The gig economy has been a topic of controversy for some time now, with concerns about worker rights and fair treatment at the forefront of the discussion. Recently, a firm called Temper Works has come under fire for its approach to navigating new fair tipping laws and a forthcoming ban on zero-hours contractors in the hospitality industry.
Temper Works, a Netherlands-based company that supplies workers to over 5,000 companies, including well-known establishments like Hard Rock Cafe, Alexandra Palace, and Claridge’s, has been promoting its freelance workforce as a way for businesses to avoid the implications of the new tipping legislation. The firm claims that gig economy workers sourced through its platform are not covered by the provisions of the Employment (Allocation of Tips) Act, which came into force last month. This act requires firms to share all tips between workers, including temporary agency staff, in response to public outcry over chains deducting tips intended for staff.
The Unite union, which advocated for the new tipping rules, has criticized Temper Works for potentially excluding gig workers from tip shares, arguing that they are not genuinely self-employed and should be entitled to fair treatment. Additionally, Temper Works is advising companies to use its pool of freelancers to circumvent a proposal to ban zero-hours contracts, which is a key aspect of Labour’s new worker’s rights legislation.
In response to the criticism, Temper Works has defended its practices, stating that it operates transparently and in accordance with UK law. The company asserts that it is a platform for work, not an employment agency, and that its independent contractors have protections and benefits that are not typically offered to agency staff. These protections include a minimum hourly rate, compensation for loss of earnings, and the ability to negotiate rates and hours.
Despite the controversy surrounding its practices, Temper Works maintains that its model puts control back in the hands of the workers, allowing them to choose their hours and work on a flexible basis. The company argues that the government’s zero-hours ban may not necessarily benefit employees, whereas the independent contracting model offers more autonomy and choice to those working in the gig economy.
Overall, the debate over the gig economy, fair treatment of workers, and compliance with new legislation continues to be a contentious issue. As the government considers consulting on a simpler employment framework to distinguish between genuine self-employment and other types of workers, it remains to be seen how companies like Temper Works will adapt to changing regulations and expectations in the industry.
