Retail assistants working for a gig economy firm have recently raised concerns about a new payment system that they claim is holding them to ransom. YoungOnes, a company that supplies freelance retail assistants to various high street stores, has implemented a payment structure that charges workers a fee if they wish to receive their wages within a month. This fee amounts to 4.8% of their earnings for immediate payment or 2.9% for payment within three days. If they decline these options, they are typically forced to wait 30 days for their wages, whereas previously they were paid within three days without any charge.
The impact of this new payment system is significant for gig workers like Tom Gillam, who has worked multiple shifts at a store in Manchester. Gillam emphasized that individuals who rely on gig work for short-term cash need quick access to their earnings to cover essentials and pay bills. He expressed frustration at feeling like they are being held to ransom by having to pay a fee to access their own wages, calling the practice immoral.
Another worker at the Manchester store shared a similar sentiment, revealing that he had to borrow money from his family to afford gifts and travel expenses for Christmas due to delays in receiving his wages. This situation highlights the unfairness of charging individuals on low wages, with limited rights, to access their earnings promptly.
The concerns raised by retail assistants working in the gig economy have prompted government intervention. The minister for employment rights, Justin Madders, has pledged to investigate the allegations against YoungOnes and demand answers from the company. He emphasized the importance of ensuring that employers do not exploit workers by misclassifying them as self-employed to avoid legal obligations.
The broader issue of employment rights in the gig economy has also come under scrutiny. The government’s proposed employment rights legislation aims to provide new protections for workers, including immediate protection from unfair dismissal and guaranteed hours for those on zero-hour contracts. However, these protections do not extend to the estimated 4.4 million people working in the gig economy, raising concerns about potential exploitation and abuse of vulnerable workers.
The complex nature of employment status in the UK, with its three-tier system of full rights for employees, limited rights for casual workers, and no rights for freelancers, has been criticized for enabling sharp practices and abuse. Calls for the government to act swiftly to address these issues have been made, emphasizing the need for a more streamlined and protective framework for all workers.
In response to the allegations, YoungOnes’ chief operating officer, James Medd, defended the new payment system, stating that it offers freelancers the option to choose between standard payment terms or faster payment options at a cost. He emphasized the company’s commitment to providing freelancers with independence and flexibility in their work arrangements.
Overall, the concerns raised by retail assistants working in the gig economy shed light on the challenges faced by individuals in precarious employment situations. The need for fair and transparent payment practices, as well as robust employment rights protections, is essential to ensure the well-being and security of all workers in the modern economy.
