary agency work, zero-hours contracts, and self-employment. Reviewing the evidence on these forms of employment, the study finds that they account for approximately 25% of the UK workforce. Workers in these categories face similar challenges to those in gig work, with lower pay and limited access to benefits and social protections.

Recommendations for policy change

To address the challenges facing gig workers, we have developed a number of policy recommendations aimed at improving pay and conditions. These recommendations align with broader efforts to improve working conditions for those in other precarious forms of employment.

1. Presumption of worker status

One of the most critical recommendations is to introduce a legal presumption of "worker" status for those engaged in gig work, similar to the approach being adopted by the EU. This change would grant gig workers access to essential rights such as the National Minimum Wage, paid annual leave, and employer pension contributions. It would provide clarity and reduce the ambiguity surrounding the employment status of gig workers.

2. Strengthening social protections

Another important recommendation is to ensure that gig workers have better access to social protections. Many of these benefits, such as pensions and National Insurance contributions, should be portable across platforms and employers, ensuring that workers can build up protections even if their income is irregular or they work for multiple companies.

3. Enhancing union access

Trade unions play a crucial role in representing workers’ rights, but gig workers often find themselves isolated from traditional forms of worker organisation. We recommend legislating a "digital right of access" for trade unions, allowing them to communicate with gig workers via digital platforms. Additionally, platforms should be required to provide gig workers with information about recognised trade unions when they start working.

4. Training and skill development

Gig workers should have access to state-provided training programmes to help them develop skills and qualifications that are transferable across sectors. This would provide them with greater opportunities for career progression and access to higher-paid, more secure jobs.

5. Platform accountability

Finally, platforms themselves should be held accountable for the conditions under which gig workers are employed. We propose that platforms be required to report data on worker numbers, pay levels, and contractual status to relevant labour inspection bodies. These bodies should be equipped with the resources necessary to monitor and enforce compliance with minimum wage laws and other labour standards.

Broader Implications for Precarious Work

The issues facing gig workers are not unique. Workers on zero-hours contracts, temporary agency contracts, and in self-employment face many of the same challenges. Therefore, we also recommend broader labour market reforms, including the creation of a single contractual status that would encompass both employees and workers, ensuring equal access to employment rights for both groups.

The abolition of exploitative zero-hours contracts and the introduction of clearer responsibilities for temporary agency workers would further strengthen the rights of nearly 1.5 million workers. By addressing these issues, conditions could significantly improve for a substantial portion of the UK workforce.

Conclusion

Our research into gig work and other forms of precarious employment paints a clear picture: while these forms of work offer flexibility, they come at a significant cost to workers’ pay, job security, and access to social protections. The gig economy is an evolving landscape, and the policy changes we propose will help to ensure that workers in this sector are treated fairly and afforded the rights and protections they deserve.

These recommendations are not just about improving conditions for gig workers—they are about addressing a broader issue of inequality in the UK labour market. By taking these steps, we can create a more equitable, just, and secure future for all workers.

Read the policy report and evidence paper for further recommendations and information.

A large majority of this blog post was produced via Generative AI after being provided with information from the policy report and supporting documents. The blog post has been edited and approved by the author.