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UK high street retailers have been accused of recruiting young workers as store assistants without basic employment rights over the busy Christmas period.
Major brands – such as Urban Outfitters, Lush, Gymshark, Uniqlo and Emma Sleep – are allegedly drafting in “freelance” shop assistants through gig apps for the festive season, which means the workers would not be covered by most employment protections because they are technically classed as self-employed.
Describing the new development as “worrying”, Tim Sharp, senior policy officer for employment rights at the Trades Union Congress (TUC), told the Observer: “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.”
Stores typically bring in agency workers – who have to basic employment rights, including holiday pay, the national minimum wage and adequate breaks – to deal with the increased number of shoppers during November and December.
However, the newspaper found young social media influencers, who have hundreds of thousands of followers, are promoting platforms, including YoungOnes and Temper, where retailers are sourcing gig workers who lack basic employment rights.
Over recent years, thousands have registered on these apps, which charge shops a flat fee for each hour worked by their pool of UK-based freelancers.
The workers will not be covered by the government’s proposed employment rights legislation, which includes a ban on exploitative zero-hour contacts.
Mr Sharp said: “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.”
Warning that more businesses in the future could exploit the loophole, he said: “It is worrying that at the very moment we’re going to see far stronger employment rights, some operators are coming in and seemingly offering employers a way around both existing and new legal protections.”
The government is planning to consult on a simpler two-part framework that differentiates between workers and the genuinely self-employed.
A Department for Business and Trade spokesperson told The Independent: “Bosses should never seek to deny people their employment rights and avoid their legal obligations by claiming someone is self-employed when they are not. If they do, workers can take them to an employment tribunal where they may be made to pay significant compensation.
“The Fair Work Agency will take a balanced approach that’s fair for both workers and businesses, will provide better support to businesses on how to comply with the law and will take tough action against rogue employers who exploit their workers.”
A spokesperson for Temper told The Independent: “In a growing worklessness crisis, Temper is proud to provide a platform that empowers independent contractors with flexibility, autonomy, and competitive rates, in a way that is fully compliant with UK law. Unlike zero-hours or ‘casual’ contracts, typical of UK retail, people working via Temper have the freedom to choose who they work for and when, they can negotiate their rate of pay 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 truly value, and which are not provided by zero hours / casual contracts.
“We also take our responsibility to shift-workers seriously. When working via Temper, any loss of earnings through illness is covered for up to 12 months (considerably longer than statutory sick pay), all shift workers are insured and lump-sum compensation is provided in case of accidents. These protections are not required by law (we choose to provide them) and they benefit client and shift-worker alike.”
Emma Sleep told the Observer that its work arrangements meet legal standards, adding that its approach enabled the company to “maintain a lean and adaptable workforce, while offering freelancers freedom and flexibility to choose their schedules and assignments”.
Describing those who join its team during busy periods as “independent professionals”, Uniqlo told the newspaper it is committed to fairness and complying with employment laws when it comes to its workers.
YoungOnes told the newspaper it operates in alignment with UK law, describing its work as linking businesses with self-employed professionals, who are able to freely negotiate their hourly rates and pick who they work for.
The Independent has approached Urban Outfitters, Lush, Gymshark, Uniqlo, Emma Sleep, YoungOnes and the TUC for further comment.