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Retail workers have raised serious concerns regarding a new payment structure introduced by YoungOnes, a gig economy company that provides freelance assistants to several prominent retail brands. Workers claim they are being “held to ransom” as the company now demands a fee for expedited wage payments.
Under the revised system, gig workers face a charge of 4.8% on their earnings to receive payment within one minute, and a fee of 2.9% for payments issued within three days. If they opt out of these charges, they may have to wait up to 30 days for their wages. Previously, these workers received payment in three days without incurring any fees.
Tom Gillam, a gig worker at the Emma Sleep store in Manchester, expressed the challenges faced by individuals relying on unpredictable incomes. He highlighted the urgent need for quick access to funds for everyday necessities. “People do gig work for short-term cash … it feels like we’re being held to ransom,” he stated, describing the situation as “immoral.” Furthermore, he indicated that some colleagues had not received payment for shifts worked as far back as late November and December, stressing that the power dynamics of gig work leave freelancers with little recourse to voice their grievances.
Another worker shared his experience of having to borrow money from family members to afford Christmas gifts due to delayed payments. “It is unfair for people working on a low wage with reduced rights to be charged to get their money quickly,” he commented.
This situation is indicative of a broader trend of gig workers in the retail sector lacking fundamental employment rights, a concern that has prompted criticism from labor organizations. The Trades Union Congress (TUC) referred to this growing practice as “worrying,” highlighting the vulnerability of gig economy employees.
In response to these issues, Justin Madders, the Minister for Employment Rights, announced an inquiry into YoungOnes by the Employment Agency Standards Inspectorate. He emphasized the responsibility of employers to honor their legal obligations and condemned any attempts to circumvent protections designed for workers. “Action that reeks of this exploitation is intolerable,” he stated, reinforcing the government’s commitment to scrutinizing such practices.
As legislators examine new employment rights initiatives, there are fears that companies may attempt to sidestep these protections through the continued use of gig economy workers. Liam Byrne, chair of the business and trade committee, expressed profound concern over the potential for exploitation and the need for employees to receive proper legal protections, which currently do not extend to an estimated 4.4 million individuals in the gig economy.
The forthcoming employment rights bill is set to introduce critical protections, including safeguards against unfair dismissal, guaranteed hours for workers on zero-hour contracts, and the elimination of the waiting period for statutory sick pay. However, the absence of protections for gig workers highlights significant gaps in the current regulatory framework.
Margaret Beels, the independent director of labor market enforcement, remarked on the complexities of the UK’s employment status system, which categorizes workers into three tiers: full employees with comprehensive rights, casual workers with limited rights, and freelancers with virtually no rights. She noted that this system is often manipulated, allowing companies to shift workers between categories to avoid responsibilities. Beels urged the government to expedite reforms, insisting immediate action is needed to address these labor market inequalities.
Responding to the backlash, James Medd, COO of YoungOnes, defended the payment system, asserting that it provides freelancers options regarding their payment schedules. “We deeply value the freelancers on our platform and understand the challenges they face,” he added, emphasizing the flexibility offered to workers in choosing their engagements.
Representatives from Emma Sleep acknowledged the seriousness of the allegations and noted that while some payment-related issues had been reported, they believed most team members had received timely payments in recent weeks. They reiterated their commitment to improving the work experience for freelance employees while ensuring compliance with labor laws.
Source
www.theguardian.com